Mission Produce Q2 Revenue Hits Record

Mission Produce, Inc. (NASDAQ:AVO) reported results for the second quarter of fiscal 2025 on June 5, 2025, delivering record revenue of $380.3 million, up 28% year-over-year, but lower adjusted EBITDA of $19.1 million.

Earnings detailed robust market access, expansion in Europe, a significant mango business milestone, and anticipated 50% volume recovery in Peruvian avocado production for the season, with clear guidance for lower pricing in the second half due to rising supply. The following analysis extracts three distinct insights with direct long-term investment implications, grounded in precise, transcript-based evidence.

Record Revenue Amid Favorable Pricing and Unique Cost Headwinds

Mission Produce's revenue growth was primarily driven by a 26% increase in per-unit avocado selling prices, despite persistent supply challenges and nonrecurring cost events such as Canadian facility closures and short-term Mexican import tariffs. Gross profit declined by $2.6 million in the second quarter, and gross margin decreased by 290 basis points to 7.5% due to compressed avocado per unit margins early in the quarter and a temporary cost overlay.

"Total revenue for the second quarter of fiscal 2025 increased 28% to $380.3 million, largely due to a 26% increase in per unit avocado selling prices that was driven by continued strength in consumer demand. Gross profit was $28.4 million in the second quarter compared to $31 million in the prior year period, primarily due to lower avocado per unit margins, which were a result of challenges in obtaining necessary Mexican fruit supply in the early part of the quarter to meet our customer commitments. Per unit margin trended favorably as we transitioned through the quarter, driven largely by availability of fruit from competing origins such as California and Peru."
— Bryan Giles, Chief Financial Officer

This performance highlights both the resilience of Mission Produce's diversified sourcing platform during adverse supply conditions and its ability to defend volume and price in a strong demand environment, supporting the durability of its model despite margin volatility.

Accelerating Mango Business Unlocks Further Scalable Growth

In the trailing twelve months (TTM), mango operations delivered approximately $70 million in revenue, with market share nearly doubling from under 5% to close to 10%, leveraging the avocado business’s infrastructure and customer base for cross-category expansion. Facility utilization improved through higher mango throughput and enhanced operational leverage stemming from both Peruvian farm maturation and expanded grower relationships in Mexico, Brazil, and Ecuador.

"Steve mentioned as we were going through the prepared remarks are true in regards to our ability to program out year-long. Now our farms themselves add a significant advantage to us in regards to our ability to have that fruit during that time of year. Number one, the quality is outstanding. Number two, we can really lock in good programmatic pricing for our customers, and we can do it all around the country."
— John Pawlowski, President & Chief Operating Officer

This multi-year trajectory substantiates Mission Produce's capacity to replicate its avocado-driven scale economics in adjacent high-growth fruit categories, increasing both year-round utilization and revenue diversification.

Clear Inflection in Peruvian Avocado Supply and Cash Generation Visibility

The 2024 Peruvian avocado harvest was down approximately 60% due to adverse weather, yet orchards have now recovered, with projected production expected up 50% to 100–110 million pounds, with a strong reversal anticipated as the South American harvest and inventory monetization unfold in the second half.

"Exportable avocado production from Mission's own farms in Peru is expected to range between 100 million to 110 million pounds, as compared to 43 million pounds in the 2024 harvest season that was negatively impacted by weather-related events. We anticipate that sales of our own production will be weighted to our fiscal fourth quarter. Pricing is expected to be lower on a year-over-year basis by approximately 10% to 15%, as compared to the $1.84 per pound average we experienced in the third quarter of fiscal 2024."
— Bryan Giles, Chief Financial Officer

Improving balance sheet flexibility supports ongoing strategic investments and share repurchases through 2025.

Looking Ahead

Management expects industry avocado volumes to rise by 10%–15% over the prior-year quarter, with prices down 10%–15% from the prior-year average of $1.84 per pound, and Mission’s Peruvian harvest projected to reach 100–110 million pounds, backloaded toward the fourth quarter.

Full-year capital expenditures are reaffirmed at $50–$55 million, including approximately $10 million in carryover projects, with the trajectory of moderating CapEx on track for meaningful future free cash flow. No adjustments were made to ongoing share repurchase authorization, and concrete guidance confirms a near-term cash generation step-up for the second half, driven by inventory release and Peruvian production ramp.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 997%* — a market-crushing outperformance compared to 172% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*Stock Advisor returns as of June 2, 2025

This article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.