Dole (DOLE) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $2.1 billion, up 4.2% like-for-like but down 1% reported, reflecting strong operational performance despite headwinds from Tropical Storm Sara.

• Adjusted EBITDA was $104.8 million, down 4.8% year-over-year (down 2% like-for-like), mainly due to lower Fresh Fruit results.

• Adjusted net income was $33.1 million and adjusted diluted EPS was $0.35, both down from the prior year due to lower EBITDA and higher depreciation.

• Dividend increased by 6.25% to $0.085 per share, the first increase since 2021.

• $1.2 billion refinancing of credit facilities completed post-quarter, enhancing financial flexibility.

Financial highlights

• Reported revenue declined 1% year-over-year to $2,099 million, but like-for-like revenue rose 4.2%.

• Net income was $44.2 million, down from $65.4 million in Q1 2024, mainly due to a prior year gain from the Progressive Produce disposal.

• Adjusted EBITDA decreased by $5 million, mainly from fresh fruit and Americas segments; like-for-like decrease was $2.2 million.

• Free cash flow from continuing operations was an outflow of $131.6 million, impacted by seasonality and vessel lease buyouts.

• Net leverage increased to 1.9x at March-end, with net debt at $742 million.

Outlook and guidance

• Full-year 2025 adjusted EBITDA guidance raised to at least $380 million, reflecting Q1 outperformance and positive FX tailwinds.

• Maintenance CapEx expected to align with depreciation (~$100 million), with additional $10–12 million for Honduras reinvestment, largely offset by insurance.

• Interest expense for 2025 expected to be ~$70 million.

• Strategic priorities include accelerating growth, disciplined capital allocation, sustainability, cost control, and exiting the Fresh Vegetables business.

• Management remains confident in navigating macroeconomic volatility and expects robust demand for core products.