Mission Produce Issues FY26 CapEx and EBITDA Guidance After Completing Calavo Acquisition

The Quick Take

• Mission Produce (AVO) released FY26 capital expenditure and EBITDA guidance following the Calavo acquisition close.
• The guidance provides investors the first combined-company financial framework post-integration.
• Calavo Growers' distribution network expands Mission's avocado sourcing and fresh produce reach significantly.

Mission Produce's issuance of combined FY26 CapEx and EBITDA guidance following the completion of its Calavo Growers acquisition marks an important milestone in investor confidence for the fresh produce sector: it converts the strategic rationale for the deal into a financial roadmap that can be tracked against actual results. Calavo Growers, which was one of Mission Produce's primary competitors in US avocado distribution, gives Mission a larger combined sourcing network, additional ripening facilities, and extended foodservice and retail customer relationships. The integration of two major avocado distributors creates a company with enhanced scale advantages in procurement from Mexico and Peru.

The fresh produce sector is experiencing consolidation driven by grocery and foodservice industry consolidation pressures: major retail chains are reducing their supplier base to improve logistics efficiency, creating pressure on smaller produce distributors to gain scale. Mission Produce's Calavo acquisition positions it as one of the two or three dominant avocado distributors globally, giving it the volume leverage to negotiate better pricing from growers and better shelf placement from retailers. The CapEx guidance will be particularly important: avocado ripening and cold chain infrastructure requires significant ongoing capital, and investors will scrutinize whether the combined entity's capital intensity is manageable given commodity price volatility.

Watch Mission Produce's Q2 earnings call for the first update on whether the Calavo integration is tracking ahead of, on, or behind the FY26 CapEx and EBITDA guidance issued today. The macro variable is avocado pricing in the US market: with global avocado production fluctuating significantly between growing seasons in Mexico's Michoacán and Peru's coastal valleys, spot pricing volatility creates persistent earnings uncertainty that no amount of scale eliminates entirely. US restaurant industry traffic trends are a leading indicator of foodservice demand for fresh avocados, which is Mission Produce's highest-margin channel relative to retail.

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