In the third quarter, Mission Produce reported record revenues of $357 million, with strong performance in its marketing and distribution segment, driven by global sourcing and commercial execution. Adjusted net income was $18.2 million, reflecting operating income gains and lower interest expenses. The company saw growth in European sales by 37% and increased international farming output. Investments in supply chain infrastructure and packhouses were highlighted ahead of the Mexican harvest season transition. Tariffs are expected to have a modest impact, with approximately $10 million in annual direct costs, mainly from South American production.

During the quarter, Mission Produce’s adjusted EBITDA increased by 3%, driven by international farming output recovery. European sales growth was attributed to enhanced facility utilization in the UK and increased customer penetration. The company generated $34 million in operating cash flow and maintained a strong balance sheet with cash and equivalents of $43.7 million. Year-to-date CapEx was $39.8 million, with full-year guidance at $50 million to $55 million. The company expects pricing pressure due to a 15% increase in industry supply for the fourth quarter.

Mission Produce’s international sourcing strategy has positioned the company to serve strategic growth markets in Europe and Asia. Blueberry acreage has increased, with plans to reach close to 1,000 hectares by fiscal 2027-2028. The company’s net debt to adjusted EBITDA leverage ratio is approximately one time, providing flexibility for capital allocation. Management expects an increase in avocado volumes in the fourth quarter, with average pricing anticipated to decline by 20%-25% compared to last year. The company highlighted its ability to maintain global sourcing capabilities and serve key markets effectively.

Read more at Nasdaq: Mission Produce AVO Q3 2025 Earnings Transcript