Dole plc (NYSE:DOLE) shares dropped 5.35% in pre-market trading on Monday after the fresh produce group reported second-quarter earnings and revenue below Wall Street forecasts, as higher fruit sourcing and transportation costs weighed on profitability.
For the quarter ended June 30, 2026, Dole recorded adjusted earnings per share of $0.46, falling short of the analyst consensus estimate of $0.51.
Revenue increased 2.9% year-on-year to $2.50 billion from $2.43 billion, but narrowly missed Wall Street expectations of $2.52 billion.
Higher fruit and shipping costs pressure profitability
Despite the increase in revenue, adjusted EBITDA declined 14.8% to $116.8 million from $137.1 million in the corresponding quarter last year.
The decline primarily reflected higher fruit sourcing expenses within Dole’s Fresh Fruit division, alongside increased shipping costs caused by higher fuel prices.
The company continues to target adjusted EBITDA of approximately $400 million for the full 2026 financial year.
“The quarter once again demonstrated the resilience of our diversified business model and our ability to navigate a challenging operating environment,” said Carl McCann, Executive Chairman.
McCann also highlighted the completion of Dole’s Ecuador port sale after the end of the quarter, generating net proceeds of approximately $95 million.
Fresh Fruit division sees sharp EBITDA decline
Performance varied considerably across Dole’s operating businesses during the quarter.
Adjusted EBITDA in the Fresh Fruit segment fell 30.9% to $50.3 million, reflecting higher sourcing costs as well as the continued appreciation of the Costa Rican Colón against the U.S. Dollar.
Currency movements added further pressure to an operation already facing higher costs for sourcing its core fruit products.
However, the Diversified Fresh Produce – Americas & ROW business delivered a considerably stronger performance.
Adjusted EBITDA from the division increased 33.8% to $20.6 million, supported by higher sales volumes of kiwi fruit and avocados. The improvement helped partially offset the weaker profitability recorded within Fresh Fruit.
Dole maintains 2026 EBITDA target
Looking across the full year, Dole expects routine capital expenditure of approximately $100 million and interest expense of around $58 million.
The company’s approximately $400 million adjusted EBITDA target indicates that management continues to expect its diversified operating model to provide some protection against cost pressures affecting individual parts of the business.
Investors nevertheless focused on the second-quarter earnings and revenue misses following Monday’s announcement, sending Dole shares more than 5% lower before the opening bell.
While revenue continued to grow and parts of the diversified produce business delivered stronger profitability, higher sourcing and shipping expenses remain an important challenge for margins as Dole progresses through the remainder of 2026.
Dole stock price
