Calavo Growers (CVGW) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 rose 3.3% year-over-year to $190.5 million, driven by higher avocado pricing in the Fresh segment, partially offset by lower volumes and a decline in Prepared segment sales; six-month sales up 10.6% to $344.9 million.

• Net income attributable to continuing operations was $6.9 million ($0.38/share) for Q2 2025, up from $6.1 million in Q2 2024; six-month net income was $11.3 million ($0.63/share) versus a loss last year.

• Gross profit for Q2 2025 declined 11.9% year-over-year to $18.1 million, mainly due to lower volumes in Fresh products and a temporary tariff event.

• SG&A expenses decreased 20.9% year-over-year in Q2 2025, reflecting lower headcount, reduced legal costs, and IT savings.

• The company paid a $0.20 per share dividend in April and declared another for July 2025.

Financial highlights

• Q2 2025 net sales: $190.5 million (+3.3% year-over-year); six months: $344.9 million (+10.6%).

• Q2 2025 net income: $6.9 million; six months: $11.3 million.

• Q2 2025 gross profit: $18.1 million (-11.9% year-over-year); gross margin: 9.5% (down from 11.1%).

• Q2 2025 adjusted EBITDA: $11.4 million, down from $13.8 million; six-month adjusted EBITDA: $20.7 million.

• Cash and cash equivalents at April 30, 2025: $60.4 million; available liquidity: $119.8 million; total debt: $4.7 million.

Outlook and guidance

• Inflationary and cost pressures are expected to persist through fiscal 2025, with ongoing strategies to offset these impacts.

• Management expects Prepared segment momentum in H2 2025, driven by new customer wins and expanded programs.

• Continued strength anticipated from California avocado season and pricing power.

• Uncertainty remains around U.S.-Mexico trade policy, including potential tariffs and the Tomato Suspension Agreement, which could affect costs and supply.

• Management anticipates continued focus on grower partnerships and customer relationships to support long-term sales growth.