Mission Produce delivered results in Q2 that exceeded Wall Street’s expectations, with the market responding positively. Management attributed the strong performance to higher avocado volumes, improved supply conditions, and effective execution in both core and international markets. CEO Stephen Barnard highlighted the company’s ability to “be in the right place at the right time with the right price for our customers,” supported by decades of investment in vertical integration and global sourcing. The operational team underscored the importance of aligning strategy with customer demand and leveraging supply chain strengths to optimize outcomes.
Is now the time to buy AVO? Find out in our full research report (it’s free).
Mission Produce (AVO) Q2 CY2025 Highlights:
- Revenue: $357.7 million vs analyst estimates of $320.4 million (10.4% year-on-year growth, 11.7% beat)
- Adjusted EPS: $0.26 vs analyst estimates of $0.15 (79.3% beat)
- Adjusted EBITDA: $32.6 million vs analyst estimates of $25 million (9.1% margin, 30.4% beat)
- Operating Margin: 5.7%, in line with the same quarter last year
- Sales Volumes rose 10% year on year (-10% in the same quarter last year)
- Market Capitalization: $899.7 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Mission Produce’s Q2 Earnings Call
- Benjamin Klieve (Lake Street Capital Markets) asked about the impact of tariffs on margins and whether sourcing or geographic allocation had shifted; President John Pawlowski responded there were no significant changes in trade flows and that supply and demand remained stable.
- Klieve (Lake Street Capital Markets) inquired about future acreage expansion, especially in blueberries; CEO Stephen Barnard clarified the company is nearing its targeted acreage and expects production to ramp for several years before leveling off.
- Klieve (Lake Street Capital Markets) queried about expansion plans across all fruit categories; COO John Pawlowski confirmed there are no major new capital investments planned beyond current commitments in blueberries and mango partnerships.
- Gerard Sweeney (ROTH Capital Partners) probed for details on international strategy and potential expansion in Europe and Asia; Pawlowski described the UK facility’s success and highlighted selective focus on key retail partners and possible inorganic growth in Europe.
- Sweeney (ROTH Capital Partners) sought clarity on SG&A expense trends; CFO Bryan Giles explained that rising SG&A was mainly variable, linked to improved segment results and profit sharing, and would fluctuate with future operational performance.
Catalysts in Upcoming Quarters
In the coming quarters, our team will be closely monitoring (1) execution of facility enhancements in Mexico to improve packing and margin efficiency, (2) the pace and success of expanding blueberry production and international market penetration, and (3) the impact of industry-wide elevated avocado volumes on pricing and profitability. Additionally, we will watch for continued progress in margin management amid ongoing tariff pressures and for signs that diversification efforts in mangoes and blueberries translate into sustained revenue growth.
Mission Produce currently trades at $12.96, in line with $12.87 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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