Mission Produce Plans to Double Sales and Triple EBITDA by 2035

By Hao Liu • Thursday, October 08 16:06 • Permanent Link

Mission Produce set out a five-year plan on Oct. 8 that calls for mid-single-digit organic sales growth, about 300 basis points of margin expansion and more than 90% conversion of adjusted net income into free cash flow.

The company also laid out a longer-range ambition for 2035: double sales and triple adjusted EBITDA.

Management said the five-year framework is expected to deliver high-single-digit organic adjusted EBITDA growth, with the combination of disciplined M&A and share repurchases intended to support high-single-digit to double-digit annual shareholder returns over time.

A key piece of the plan is the Calavo integration. Mission said it has already pooled supply, closed the Temecula operation and established its future U.S. distribution footprint. The next steps include network and systems transitions, followed by integration of remaining operations in Mexico packing and prepared foods.

The company raised its annualized synergy target from at least $25 million to more than $30 million. It expects a small contribution in the fourth quarter of fiscal 2026 and still targets the full annualized run rate within 18 months of closing.

Mission also reaffirmed its second-half and fourth-quarter fiscal 2026 outlook. It expects second-half adjusted EBITDA of $84 million to $88 million, including fourth-quarter adjusted EBITDA of $52 million to $55 million. For Mission Peru, it sees exportable volume of 120 million to 130 million pounds in the second half, including 67 million to 77 million pounds in the fourth quarter.

On capital allocation, the company said it aims to reduce net leverage below 1.5 times adjusted EBITDA and has a $100 million share-repurchase authorization in place.

Management said the growth plan is supported by several operating levers: improved portfolio mix, Calavo synergies, SG&A leverage and better asset utilization. The company said prepared foods and mangoes offer additional growth paths, while U.S. avocado and international markets remain core volume drivers. The market has reacted to these announcements by moving the company's shares -1.88% to a price of $12.51. For more information, read the company's full 8-K submission here.

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