Core Insights - Dole plc is a significant player in the agriculture industry, focusing on fresh produce and competing globally with other major agricultural firms [1] Financial Performance - Dole reported an EPS of $0.16, slightly below the estimated $0.168, representing a 5.88% negative surprise compared to the Zacks Consensus Estimate [2][6] - Revenue reached approximately $2.28 billion, surpassing the estimated $2.15 billion, marking a 1.33% beat over the Zacks Consensus Estimate and an increase from $2.06 billion in the previous year [3][6] Valuation Metrics - The company has a P/E ratio of 54.45, indicating strong investor confidence in its earnings potential [4][6] - Dole's price-to-sales ratio is 0.15 and the enterprise value to sales ratio is 0.28, reflecting a favorable market valuation relative to revenue [4] Financial Stability - Dole's balance sheet shows a debt-to-equity ratio of 1.06, indicating a moderate level of leverage [5] - The current ratio of 1.26 suggests a reasonable liquidity position to cover short-term liabilities, supporting the company's ability to navigate market challenges [5]

Core Insights - Dole plc reported third-quarter adjusted earnings below expectations, with adjusted earnings per share at $0.16 compared to the analyst consensus of $0.18, while revenue was $2.28 billion, exceeding estimates of $2.19 billion and reflecting a 10.5% year-over-year increase [1][2] Financial Performance - Net income declined by 35.7% to $13.8 million, primarily due to a $10.2 million loss from discontinued operations related to the sale of its Fresh Vegetables division [2] - Adjusted EBITDA for the Fresh Fruit segment fell by 36.7% to $27.2 million, impacted by higher banana costs due to Tropical Storm Sara in Honduras and rising sourcing costs for pineapples and plantains [3] Business Outlook - Despite the earnings shortfall, Dole reaffirmed its confidence in the outlook, expecting full-year adjusted EBITDA to reach the upper end of its target range of $380 million to $390 million [4]

Market Overview - U.S. equity markets are experiencing robust gains, driven by optimism over a potential resolution of the government shutdown and a strong rebound in the technology sector [1][3] - Major indexes are recovering from last week's declines, with the Nasdaq Composite leading the charge, climbing between 1.4% and 1.9% [2][3] Sector Performance - Growth-oriented sectors, particularly technology, are showing strong performance, with AI-related stocks leading the recovery despite previous valuation concerns [4] - Energy and industrial stocks are also contributing positively, while health insurers are declining due to uncertainty over healthcare tax credits [4] Corporate Earnings - Approximately 82% of S&P 500 companies have exceeded earnings estimates this reporting season, marking the highest rate in four years [6] - Notable companies reporting include CoreWeave, Barrick Mining, and Paramount Skydance, with Cisco Systems set to report later this week [6] Major Stock Movements - Nvidia is a standout performer, surging between 3.7% and 4%, recently reaching a $5 trillion valuation [11] - Pfizer is acquiring Metsera for approximately $10 billion, impacting both companies' stock prices [11] - Tesla shares are up around 4% following shareholder approval of CEO Elon Musk's pay package [11] - Palantir Technologies is bouncing back, jumping between 6.7% and 8% after a prior decline [11] - Taiwan Semiconductor Manufacturing Co. saw its stock rise 3.1% to 3.2% after reporting nearly 17% year-over-year revenue growth [11] - Plug Power Inc. plans to generate over $275 million through asset monetization and operational efficiencies [11]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $2.3 billion, reflecting a 10.5% increase on a reported basis and an 8% increase on a like-for-like basis, indicating strong underlying growth across segments [13][14] - Net income decreased due to a $10 million loss in discontinued operations and an $8 million non-cash fair value charge, partially offset by $10 million in insurance proceeds and higher earnings from equity method investments [13][14] - Adjusted EBITDA decreased by $1.3 million, primarily due to declines in the fresh fruit segment, while adjusted net income decreased by $3 million [13][14] Business Line Data and Key Metrics Changes - Fresh fruit revenue increased by 11%, driven by higher volumes and pricing of bananas, pineapples, and plantains, but faced higher sourcing costs impacting Adjusted EBITDA [15][16] - Diversified EMA segment reported an 11% revenue increase, with Adjusted EBITDA rising by $10 million or 34%, supported by strong performances in Scandinavia, Spain, and the Netherlands [16] - Diversified Americas segment saw an 8% revenue increase, with Adjusted EBITDA up by $4 million or 46%, driven by strong performance in the southern hemisphere export business and North American market [16] Market Data and Key Metrics Changes - Demand for bananas remains robust in North American and European markets, contributing to tight supply and cost pressures [10] - The company is experiencing strong underlying growth in key markets, particularly in Spain and the Netherlands, with positive momentum continuing into the third quarter [10][11] Company Strategy and Development Direction - The company completed the sale of its non-core fresh vegetable division, enhancing capital allocation flexibility and focusing on core operations [5][6] - A $100 million share repurchase program was announced to enhance shareholder value, indicating a strategic approach to capital allocation [6][20] - The launch of the new Dole Collada Royale Pineapple represents a significant innovation, aimed at enhancing the tropical product portfolio and community support [7][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic volatility and industry-specific factors affecting results, particularly in the banana supply chain [20] - The company expects full-year Adjusted EBITDA to be at the upper end of the targeted range of $380-$390 million, reflecting confidence in business momentum despite challenges [20] - Management remains optimistic about the long-term growth potential and strategic positioning within the sector [20][21] Other Important Information - Cash capital expenditure for the quarter was $20.9 million, with a reduction in full-year routine capital expenditure expectations to approximately $85 million [17][18] - The company declared an $8.50 dividend for the third quarter, to be paid in January [19] Q&A Session Summary Question: Outlook for the fourth quarter and cost pressures - Management highlighted challenges in forecasting due to macroeconomic volatility and specific headwinds in sourcing costs, particularly for bananas, impacting guidance for Q4 [24][25] Question: Updates on tariff exclusions for agricultural products - No new updates were provided regarding tariff exclusions, but management expressed confidence in the long-term resolution of tariff issues affecting tropical produce [27][28] Question: Insights on capital allocation and buyback program - The buyback program is part of a broader capital allocation strategy, allowing for flexibility in pursuing growth opportunities while maintaining a progressive dividend policy [37][39] Question: Status of annual contracting negotiations - Management indicated that negotiations are ongoing, with awareness of supply conditions among customers, and expressed optimism about future discussions [51][53] Question: Performance in diversified fresh produce - Management noted strong market positions in Europe and North America, with ongoing investments enhancing operational efficiency and customer offerings [55][57]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $2.3 billion, representing a 10.5% increase on a reported basis and an 8% increase on a like-for-like basis, reflecting strong underlying growth across segments [13][19] - Net income decreased due to a $10 million loss in discontinued operations and an $8 million non-cash fair value charge, partially offset by $10 million in insurance proceeds and higher earnings in equity method investments [13][19] - Adjusted EBITDA decreased by $1.3 million, primarily due to declines in the fresh fruit segment, while adjusted net income decreased by $3 million [14][19] Business Line Data and Key Metrics Changes - Fresh fruit revenue increased by 11%, driven by higher volumes and pricing of bananas, pineapples, and plantains, but faced higher sourcing costs leading to decreased adjusted EBITDA [15][16] - Diversified EMA segment reported an 11% revenue increase, with adjusted EBITDA rising by $10 million or 34%, driven by strong performance in Scandinavia, Spain, and the Netherlands [16][10] - Diversified Americas segment saw an 8% revenue increase, with adjusted EBITDA up by $4 million or 46%, attributed to strong performance in the southern hemisphere export business and North American market [16][11] Market Data and Key Metrics Changes - Demand for bananas remained robust in North American and European markets, contributing to tight supply and cost pressures [10][9] - The company is experiencing strong underlying growth in key markets, particularly in Spain and the Netherlands, with positive momentum continuing into Q4 [10][11] Company Strategy and Development Direction - The company completed the sale of its non-core fresh vegetable division, enhancing capital allocation flexibility and allowing for a $100 million share repurchase program [5][6] - The launch of the new Dole Collada Royale Pineapple aims to provide a competitive edge and stimulate excitement in the tropical category, reinforcing the company's commitment to community support [8][9] - The company is focused on integrating operations and streamlining its business model to enhance efficiency and attractiveness to key customers [57][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year adjusted EBITDA at the upper end of the targeted range of $380-$390 million despite macroeconomic volatility and industry-specific challenges [20][19] - The company is optimistic about the future, with ongoing negotiations for annual contracts and a strong consumer demand for affordable and healthy products [59][53] Other Important Information - Cash capital expenditure for the quarter was $20.9 million, with a reduction in full-year routine capital expenditure expectations to approximately $85 million [17][18] - The company declared an $8.50 dividend for Q3, to be paid on January 6th [19][18] Q&A Session Summary Question: Outlook for Q4 and 2026 - Management acknowledged the challenges in forecasting due to macroeconomic volatility and highlighted specific headwinds impacting procurement costs, particularly in the banana segment [25][26] Question: Tariffs and Exclusions - Management stated there is no new information regarding tariff exclusions for tropical produce, but expressed confidence in future positive changes [28][29] Question: Capital Allocation and Buyback Program - The $100 million buyback program is part of a broader capital allocation strategy, allowing for flexibility in pursuing growth opportunities while maintaining a progressive dividend policy [39][38] Question: Annual Contracting Negotiations - Management indicated that negotiations are ongoing and that customers are aware of supply challenges, expressing optimism about the outcomes [53][52] Question: Strength in Diversified Fresh Produce - Management highlighted the strong market position in Europe and North America, emphasizing the benefits of integrating operations and investments in distribution capabilities [56][57]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $2.3 billion, representing a 10.5% increase on a reported basis and an 8% increase on a like-for-like basis, reflecting strong underlying growth across segments [13] - Net income decreased due to a $10 million loss in discontinued operations and an $8 million non-cash fair value charge, partially offset by $10 million in insurance proceeds and higher earnings in equity method investments [13] - Adjusted EBITDA decreased by $1.3 million, primarily due to declines in fresh fruit, while adjusted net income decreased by $3 million [13][14] Business Line Data and Key Metrics Changes - Fresh fruit revenue increased by 11%, driven by higher volumes and pricing of bananas, pineapples, and plantains, but faced higher sourcing costs impacting adjusted EBITDA [14] - Diversified EMA segment reported an 11% revenue increase, with adjusted EBITDA rising by 34%, driven by strong performances in Scandinavia, Spain, and the Netherlands [15] - Diversified Americas segment saw an 8% revenue increase, with adjusted EBITDA up by 46%, attributed to strong performance in the southern hemisphere export business and North American market [15] Market Data and Key Metrics Changes - Demand for bananas remained robust in North America and Europe, contributing to tight supply and cost pressures [10] - The diversified EMA segment continued to show positive momentum, particularly in Spain and the Netherlands, benefiting from increased investments in distribution and logistics [10][11] Company Strategy and Development Direction - The company completed the sale of its non-core fresh vegetable division, enhancing capital allocation flexibility and allowing for a $100 million share repurchase program [5][6] - The launch of the new Dole Collada Royale Pineapple represents a strategic investment in product innovation, aimed at enhancing the tropical portfolio and community support [7] - The company is focused on integrating operations and streamlining its business model to enhance efficiency and customer attractiveness [11][52] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year adjusted EBITDA at the upper end of the targeted range of $380-$390 million, despite macroeconomic volatility and industry-specific challenges [19] - The company is optimistic about the long-term growth potential within the sector, emphasizing the importance of a diversified business model [19][62] Other Important Information - Cash capital expenditure for the quarter was $20.9 million, with a reduction in full-year routine capital expenditure expectations to approximately $85 million [16][17] - The company declared an $8.50 dividend for Q3, to be paid on January 6th [18] Q&A Session Summary Question: Outlook for Q4 and 2026 - Management acknowledged the challenges in forecasting due to macroeconomic volatility and highlighted specific headwinds in sourcing costs, particularly for bananas, impacting Q4 guidance [22][24] Question: Tariffs and Exclusions - Management stated there were no new updates on tariff exclusions for tropical produce but expressed confidence in the long-term positive changes for the industry [26][27] Question: Capital Allocation and Buyback Program - The buyback program was introduced to provide flexibility in capital allocation, with management emphasizing the importance of balancing dividends, buybacks, and investment opportunities [34][36] Question: Annual Contracting Negotiations - Management indicated that negotiations with customers are ongoing, with awareness of supply conditions impacting discussions [46][48] Question: Strength in Diversified Fresh Produce - Management highlighted strong consumer demand and the company's robust position in the diversified segment across various European markets [50][52]

Core Insights - Dole reported quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.17 per share, and down from $0.19 per share a year ago, representing an earnings surprise of -5.88% [1] - The company posted revenues of $2.28 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.33%, and up from $2.06 billion year-over-year [2] - Dole shares have underperformed the market, losing about 3% since the beginning of the year compared to the S&P 500's gain of 14.4% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.16 on revenues of $2.29 billion, and for the current fiscal year, it is $1.03 on revenues of $9.07 billion [7] - The estimate revisions trend for Dole was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Agriculture - Operations industry, to which Dole belongs, is currently in the bottom 17% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Q3 2025 Highlights - Dole's broadly based business model delivered a good Q3 2025 result, in line with market expectations[9] - The company completed the sale of its Fresh Vegetable division at the beginning of August for $140 million[9] - The board authorized share repurchases of up to $100 million[9] Financial Performance - Q3 2025 revenue increased to $2,279 million, compared to $2,062 million in Q3 2024[25] - Income from continuing operations for Q3 2025 was $241 million, up from $151 million in Q3 2024[25] - Net income attributable to Dole plc decreased to $51 million in Q3 2025, from $144 million in Q3 2024[25] - Adjusted EBITDA for Q3 2025 was $808 million, slightly down from $821 million in Q3 2024[25] Segment Results - Fresh Fruit revenue increased by 115% to $890 million, but Adjusted EBITDA decreased by 367% to $272 million due to higher sourcing costs[28] - Diversified Fresh Produce – EMEA revenue increased by 109% to $998 million, and Adjusted EBITDA increased by 342% to $407 million[32] - Diversified Fresh Produce – Americas & ROW revenue increased by 77% to $420 million, and Adjusted EBITDA increased by 462% to $129 million[37] FY'25 Outlook - The company is targeting the upper end of the $380-$390 million range for Adjusted EBITDA from continuing operations[46] - Routine capital expenditure for continuing operations is expected to be approximately $85 million[46]

Table of Contents | Background and Certain Defined Terms | 1 | | --- | --- | | Forward-Looking Statements | 1 | | PART I - FINANCIAL INFORMATION | | | Item 1. Financial Statements | 1 | | Unaudited Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 | 2 | | Unaudited Condensed Consolidated Statements of Operations for the Three and Nine Months ended September 30, | | | 2025 and September 30, 2024 | 3 | | Unaudited Condensed Consolidated Statements of Comprehensive Income for ...

Core Viewpoint - Dole plc has authorized a share repurchase program allowing the company to buy back up to $100 million of its ordinary shares, reflecting a commitment to long-term sustainable shareholder value [1] Group 1: Share Repurchase Program - The share repurchase program is part of a broader capital allocation strategy [1] - The company plans to repurchase shares through open-market transactions [1]