- Leadership Transition: Steve Barnard transitions to Executive Chairman, succeeded as CEO by John Pawlowski, who led record $1.39 billion revenue and 7% avocado volume growth.
- Financial Performance: 12% adjusted EBITDA increase, $88.6 million operating cash flow, and $18 million reduction in long-term debt in Q4 FY2025.
- Avocado Market Share: 7% volume growth in avocados sold, with industry-wide 2026 volume expected to rise 10% despite 25% price decline from $1.75/lb (2025).
- Mango Expansion: Achieved 5.2% market share with 150 bps full-year growth, driven by consumer engagement and supply consistency strategies.
- Capital Allocation: Targeting $40 million in FY2026 capex ($20 million for growth) and prioritizing market share gains, global expansion, and potential share buybacks.
Business Segment Performance
The company's commercial team demonstrated remarkable agility in managing demand and supply shifts across its U.S. and European operations. The blueberry strategy focused on filling in the seasonal calendar and maximizing the productivity of its Peruvian assets. The mango business also saw significant growth, with a 5.2% market share and a 150 basis point increase in market share for the full year. John Pawlowski highlighted the importance of consumer engagement and supply consistency, which is setting the stage for stronger growth in the future.
Outlook and Guidance
The company expects avocado industry volumes to increase by approximately 10% in 2026, driven by a larger Mexican crop in the current harvest season. However, pricing is expected to be lower year over year by approximately 25% compared to the $1.75 per pound average experienced in 2025. For blueberries, the company expects volume increases from its own farms as new acreage comes into production, which should translate to higher revenue as average sales prices are expected to be flat to slightly higher. Analysts estimate next year's revenue growth at -2.7%, indicating a challenging environment, but the company's diversified portfolio and strong operational performance are expected to mitigate this.
Valuation and Return Metrics
With a P/E Ratio of 24.97 and an EV/EBITDA of 8.33, the company's valuation appears reasonable, considering its strong financial performance and growth prospects. The company's return on invested capital (ROIC) stands at 5.36%, and return on equity (ROE) is 6.68%. The net debt to EBITDA ratio is -0.48, indicating a healthy balance sheet. The Free Cash Flow Yield is 3.99%, providing a decent return for investors. The company's priority is growth, and they are looking for opportunities to expand their existing categories, geographic reach, or bolt on adjacent ones, which could potentially drive further returns.