Sep 8, 2026 earnings call — Calavo integration and Q3 results
Adjusted EBITDA beat guidance at $32.4 million, and annualized synergies were increased to more than $30 million.
Revenue $0.5B (est $0.4B) · EPS $0.18 (est $0.12)
Key quotes
"Following our integration work so far, we are increasing that estimate to more than $30 million, primarily reflecting higher-than-anticipated SG&A savings and network efficiencies."
"U.S. avocado consumption remains at record levels in '26, trending above 10 pounds per capita year to date, 12% higher than last year, while household penetration has increased approximately 50 basis points year-to-date compared to last year."
"We expect exportable production of approximately 120 to 130 million pounds, compared with 105 million pounds last season, of which approximately 53 million pounds has been sold through at the end of Q3."
Analyst Q&A 3
merger cost savings and Peru avocado sales
Q (Mark Smith · Lake Street Capital): He asked what specifically drove the jump in the annualized synergy target from $25 million to more than $30 million (SG&A, headcount, logistics, procurement, etc.). He also asked how confident they are in moving the remaining Peruvian avocado volume at acceptable margins.
A: They said early integration work in the first five to eight weeks revealed many small savings (transportation, packhouse cooperation, operating efficiencies and SG&A) that added up and justified raising the target from $25 million to $30 million. On Peru, they said this year was their best productivity and they built a wider, higher-quality sales network in Europe and North America, which gives them confidence in moving the remaining fruit. They also noted a mix shift toward higher-yield farms will help fourth-quarter margins.
"The numbers started to add up fairly quickly, and we feel confident that moving from that $25 million to $30 million is the right thing to do for now." — John Pawlowski (CEO)
harvest timing and market share after Calavo
Q (Gerard Sweeney · Roth Capital Partners): He asked whether the fruit is already picked and how much visibility they have on it. He also asked how much of the 120–130 million pound production increase was due to weather versus farm operating improvements and what the Calavo combination means for market share.
A: They said the harvest was about one week from being fully wrapped up and they have very good visibility into outlets and allocations for the next three to four weeks. They said it is hard to assign exact percentages to weather versus farming, but the teams improved recovery and nutrition, and decent early-season weather helped trees hold up, which led them to outperform parts of the market. They added that the combined company gives more scale and fruit availability to serve more customers for longer, and they expect to be able to move market share meaningfully between 2027 and 2030 without buying it.
"We are approximately 1 week away from being fully wrapped up with that harvest." — John Pawlowski (CEO)
Q4 volumes and prepared foods opportunity
Q (Pooran Sharma · Stephens): He asked how to think about Q4 volume growth given Calavo’s contribution and whether the 10% industry growth guide includes Calavo. He also asked what the biggest opportunities are in the Prepared Foods business (capacity, sourcing, customer penetration).
A: They said it is difficult to separate Calavo’s exact contribution because the companies started operating as one unit right after close and systems are still consolidating, so their industry guidance was intended to describe market conditions only. They reiterated they expect industry volumes to be about 10% higher in Q4. On Prepared Foods, they said Calavo built strong processed-avocado capabilities and customers, the Mexico facility capacity likely needs addressing, and their larger global footprint and combined sales teams already opened new customer opportunities in the first few weeks.
"What I will say as we look at Q4 is that we think the industry volumes are going to be at about a 10% growth rate." — Bryan Giles (CFO)