Dole shares hold steady after revenue beats, FY26 guidance raised
Fresh fruit producer increases EBITDA outlook despite Tropical Storm Sara impact on costs
Dole plc reported fourth-quarter revenue that exceeded analyst expectations, while the global fresh fruit producer raised its adjusted EBITDA guidance for fiscal year 2026, offsetting earnings pressure from higher commodity costs linked to Tropical Storm Sara.
The Dublin-based company, which supplies bananas, pineapples and packaged salads across more than 70 countries, posted revenue of $2.36 billion for the quarter ended December 31, 2025, surpassing the consensus estimate of $2.26 billion, according to earnings coverage. The revenue figure represents a 9.2% increase from the prior year.
Adjusted earnings per share came in at $0.14, matching analyst expectations, while adjusted EBITDA for the quarter totaled $72.7 million. For the full year 2025, adjusted EBITDA reached $395.4 million, exceeding the company's most recent guidance.
Looking ahead, Dole raised its adjusted EBITDA outlook for fiscal 2026 to at least $400 million, up from $395.4 million in the prior year. The company also announced it had repurchased 300,000 shares under its $100 million share repurchase program, which was authorized by the board in November 2025. As of post-year-end, Dole had spent $4.5 million on buybacks at an average price of $15.15 per share, leaving $95.5 million remaining under the authorization, according to regulatory filings.
The company's Fresh Fruit segment faced headwinds during the quarter, with adjusted EBITDA declining 2.6% compared to the prior year. Management attributed the pressure primarily to the impact of Tropical Storm Sara, which struck Central America in November 2024, causing severe flooding across Honduras, Nicaragua, Belize and Guatemala. The storm disrupted growing regions and drove up procurement costs for bananas, pineapples and plantains, according to industry reports.
Despite these operational challenges, Dole continued to strengthen its balance sheet. Net debt stood at $606.5 million with a leverage ratio of 1.5x, according to the company's earnings presentation. In a separate corporate governance announcement, Dole said it would begin voluntarily filing on U.S. domestic issuer forms, including 10-K, 10-Q and 8-K filings, while maintaining its status as a foreign private issuer. The change is intended to provide greater consistency with other U.S. public companies and potentially improve eligibility for inclusion in certain equity indices.
Dole shares were little changed in after-hours trading following the announcement. The stock has gained approximately 28% over the past 12 months, closing at $15.99 on February 24, giving the company a market capitalization of about $1.43 billion. Analysts currently have an average target price of $17.50 on the shares, according to market data.
The company's ability to raise guidance despite weather-related disruptions to its supply chain reflects the diversified nature of its product portfolio and geographic footprint. While banana sourcing costs faced pressure from Central American weather events, the company's packaged salads and vegetable businesses have shown resilience, helping offset fresh fruit margin compression.
Dole's shift toward U.S. domestic issuer status could also expand its investor base, as some institutional mandates restrict holdings in foreign private issuers. The move comes as management seeks to reduce the discount at which the stock trades relative to broader market peers, with the shares currently trading at 11.9 times trailing earnings compared to the company's forward multiple of 7.6 times.