Mission Produce Reports Fiscal Q1 2026 Results with Volume Growth Amid Price Declines

Mission Produce, Inc. (AVO) reported first-quarter fiscal 2026 results showing a strategic emphasis on volume over price. Avocado volumes increased 14% year-over-year to 181.5 million pounds, while average pricing fell 30% to $1.22 per pound. This dynamic drove a 17% revenue decline to $278.6 million. Management highlighted the company's focus on unit margins and operational efficiency within its vertically integrated model, which spans sourcing, farming, packing, distribution, and ripening. The Marketing & Distribution segment, representing 92% of fiscal 2025 revenues, saw net sales drop 21% to $234.8 million, yet its adjusted EBITDA rose 33% to $12.9 million due to stronger per-unit gross margin and higher volume. International Farming segment sales increased 15% to $10.6 million with adjusted EBITDA up 28% to $2.3 million. Blueberry revenue grew 12% to $40.8 million, though adjusted EBITDA declined to $3.3 million from $6.2 million due to lower yields. Consolidated gross margin expanded 190 basis points to 11.3%. For Q2 fiscal 2026, management anticipates industry avocado volumes rising 10%-15% with pricing 30%-35% below the prior-year average of $2.00 per pound. Risks include per-unit margin compression and a delayed California harvest potentially impacting facility utilization. The company's Zacks Rank is #3 (Hold).