Calavo Growers Reports 191% Net Income Growth in 2025, Announces Merger with Mission Produce
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Globenewswire
- Financial Performance Boost: Calavo Growers reported a 191% increase in net income from continuing operations for 2025, reaching $20 million, demonstrating significant profitability improvement amid challenges and reflecting strong performance in the fresh produce market.
- Adjusted Net Income Surge: Adjusted net income rose 42% year-over-year to $28.9 million, or $1.62 per share, indicating substantial progress in cost control and operational efficiency, thereby enhancing investor confidence.
- Strategic Merger Announcement: Calavo has entered into a merger agreement with Mission Produce, expected to create $25 million in cost synergies for shareholders, further solidifying its market position in fresh produce and enhancing long-term growth potential.
- Future Outlook: Although the company anticipates pressure on first-quarter 2026 results due to strong avocado supply, Calavo plans to leverage industry growth opportunities to drive sales in its Fresh segment, showcasing its keen market insight.
Analyst Views on CVGW
Wall Street analysts forecast CVGW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVGW is 34.00 USD with a low forecast of 28.00 USD and a high forecast of 40.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 22.200
Low
28.00
Averages
34.00
High
40.00
Current: 22.200
Low
28.00
Averages
34.00
High
40.00
About CVGW
Calavo Growers, Inc. is a provider of value-added fresh food in the avocado industry. The Company is engaged in marketing and distributing avocados and prepared avocados to retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers on a worldwide basis. It procures avocados from California, Mexico and other growing regions around the world. Through its various operating facilities, it sorts, packs, and/or ripens avocados, tomatoes and/or Hawaiian grown papayas, and processes and packages guacamole. It operates in two business segments: Grown and Prepared. Its Grown segment consists of fresh avocados, tomatoes and papayas. Its Prepared segment comprises all its guacamole products sold at retail and food service as well as avocado pulp sold to foodservice. Its products are sold under the Calavo family of branded labels, as well as private labels. It distributes its products both domestically and internationally.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
