Calavo Growers, Inc. has announced its financial results for the fourth quarter and fiscal year 2025, revealing a mix of changes in various metrics compared to the prior year period, as well as a strategic combination with Mission Produce, Inc.
In the fourth quarter of 2025, total net sales decreased to $124.7 million from $170.0 million in the prior year period, with gross profit at $11.6 million, impacted by $1.0 million of non-recurring costs, and adjusted net income from continuing operations increased 301% to $4.5 million. Adjusted EBITDA from continuing operations decreased 24% to $5.0 million.
For the fiscal year 2025, total net sales decreased to $648.4 million from $661.5 million in the prior year period. Gross profit was $63.7 million, including an impact of $6.1 million of non-recurring costs, and adjusted net income from continuing operations increased 42% to $28.9 million. Adjusted EBITDA from continuing operations increased 12% to $40.8 million.
The company also reported ending the fourth quarter with cash and cash equivalents of $61.2 million and $97.1 million in available liquidity, with no borrowings under its credit facility and total debt of $4.1 million.
Looking ahead to the first quarter of fiscal 2026, the company expects higher avocado sales volumes but lower average selling prices and per unit profit in the fresh segment, while the prepared segment is expected to see volume-driven sales growth and higher gross profit. However, lower adjusted EBITDA is anticipated primarily due to pricing dynamics in the fresh segment.
In a strategic move, Calavo Growers, Inc. announced a combination with Mission Produce, Inc., in a cash and stock transaction, which is expected to close by the end of August 2026, subject to customary closing conditions, including regulatory approvals.
The press release also quotes B. John Lindeman, President and CEO of Calavo Growers, Inc., expressing pride in the team's performance despite challenges in fiscal year 2025, and optimism for the strategic combination with Mission Produce, Inc., to unlock new growth and expand the impact of the Calavo brand.
This move comes following the completion of a comprehensive strategic review process, which was first disclosed in June 2025 and is expected to create significant value creation opportunities for shareholders with expected cost synergies of $25 million and potential for meaningful upside. The market has reacted to these announcements by moving the company's shares 1.17% to a price of $25.92. For the full picture, make sure to review CALAVO GROWERS INC's 8-K report.
