Mission Produce, Inc. (NASDAQ: AVO) reported record fiscal 2025 revenue of $1.391 billion, up 13% year‑over‑year, and an adjusted earnings per share of $0.31, beating the consensus estimate of $0.19 by $0.12 (a 63% beat). The company’s fourth‑quarter revenue totaled $319 million, a 10% decline from the $354.4 million reported in Q4 2024, driven primarily by lower avocado prices despite a 7% volume increase in the Marketing & Distribution segment.
Full‑year revenue growth was supported by strong performance in Mission’s core Marketing & Distribution and International Farming segments. In Q4 2024, Marketing & Distribution generated $271.9 million and International Farming $59.7 million; both segments saw volume gains that offset the price decline. The blueberry segment grew 16% to $36.5 million in revenue, but its adjusted EBITDA fell due to lower per‑unit margins and higher costs from reduced yields.
Gross margin expanded to 17.5% in Q4, up 180 basis points from 15.5% in the prior year, as the company leveraged its integrated global platform to maintain pricing power on a per‑unit basis. Adjusted EBITDA rose 12% to $41.4 million, reflecting higher owned avocado production and increased mango and blueberry volumes. The EPS beat was largely driven by strict cost controls, efficient scale, and a favorable mix shift toward higher‑margin products.
Mission’s capital‑expenditure cycle is now complete. Management expects fiscal 2026 capex to step down to approximately $40 million, a reduction that will accelerate free‑cash‑flow generation and support debt reduction. Operating cash flow reached $88.6 million for the year, and long‑term debt fell by $18 million, leaving net leverage well below 1× EBITDA.
Leadership transition was highlighted as a key milestone: founder Steve Barnard will transition to Executive Chairman, while President and COO John Pawlowski will assume the CEO role in April 2026. Barnard emphasized that the company’s integrated platform and volume‑centric strategy will continue to drive growth, while Pawlowski underscored the importance of international expansion, particularly in Europe, and the continued focus on operational excellence.
Investors responded positively to the earnings beat and margin improvement, citing the company’s ability to generate strong cash flow despite commodity price volatility. Analysts noted the company’s robust free‑cash‑flow outlook and the completion of its capital‑investment cycle as indicators of future financial flexibility.
Looking ahead, Mission expects continued volume growth, especially in the U.S. and European markets, while managing headwinds from commodity price volatility and weather impacts on yields. The company’s strategic focus on integrated farming, distribution, and international expansion positions it to sustain its competitive advantage and deliver shareholder value over the long term.
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