This article first appeared on GuruFocus .
Release Date: May 11, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Dole PLC ( NYSE:DOLE ) reported a strong revenue growth of 12% year over year, driven by positive consumer demand across key markets.
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Adjusted EBITDA of $100 million was in line with expectations, showcasing the resilience of Dole PLC ( NYSE:DOLE )'s business model.
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The company is progressing with the sale of its port operations in Guayaquil, Ecuador, expecting net proceeds of approximately $75 million.
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Dole PLC ( NYSE:DOLE ) is investing in high-quality produce and diversifying sourcing, with recent investments in Guatemala for bananas and plantains.
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The Diversified Americas segment delivered a strong performance with adjusted EBITDA up by 29%, driven by positive trends in the Chilean cherry season.
Negative Points
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Higher food sourcing costs in the fresh fruit segment negatively impacted profitability.
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The ongoing conflict in the Middle East is causing elevated fuel costs and higher prices for inputs such as fertilizer and paper.
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Adjusted EBITDA decreased by $4.5 million, mainly due to higher food sourcing costs in fresh fruit.
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Net income was $37.7 million, $6.4 million lower than the prior year.
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The company anticipates increased shipping and fuel costs in the second quarter, particularly affecting the fresh fruit segment.
Q & A Highlights
Q: What gives you confidence in achieving the $400 million adjusted EBITDA guidance, considering the dynamic pricing and direct negotiation on the fresh fruit side? A: Rory Byrne, CEO: Guidance is challenging in an uncertain world, but it refocuses us on all business aspects. We expect reasonable savings and a stronger second half of the year. Our diversified dynamic pricing model has worked well, and we are confident in maintaining the guidance by adapting to cost changes and leveraging our experience.
Q: How do you prioritize capital allocation between buybacks, M&A, organic investment, and debt repayment? A: Rory Byrne, CEO: Capital allocation is dynamic. We focus on internal development opportunities, particularly in advanced technology for picking and packing. We are comfortable with current debt levels and aim for attractive internal development returns. We continuously assess the best capital allocation strategy.
Q: What are your expectations for fresh fruit costs and banana supply and demand for the rest of the year? A: Johan Linden, COO: Last year's supply shock from weather issues and competitor impacts led to tight supply and higher costs. We expect improvements after Q2 as fuel surcharges catch up, leading to a better picture for the rest of the year.
Q: Can you quantify the impact of Middle East conflict on costs and how it affects EBITDA cadence? A: Rory Byrne, CEO: Q2 will face cost pressures, especially in fuel, due to a time lag in price adjustments. We expect Q3 and Q4 to compensate, with a stronger second half. Our diversified divisions can pass cost changes to customers more quickly than fresh fruit.
Q: What drives the strong performance in the Diversified Americas business, and how sustainable is it? A: Rory Byrne, CEO: The integration of Dole Diversified North America has been positive, reducing costs and consolidating marketing. While Q1 had seasonal strength, we expect year-over-year improvement, supported by strong management and strategic investments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
