Mission Produce Q3 Revenue Beats Estimates on Calavo Volume

Mission Produce reported third-quarter fiscal 2026 results that exceeded market expectations, with revenues climbing 25.8% year-over-year to $450 million. The figure surpassed the consensus estimate of $368 million by 22.3%, marking a significant top-line expansion for the company.

Adjusted earnings per share came in at 16 cents, significantly above the 10-cent consensus, though down from 24 cents in the prior year. According to GN markets/earnings (en-US), the performance was fueled by stronger-than-anticipated International Farming results and positive contributions from the recently acquired Calavo business.

Volume Growth Offsets Price Pressure

Avocado volume surged 37.7% to 252.7 million pounds, reflecting both the Calavo acquisition and increased legacy Mission Produce output. This volume gain compensated for a 9.2% decline in average sales price, which fell to $1.58 per pound due to elevated industry supply.

U.S. retail avocado volume grew approximately 9% year-over-year, while the average retail price rose about 15% sequentially. Mission Produce noted that household penetration increased by roughly 50 basis points, and its estimated U.S. retail market share expanded by about 60 basis points year-to-date.

Segment Performance and Margin Dynamics

The Marketing and Distribution segment saw sales rise 20.4% to $414.3 million, with adjusted EBITDA increasing 23.5% to $24.7 million. This improvement was driven by higher gross margins resulting from Calavo’s post-acquisition contribution, which helped offset broader pricing pressures.

International Farming sales declined 6.5% to $45.8 million, while adjusted EBITDA fell 37.2% to $7.6 million. Although lower average sales prices weighed on the comparison, stronger-than-expected sales returns allowed the segment to outperform management’s internal expectations.

Cost Structure and Forward Outlook

Selling, general, and administrative expenses increased to $31.6 million from $24 million, primarily due to Calavo’s cost structure. The company also incurred $12.6 million in transaction advisory and integration costs, alongside $5.2 million in acquired inventory step-up amortization.

Looking ahead, Mission Produce expects 120 million to 130 million pounds of exportable avocado production from its owned Peru farms this season, up from 105 million pounds last year. With about 53 million pounds sold by the end of the third quarter, the company anticipates a greater concentration of sales in the fiscal fourth quarter.