Dole Plc (NYSE:DOLE), the global fresh produce leader, closed its 2025 fiscal year with a fourth-quarter performance that edged past analyst expectations on profitability, though revenue growth was largely in line with forecasts. The company's results, coupled with a modestly optimistic outlook for the coming year, appear to have been met with cautious approval by investors, as reflected in early trading activity.
Earnings Snapshot: A Narrow Beat on Profitability
For the critical fourth quarter ending December 31, 2025, Dole reported revenue of $2.37 billion, marking a 9.2% increase year-over-year. This figure came in essentially even with the analyst consensus estimate of approximately $2.37 billion. The more significant beat was on the bottom line, where the company's adjusted earnings per share (EPS) of $0.14 surpassed the consensus estimate of $0.13.
The full-year picture shows a company navigating a complex operating environment. Revenue for 2025 reached $9.17 billion, an 8.2% increase. Adjusted EBITDA of $395.4 million exceeded the company's own most recent guidance and market expectations. However, net income attributable to Dole plc for the year was $51.3 million, or $0.53 per diluted share, down from $125.5 million, or $1.32 per share, in the prior year. This decline was attributed to several one-time items, including losses related to the divested Fresh Vegetables division, non-cash fair value losses, and a discrete tax charge.
Key Q4 2025 Results vs. Estimates:
- Revenue: $2.37B Reported vs. ~$2.37B Estimated → Met Expectations
- Adjusted EPS: $0.14 Reported vs. $0.13 Estimated → Beat Expectations
Market Reaction and Strategic Shifts
In pre-market trading following the earnings release, Dole's stock showed positive momentum, indicating investor relief at the profit beat and the company's forward guidance. This initial reaction suggests the market is focusing on the company's operational resilience and strategic progress rather than the year-over-year decline in reported net income, which was heavily influenced by non-operational factors.
The earnings report highlighted several strategic milestones achieved in 2025 that are reshaping the company:
- The completion of the sale of the Fresh Vegetables business.
- The initiation of a $100 million share repurchase program, with $4.5 million executed post-year-end.
- An agreement to sell port assets in Ecuador for expected net proceeds of approximately $75 million.
- A continued reduction in net debt to $606.5 million and a net leverage ratio of 1.5x.
Segment Performance: Diversified Produce Offsets Fresh Fruit Pressure
A review of segment performance reveals the drivers behind the headline numbers. The company's two Diversified Fresh Produce segments showed strength, which helped offset anticipated challenges in the core Fresh Fruit segment.
- Fresh Fruit: Revenue grew but Adjusted EBITDA declined by 16.6% in Q4 and 11.6% for the full year, primarily due to higher fruit sourcing costs, including impacts from Tropical Storm Sara, and increased shipping expenses.
- Diversified Fresh Produce - EMEA & Americas: Both segments posted revenue growth and significantly improved profitability for the full year. The EMEA segment saw a 14.1% increase in Adjusted EBITDA, while the Americas & ROW segment grew Adjusted EBITDA by 21.2% on a like-for-like basis, driven by strong performances in North America and joint venture businesses.
Outlook for 2026: Targeting Growth
Executive Chairman Carl McCann stated the company is entering the new fiscal year with "strong operational momentum." For the 2026 financial year, Dole is targeting Adjusted EBITDA of at least $400 million, representing modest growth from the $395.4 million achieved in 2025.
This company-provided outlook can be compared to the broader analyst expectations for the coming year. While Dole's target focuses on profitability (Adjusted EBITDA), analyst consensus estimates project sales of approximately $9.43 billion for the full year 2026. For the upcoming first quarter, analysts are estimating revenue of about $2.23 billion and EPS of $0.40. The company's guidance of "at least $400 million" in Adjusted EBITDA sets a clear benchmark for operational performance against which future quarters will be measured.
Conclusion
Dole Plc's fourth-quarter earnings demonstrate a company successfully executing a strategic transformation amidst cost pressures in its core fruit business. By beating profit expectations and providing a stable outlook, the report has fostered cautious optimism. The market's positive initial reaction likely reflects approval of the company's disciplined capital allocation—evidenced by debt reduction and share buybacks—and the robust performance of its diversified produce segments. The path forward hinges on managing fresh fruit cost volatility while capitalizing on growth in value-added produce categories.
For a detailed look at Dole's historical earnings, future estimates, and analyst projections, visit the Dole Plc Earnings & Estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
