Dole Plc Q4 FY2025 earnings call

Key developments in 2025: Delivered operating results with EBITDA of $395 million ahead of guidance. Exited Fresh Vegetables business with sale for gross consideration of $140 million in Aug 2025. Agreed to sell Guayaquil port operations expecting net proceeds of ~$75 million. Renewed $1.2 billion credit facilities. Approved $100 million share repurchase program, spent $4.5 million. Exited Castle & Cooke as shareholder. Launched Cladeau Royale pineapple. Diversified EMEA had excellent full-year adjusted EBITDA result of $150 million, +14% yoy. Diversified Americas had strong Q4 and full-year growth with adjusted EBITDA increases

Fresh Fruit: In 2025, full-year EBITDA was $189 million. Q4 faced elevated sourcing costs for bananas, pineapples, and plantains, resulting in lower profitability. Diversified EMEA: 2025 full-year adjusted EBITDA was $150 million, an increase of 14% year on year. Q4 was stable. Diversified Americas: 2025 full-year adjusted EBITDA increased by 21%, driven by strong revenue growth, margin expansion, and increased EBITDA contributions from joint venture businesses. Q4 adjusted EBITDA increased by 32%. Fresh Fruit revenue in Q4 increased 6.7% due to higher volumes of bananas sold and higher pricing of bananas, pineapples, and plantains, partially offset by lower volumes of pineapples and plantains sold. Diversified Fresh Produce in EMEA reported revenue increased 12.7% primarily due to a favorable impact from FX as well as strong underlying performance in operations in Spain, France, and South Africa. Diversified Americas revenue increased 5%, driven by growth in most commodities sold in the North American market, along with growth in Southern Hemisphere export products, primarily driven by higher cherry volumes and higher blueberry pricing

Targeting adjusted EBITDA of at least $400 million for 2026. Early in the year, considering supply dynamics like Honduran production recovery, Chiquita's exit from Panama, weather issues in Central America and Europe. Key seasons like cherry season in Diversified Americas, and integration and efficiency initiatives in the business

Supply dynamics such as elevated sourcing costs for fruits, weather issues affecting production in Central America and Europe. Complex market dynamics impacting pricing and production levels. Potential disruptions to shipping schedules affecting product supply

Q: Elaborate on some of the major puts and takes embedded in your 2026 outlook, including cost programs, pricing, and industry supply and demand.

A: Guidance is early, with complex supply dynamics. Honduran production is recovering but not fully, Chiquita's Panama exit and weather issues in Central America and Europe are factors. Constructive dialogue with customers to reflect these dynamics.

Q: How should we think about the level of cash flow conversion relative to the at least $400 million of EBITDA?

A: Expect normalized cash generation, with generally 30%-35% conversion over the longer term, considering nonrecurring and seasonal items in 2025.

Q: Factors for higher end of 2026 guidance?

A: Key seasons like cherry season, integration efficiencies, weather impact balancing out, and banana business recovery as Honduran production comes fully on stream.

Q: About the Ecuador port asset sale?

A: The port asset was sold to a leading operator, with a use agreement based on market cost structures, and capital allocation is important in this regard