Mission Produce Inc (NASDAQ:AVO) reported financial results for its fiscal fourth quarter and full year ended October 31, 2025, delivering a top and bottom-line beat against analyst expectations. The market reacted positively to the news, with shares rising in after-hours trading.
Earnings and Revenue Versus Estimates
The avocado industry leader surpassed Wall Street forecasts for the quarter, driven by significant volume growth that offset lower average selling prices.
- Revenue: The company reported Q4 revenue of $319.0 million, exceeding the analyst consensus estimate of approximately $299.2 million. This represents a 10% decline from the $354.4 million reported in the same quarter last year, which the company attributed to a 27% decrease in average per-unit avocado sales prices.
- Earnings Per Share: On an adjusted basis, Mission Produce reported earnings per share (EPS) of $0.31. This comfortably beat the analyst estimate of $0.24 per share and marked a 13% increase from the $0.28 adjusted EPS reported in the prior-year period.
For the full fiscal year 2025, the company achieved record revenue of $1.39 billion, a 13% increase year-over-year. Adjusted net income for the year rose 6% to $56.2 million.
Market Reaction and Price Action
The positive earnings surprise was met with investor approval. Following the earnings release, the stock saw an after-market gain of approximately 5.1%. This bullish sentiment extends the stock's recent positive momentum, with shares up roughly 15.2% over the past month. The reaction suggests investors are focusing on the company's operational execution and profitability metrics, which remained strong despite the revenue headwind from industry-wide pricing pressures.
Key Takeaways from the Earnings Release
Beyond the headline numbers, several critical developments were highlighted in the company's announcement:
- Volume Overcomes Price: The core story of the quarter was a substantial 13% year-over-year increase in avocado volume sold, which helped drive a 12% rise in Adjusted EBITDA to $41.4 million. This demonstrates the company's ability to leverage its global platform to grow market share and maintain margins in a lower-pricing environment.
- International Farming Strength: The company's owned farming operations in Peru showed dramatic improvement. Owned exportable avocado production volume sold increased approximately 144% for the 2025 harvest season, rebounding from challenging weather conditions the prior year. Segment adjusted EBITDA for International Farming surged 211% in Q4.
- Leadership Transition: Mission Produce announced a planned leadership succession. Founder and CEO Steve Barnard will transition to Executive Chairman of the Board, while President and COO John Pawlowski is set to become CEO at the company's Annual Meeting in April 2026.
- Cash Flow and Capital Expenditures Outlook: The company emphasized its strong cash generation, noting nearly $180 million in cash flow from operations over the past two years. It expects capital expenditures to step down significantly to approximately $40 million in fiscal 2026, positioning the company for accelerated free cash flow generation.
Forward Outlook and Analyst Comparisons
Management provided an industry outlook for the first quarter of fiscal 2026, anticipating continued higher supply conditions. They expect avocado industry volumes to be up approximately 10% year-over-year, with pricing down roughly 25% compared to the prior year's Q1 average. For the blueberry segment, higher volume from new acreage is expected to drive revenue, though profitability will be impacted by higher costs from lower projected yields.
The company's capital expenditure guidance of $40 million for FY2026 provides a clear benchmark for future free cash flow potential. Investors can compare future company performance and management's execution against detailed analyst estimates for upcoming periods.
For a comprehensive view of future earnings projections and historical estimates for Mission Produce, visit the earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investing carries risks, including the potential loss of principal.
