Calavo Growers announced that long‑time President and Chief Executive Officer Lee E. Cole will retire effective December 8, 2025, and that former Chief Financial Officer B. John Lindeman will succeed him as President and CEO. Lindeman, who served on the company’s board and led its finance function from 2015 to 2020, brings deep operational and financial expertise that the board believes will sustain the firm’s growth trajectory while navigating upcoming strategic choices.
Lindeman’s appointment follows a period of focused transformation. Calavo has been executing Project Uno, a cost‑efficiency program launched in 2022 that targets pricing, SKU rationalization, procurement, freight, and administrative optimization. The program has already delivered margin improvements and is a key lever for the new CEO. In addition, the company is expanding its prepared‑foods portfolio—its flagship guacamole and avocado‑based products—which has driven a 40 % increase in prepared‑segment sales in Q3 2025, offsetting a 5 % decline in fresh‑segment revenue.
The leadership change occurs amid a broader strategic review. Calavo is evaluating a potential acquisition proposal received earlier in 2025, a development that could reshape the company’s capital structure and product mix. The board’s decision to promote Lindeman, a former CFO with a strong track record of cost discipline, signals a focus on disciplined capital allocation and the ability to manage the financial implications of any future transaction.
In Q3 2025, Calavo reported revenue of $178.8 million, missing analyst estimates of $199.4 million by $20.6 million. The miss was largely driven by lower avocado volumes and a one‑time FDA detention cost that reduced fresh‑segment gross profit. Despite the revenue shortfall, non‑GAAP earnings per share rose to $0.57, beating the consensus of $0.54 by $0.03. The earnings beat was driven by strict cost controls under Project Uno and a favorable product mix shift toward higher‑margin prepared foods.
The market reaction to the earnings miss was muted, reflecting investors’ focus on the revenue shortfall and the uncertainty surrounding the potential acquisition. Analysts noted that while the EPS beat suggests effective cost management, the revenue miss signals ongoing pressure in the fresh segment and highlights the importance of the prepared‑foods expansion and Project Uno for sustaining growth. The new CEO will need to balance these headwinds with the opportunities presented by the strategic alternatives process.
Lindeman’s background as a former CFO and board member positions him to lead Calavo through this transition. His experience in financial stewardship and operational oversight will be critical as the company pursues margin improvement, executes Project Uno, and evaluates the potential acquisition. The board’s confidence in his ability to manage capital allocation and navigate the company’s strategic options underscores the importance of this leadership change for Calavo’s future trajectory.
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