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The call presented a mixed picture: near-term financial results were weak (revenue down 24%, adjusted EBITDA and net income materially lower) driven by a temporary oversupply and size-curve mismatch that compressed margins. Offsetting those near-term negatives were meaningful commercial positives (15% volume growth, strong category expansion with 1.6 million new households), an early close of the Calavo acquisition with a clear $25M synergy target, stronger second-half guidance (Q3 EBITDA $28–32M; H2 EBITDA $84–88M), and operational levers (multi-region sourcing, Peruvian production ramp and prepared foods opportunity) expected to drive margin recovery and longer-term growth.
Mission’s guidance calls for consolidated fiscal Q3 adjusted EBITDA of $28–$32 million (including a partial-quarter Calavo contribution) and consolidated second-half adjusted EBITDA of $84–$88 million; management does not expect material synergy realization in Q3 but targets at least $25 million of annualized cost synergies within 18 months with benefits beginning in Q4 and ramping into fiscal 2027. For Q3 the industry is expected to see avocado volumes up ~5–10% year-over-year while pricing is forecast to be roughly 15% below the $1.75/lb average in Q3 FY25; Mission’s Peruvian exportable production is expected at 120–130 million pounds (vs. 105 million last year) with sales weighted to Q4. The company reiterated fiscal-year CapEx near $45 million (including modest Calavo spend), reported cash of $33 million as of 4/30/2026 and $21 million net cash used in operating activities in the first six months, and noted recent Q2 figures of $290.9 million revenue (down 24%), $7.1 million adjusted EBITDA, $0.8 million adjusted net income ($0.01 per diluted share), and 15% avocado volume growth in Q2.
Avocado volume sold increased 15% year-over-year in Q2; U.S. avocado consumption rose by "strong double digits" versus last year and more than 1.6 million new households entered the category during the quarter, supporting longer-term demand tailwinds.
Company-owned Peruvian exportable production forecasted to be ~20% greater than last year, with expected exportable production in the 120–130 million pound range (versus 105 million last year), with sales weighted toward fiscal Q4.
Calavo transaction closed May 28 earlier than expected; company expects a minimum of $25 million of annualized cost synergies achievable within 18 months of close, with benefits anticipated to begin in Q4 and ramp into fiscal 2027.
Combined-company guidance includes Q3 consolidated adjusted EBITDA of $28–32 million and consolidated second-half adjusted EBITDA of $84–88 million, reflecting expected margin recovery, Peruvian contributions and Calavo integration.
Despite Q2 margin pressure, the Marketing & Distribution segment's gross profit increased approximately 5% on a first-half basis year-over-year, aided by the 15% avocado volume growth and strong commercial execution.
Blueberry segment adjusted EBITDA improved to $1.2 million in Q2 versus $0.8 million prior year; newer acreage is maturing and management expects yields and per-unit costs to improve as farms reach full productivity.
Board extended the share repurchase program; cash and cash equivalents were $33.0 million as of 04/30/2026, and full-year CapEx guidance of approximately $45 million (including modest Calavo-related spend) was provided.
Management highlighted multi-region sourcing and vertical integration as durable competitive advantages and identified Calavo's prepared foods (guacamole/ready-to-eat) as a higher-margin adjacency with meaningful growth runway.
Good afternoon, welcome to the Mission Produce Fiscal Second Quarter 26 Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please also note today's event is being recorded. At this time, I would like to turn the conference call over to Andrew Pearson, Vice President of Investor Relations. And strategy for Mission Produce. Sir, please go ahead.
Thank you, and good afternoon. Today's presentation will be hosted by John Pawlowski, President and Chief Executive Officer and Bryan E. Giles, Chief Financial Officer.
The comments during today's call contain forward looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 2000. All statements other than statements of historical facts are considered forward-looking statements. These statements are based on management's current expectations and beliefs as well as a number of assumptions concerning future events. Such forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from the results discussed in the forward-looking. Some of these risks and uncertainties are identified and discussed in the company's filings with the SEC. Also refer to certain non GAAP financial measures. Please refer to the tables included in the earnings release, which can be found on our Investor Relations website investors.missionproduce.com, for reconciliations of non GAAP financial measures to their most directly comparable GAAP me...