Mission Produce® Announces Fiscal 2026 First Quarter Financial Results; Steve Barnard and John Pawlowski Comment

OXNARD, CA - Mission Produce, Inc., a world leader in sourcing, producing, and distributing fresh Hass avocados, reported its financial results for the fiscal first quarter ended January 31, 2026.

Fiscal First Quarter 2026 Financial Overview:

• Total revenue of $278.6 million and achieved volume growth of 14% compared to the same period last year
• Net loss attributable to Mission Produce of $(0.7) million, or $(0.01) per diluted share, which includes the impact of transaction advisory costs of $7.0 million on a pretax basis, compared to income of $3.9 million, or $0.05 per diluted share, for the same period last year
• Adjusted net income increased 3% to $7.3 million, or $0.10 per diluted share as compared to $7.1 million, or $0.10 per diluted share, for the same period last year
• Adjusted EBITDA increased 5% to $18.5 million, compared to $17.7 million in the same period last year

CEO Message

Steve Barnard, CEO of Mission, stated in the recent release, "We are off to a strong start in fiscal 2026, delivering 14% avocado volume growth and strong adjusted EBITDA results as industry pricing normalized from the elevated levels experienced over the past year. These results demonstrate our business model's resilience and our team's ability to execute consistently across market conditions. We're deepening customer relationships and expanding category penetration while focusing on the two levers that drive long-term value: volume growth and per-unit margin management. This approach delivered gross margin expansion in the quarter, reflecting ongoing optimization in our Marketing & Distribution segment and operational discipline across our platform."

John Pawlowski, President and Chief Operating Officer and CEO-designate of Mission, stated, "We are also very excited about the progress we are making on our pending acquisition of Calavo Growers. This transaction represents a tremendous opportunity to expand our avocado platform, diversify our product portfolio, and enter the attractive prepared foods segment—all while unlocking at least $25 million in expected annual synergies. Integration planning is underway and we believe that the transaction is on track to close during the fiscal third quarter. Combined with the strong financial foundation we've built—including a healthy balance sheet and enhanced free cash flow—we believe Mission is exceptionally well positioned for the next chapter of growth and value creation."

Fiscal First Quarter 2026 Consolidated Financial Review

Total revenue for the first quarter of fiscal 2026 decreased $55.6 million or 17% to $278.6 million compared to the same period last year. The decrease was primarily driven by a decrease in per-unit avocado sales prices of 30% partially offset by an increase in avocado volume sold of 14%. Volume and price movements in the Marketing and Distribution segment were driven by increased Mexican avocado supply due to higher yields in the current year.

Gross profit was $31.6 million in the first quarter of fiscal 2026, consistent with the prior year, while gross margin increased 190 basis points compared to the same period last year, to 11.3% of revenue. Gross profit margin improvement was driven by the Company’s Marketing & Distribution segment, which saw higher avocado volumes and improved per-unit margins as compared to the prior year period. Performance was partially offset by lower Blueberries segment gross profit margin due to lower per-acre yield resulting in higher per-unit fruit production costs.

Selling, general and administrative expense (“SG&A”) for the first quarter increased $6.9 million or 31% to $29.1 million, compared to the same period last year due to transaction advisory costs of approximately $7.0 million associated with the pending acquisition of Calavo Growers.

Net loss attributable to Mission Produce for the first quarter of fiscal 2026 was $(0.7) million, or $(0.01) per diluted share, which includes the impact of transaction advisory costs. This compares to income of $3.9 million, or $0.05 per diluted share, for the same period last year.

Adjusted net income for the first quarter of fiscal 2026 was essentially flat with the prior year at $7.3 million, or $0.10 per diluted share, as compared to $7.1 million, or $0.10 per diluted share, for the same period last year.

Adjusted EBITDA increased $0.8 million or 5% to $18.5 million for the first quarter of fiscal 2026, as compared to $17.7 million in the prior year period, driven primarily by higher avocado volume sold and improved per-unit margins in the Marketing & Distribution segment, partially offset by higher per-unit fruit production costs in the Blueberries segment.

Blueberries

Sales in the Blueberries segment have traditionally been concentrated in the first and fourth quarters of the fiscal year in alignment with the Peruvian blueberry harvest season.

Total segment sales in the Blueberries segment increased $4.4 million or 12% to $40.8 million for the first quarter, compared to $36.4 million for the same period last year, primarily due to increases in average per-unit sales price and volume sold of 9% and 3%, respectively.

Segment operating income was $1.1 million for the first quarter compared to $7.6 million in the same period last year and segment adjusted EBITDA was $3.3 million compared to $6.2 million in same period last year. The decrease in adjusted EBITDA was due to lower per-acre yield, resulting in higher per-unit fruit production costs.

Pending Acquisition of Calavo Growers, Inc.

On January 14, 2026, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Calavo Growers, Inc. and its affiliates (“Calavo”). Calavo is a leading provider of fresh avocados, tomatoes, papayas, and value-added prepared foods, including a variety of ready-to-eat products such as guacamole and salsas. Its products are sold under the Calavo brand name, proprietary sub-brands, as well as private labels and store brands. Under the terms of the Merger Agreement, Calavo stockholders will receive $14.85 in cash per share and 0.9790 shares of Company common stock for each share of Calavo common stock, totaling approximately $490 million in consideration at the time of the announcement. Changes in Mission Produce’s share price on the date of closing, as compared to on the date of the announcement, could increase or decrease the total amount of consideration.

The transaction will enhance Mission’s position in the North American avocado category with expanded supply reliability across Mexico and California. The transaction also represents entry for Mission into the high-growth and attractive prepared food sector, complementing Mission’s existing value-added avocado business. The transaction also provides a significant value opportunity for both Mission and Calavo shareholders to realize cost synergies and SG&A savings. The transaction is expected to close in the third fiscal quarter of 2026, subject to the receipt of required regulatory approvals, the approvals of Mission and Calavo shareholders, and the satisfaction of other customary closing conditions.

Outlook

For the second quarter of fiscal year 2026, the Company is providing the following industry outlooks that will drive performance:

• Avocado industry volumes in the fiscal 2026 second quarter are expected to increase by 10-15% versus the prior year period, driven by a larger Mexican crop in the current harvest season.
• Pricing is expected to be lower on a year-over-year basis by 30-35% compared to the $2.00 per pound average experienced in the second quarter of fiscal 2025, driven by higher supply conditions.
• Harvest timing for the 2025/26 Peruvian blueberry season is accelerated in relation to the prior year, leaving 10-15% of the harvest to be sold through in the fiscal second quarter. The Company expects to see volume reductions from owned farms resulting from earlier pruning in the current year, which should translate to lower revenue despite expectations for higher sales prices. Profitability will continue to be impacted by higher costs resulting from lower projected yields per hectare in the current harvest season.
• For full year fiscal 2026, total capital expenditure is expected to be approximately $40 million.

See the full release here.