Mission Produce 2025 Q4 Earnings Revenue Falls 10% as Net Income Drops 18.8%

Mission Produce (AVO) reported fiscal 2025 Q4 earnings on Dec 18, 2025, with revenue declining 10% to $319M and net income falling 18.8% to $16.8M. The company’s adjusted EPS of $0.31 beat estimates, while Q1 2026 guidance highlights avocado volume growth and lower pricing.

Revenue

Mission Produce’s total revenue decreased by 10.0% to $319 million in 2025 Q4, down from $354.40 million in 2024 Q4. The decline was driven by a 27% drop in average per-unit avocado sales prices in the Marketing & Distribution segment, partially offset by a 13% increase in avocado volume sold. The International Farming segment saw a 97% revenue increase to $59.6 million, while the Blueberries segment reported a 16% rise to $36.5 million.

Earnings/Net Income

Mission Produce’s EPS declined 7.1% to $0.23 in 2025 Q4 from $0.24 in 2024 Q4. Net income fell 18.8% to $16.80 million, while adjusted net income rose 13% to $22.2 million. The EPS and net income results reflect a mixed performance, with core profitability metrics under pressure despite volume growth in key segments.

Price Action

The stock price of Mission Produce has edged up 0.15% during the latest trading day, has climbed 4.29% during the most recent full trading week, and has jumped 11.94% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Mission Produce (AVO) shares after a revenue drop quarter-over-quarter on the financial report release date and holding for 30 days resulted in a significant underperformance. The strategy had a CAGR of -10.76% over the past three years, with a total return of -28.65%. The strategy's Sharpe ratio was -0.28, indicating a negative risk-adjusted return, and the maximum drawdown was 0.00%, suggesting that the strategy had no capital losses during the backtest period.

CEO Commentary

Steve Barnard (Transitioning to Executive Chairman) emphasized a seamless leadership transition, with John Pawlowski (Incoming CEO) succeeding him. He highlighted Mission’s 13% revenue growth in 2025, $1.39 billion record revenue, and $180 million in operating cash flow over two years, crediting the team’s execution and global platform. John underscored record avocado volume growth (7% full-year, 13% Q4), international expansion (40% European volume increase), and Peruvian production recovery ($105 million in sales). Strategic priorities included vertical integration, data-driven decision-making, and disciplined processes. John expressed optimism about leveraging the strong balance sheet, completed capital investments, and free cash flow flexibility for future growth.

Guidance

Bryan Giles (CFO) outlined expectations for Q1 2026: avocado industry volumes are expected to increase by approximately 10% versus the prior year period, driven by a larger Mexican crop in the current harvest season. Pricing is expected to be lower on a year-over-year basis by approximately 25% compared to the $1.75 per pound average experienced in Q1 2025.

Additional News

Mission Produce announced a leadership transition, with John Pawlowski set to become CEO in April 2026, succeeding Steve Barnard, who will transition to Executive Chairman. The board also appointed Laura Flanagan to its board, bringing her experience from Ripple Foods and Foster Farms. Additionally, Stephen Beebe and Bonnie Lind will not stand for reelection at the 2026 Annual Meeting, with Michael Sims and Douglas Stone assuming new committee roles. These changes reflect the company’s focus on strategic leadership and governance as it positions for growth in 2026.