Dole (NYSE:DOLE) reported second-quarter revenue growth but lower profitability as elevated fuel, shipping and fruit-sourcing costs weighed on its Fresh Fruit segment. Management said consumer demand for fresh produce remained resilient, while Diversified Americas continued to provide an offset to pressure in bananas and pineapples.
Group revenue totaled $2.5 billion, up 2.9% on a reported basis and 1.7% higher on a like-for-like basis excluding foreign exchange effects, Chief Financial Officer Jacinta Devine said. Net income from continuing operations fell to $35.1 million from $52.9 million in the prior-year period. Adjusted EBITDA declined $20.4 million to $117 million, while adjusted diluted earnings per share were $0.46, compared with $0.55 a year earlier.
Fresh Fruit Costs Pressure Earnings
Fresh Fruit revenue was broadly unchanged from the prior year at $972.8 million. Higher banana volumes in Europe and higher underlying pricing in North America were partly offset by lower North American banana volumes and lower pineapple volumes across markets.
Fresh Fruit adjusted EBITDA fell $22.5 million to $50.3 million. Devine attributed the decline to elevated fuel and shipping costs, higher fruit-sourcing costs, increased pineapple growing costs and continued depreciation of the Costa Rican colon.
Byrne said banana volumes were strong in Europe, where pricing was broadly in line with the previous year. North American banana volumes were lower due to market conditions and the company’s focus on “disciplined profitability,” although underlying pricing was slightly higher. Pineapple availability was affected by weather, while the Costa Rican currency created additional pressure on profitability.
Looking ahead, management expects Fresh Fruit performance in the second half to improve relative to the prior year through contractual pricing mechanisms, including variable fuel surcharges, as well as production, sourcing and cost-saving initiatives. Byrne said surcharges operate with a quarter’s delay and should benefit third-quarter results, with a similar effect anticipated in the fourth quarter.
Diversified Businesses Produce Mixed Results
Diversified Fresh Produce EMEA reported a 1% increase in revenue on a reported basis, aided by foreign exchange and underlying growth in Scandinavia. On a like-for-like basis, however, revenue declined 1.7%, or $19 million.
Segment adjusted EBITDA declined 6% from what the company described as a strong second quarter in 2025. Continued strength in Scandinavia and a favorable foreign exchange impact were offset by weaker results in South Africa, the Netherlands and Spain. Byrne said South Africa had the company’s greatest exposure to disruption in the Middle East, including shipping interruptions affecting the region.
Diversified Americas posted a 14% increase in revenue, driven largely by higher North American volumes in kiwi, avocados and cherries, along with more favorable season-end pricing for the company’s Southern Hemisphere export business. Adjusted EBITDA increased $5.2 million to $20.6 million, supported by North American performance and benefits from a partial restructuring of berry operations completed in the fourth quarter of 2025.
During the question-and-answer session, Byrne said Dole was not expecting “any radical moderation” in Diversified Americas during the second half after its recent run of strong performance, although he noted the business can experience seasonal variation.
Port Sale, Acquisitions and Capital Allocation
Dole completed the sale of its Ecuador port business on July 1, generating expected net proceeds of about $95 million. Byrne said the sale was expected to have a negligible impact on ongoing earnings and cash flow while improving the balance sheet and financial flexibility.
The company ended the quarter with net debt of $746 million and net leverage of two times. Devine said pro forma leverage, reflecting the completed port sale and expected proceeds, would have been approximately 1.6 times at quarter-end. She said the company expects net debt and leverage to decline by year-end, estimating leverage could finish below 1.5 times.
Dole also acquired Greenfood Fresh Produce’s division in Scandinavia at the beginning of July. The acquisition adds a distribution facility in Helsingborg that management said will support plans to invest in warehouse automation, artificial intelligence and robot-picking technology for Scandinavian customers. The company also completed a smaller acquisition in its Irish growing operations during the quarter.
In addition, Dole repurchased more than 700,000 shares for $10 million during the quarter. Byrne said the company evaluates buybacks against the potential returns from development projects and acquisitions, while maintaining its dividend.
2026 Outlook Maintained at Approximately $400 Million in Adjusted EBITDA
Dole maintained routine capital-expenditure guidance of approximately $100 million for full-year 2026 and said first-half free cash flow improved significantly from the prior year, despite the normal seasonal working-capital outflow in the first half.
Management said fuel and shipping costs remain elevated and geopolitical developments continue to create uncertainty, although some of the sharp cost increases seen during the second quarter appear to be moderating. Byrne said the company is targeting full-year adjusted EBITDA of approximately $400 million.
Chief Operating Officer Johan Lindén also addressed the potential effects of a developing El Niño event. He said Dole has expanded irrigation in areas that could become drier, while adding drainage, dikes and elevated pump stations in areas more vulnerable to rainfall and flooding. Lindén said the company is monitoring the developing weather pattern but was “not losing sleep on it right now.”
About Dole (NYSE:DOLE)
Dole plc is a global producer, marketer and distributor of fresh fruits and vegetables. The company’s product range includes bananas, pineapples, berries, grapes, salads and a variety of other fresh and packaged produce, sold under the Dole brand and through private-label arrangements. Dole’s operations span the full fresh-produce value chain, from farming and sourcing to packing, ripening, cold‑chain logistics and wholesale and retail distribution, supporting both retail grocery and foodservice customers.
The company traces its commercial heritage to the early 20th century Hawaiian pineapple business founded by James Dole and has evolved through subsequent corporate restructurings and combinations.
