1. AVO achieved record revenue of $1.39 billion, a 13% increase. 2. Cash flow from operations was nearly $180 million over two years. 3. Steve Barnard transitions to Executive Chairman by April 2026. 4. Marketing segment saw a 27% drop in average avocado prices. 5. First quarter 2026 avocado volumes expected to rise 10%.
FAQ
Why Bullish?
AVO's consistent revenue growth and increasing cash flow indicate robustness. However, the price drop could temper enthusiasm.
How important is it?
The combination of strong financial results and leadership succession suggests it's a pivotal moment for AVO.
Why Short Term?
Immediate market dynamics affected by harvest volatility suggest short-term pricing effects significant this quarter.
Mission Produce® Reports Strong Financial Results for Fiscal 2025
Oxnard, Calif. — Mission Produce, Inc. (NASDAQ: AVO), a global leader in sourcing, producing, and distributing fresh Hass avocados, announced impressive financial results for the fiscal fourth quarter and full year ending October 31, 2025. The company achieved record full-year revenue of $1.39 billion, reflecting a 13% year-over-year increase, fueled by robust performance in its Marketing & Distribution segment and higher yields from its owned Peruvian orchards.
Fiscal Fourth Quarter 2025 Financial Highlights
- Total revenue: $319.0 million, with a 13% volume growth compared to the previous year.
- Net income: $16.0 million, or $0.22 per diluted share, down from $17.3 million, or $0.24 per diluted share last year.
- Adjusted net income: Increased 13% to $22.2 million, or $0.31 per diluted share.
- Adjusted EBITDA: Grew 12% to $41.4 million, up from $36.9 million in the prior year.
Full Year 2025 Financial Overview
- Total revenue: $1.39 billion, with a 7% volume increase.
- Net income: Increased 3% to $37.7 million, or $0.53 per diluted share.
- Adjusted net income: Up 6% to $56.2 million, or $0.79 per diluted share.
- Adjusted EBITDA: Improved 3% to $110.8 million.
- Avocado production volume: Increased approximately 144% to 105 million pounds for the 2025 harvest.
- Cash flow from operations: $88.6 million compared to $93.4 million last year.
CEO's Perspective on Fiscal 2025
Steve Barnard, CEO of Mission Produce (NASDAQ: AVO), remarked, “Fiscal 2025 was a defining year for Mission. We achieved record revenue of $1.39 billion while enhancing our EBITDA. Our team demonstrated exceptional agility, capitalizing on market opportunities across North America, Europe, and Asia, contributing to growth for the quarter and the full year.”
Barnard emphasized, “With our capital investment cycle now complete, we expect capital expenditures to decrease to approximately $40 million in fiscal 2026, allowing us to accelerate free cash flow generation. This positions us to create value for our shareholders.”
Consolidated Financial Review
In the fourth quarter, Mission Produce reported a revenue decline of $35.4 million or 10% to $319.0 million. This decrease was primarily due to the Marketing & Distribution segment experiencing a 27% drop in average per-unit avocado sales prices, although this was partially offset by a 13% increase in avocado volume sold.
The gross profit for the fourth quarter stood at $55.7 million, maintaining previous year levels, while gross margin rose to 17.5% of revenue, reflecting improved management of per-unit costs amidst fluctuating pricing dynamics.
Segment Performance Overview
Marketing & Distribution
Sales in the Marketing & Distribution segment decreased to $271.9 million, a 15% decline compared to the same period last year. Despite the decrease in revenue, operating income for this segment climbed by 9%, demonstrating better per-unit margin management.
International Farming
Sales in the International Farming segment surged to $59.6 million, a significant 97% increase from $30.3 million in the prior year. This growth reflects the favorable conditions during the Peruvian avocado harvest season.