Del Monte's Operating Cash Flow Falls To $53.1 Million As Inventory And Debt Climb
The company still paid $42.5 million in dividends and bought back stock over nine months while its revolver balance rose to $477.2 million.
Del Monte, the fresh and prepared food company formerly called Fresh Del Monte Produce, generated $53.1 million in operating cash flow in the first nine months of 2026, down from $234.2 million a year earlier, according to its 10-Q filed Wednesday. Inventory and borrowing both grew after the Del Monte Foods purchase, yet dividends and buybacks continued.
Inventory soaks up the cash
The company attributed the drop mainly to working capital, chiefly higher inventory and trade receivables tied to the March acquisition. Inventories stood at $849.6 million on September 25, against $581.9 million at December 26, 2025 and $721.4 million at the end of the second quarter.
Capital spending rose to $69.2 million from $35.7 million, partly for an added prepared-foods warehouse in North America. The company paid $42.5 million in dividends and repurchased 565,213 shares for $20.0 million. On October 27 the board declared another $0.30 quarterly dividend.
A revolver at $477.2 million
The senior revolving credit facility balance was $477.2 million, compared with $413.0 million in the prior filing and $173.0 million at year-end 2025. Unused borrowing capacity was $452.0 million. In July the lenders raised commitments to $900 million from $750 million.
The leverage covenant was loosened to 4.25 to 1.00 as of quarter-end and stays there for the next three quarters, because the acquisition qualified as a permitted one. The company said it was in compliance with all covenants.
Del Monte bought select Del Monte Foods assets out of a bankruptcy auction on March 19. Prepared foods sales were $579.8 million for the nine months, versus $205.1 million a year earlier, while fresh and value-added sales fell to $1,579.5 million from $1,811.1 million.
Tariff refunds and a tax fight
Refunds of tariffs struck down by the Supreme Court began arriving during the quarter. Del Monte is recording the portion owed to customers as a reduction in net sales, and it has booked nothing for claims not yet received.
Separately, authorities in three foreign jurisdictions claim transfer-pricing tax deficiencies of about $282.6 million for 2012 through 2021, which the company contests. A hearing in one case is set for May 7, 2027, and on October 16 the company received an unfavorable ruling on related withholding tax and intends to appeal.
The next marker is December 4, when the $0.30 dividend is payable to holders of record on November 11.
Sources
- 10-Q Filing — Del Monte Corp. (DMC) — SEC EDGAR
- 10-Q Filing — Del Monte Corp. (DMC), Q2 FY2026 filed 2026-07-31 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, october282026-earningspr.htm) — Del Monte Corp., filed 2026-10-28 — SEC EDGAR
- Del Monte Meets Q3 Earnings Estimates as Revenue Misses Forecasts Despite 7.2% Growth — Yahoo Finance
- Del Monte Corporation Reports Third Quarter Earnings for Fiscal 2026 – Company Announcement - FT.com — Financial Times
- Del Monte Q3 2026 Earnings Call Transcript — benzinga.com
- DMC Global Shares Rise After 3Q Results — MarketWatch
- DMC Global expects Q4 sales of $154M-$164M amid Arcadia maintenance shutdown and seasonal moderation (NASDAQ:BOOM) — seekingalpha.com
