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    LMNR
    Earnings call· Apr 2026(Q2 FY26)

    Limoneira Q2 FY26 earnings call LMNR

    Jun 9, 2026 Source

    Executive summary

    Limoneira Company Q2 FY26 — Strategic Transformation and Asset Monetization Drive Future Confidence

    Limoneira is undergoing a strategic transformation, focusing on asset monetization and operational efficiency through its Sunkist partnership. Despite significant non-cash charges and a seasonally softer Q2, the company exceeded revenue and adjusted EBITDA expectations, reinforcing confidence in achieving positive adjusted EBITDA in the second half of FY26. Key initiatives include expanding avocado production, monetizing water rights and real estate, and realizing substantial SG&A savings.

    Highlights

    5

    • Exceeded revenue and adjusted EBITDA expectations in Q2 FY26.

    • Avocado production capacity expected to increase by nearly 100% with an additional 800 acres bearing fruit over the next 2-4 years.

    • Current lemon pricing is above $20 per carton, with fresh utilization exceeding 80%.

    • Strategic sale of an 80% interest in Windfall Farms for $16 million, with $10 million in cash at closing.

    • Targeting $10 million in annual selling, general, and administrative savings.

    Concerns

    4

    • Reported $23.8 million in non-cash charges in Q2 FY26, including $9.3 million impairment on Windfall Farms and $7.8 million loss on asset disposals.

    • Adjusted EBITDA was a loss of $1.7 million in Q2 FY26, compared to a loss of $0.2 million in Q2 FY25.

    • Net loss applicable to common stock was $21.4 million ($1.20 per diluted share) in Q2 FY26, up from $3.5 million ($0.20 per diluted share) in Q2 FY25.

    • Long-term debt increased to $93.7 million as of April 30, 2026, from $72.5 million at the end of FY25.

    Guidance & targets

    12
    CategoryTargetConfidence
    Adjusted EBITDA
    Positive
    high materiality
    High
    Colorado River water rights monetization
    Monetization event
    medium materiality
    Medium
    Real estate proceeds (Harvest, Limonera Lewis Community Builders II, East Area II)
    $155 million
    high materiality
    High
    Harvest at Limonera Phase 3 home lots
    Go to market
    medium materiality
    Medium
    Harvest at Limonera apartments
    Break ground
    medium materiality
    Medium
    East Area 2 medical pavilion project
    Begin to be monetized
    medium materiality
    Medium
    AgriMint joint venture earnings contribution
    Meaningful earnings
    medium materiality
    Medium
    SG&A savings
    $10 million
    high materiality
    High
    Fresh lemon volumes
    4 to 4.5 million cartons
    medium materiality
    High
    Avocado volumes
    5.5 to 6.5 million pounds
    medium materiality
    High
    Avocado blended average price
    ~$1.30 per pound
    medium materiality
    High
    Lemon average pricing
    Increasing by ~$1 per carton each month
    medium materiality
    High

    Segment performance

    8
    SegmentRevenueYoYQoQMargin
    Agribusiness
    Revenue decreased from $33.6 million in Q2 FY25, reflecting strategic changes including the Sunkist transition, exit from brokerage and Chilean operations, and termination of farm management.
    		$22.5 million———
    Other Operations
    Revenue decreased slightly from $1.5 million in Q2 FY25.
    		$1.4 million———
    Fresh Lemon Carton Sales
    Revenue decreased from $19.7 million in Q2 FY25. Volume decreased from 1,357,000 cartons in Q2 FY25, while average price increased from $14.52 per carton in Q2 FY25. The decrease in volume is related to the change in cadence under the Sunkist Agreement.
    Volume: 1,028,000 cartonsAverage Price: $16.63 per carton
    		$17.1 million———
    Brokered Lemons and Other Lemon Sales
    Revenue decreased significantly from $2.3 million in Q2 FY25, primarily due to the sale of Chilean farms in Q1 FY26.
    		Immaterial———
    Avocados
    Revenue decreased from $2.8 million in Q2 FY25. This was a deliberate decision to delay harvest to capture better expected pricing in Q3 FY26.
    		Nominal———
    Orange Revenue
    Revenue decreased from $1.6 million in Q2 FY25, primarily related to the transition of Citrus Brokerage Operations to Sunkist.
    		Nominal———
    Specialty Citrus and Wine Grapes
    Revenue decreased from $700,000 in Q2 FY25, due to the transition of citrus brokerage operations to Sunkist.
    		Nominal———
    Farm Management Revenue
    Revenue decreased from $300,000 in Q2 FY25, due to the termination of the farm management agreement effective March 31, 2025.
    		$0———

    Operational metrics

    20
    Total costs and expenses
    $45.6 millionvs $38.5 million in Q2 FY25
    Q2 FY26

    Increase driven by non-cash charges.

    Non-cash charges
    $23.8 million
    Q2 FY26

    Comprised of various strategic and non-recurring items.

    Impairment on Windfall Farms property
    $9.3 million
    Q2 FY26

    Related to the strategic sale of an 80% interest in the property.

    Loss on asset disposals
    $7.8 million
    Q2 FY26

    Primarily related to the disposal of lemon orchards in Yuma, Arizona.

    Net accumulated foreign exchange losses
    $5.1 million
    Q2 FY26

    Recognized on Chilean farming entities from purchase date until sale proceeds received.

    Allowance on foreign receivables
    $1.6 million
    Q2 FY26

    Included in Q2 FY26 non-cash charges.

    Adjusted EBITDA loss
    $1.7 millionvs $0.2 million loss in Q2 FY25
    Q2 FY26

    Exceeded expectations for the quarter.

    Long-term debt
    $93.7 millionvs $72.5 million at end of FY25
    April 30, 2026

    Increase reflects seasonal nature of business and timing of cash flows, expected to improve in H2 FY26.

    Avocado production capacity increase
    Nearly 100%
    Next 2-4 years

    Represents additional 800 acres beginning to bear fruit.

    Avocado acres planted (2023-2024)
    400 acres
    2023-2024

    Expected to set a crop this year and be additive to volume in FY27.

    Yuma lemon orchards ceased farming
    600 acres
    Q2 FY26

    Strategic decision to focus on water monetization by farming low water use crops.

    Insurance proceeds received
    $2.3 million
    March 2026

    Related to an incident at the packinghouse, partially covering repair costs.

    Avocado volume pushed from Q2 to Q3
    500,000 pounds
    Q2 FY26 to Q3 FY26

    Deliberate decision to capture better expected pricing in Q3.

    Avocado average price
    $0.96
    Q2 FY26

    Reported average price for the nominal volume sold in Q2.

    Lemon fresh utilization
    Above 80%
    Year-to-date

    Highest seen in years since returning to Sunkist.

    Organic recycling JV annual processing capacity
    295,000 tons
    Annually

    Expected to generate substantial shared earnings when operational in FY27.

    Harvest at Limonera Phase 2 home sales
    2 to 7 homes
    Ongoing

    Sales continue to be robust.

    Harvest at Limonera Phase 3 home lots
    Approximately 500
    Future

    Expected to go to market in FY27.

    Harvest at Limonera apartments approved
    300
    Future

    Expected to break ground in H2 2027.

    East Area 2 medical pavilion project size
    25 acres
    Future

    Believed to begin monetization in FY26.

    Industry KPIs

    3
    MetricValueDetails
    Gross margin—
    Volume mix vs pricing decompositionVolume decrease, price increase
    Adjusted EPS operating income guidance—

    Deals & partnerships

    3
    AgriMintJV

    50-50 organic recycling joint venture with the ability to process up to 295,000 tons of organic waste annually.

    Undisclosed buyerdivestiture$16 million

    Sale of an 80% interest in the Windfall Farms Vineyard property (724 acres) for $16 million, consisting of $10 million cash at closing and a $6 million seller finance note. Limoneira retains a 20% interest.

    Undiscloseddivestiture

    Sale of Chilean farms completed in Q1 FY26, leading to the recognition of $5.1 million in accumulated foreign exchange losses.

    Capital programs

    1
    Organic recycling joint venture with AgriMintunderway

    Benefit: Process up to 295,000 tons of organic waste annually, generate substantial shared earnings

    50-50 joint venture expected to become operational in FY27.

    Risks & headwinds

    3
    Seasonality of businessOngoing

    Q1 and Q2 are seasonally softer periods, while Q3 and Q4 are stronger.

    Mitigation: Strategic decisions under Sunkist partnership and delayed avocado harvest to capture better pricing in stronger periods.

    Windfall Farms sale closing riskBy end of October (due diligence period)

    Deal may fall out of escrow if buyer cannot close on schedule.

    Mitigation: Secured first hard money on July 1st; buyer has until end of October for due diligence and to fund $10 million.

    Colorado River water rights contract expirationBy December 31, 2026

    Contracts along the Colorado River with reservoirs are set to expire December 31, 2026.

    Mitigation: Monitoring the situation and expecting at least an extension of current agreements, with potential for a long-term monetization program.

    Q&A highlights

    5

    How much avocado volume was pushed from Q2 to Q3, and what are the current market prices for avocados?

    Approximately 500,000 pounds of avocado volume were pushed from Q2 to Q3. Current market pricing for peak size 48 is around $1.40, with an expected blended average price of about $1.30 per pound for Q3.

    “So we pushed about 500,000 pounds from Q2 into Q3. And right now we're seeing pricing anywhere. So remember, pricing is a function of how many sizes and the price per size. But the peak size right now is about a 48. And we're seeing about $1.40 for 48. today. So anywhere from $1.30 to $1.40. So I would expect our blended average price to be somewhere on the order of magnitude of $1.30 maybe.”

    asked by El Nabor · answered by Harold Edwards

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Transformation and Sunkist Partnership

    Limoneira is executing a strategic transformation to enhance long-term value, marked by a shift in its business model under the Sunkist partnership. This transition has altered the seasonality of lemon revenue, making Q1 and Q2 seasonally softer periods, with stronger performance expected in Q3 and Q4. The company has also exited the brokerage business and Chilean farming operations, focusing on core agricultural strengths and improved operational efficiency.

    02

    Asset Monetization and Real Estate Development

    The company is actively unlocking value from its diversified asset base, including the partial sale of its Windfall Farms vineyard for $16 million and the strategic disposal of Yuma, Arizona lemon orchards to focus on water monetization. Limoneira anticipates $155 million in proceeds over the next five fiscal years from its real estate pipeline, including the Harvest at Limonera project, which is seeing robust home sales in Phase 2 and plans for Phase 3 and apartment development in FY27. The 25-acre East Area 2 medical pavilion project is also expected to begin monetization in FY26.

    03

    Avocado Expansion and Production Capacity

    Limoneira is significantly expanding its avocado production capacity, with 1,700 acres planted and an additional 800 acres expected to begin bearing fruit over the next two to four years, representing a near 100% increase. This includes 400 acres planted in 2023 and 2024, projected to contribute to volume in FY27. The company strategically delayed avocado harvest in Q2 FY26 to capture better pricing in Q3, anticipating a blended average price of approximately $1.30 per pound.

    04

    Operational Efficiency and Cost Savings

    The company is on track to achieve its targeted $10 million in annual selling, general, and administrative (SG&A) savings for FY26, benefiting from improved operational efficiency through the Sunkist partnership. This partnership has also led to enhanced customer access and premium pricing for lemons, with current prices above $20 per carton and fresh utilization exceeding 80%, a level not seen in years.

    05

    Q2 Financial Performance and Non-Cash Charges

    Q2 FY26 results included $23.8 million in non-cash charges, comprising $9.3 million impairment on Windfall Farms, $7.8 million loss on asset disposals (Yuma lemon orchards), $5.1 million in accumulated foreign exchange losses from Chilean entities, and $1.6 million in allowance on foreign receivables. These charges contributed to an operating loss of $21.7 million and an adjusted EBITDA loss of $1.7 million, despite exceeding revenue and adjusted EBITDA expectations.

    06

    AgriMint Joint Venture and Water Rights Strategy

    A 50-50 organic recycling joint venture with AgriMint is expected to become operational in FY27, with the capacity to process up to 295,000 tons of organic waste annually and generate substantial shared earnings. Limoneira is also actively pursuing its water monetization strategy, anticipating a monetization event from its Class III Colorado River water rights in FY26, and exploring options to convert high-value non-operational Santa Paula Basin conserved pumping rights to cash.

    AI-generated summary of the company’s earnings call. Not investment advice.