Calavo Growers Reports Major Profit Turnaround Ahead of Mission Produce Acquisition
Santa Paula, Wednesday, 14 January 2026.
Despite revenue headwinds, Calavo delivered a massive 192 percent surge in full-year net income, solidifying its financial turnaround just as Mission Produce agrees to acquire the company.
Fiscal Year 2025 Profitability Surge
Calavo Growers, Inc. (CVGW) released its financial results today, January 14, 2026, revealing a robust recovery in profitability for the fiscal year ended October 31, 2025 [1]. The company reported net income from continuing operations of $20.0 million, or $1.11 per diluted share, representing a 194.118% increase over the $6.8 million, or $0.38 per diluted share, recorded in the prior year [1]. This operational turnaround was further evidenced by a 42 percent rise in adjusted net income to $28.9 million and a 12 percent increase in adjusted EBITDA, which climbed to $40.8 million [1]. These gains were achieved despite a slight contraction in total annual net sales, which decreased to $648.4 million from $661.5 million in fiscal 2024 [1].
Mission Produce Acquisition Agreement
Coinciding with the earnings release, Calavo announced it has entered into a definitive agreement to be acquired by Mission Produce, Inc. in a cash and stock transaction [1]. Under the terms of the deal, Calavo shareholders are set to receive $27.00 per share, structured as $14.85 in cash and 0.9790 shares of Mission stock for each share of Calavo common stock [1][2]. The transaction is subject to customary closing conditions, including shareholder and regulatory approvals [1].
Fourth Quarter Revenue Headwinds
While the full-year figures highlighted improved margins, the fourth quarter presented significant top-line challenges. Calavo reported Q4 revenue of $124.7 million, falling significantly short of the analyst consensus estimate of $153.7 million [2][4]. This figure represents a sharp decline from the $170.0 million generated in the same period last year [1]. The company attributed the revenue shortfall to a 19 percent drop in the average price per carton and a 5 percent decrease in total cartons sold, driven by a late-quarter pricing reset and increased avocado supply [2]. Consequently, adjusted EBITDA from continuing operations for the quarter fell 24 percent to $5 million [2]. The company also missed earnings expectations for the quarter, reporting adjusted earnings per share of $0.25 against analyst estimates of $0.38 [2][4].
Strategic Outlook and Future Operations
Despite the mixed results in the final quarter, Calavo leadership emphasized the efficacy of their cost management strategies. President and CEO B. John Lindeman stated that the team executed with discipline across sourcing and operations in the face of “unanticipated challenges” [1]. Looking ahead to the first quarter of fiscal 2026, the company anticipates higher avocado sales volumes; however, this is expected to be offset by lower average selling prices and per-unit profits, likely resulting in lower adjusted EBITDA for the period [1][2].