Dole Sells Ecuador Port for $95M, Fuels Nordic Growth

Dole has successfully concluded the sale of its port operations in Ecuador, a strategic divestiture that generated approximately $95 million in net cash proceeds. This financial maneuver, finalized in two stages with the second tranche closing on July 1st, is earmarked to bolster the company's expansion initiatives, particularly within the burgeoning fresh produce sector of Scandinavia. The infusion of capital is expected to significantly enhance Dole's capacity for growth investments, aligning with its recent strategic acquisitions in the EMEA region.

The financial impact of this Ecuador transaction, including pre-closing restructuring, tax implications, and associated costs, will be fully integrated into Dole's third-quarter financial reporting, affecting its net debt and leverage ratios. Prior to the full accounting of these proceeds, the company reported a net debt of roughly $746.1 million, translating to a net leverage of 2.0x trailing twelve-month adjusted EBITDA as of the end of June. This level indicates a solid financial footing, allowing for strategic capital deployment.

Concurrently with the port sale's conclusion, Dole has amplified its presence in the Nordic markets through the acquisition of Greenfood’s Fresh Produce division. This move significantly broadens Dole's operational scale and capabilities in Scandinavia, a region identified for substantial growth potential in the fresh produce industry. Management has explicitly linked the Ecuador asset monetization to its ability to fund such strategic expansions, underscoring a clear capital allocation strategy focused on high-growth segments.

The company's performance in the second quarter showcased resilience, with overall revenue climbing 2.9% to approximately $2.5 billion. While net income saw a healthy increase to $35.1 million from $18 million in the prior year, adjusted EBITDA experienced a dip to $116.8 million from $137.1 million. This fluctuation was largely influenced by pressures within the Fresh Fruit segment, where sourcing costs, shipping expenses, adverse weather impacting pineapple yields, and currency headwinds led to a 30.9% decline in adjusted EBITDA.

Offsetting these challenges, Dole's Diversified Fresh Produce Americas & ROW segment demonstrated robust growth. Q2 segment revenue surged by 13.9% to approximately $440.1 million, with adjusted EBITDA jumping an impressive 33.8% to $20.6 million. This expansion was fueled by increased North American volumes of key products like kiwi and avocados, favorable seasonal timing for cherries, and the ongoing positive effects from a strategic restructuring of its berry operations initiated in late 2025.

Looking ahead, Dole maintains its target of achieving approximately $400 million in adjusted EBITDA for the full fiscal year 2026. The company also continued its capital return program, repurchasing $10 million of its shares during the second quarter, with a remaining authorization of $85.4 million available for future buybacks as of quarter-end. This dual focus on strategic investment and shareholder returns highlights Dole's commitment to enhancing long-term value.