Mission Produce, Inc.

What they do

Mission sources Hass avocados mainly from California, Mexico and Peru, then sorts, packs, bags and ripens them at four packing facilities and a network of forward distribution centers in North America, China, Europe and the U.K. It sells pre-ripe and ripened fruit at five ripeness stages to retailers, distributors and produce wholesalers, and also markets mangos on a limited scale to fill the avocado off-season. International Farming owns orchards in Peru and Guatemala and sells most of its fruit internally to Marketing & Distribution, while the Blueberries segment grows fruit sold to a single distributor under an exclusive marketing agreement. It also earns service revenue packing and processing fruit for its Blueberries segment and third-party growers.

Revenue drivers

• Marketing & Distribution — Sources fruit from third-party growers and moves it through the global distribution network; in Q3 FY2026 gross profit rose on the inclusion of Calavo's post-acquisition results, though those results were reduced by purchase accounting adjustments.
• International Farming — Owns and operates orchards in Peru and Guatemala and sells the vast majority of fruit internally to Marketing & Distribution; Q3 FY2026 gross profit fell on lower average sales prices tied to higher global avocado supply.
• Blueberries — Cultivates and harvests blueberry plantings, with substantially all output sold to a single distributor under an exclusive marketing agreement; Q3 FY2026 gross profit improved on one-time IEEPA tariff refunds.
• Avocado volume and price — Q3 FY2026 revenue growth came from a 38% increase in avocado volume, partly offset by a 9% decline in per-unit avocado sales prices.

Recent performance

Q3 FY2026 revenue was $450.0 million, up 26% year over year, driven by 38% avocado volume growth partly offset by a 9% price decline. Volume gains came from the Calavo integration and higher Mexican avocado yields. Net loss attributable to Mission Produce was $6.5 million, or $(0.08) per diluted share, including $25.4 million of pre-tax Calavo acquisition-related costs, versus income of $14.7 million, or $0.21 per diluted share, a year earlier. Adjusted net income was $15.0 million, or $0.18 per diluted share, and adjusted EBITDA was $32.4 million. Gross profit was $44.7 million with gross margin down 270 basis points to 9.9% of revenue.

Strategy

Management is integrating the Calavo acquisition, completed May 28, 2026, and has raised its estimated annualized synergy opportunity to more than $30 million on higher-than-anticipated SG&A savings and network efficiencies. Priorities cited by CEO John Pawlowski are extending marketplace momentum, executing across the global network, integrating Calavo thoughtfully and converting expanded scale into earnings and returns. The company reported meaningful year-to-date U.S. retail market share growth for the legacy Mission business. It plans to discuss its next phase of growth at an Investor Day in October. Second-half fiscal 2026 guidance was reaffirmed.

Risks

• Single-product concentration — The business grows, markets and distributes one main product, avocados, so supply, pricing, competition, customer concentration and trade-policy risks are all concentrated in that one crop.
• Supply availability — Revenue is limited by the finite number of trees on owned farms and the ability to buy fruit from third-party growers at acceptable prices, with limited ability to add supply if demand rises.
• Calavo integration and purchase accounting — Q3 FY2026 results included $25.4 million of pre-tax acquisition-related costs and $12.6 million of transaction advisory and integration costs, and acquired results were reduced by purchase accounting adjustments.
• Mexican tax and VAT exposure — The company recorded a $27.1 million provision for uncertain tax positions tied to a 2013 Mexican assessment as of July 31, 2026, and carries roughly $25.7 million of Mexican VAT receivables whose collection depends on appeals and SAT authorization.

Outlook

Management reaffirmed its second-half fiscal 2026 guidance and raised the estimated annualized Calavo synergy target to more than $30 million. It flagged that integration work remains and will be sequenced to preserve business continuity and customer service. The company plans to detail its next phase of growth at an Investor Day in October.