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Dole (DOLE) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Staples· Aug 10, 2026

Source: earnings call transcript

Executive summary

Dole plc Q2 FY26 — Resilient Performance Amidst Geopolitical Headwinds

Dole plc navigated a complex Q2 FY26 with resilient consumer demand and strategic capital allocation, despite significant headwinds from elevated fuel and shipping costs impacting Fresh Fruit. The company's diversified business model, particularly strong performance in Diversified Americas, helped offset these pressures, while strategic acquisitions and share repurchases underscore a balanced approach to growth and shareholder returns. Management maintains full-year adjusted EBITDA guidance of approximately $400 million, acknowledging ongoing geopolitical uncertainties.

Highlights

5

  • Diversified Americas revenue increased 14%, with Adjusted EBITDA up $5.2 million.

  • Completed Ecuador port sale, unlocking approximately $95 million of net proceeds.

  • Acquired Greenfood Fresh Produce division in Scandinavia, strengthening market position and adding a state-of-the-art distribution facility.

  • Repurchased 700,000 shares for $10 million at an average price of $13.88 per share.

  • Group revenue increased 2.9% on a reported basis to $2.5 billion.

Concerns

5

  • Fresh Fruit profitability decreased, with Adjusted EBITDA down $22.5 million, due to higher fuel and shipping costs.

  • Group gross profit decreased by $23 million, reflecting higher cost of sales.

  • Group Adjusted EBITDA decreased by $20.4 million to $117 million.

  • Adjusted diluted EPS decreased to $0.46 from $0.55 in Q2 2025.

  • Diversified EMEA Adjusted EBITDA decreased 6% on a reported basis, driven by weaker performance in South Africa, Netherlands, and Spain.

Guidance & targets

CategoryTargetConfidence
Full year Adjusted EBITDA
approximately $400 million
high materiality
High
Full year routine CapEx
approximately $100 million
medium materiality
High
Net leverage
south of 1.5x
medium materiality
Medium

Segment performance

SegmentRevenueYoYQoQMargin
Fresh Fruit
Profitability impacted by elevated fuel and shipping costs, higher food sourcing costs, higher pineapple growing costs, and continued depreciation of the Costa Rican colon.
Banana volumes in Europe: strongBanana volumes in North America: lowerPineapple volumes: lower across all markets
$972.8 millionbroadly in line—Adjusted EBITDA decreased by $22.5 million to $50.3 million
Diversified Fresh Produce EMEA
Favorable foreign exchange and Scandinavia strength offset by weaker performance in South Africa (due to Middle East disruption), Netherlands, and Spain. Prior year was a very strong comparative.
Underlying growth in Scandinavia: positiveRevenue in Spain: lower relative to strong comparatorPerformance in South Africa, Netherlands, Spain: weaker
increased 1%increased 1% (reported), decreased 1.7% (like-for-like)—Adjusted EBITDA decreased 6% (reported), decreased $4 million (like-for-like)
Diversified Americas
Strong performance driven by higher North American volumes, positive Southern Hemisphere export season, and benefits from partial restructuring of Berry operations in Q4 2025.
Volumes in North American business: higher (kiwi, avocados, cherries)Southern Hemisphere export business: positive season and pricing
increased 14%increased 14%—Adjusted EBITDA increased by $5.2 million to $20.6 million

Deals & partnerships

Not stated Sale of port business in Ecuador approximately $95 million

Transaction completed on July 1, unlocking net proceeds. Pre-closing ownership restructuring completed in May, acquiring remaining minority interest.

Greenfood Acquisition of Fresh Produce division in Scandinavia

Completed at the beginning of July. Complements and strengthens existing operations.

Not stated Bolt-on acquisition within Irish growing operations

Completed during the quarter. Part of strategy to look at smaller bolt-on acquisitions that add value across core markets.

Capital programs

Scandinavia Automation, AI and Innovative Warehouse Solutions Investment underway

Benefit:Strengthens market position, adds state-of-the-art distribution facility in Helsingborg, strong platform for next phase of automation and AI investment.

Strategic opportunity to invest in automation, AI and innovative warehouse solutions to better serve core customer base in Scandinavia. The acquisition of Greenfood Fresh Produce division in Scandinavia completed at the beginning of July provides a strong platform for this investment.

Risks & headwinds

Elevated Fuel and Shipping Costs Q2 FY26, expected to remain elevated in H2

Fresh Fruit Adjusted EBITDA decreased by $22.5 million; Group Adjusted EBITDA decreased by $20.4 million.

Mitigation:Contractual pricing mechanisms (fuel surcharges) expected to flow through in Q3/Q4, cost-saving initiatives in Fresh Fruit, dynamic pricing model in diversified businesses.

Geopolitical Developments (Middle East Conflict) Q2 FY26, ongoing uncertainty

Impacted South African business with shipping disruption; contributed to elevated fuel/shipping costs.

Mitigation:Diversified business model, re-organizing shipping routes.

Costa Rican Colon Depreciation Q2 FY26, continued strength

Pressured profitability in pineapples and Fresh Fruit Adjusted EBITDA.

Mitigation:Not explicitly stated, but part of broader cost pressures being addressed through pricing and cost savings.

Nonrecurring SG&A Charge Q2 FY26

SG&A expenses higher year-over-year.

Mitigation:One-off settlement of a historical matter, not expected to recur.

Potential Super El Nino Building, pattern well understood

Discussed as a potential disruption to banana and pineapple businesses.

Mitigation:Expanded irrigation, dikes, drainage, elevated pump stations, new drought-tolerant varieties, diversified portfolio (south/north of equator).

What to watch in Q3 FY26

Fresh Fruit Margin Dynamic

Q3 FY26, Q4 FY26
Current Impacted by elevated costs in Q2 FY26
Target Different (improved) compared to Q3/Q4 last year

Why it matters

Fresh Fruit profitability is a key driver for overall group performance, and its recovery is crucial for meeting full-year guidance.

So yes, we do expect the margin dynamic in Q3 and Q4 in Fresh Fruit to be different to Q3 and Q4 of last year.

Find out whether DOLE delivers this. Inve re-checks your case every morning.

Q&A highlights

Seeking clarification on the updated EBITDA guidance, the expected Q3/Q4 split, and quantification of Q2 fuel cost headwinds versus recovery.

Management acknowledged the complex geopolitical backdrop makes precise forecasting difficult but confirmed fuel surcharges will benefit Q3 and likely Q4. They reiterated the $400 million EBITDA target as satisfactory given current challenges, expecting it to be split across the second half.

“But it's dragging on longer than we would have liked, and that obviously has some impact on our ability to get clear visibility over the back half of the year.”

asked by Christopher Barnes · answered by Rory Byrne

2 min read 6 chapters

Detailed narrative

Strategic Capital Allocation

Dole plc completed the Ecuador port sale for approximately $95 million in net proceeds, significantly strengthening its balance sheet and increasing financial flexibility with a negligible impact on ongoing earnings. The company also acquired Greenfood Fresh Produce in Scandinavia, enhancing its market position and providing a strategic platform for future automation and AI investments. These actions reflect a disciplined approach to capital allocation, balancing growth investments with shareholder returns.

Operational Resilience Amidst Headwinds

The company's diversified business model demonstrated resilience in Q2 FY26, with strong performance in Diversified Americas helping to offset significant cost pressures in Fresh Fruit. Management highlighted the effectiveness of contractual pricing mechanisms, including fuel surcharges, and ongoing cost-saving initiatives in Fresh Fruit. The dynamic pricing model in diversified businesses also supported profitability and managed changing market conditions, contributing to overall stability.

Fresh Fruit Segment Challenges

The Fresh Fruit segment faced considerable headwinds in the quarter, primarily due to elevated fuel and shipping costs stemming from the Middle East conflict. Higher food sourcing costs, increased pineapple growing costs, and the continued depreciation of the Costa Rican colon further pressured profitability. These factors led to a $22.5 million decrease in the segment's Adjusted EBITDA, despite resilient demand for products.

Diversified Segment Performance

Diversified Americas delivered another strong quarter, with revenue increasing 14% and Adjusted EBITDA up $5.2 million. This was driven by higher volumes in North America, particularly in kiwi, avocados, and cherries, and a positive Southern Hemisphere export season. Diversified Fresh Produce EMEA saw reported revenue increase 1% but Adjusted EBITDA decrease 6%, mainly due to weaker performance in South Africa, which has significant exposure to Middle East shipping disruptions.

El Nino Contingency Planning

Management addressed concerns regarding a potential Super El Nino, emphasizing that weather management is an inherent part of farming in tropical regions. The company has built resilience through expanded irrigation in dry areas, dikes and drainage in flood-prone regions, and elevated pump stations. Diversification of sourcing across hemispheres and experimentation with drought-tolerant varieties also contribute to mitigating potential impacts, with management expressing confidence in their preparations.

Share Repurchase Program

During the quarter, Dole plc repurchased 700,000 shares for $10 million at an average price of $13.88 per share. This action is part of the company's ongoing capital allocation framework, which balances investments for growth, such as the Scandinavia automation project, with returning capital to shareholders through dividends and buybacks. The company aims for investment returns to provide a reasonable premium over buyback returns.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.