Dole (NYSE:DOLE) Q4 2025 Earnings call February 25, 2026 08:00 AM ET Speaker3Welcome to Dole plc's fourth quarter and full year 2025 results webcast. Today's webcast is being broadcast live over the internet and is also being recorded for playback purposes. Currently, all participants are in listen-only mode. After the speakers' presentations, there will be a question and answer session. For opening remarks and introductions, I would like to send the call over to the Head of Investor Relations with Dole plc ...

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]

Financial Data and Key Metrics Changes - Group revenue increased by 14.3% to $2.4 billion, and adjusted EBITDA rose by 9.3% to $137 million [4][12] - Adjusted net income was $53 million, with adjusted diluted EPS at $0.55, reflecting a 12% growth compared to the prior year [5][14] - Operating income increased by 20% to $103 million, driven by higher revenue and gross profit [13] Business Line Data and Key Metrics Changes - Fresh Fruit segment achieved adjusted EBITDA of $72.7 million, with strong volume growth in bananas and pineapples, although constrained by higher sourcing costs due to tropical storm Sarah [6][14] - Diversified EMEA segment saw adjusted EBITDA increase by approximately 15% to $49 million, driven by strong revenue growth in key markets [9][10] - Diversified Americas segment reported revenue growth of 8.5%, with adjusted EBITDA increasing by 27%, primarily due to strong performance in Southern Hemisphere exports [11][17] Market Data and Key Metrics Changes - In North America, strong volume growth was noted in bananas and pineapples, with higher pricing contributing to revenue increases [6][14] - The European market experienced higher volumes and pricing across products, supported by tight sourcing conditions and a strengthening euro [7][10] - Industry supply was tighter than anticipated, impacting sourcing costs and overall market dynamics [8][20] Company Strategy and Development Direction - The sale of the fresh vegetable division was completed, allowing the company to focus on core business activities and strategic priorities [5][21] - The company is optimistic about internal and external development opportunities, particularly in fresh produce and diversified EMEA [54] - The company plans to maintain capital expenditures in line with depreciation and invest in rehabilitation projects following tropical storm damage [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the diversified business model despite short-term disruptions in the macroeconomic environment [20] - The company has adjusted its full-year adjusted EBITDA guidance upwards to a range of $380 million to $390 million [20] - Management acknowledged the complexity of forecasting in the current environment, particularly regarding supply chain disruptions and tariff impacts [28][42] Other Important Information - The company declared a dividend of $0.85 for the second quarter, reflecting its commitment to returning value to shareholders [19] - Cash capital expenditure from continuing operations was $19.4 million, with additional investments in logistics and infrastructure [17][18] Q&A Session Summary Question: Reconciliation of updated EBITDA outlook - Management noted strong performance in 2024 but highlighted challenges from weather issues and sourcing costs impacting EBITDA guidance [24][26] Question: Impact of tariffs on pricing - Management explained the complexity of pricing adjustments due to various factors, including tariffs, sourcing issues, and foreign exchange volatility [30][34] Question: Fresh vegetables disposal and debt repayment - Management confirmed that proceeds from the fresh vegetable division sale would primarily be used for debt repayment and to clarify strategic focus [35][36] Question: Supply outlook beyond Q3 - Management indicated that while supply disruptions would continue into Q4, the industry typically stabilizes quickly [41][43] Question: Discussions on tariff exclusions - Management stated that they believe in the benefits of international trade and have seen some positive discussions regarding tariff exemptions for products not grown in the U.S. [44][46] Question: Future development opportunities - Management highlighted ongoing evaluations of acquisition opportunities and internal projects across various regions [52][54]

Financial Data and Key Metrics Changes - In 2024, Group revenue increased by 6.7% to $8.5 billion, and adjusted EBITDA also increased by 6.7% to $392 million, exceeding adjusted EBITDA guidance by $12 million [11][7][10] - Adjusted net income for the full year was $120.9 million, with adjusted diluted EPS increasing by 2.4% to $1.27 per share [11][27] - Net debt at the end of 2024 was $637 million, with net leverage at 1.6 times, indicating a strong financial position [12][10] Business Line Data and Key Metrics Changes - Fresh Fruit segment delivered adjusted EBITDA of $214.8 million for the full year, an increase of $5.9 million compared to 2023, driven by volume growth in bananas and plantains [12][13] - Diversified EMEA segment achieved adjusted EBITDA of $131.5 million for the full year, with a like-for-like revenue growth of 4.4% [16][17] - Diversified Fresh Produce Americas segment reported a like-for-like revenue increase of 16.1%, with adjusted EBITDA increasing by 52.3% for the full year [32][33] Market Data and Key Metrics Changes - North America saw good volume growth in bananas and plantains, while the European market experienced high volumes in bananas and lower shipping costs [13][14] - The EMEA segment faced headwinds due to supply challenges and weather events, but anticipates continued revenue growth in 2025 [17][16] - The Fresh Vegetables business showed positive cash flow for the full year, indicating a turnaround despite accounting adjustments [21] Company Strategy and Development Direction - The company is focused on capital allocation and managing invested capital, with strategic investments in expanding shipping capacity and improving operational performance [8][10] - There is an ongoing process to determine the best strategic alternative for the vegetables business, which remains a priority [20][21] - The company plans to maintain a baseline level of capital expenditure in line with depreciation expenses, while exploring development opportunities for future growth [41][70] Management Comments on Operating Environment and Future Outlook - Management acknowledged challenges in 2025, including the impact of Tropical Storm Sara and geopolitical uncertainties affecting sourcing costs and supply chains [40][41] - The company aims for adjusted EBITDA in the range of $370 million to $380 million for 2025, reflecting a more normalized year compared to 2024 [41][38] - Management remains optimistic about the underlying fundamentals of the business and is focused on navigating challenges while capitalizing on growth opportunities [15][38] Other Important Information - The company declared a dividend of $0.08 for the fourth quarter, to be paid on April 3, 2025 [37] - Free cash flow from continuing operations was $180.3 million for the full year, benefiting from strong adjusted EBITDA performance [36] Q&A Session Summary Question: Can you unpack the EBITDA guidance for 2025? - Management indicated that the guidance reflects known headwinds, including the impact from Tropical Storm Sara and macroeconomic uncertainties, with expectations for a slower start to the year [45][49][54] Question: What mitigation strategies are in place regarding potential tariffs? - Management believes that the demand for fresh produce will remain strong, and they are prepared to adjust pricing and sourcing strategies if tariffs are implemented [56][58][60] Question: What is the focus on capital allocation moving forward? - The company is prioritizing leveraging while also considering targeted M&A opportunities, with ongoing internal development projects aimed at enhancing growth [65][70][72] Question: What are the expectations for the Diversified EMEA segment? - Management noted that while there are some profit weaknesses in certain regions, they see more opportunities than challenges and expect continued growth [75][76] Question: Is there a risk of elasticity in pricing for high-value products like avocados? - Management expressed confidence that the U.S. market will continue to demand these products, despite potential tariff impacts, due to limited domestic production capabilities [78][80]