Mission Produce (AVO) announced fiscal third‑quarter 2026 results on September 8, 2026. Revenue rose 26% year‑over‑year to $450 million, well above Wall Street’s $280.73 million consensus, a beat of $169.27 million or 60.3%. Adjusted earnings per share came in at $0.18, missing the $0.20 estimate by $0.02 (10%). Adjusted EBITDA reached $32.4 million, edging past the company’s $28‑$32 million guidance range and topping the prior‑year $32.6 million figure.
GAAP results showed a net loss of $6.5 million, or $0.08 per diluted share. Adjusted net income fell to $15 million from $18.2 million a year earlier. Gross profit slipped slightly to $44.7 million, with gross margin declining 270 basis points to 9.9% versus 12.6% a year ago. SG&A expenses, excluding transaction advisory and integration costs, increased to $31.6 million from $24 million. Transaction advisory and integration costs totalled $12.6 million, reflecting legal, advisory, severance and retention fees.
Other GAAP cost items included $5.2 million of acquired inventory step‑up amortization, $1.5 million of acquired intangible amortization and $6.1 million for financing, tax and supply‑chain optimization. Cash and cash equivalents stood at $47.1 million as of July 31, while long‑term debt was about $400.3 million. The current ratio improved to 1.91.
Segment performance showed the Marketing and Distribution unit generating $414.3 million in sales, up from $344.1 million a year earlier, and delivering $24.7 million of adjusted EBITDA versus $20 million previously. The newly reported Prepared Foods segment, which now includes Calavo’s guacamole business, posted $15.5 million in sales and $0.2 million of adjusted EBITDA.
Operational metrics highlighted a 38% rise in avocado volume sold to roughly 253 million pounds. Average selling prices fell 9% year‑over‑year amid higher supply. U.S. retail avocado volume grew about 9%, and per‑capita consumption stayed above 10 pounds, 12% higher than the prior year. Legacy U.S. market share rose about 60 basis points year‑to‑date. Exportable production from owned Peru farms is projected at 120‑130 million pounds for the upcoming harvest, up from 105 million pounds.
Management increased its annualized cost‑synergy target to more than $30 million, up from at least $25 million, expecting realization within 18 months of the Calavo close. The company reaffirmed its second‑half adjusted EBITDA outlook of $84‑$88 million and projected Q4 adjusted EBITDA of $52‑$55 million. Fiscal‑2026 capital spending is expected to be about $45 million, including legacy Calavo expenditures.
The stock closed the regular session at $12.89, up 1.66% from $12.68, and rose 6.37% in after‑hours trading to $13.69, a combined gain of roughly 7.9% from the prior close. The 52‑week range is $10.07‑$15.53, with a market capitalization of $1.13 billion and a P/E ratio of 39.78. Analyst price targets range from $15 to $18, implying about 30% upside. The InvestingPro health score was rated "GOOD" at 2.5 out of 5.
CEO John Pawlowski said the adjusted EBITDA of $32.4 million exceeded the high end of expectations, driven by strong marketing and distribution performance and early progress on Calavo integration. CFO Bryan Giles noted that synergies are expected to start contributing in Q4 and to build more meaningfully throughout fiscal 2027.
