Dole plc reported mixed second-quarter 2026 results on August 10, with revenue advancing 2.9% to $2.499 billion for the three-month period ending June 30, while profitability metrics diverged. Net income more than doubled to $35.1 million, but Adjusted EBITDA declined 14.8% to $116.8 million, reflecting pressures the company had previously disclosed regarding fruit acquisition expenses.
The Diversified Fresh Produce – Americas & ROW segment provided the strongest performance, with revenue rising 13.9% or $53.8 million and Adjusted EBITDA increasing 33.8% or $5.2 million. Growth drivers included seasonal benefits from North American cherries and underlying expansion in kiwi and avocado sales, alongside improved pricing in the southern hemisphere export business. However, the Fresh Fruit segment experienced significant strain, with Adjusted EBITDA contracting 30.9% or $22.5 million due to higher fruit sourcing costs, elevated shipping and fuel expenses, and increased pineapple production costs from adverse weather that reduced volumes across all markets. Currency headwinds from a strengthening Costa Rican Colón added further pressure.
Dole completed two major transactions reshaping its capital structure. On July 1, the company sold its Ecuador port facility, anticipated to generate roughly $95 million in net proceeds, and finalized its acquisition of the Greenfood Fresh Produce division in Scandinavia. Net debt stood at $746.1 million with net leverage of 2.0x as of June 30. The company maintained shareholder returns, declaring a quarterly dividend of $0.085 per share payable October 7 and executing $10.0 million in stock repurchases at an average price of $13.88 per share.
Pressure on margins extended across the income statement. Gross profit declined $23.0 million and operating income fell $55.7 million, affected by higher cost of sales, a $23.054 million non-recurring charge from settling a historical legal claim, and the absence of prior-year land-sale gains in Hawaii. Adjusted Diluted EPS totaled $0.46, down from $0.55 a year earlier. The Diversified Fresh Produce – EMEA segment also declined, with Adjusted EBITDA down 6.2% on weakness in South Africa, the Netherlands and Spain.
Dole issued guidance for full-year Adjusted EBITDA of approximately $400 million for 2026, contingent on cost moderation and synergies from recent transactions. Management flagged persistent fuel and shipping costs alongside geopolitical uncertainty as ongoing headwinds in a complex operating environment. Stock valuation reflected investor caution, with a forward P/E of 8.76 as of September 14, and hedge fund ownership declining from 32 to 26 funds in the recent quarter.
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