Dole plc (NYSE: DOLE) Q2 2025 Earnings | 08/11/2025

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Summary of Dole plc Q2 2025 Earnings Call – August 11, 2025

Key Highlights:

Strong Financial Performance:
- Revenue increased 14.3% YoY to $2.4B, driven by growth across all segments.
- Adjusted EBITDA rose 9.3% to $137M, with adjusted diluted EPS up 12% to $0.55.
- Fresh Fruit performed well despite higher sourcing/shipping costs due to Tropical Storm Sarah.
- Diversified EMEA saw 15% EBITDA growth, benefiting from strong retail demand and favorable forex.
- Diversified Americas had an excellent quarter, with EBITDA up 27% due to strong Southern Hemisphere exports.
Strategic Milestone: Sale of Fresh Vegetables Division
- Completed sale to Arable Capital Partners, allowing Dole to focus on core operations.
- $90M cash proceeds (including a $50M seller note) will primarily be used for debt reduction.
- Two retained facilities (Yuma & Heron) may be monetized later (estimated value: ~$40M).

Challenges & Outlook:

Supply Constraints: Tight banana/pineapple supply due to weather disruptions in Central America, impacting Q3.
Tariff Uncertainty: Management expects exemptions for tropical produce but remains cautious on short-term trade volatility.
2025 Guidance: Adjusted EBITDA outlook raised to $380M–$390M (from prior range).
Capital Allocation: Focus on organic growth (Scandinavia, Chile, France) and selective M&A.

Q&A Highlights:

Back-Half EBITDA Decline: Attributed to higher fruit costs, logistical disruptions, and conservative forecasting.
Pricing & Tariffs: Strong demand supports pricing, but tariffs remain a variable; long-term exemptions expected.
Fresh Veg Deal Impact: Stranded costs to unwind gradually; balance sheet flexibility improves for future investments.
Diversified Americas Strength: Driven by Oppy’s performance and strong Southern Hemisphere exports (apples, citrus).

Final Remarks:

CEO Rory Byrne expressed confidence in Dole’s resilience and growth trajectory.
Dividend increased to $0.085/share, reflecting strong cash flow.
Focus remains on strategic clarity, operational efficiency, and stakeholder value creation.

About this video

Dole plc reported strong second-quarter 2025 financial results, with group revenue increasing 14.3% year-over-year to $2.4 billion, driven by robust growth across its diversified fresh fruit and fresh food segments, supported by favorable foreign currency impacts. Adjusted EBITDA rose 9.3% to $137 million, reflecting effective operational efficiency and cost management. Adjusted net income grew 12% to $53 million, with adjusted diluted EPS at $0.55, surpassing analyst expectations. However, net income was $18 million, down primarily due to a significant loss related to the discontinued Fresh Vegetables division, which Dole sold to Arable Capital Partners for approximately $140 million as part of its strategic realignment. Segment highlights included strong performance in bananas and pineapples driven by higher worldwide volumes and pricing, despite short-term challenges from Tropical Storm Sara and higher shipping costs, which have since been addressed. The Americas region posted double-digit EBITDA growth, aided by robust volumes and pricing improvements. Operating income rose 20% to $103 million, supported by higher revenue, gross profit, and gains on asset sales, partially offset by increased selling, general, and administrative expenses. Cash capital expenditures totaled $19.4 million for the quarter. Management raised the full-year adjusted EBITDA guidance to a range of $380 million to $390 million, underscoring confidence in Dole’s continued growth trajectory and resilience in a complex macroeconomic environment. The company remains focused on its core fresh produce business while optimizing capital allocation and operational efficiency. Risks include commodity price volatility, currency fluctuations, operational challenges from weather events, and the evolving global supply chain landscape. Nonetheless, Dole’s strategic divestment and reinforced market focus position it well for sustained performance. About Inside Ticker: Inside Ticker delivers timely, in-depth financial news and earnings analysis to empower investors with actionable insights on global companies across sectors. For comprehensive video analysis and real-time updates, visit https://www.insideticker.com/. #DolePlc #DOLE #Q22025 #Earnings #FinancialResults #RevenueGrowth #AdjustedEBITDA #NetIncome #EPS #FreshProduce #FreshFruit #TropicalStormSara #CommodityPrices #OperationalEfficiency #StrategicDivestment #AssetSale #CapitalExpenditure #MacroeconomicRisks #InvestorUpdates #NYSE #InsideTicker

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