Del Monte (DMC) Q3 2026 Earnings Report

The call was broadly constructive. The company reported strong third-quarter revenue, gross profit, prepared-foods profitability, improved customer service, faster-than-expected integration, and an increased Del Monte Foods outlook. However, the fresh platform—particularly bananas—continues to face lower volumes, inflation, currency pressure, weather impacts, and weak margins, while working capital remains above normal. Management nevertheless reiterated full-year adjusted sales and EBITDA guidance and emphasized actions to improve returns.

Del Monte Foods is expected to deliver approximately $650 million of net sales and approximately $45 million of adjusted EBITDA, up from previous expectations of $625 million and $35 million respectively, with approximately $9 million of annual margin expansion; initial product launches are anticipated beginning in the second half of 2027, and throughout 2028, with margins expected to be in the mid to low 20% for those products. For full year 2026, the company reiterated adjusted net sales growth of 13% to 15% and adjusted EBITDA of approximately $230 million to $240 million, expects gross margins of 11% to 12% for fresh and value added products, 14% to 15% for prepared foods, and 10% to 11% for other products and services, and now expects full year gross margins for bananas of 2% to 3%, compared with the prior expectation of 3% to 4%; full year inflationary pressures are expected to be approximately $55 to $65 million, with more than half impacting bananas, and capital expenditures are expected to be $85 million to $95 million.