Business Context and Reporting Period
Company: Dole plc
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended December 31, 2025
Business Overview: Dole is a global leader in the production, sourcing, distribution, and marketing of fresh fruits and vegetables. The company operates through three reportable segments: Fresh Fruit (bananas, pineapples, plantains), Diversified Fresh Produce – EMEA, and Diversified Fresh Produce – Americas & ROW. In August 2025, Dole completed the sale of its Fresh Vegetables division to OG Holdco LLC for approximately $140.0 million, resulting in the division being reported as discontinued operations.
Key Financial Metrics
| Metric (in millions, except per share) | 2025 | 2024 |
|---|---|---|
| Revenue, Net | $9,172.9 | $8,475.3 |
| Gross Profit | $714.3 | $717.7 |
| Operating Income | $223.0 | $280.6 |
| Net Income Attributable to Dole plc | $51.3 | $125.5 |
| Diluted EPS | $0.53 | $1.32 |
| Adjusted EBITDA | $395.4 | $392.2 |
| Cash from Operating Activities | $123.2 | $262.7 |
| Capital Expenditures | $121.5 | $82.4 |
| Total Debt (Gross) | $874.3 | $967.1 |
| Net Debt | $(606.5) | $(637.1) |
| Total Available Liquidity | $1,039.4 | $1,133.7 |
Material Changes vs. Prior Period
- Revenue Growth: Net revenue increased 8.2% to $9.17 billion, driven by strong operational performance and a favorable foreign currency translation impact of $169.4 million. This was partially offset by a net negative impact of $111.0 million from acquisitions and divestitures (notably the 2024 sale of Progressive Produce).
- Profitability Decline: Net income attributable to Dole plc decreased 59.1% to $51.3 million. This decline was primarily due to a $46.0 million loss from discontinued operations (Fresh Vegetables division) compared to a $28.9 million loss in the prior year, and a reduction in operating income.
- Operating Income: Operating income decreased 20.5% to $223.0 million. Key drivers included higher fruit sourcing costs (bananas, pineapples) due to Tropical Storm Sara in Honduras, increased shipping costs, and higher SG&A expenses. These were partially offset by a $36.7 million goodwill impairment charge in 2024 that did not recur in 2025.
- Discontinued Operations: The sale of the Fresh Vegetables division resulted in a pre-tax loss of $14.7 million and a significant after-tax loss of $45.3 million related to the fair value adjustment of assets held for sale.
- Debt Refinancing: In May 2025, Dole refinanced its debt facilities, entering into a new $600 million revolving credit facility, a $250 million Term Loan A, and a $350 million Farm Credit Term Loan. This resulted in a net expense of $3.2 million for the year.
Guidance, Outlook, Risks, and Unusual Items
- Outlook & Guidance: Management does not provide specific numerical guidance for 2026 but notes that the economic environment remains volatile. Risks include evolving trade policies (tariffs), geopolitical conflicts, weather events, and crop disease pressures. The company expects to fund capital expenditures and dividends through operating cash flows and existing borrowings.
- Dividends: The Board declared a quarterly dividend of $0.085 per share for Q4 2025, payable in April 2026. The company intends to continue paying quarterly cash dividends.
- Share Repurchase: In November 2025, the Board authorized a $100.0 million share repurchase program. Post-year-end, the company repurchased 300,000 shares for $4.5 million.
- Key Risks:
- Agricultural Risks: Adverse weather, natural disasters, and crop diseases, specifically Tropical Race 4 (TR4) affecting bananas.
- Regulatory & Trade: New U.S. tariffs on foreign imports announced in early 2025 (with some relief provided in November 2025) and evolving ESG regulations (EU CSRD/CSDDD).
- Financial Risks: Currency exchange fluctuations, interest rate volatility, and the ability to service debt.
- Legal & Contingencies: Ongoing litigation regarding the former use of the pesticide DBCP and environmental remediation costs (e.g., former Shell site in California).
- Unusual Items:
- Goodwill Impairment Risk: The Fresh Fruit reporting unit was assessed as "at risk" of future impairment, with fair value less than 1% above its carrying amount. No impairment was recorded in 2025, but a 25-basis point increase in the discount rate would have triggered a $43.6 million impairment.
- Asset Sales: Recognized a $15.0 million gain on asset sales, primarily from the sale of land in Hawaii and other properties.
Investor Verification Checklist
- Discontinued Operations Impact: Verify the full extent of the $46.0 million loss from the Fresh Vegetables division and its impact on future comparability of financial results.
- Goodwill Impairment Sensitivity: Monitor the Fresh Fruit reporting unit's fair value relative to its carrying amount, given the narrow margin identified in the 2025 impairment test.
- Tariff Exposure: Assess the net impact of new U.S. tariffs on foreign imports and the effectiveness of mitigation strategies (price increases, supply chain adjustments).
- Debt Covenants: Confirm continued compliance with the maximum leverage ratio covenant (4.00 to 1.00) under the new credit facilities.
- TR4 Disease Progression: Track the spread of Tropical Race 4 and the associated costs for biosecurity and potential deployment of resistant banana varieties.
- Legal Contingencies: Review updates on DBCP litigation and the former Shell site cleanup costs, which could result in significant future outflows.