Overview

• U.S. avocado distributor's fiscal Q2 revenue fell 24% on lower prices, despite higher volumes

• Adjusted EPS and adjusted EBITDA declined yr/yr, pressured by margin compression and low prices

• Company completed Calavo Growers acquisition and authorized $100 mln share buyback program

Outlook

• Mission Produce expects Q3 adjusted EBITDA of $28-$32 mln, including Calavo partial quarter contribution

• Company sees second-half 2026 adjusted EBITDA at $84-$88 mln, with full Calavo contribution in Q4

• Mission Produce expects full-year 2026 capital expenditures of about $45 mln, including Calavo-related spending

Result Drivers

• LOW AVOCADO PRICES - Revenue and margins were pressured by a 36% drop in per-unit avocado sales prices, despite higher volumes

• SUPPLY-DEMAND MISMATCH - Margin compression in April resulted from a temporary mismatch between Mexican supply of core fruit sizes and customer demand, and delays in California and Peru harvests increased sourcing costs

• HIGHER MANGO COSTS AND LOWER BLUEBERRY VOLUMES - International Farming segment results were hurt by higher per-unit mango production costs and reduced blueberry packing and storage service volumes

Company press release: ID:nGNX4qLtmh

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$290.90 mln	$274.40 mln (2 Analysts)
Q2 Adjusted EPS	Miss	$0.01	$0.06 (2 Analysts)
Q2 EPS		-$0.10
Q2 Adjusted Net Income	Miss	$800,000	$3.20 mln (1 Analyst)
Q2 Net Income		-$7.20 mln
Q2 Adjusted EBITDA	Miss	$7.10 mln	$15.95 mln (2 Analysts)
Q2 Gross Profit		$20.50 mln
Q2 Pretax Profit		-$8.70 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the fishing & farming peer group is "buy"

• Wall Street's median 12-month price target for Mission Produce Inc is $17.00, about 66.3% above its June 5 closing price of $10.22

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 20 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.