Calavo Growers (CVGW) Q4 2025 earnings summary

Executive summary

• Net income from continuing operations grew 192% year-over-year to $20.0 million for fiscal 2025, with adjusted net income up 42% and adjusted EBITDA up 12% to $40.8 million.

• Announced a strategic merger agreement with Mission Produce, expected to close by August 2026, creating a vertically integrated platform and targeting $25 million in cost synergies.

• Management highlighted resilience amid challenges including facility shutdowns, FDA import holds, and a concluded FCPA investigation.

Financial highlights

• Fiscal 2025 net sales decreased 2% year-over-year to $648.4 million; Q4 net sales fell 27% to $124.7 million.

• Gross profit for fiscal 2025 was $63.7 million (10% margin), down from $67.8 million; Q4 gross profit was $11.6 million (9% margin).

• SG&A expenses declined 16% to $42.1 million for the year.

• Adjusted net income for fiscal 2025 was $28.9 million ($1.62 per diluted share), up 42% year-over-year.

• Adjusted EBITDA for fiscal 2025 was $40.8 million, up 12% year-over-year.

• Ended Q4 with $61.2 million in cash and $97.1 million in available liquidity; total debt was $4.1 million.

Outlook and guidance

• Expects softer Q1 2026 results year-over-year due to continued strong avocado supply and pricing pressure.

• Fresh segment: higher avocado volumes but lower prices and per unit profit; Prepared segment: volume-driven sales growth and higher gross profit.

• Lower adjusted EBITDA anticipated in Q1 2026, mainly from Fresh segment pricing dynamics.