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    DOLE
    Earnings call· Jun 2026(Q2 FY26)

    Dole Q2 FY26 earnings call DOLE

    Aug 10, 2026 Source

    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

    3
    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

    3
    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

    Operational metrics

    14
    Group revenue
    $2.5 billion2.9% higher
    Q2 FY26

    Reflecting positive operational performance and favorable foreign exchange movements.

    Group revenue growth
    1.7%ahead
    Q2 FY26

    Underlying revenue growth.

    Gross profit
    decreased by $23 millionYoY
    Q2 FY26

    Primarily reflecting higher costs within Fresh Fruit.

    SG&A expenses
    higheryear-over-year
    Q2 FY26

    Primarily due to a nonrecurring charge for the settlement of a historical matter.

    Other income
    increased by $22.6 millionYoY
    Q2 FY26

    Primarily reflecting favorable unrealized foreign exchange movements on foreign currency denominated borrowings.

    Interest expense
    decreased by $2.7 millionYoY
    Q2 FY26

    Due to lower average borrowings and lower base interest rates.

    Net income from continuing operations
    $35.1 millioncompared to $52.9 million in the prior year
    Q2 FY26

    Reported GAAP net income.

    Total net income
    increasedyear-on-year
    Q2 FY26

    As the prior year included a loss from discontinued operations associated with the Fresh Vegetable business.

    Adjusted EBITDA
    $117 milliondecrease of $20.4 million
    Q2 FY26

    Mainly driven by higher costs within Fresh Fruits and partially offset by strong performance from Diversified Americas.

    Adjusted net income
    $9.4 milliondecreased
    Q2 FY26

    Predominantly due to the decrease in adjusted EBITDA, partially offset by lower interest expense and a lower tax charge.

    Capital expenditure
    circa $25 million
    Q2 FY26

    Including investments designed to support future growth, expand capacity, and improve operating efficiency.

    Net debt
    $746 million
    Q2 FY26

    At quarter-end, impacted by the first step of the Ecuador port sale transaction.

    Net leverage
    2x
    Q2 FY26

    Reflecting the completion of the Ecuador port sale on July 1 and expected net proceeds of approximately $95 million.

    Shares repurchased
    700,000 shares
    Q2 FY26

    Part of returning capital to shareholders.

    Industry KPIs

    8
    MetricValueDetails
    Gross margindecreased by $23 millionUSD
    Brand platform growth—
    Organic net revenue growth1.7%%
    Adjusted EPS operating income$0.46USD
    Retailer trade negotiation status—
    Volume mix vs pricing decomposition—
    Elasticity consumer response commentaryresilient
    Category growth benchmark channel shift data—

    Deals & partnerships

    3
    Not statedSale of port business in Ecuadorapproximately $95 million

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

    GreenfoodAcquisition of Fresh Produce division in Scandinavia

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

    Not statedBolt-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

    1
    Scandinavia Automation, AI and Innovative Warehouse Solutions Investmentunderway

    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

    5
    Elevated Fuel and Shipping CostsQ2 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 DepreciationQ2 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 ChargeQ2 FY26

    SG&A expenses higher year-over-year.

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

    Potential Super El NinoBuilding, 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

    5

    Fresh Fruit Margin Dynamic

    Q3 FY26, Q4 FY26
    CurrentImpacted by elevated costs in Q2 FY26
    TargetDifferent (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.

    Q&A highlights

    7

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.