What Dole (DOLE) Said on Its Q3 Earnings Call

Key Points

• Dole cut its 2026 adjusted EBITDA outlook to $380 million–$390 million from about $400 million, citing higher fuel, shipping and input costs, along with weather-related supply and quality issues.
• Third-quarter revenue rose 3.8% to about $2.4 billion and adjusted EBITDA increased 4.1% to $84.1 million. Fresh Fruit EBITDA grew despite lower revenue, while Diversified Americas posted gains in both revenue and EBITDA.
• Free cash flow increased to $110.4 million, helping reduce net debt to $491.3 million and net leverage to 1.3 times at quarter-end; Dole expects both to finish the year near those levels.

Dole NYSE: DOLE lowered its full-year 2026 adjusted earnings outlook, citing higher fuel and shipping costs and adverse weather that has constrained fruit supplies, even as third-quarter revenue and adjusted EBITDA rose.

The produce company now targets adjusted EBITDA of $380 million to $390 million, down from approximately $400 million previously. CEO Rory Byrne said Dole still expects a year-over-year improvement in the fourth quarter, but a smaller one than it anticipated at the time of its second-quarter results.

“The biggest single mover is definitely the fuel,” Byrne said on the earnings call. He also cited higher fertilizer and packaging costs and weather-related quality and sizing problems in the pineapple business.

Third-quarter revenue increased 3.8% to approximately $2.4 billion, while adjusted EBITDA rose 4.1% to $84.1 million. Net income climbed to $48.3 million from $13.8 million a year earlier, helped by a gain on the sale of Dole’s Ecuador port facility and lower interest expense. Adjusted diluted earnings per share were unchanged at $0.16.

Fuel and weather weigh on outlook

Byrne said higher shipping fuel costs in Europe would have an adverse impact of approximately $16 million for the full year compared with Dole’s original 2026 expectations. The company has less protection from fuel-cost increases in Europe than in North America, where customer contracts include fuel surcharges.

Adverse weather, including the effects of El Niño, also affected banana supplies and pineapple availability. In response to an analyst’s question, Byrne said the weather pattern was proving to be at the strong end of predictions and could affect yields, particularly in Central America. He also noted significant weather impacts in Colombia and potential effects on blueberries and grapes in northern Peru.

Byrne said it was too early to forecast 2027, but that fixed-price contracts can take time to reflect sharp cost increases. Negotiations on Fresh Fruit contracts were underway, he said, without providing details on pricing or cost recovery.

Fresh Fruit profit rises despite lower revenue

Fresh Fruit revenue fell 8% to $818.7 million, reflecting tariff-related impacts, lower North American banana volumes and reduced European pineapple supplies, Chief Financial Officer Jacinta Devine said.

The segment’s adjusted EBITDA nevertheless increased 6% to $28.8 million. Improved North American banana pricing and strong European banana volumes helped offset higher pineapple production and fuel-related shipping and logistics costs.

Dole expects Fresh Fruit’s fourth-quarter result to improve from a year earlier, though by less than it previously anticipated. Byrne said the company is focused on commercial discipline, cost management and operational execution.

In Diversified Fresh Produce EMEA, revenue rose 9.3% to approximately $1.1 billion, aided by the acquisition of Greenfood’s Fresh Produce business in Scandinavia. Adjusted EBITDA fell 3.1% to $39.5 million, as weaker performances in the Netherlands and Spain partly offset improvements in Scandinavia, Ireland and the U.K. Dole is targeting a full-year segment result in line with the prior year.

Diversified Americas revenue increased 14.1% to $479.2 million, and adjusted EBITDA rose 22.8% to $15.8 million. Devine attributed the gains to strength in North America, where volumes grew across products including kiwis, avocados, grapes and tomatoes.

Cash flow strengthens balance sheet

Dole generated $110.4 million in free cash flow during the quarter, up from $66.5 million a year earlier. That cash flow and proceeds from the Ecuador port sale helped reduce net debt to $491.3 million and net leverage to 1.3 times at the end of September. Devine said the company expects both measures to finish the year at similar levels.

Byrne said the port transaction generated nearly $100 million in net cash with negligible impact on earnings. Dole also spent $10 million on share repurchases in the quarter, bringing its nine-month total to $24.6 million.

The company expects full-year capital expenditure of $90 million. Byrne said Dole would continue to assess investments and acquisitions but that smaller bolt-on deals were more likely in the short term. Integration of the Scandinavian acquisition is progressing, he said, with warehouse automation and robotics planned for its Helsingborg facility over the coming years.

About Dole (NYSE:DOLE)

Dole plc is a global producer, marketer and distributor of fresh fruit and vegetables. The company supplies a broad portfolio of products, including bananas, pineapples, grapes, berries, citrus fruit, avocados, salads and other packaged and prepared produce. Its activities span farming, sourcing, processing, packaging, transportation and distribution.

Dole serves retail, foodservice and wholesale customers through operations and supply networks across North America, Europe, Latin America, Africa and other international markets.

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