Del Monte Q2: Adjusted EPS $0.72, $16M Buyback, Debt Climbs to $415M

summarizeSummary

Del Monte's Q2 2026 adjusted EPS came in at $0.72 on $1.22B in sales, reflecting the first full quarter of Del Monte Foods. Net income fell sharply on impairment charges and rising costs, while the company bought back $16M in stock and maintained its dividend.

check_boxKey Events · Earnings and Guidance · DMC

• Q2 Adjusted EPS $0.72

  Driven by the Del Monte Foods acquisition, net sales climbed to $1,219.1M, but GAAP net income dropped to $21.2M ($0.44 per share) from $56.8M a year ago. Excluding $14.8M in asset impairment charges and other items, adjusted EPS was $0.72.

• Banana Segment Margin Collapse

  Lower volumes and higher production, freight, and distribution costs sent the banana gross margin down to 2.3% from 7.3%, dragging the overall gross margin to 9.9% from 10.2%.

• $16M Share Repurchase Above Market

  In a signal that management views the stock as undervalued, the company repurchased 465,213 shares for $16.0M at an average price of $34.40—well above the current $28.73.

• Debt Nearly Doubles to $414.6M

  Reflecting the Del Monte Foods acquisition, long-term debt rose to $414.6M from $173.0M at year-end 2025. Interest expense increased to $6.4M from $3.0M.

auto_awesomeAnalysis · DMC · Industrial Applications And Services

The first full quarter including the Del Monte Foods acquisition pushed net sales to $1.22B, yet net income tumbled to $21.2M from $56.8M a year ago, pressured by higher costs and $14.8M in asset impairment charges. Adjusted EPS of $0.72 offers a clearer read on the underlying business. Management signaled confidence by repurchasing $16M in shares at an average price above today's $28.73, even as long-term debt nearly doubled to $414.6M to fund the deal. A key pressure point: the banana segment's gross margin collapsed to 2.3% from 7.3%. The dividend held steady at $0.30 per share.