Shares in Dole Plc fell sharply following the release of second-quarter results that highlighted the negative impact of the ongoing unrest in the Middle East on fuel prices and shipping costs, which have adversely affected profits.

For the second quarter of 2026, ending June 30, the company reported a 2.9% increase in revenue to $2.499 billion (€2.16 billion), but profitability declined. Gross profit fell by $23 million to $195 million, compared to $218 million in the same quarter of 2025. Dole attributed this decline primarily to higher sales costs, influenced by increased fruit sourcing costs in the fresh fruit segment, primarily bananas and pineapples. This decline was partially offset by higher revenue.

On the New York Stock Exchange, shares dropped by more than 6%. In the fresh fruit segment, revenue totalled $972.8 million, consistent with the previous year, yet adjusted earnings (EBITDA) decreased by 30.9%. This decline was mainly driven by higher fruit sourcing costs, elevated shipping expenses in both European and North American markets due to rising fuel costs, increased pineapple-growing costs resulting from adverse weather conditions, and the strengthening of the Costa Rican colón against the US dollar.

Profitability in Dole's larger, diversified fresh produce divisions in Europe, the Middle East, and Africa (EMEA), as well as in the Americas, remained stronger. These divisions are involved in the production, shipping, and supply of a wide range of fresh fruits and vegetables.

These figures shed light on how the conflict in the Middle East is exerting pressure on food costs within the broader economy—a trend that the Central Bank of Ireland has warned is likely to worsen as autumn approaches. During a call with analysts following the results announcement, Dole CEO Rory Byrne remarked that the second-quarter results aligned with the company's expectations, "reflecting the impact of higher fuel and shipping costs on fresh fruit profitability stemming from the conflict in the Middle East."

He indicated that while some of this pressure may be easing, the outlook remains uncertain. "As we move into the second half of the year, fuel and shipping costs continue to be high, and geopolitical events are creating ongoing uncertainty," Mr Byrne stated.