Calavo Growers, Inc. Announces Fourth Quarter and Fiscal Year 2025 Financial Results

Core Insights - Calavo Growers, Inc. reported significant growth in net income from continuing operations, with a 191% increase for the full year 2025, alongside a 42% rise in adjusted net income and a 12% increase in adjusted EBITDA from continuing operations [1][2]. Financial Performance - For the fourth quarter of 2025, total net sales decreased to $124.7 million from $170.0 million in the prior year, with fresh segment sales down 31% to $106.3 million due to a 19% decline in average price per carton and a 5% decrease in total cartons sold [8][12]. - Gross profit for the fourth quarter was $11.6 million, down from $16.3 million, with SG&A expenses decreasing by 6% to $12.3 million [8][14]. - Adjusted net income for the fourth quarter increased by 301% to $4.5 million, or $0.25 per diluted share, compared to $1.1 million, or $0.06 per diluted share, in the prior year [15]. - For the full fiscal year 2025, total net sales were $648.4 million, a slight decrease from $661.5 million, with fresh segment sales down 4% to $576.5 million, while prepared segment sales increased by 12% to $71.9 million [16][19]. Strategic Developments - Calavo announced a strategic combination with Mission Produce, Inc., where Mission will acquire Calavo in a cash and stock transaction valued at $27.00 per share, comprising $14.85 in cash and 0.9790 shares of Mission stock for each share of Calavo [6][9]. - The merger is expected to create a vertically integrated platform with sourcing security and an expanded portfolio across fresh produce categories, along with anticipated cost synergies of $25 million [7][10]. Management Commentary - The CEO of Calavo highlighted the company's resilience in overcoming challenges during fiscal year 2025, including a temporary facility shutdown and an FDA detention hold on avocado imports, while achieving an adjusted EBITDA of $40.8 million, up nearly 12% year over year [10][11]. - Looking ahead to 2026, the company anticipates softer first-quarter results compared to the previous year due to strong avocado supply and pricing dynamics, but remains focused on leveraging increased industry volumes [11][12]. Balance Sheet and Liquidity - As of October 31, 2025, Calavo had cash and cash equivalents of $61.2 million and total debt of $4.1 million, with cash provided by operating activities totaling $21.5 million for the fiscal year [20][42].