Limoneira Stock Earnings Reports

Limoneira reported Q3 FY2025 net revenue of $47.5M (down from $63.3M YoY) and an operating loss of $0.6M, driven primarily by lemon pricing pressure and lower fresh utilization as fruit was held in storage. Adjusted EBITDA fell to $3.0M from $13.8M a year ago; adjusted diluted EPS was a $0.02 loss. Management reiterated a two-part value-creation strategy: optimize agricultural production (notably avocados) and monetize land & water assets. Key near-term drivers include a Sunkist partnership expected to deliver ~$5M of annual cost savings / EBITDA improvement starting FY2026, continued expansion of avocado acreage (700 nonbearing acres expected to become full-bearing over 2–4 years), and ongoing real estate development with anticipated distributions of ~$155M over the next five fiscal years. The company is exploring residential development options for the 221-acre Limco Del Mar site in Ventura; management estimates $3M–$5M in entitlement-related costs over a 3–5 year period, with most costs to be capitalized. Liquidity and balance sheet notes: long-term debt rose to $63.3M (net debt ~$61.3M at quarter end), the JV with Lewis returned $10M in distributions in April 2025, and the company realized $1.7M in proceeds (and $1.5M of gains) from selling water pumping rights earlier in 2025. Management expects lemon pricing and utilization to normalize and return lemons to profitability in FY2026, and views FY2027 as the first major avocado volume breakout year as newly planted acres mature.