AVO

Mission Produce is a structurally low-margin commodity-produce business that has nonetheless executed a clean operational turnaround. FY2025 revenue of $1.39B (+12.7% YoY) extends a recovery from the FY2023 trough ($954M / -$2.8M net loss), and the company is now solidly profitable with $37.7M net income and $0.53 diluted EPS. Gross margin of 11.6% and operating margin of 4.7% are characteristic of fresh-produce distribution — there is no path to software-like profitability here, and operating income actually slipped 0.8% YoY despite the revenue gain, which the MD&A attributes in part to ~$2.7M of charges from closing Canadian distribution centers and a tougher tariff backdrop.

The balance sheet is the standout. Long-term debt fell 16.2% to $92.8M against $64.8M cash and $587M of equity (liabilities/equity 0.62x), retained earnings grew to $339M, and current liabilities shrank 9.8%. Management is reinvesting — capex jumped 59.6% to $51.4M, outpacing D&A of $34.6M — which compressed FCF (OCF $88.6M -5.1%) but is consistent with the International Farming segment build-out in Peru and Guatemala disclosed in Item 2. ROE of 6.4% is mediocre but improving off the FY2022-23 losses.