Mission(AVO) - 2025 Q4 - Annual Results

Revenue Performance - Achieved record full year revenue of $1.39 billion, an increase of 13% year-over-year, driven by strong execution in Marketing & Distribution and significantly higher yields from owned Peruvian orchards[1] - Total net sales for the twelve months ended October 31, 2025, reached $1,391.2 million, compared to $1,234.7 million in 2024, reflecting an increase of 12.7%[58] - Total sales in the International Farming segment for the fourth quarter increased 97% to $59.6 million compared to $30.3 million for the same period last year[15] - Total segment sales for the three months ended October 31, 2025, were $368.0 million, slightly down from $381.5 million in 2024, a decrease of 3.5%[58] Profitability Metrics - Adjusted net income for the fourth quarter increased 13% to $22.2 million, or $0.31 per diluted share, compared to $19.6 million, or $0.28 per diluted share, for the same period last year[10] - Adjusted EBITDA increased 12% to $41.4 million for the fourth quarter, driven primarily by increased owned avocado production in the International Farming segment[11] - Adjusted net income for the twelve months ended October 31, 2025, was $56.2 million, up 6.4% from $52.8 million in 2024[42] - Total adjusted EBITDA for the three months ended October 31, 2025, was $41.4 million, an increase from $36.9 million in the same period of 2024, representing a growth of 12.1%[49] Cash Flow and Capital Expenditures - Generated nearly $180 million in cash flow from operations over the past two years; capital expenditures expected to step down to approximately $40 million in FY26[1] - Capital expenditures for the year ended October 31, 2025, were $51.4 million, primarily for avocado orchard development and packhouse construction in Guatemala[21] - Net cash provided by operating activities was $88.6 million, compared to $93.4 million in the previous year, reflecting a decline of 5.1%[37] - The company experienced a net cash used in investing activities of $51.9 million, compared to $33.5 million in the previous year, indicating increased investment outflows[37] Asset and Liability Management - Total assets as of October 31, 2025, were $983.0 million, an increase from $971.5 million as of October 31, 2024[33] - Total liabilities decreased to $363.1 million as of October 31, 2025, from $394.4 million in 2024, marking a reduction of approximately 7.9%[33] - Cash and cash equivalents increased to $64.8 million as of October 31, 2025, compared to $58.0 million in 2024, reflecting a growth of 12.1%[33] - The company’s equity increased to $619.9 million as of October 31, 2025, up from $577.1 million in 2024, representing a growth of 7.4%[33] Sales and Pricing Trends - Owned exportable avocado production volume sold increased approximately 144% to 105 million pounds for the 2025 harvest season[5] - For the first quarter of fiscal year 2026, avocado industry volumes are expected to increase by approximately 10% versus the prior year period[25] - Pricing for the first quarter of fiscal 2026 is expected to be lower by approximately 25% compared to the $1.75 per pound average experienced in the first quarter of fiscal 2025[25] - Average sales price per pound of avocados decreased to $1.39 in the three months ended October 31, 2025, from $1.90 in 2024, a decline of 26.8%[59] Income and Expense Analysis - Net income for the year ended October 31, 2025, was $40.5 million, a decrease of 3.1% from $41.8 million in 2024[37] - Net income attributable to Mission Produce for the three months ended October 31, 2025, was $16.0 million, down from $17.3 million in 2024, reflecting a decrease of 7.5%[35] - The company reported a net income of $16.8 million for the three months ended October 31, 2025, down from $20.7 million in 2024, a decline of 18.9%[49] - Stock-based compensation increased to $8.8 million for the year ended October 31, 2025, compared to $7.1 million in 2024, reflecting a rise of 24.1%[42] Foreign Currency and Debt Management - The company reported unrealized losses on foreign currency transactions of $1.0 million for the year, compared to gains of $1.7 million in the previous year[37] - Principal payments on long-term debt obligations were $3.0 million, slightly down from $3.4 million in 2024[37]