Dole (NYSE:DOLE) Q3 2025 Earnings Call November 10, 2025 08:00 AM ET Company ParticipantsJohan Linden - COOJacinta Devine - CFOJames O'Regan - Head of Investor RelationsPooran Sharma - Managing Director of Equity ResearchRory Byrne - CEOConference Call ParticipantsGary Martin - Equity Research AnalystPeter Galbo - Managing Director and Senior Equity Research AnalystChristopher Barnes - VP and Equity AnalystOperatorWelcome to Dole PLC's Third Quarter 2025 Results Webcast. Today's conference is being broadcas ...

Dole (NYSE:DOLE) Q3 2025 Earnings Call November 10, 2025 08:00 AM ET Company ParticipantsJohan Linden - COOJacinta Devine - CFOJames O'Regan - Head of Investor RelationsPooran Sharma - Managing Director of Equity ResearchRory Byrne - CEOConference Call ParticipantsGary Martin - Equity Research AnalystPeter Galbo - Managing Director and Senior Equity Research AnalystChris Barnes - VP and Equity AnalystOperatorWelcome to Dole PLC's Third Quarter 2025 Results Webcast. Today's conference is being broadcast live ...

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]