LMNR Reports Results

Limoneira(NASDAQ:LMNR) reported third quarter 2025 results on September 8, 2025, with net revenue declining to $47.5 million from $63.3 million year-over-year and a net loss per diluted share of $0.06, compared to earnings of $0.35 per share in the prior year period. Key strategic developments include exploring development options for the Lienco Del Mar property, confirmation of $155 million in expected real estate cash flows over the next five fiscal years, and progress toward a $5 million EBITDA enhancement (non-GAAP) through the Sunkist marketing partnership in fiscal 2026. The company's fiscal year ends on October 31.

Sunkist partnership drives $5 million EBITDA uplift for Limoneira

While agribusiness revenue declined 25.7% year-over-year and fresh packed lemon prices fell to $17.02 per carton from $18.43 year-over-year, management reaffirmed that the Sunkist partnership is expected to improve both cost structure and market access. The partnership targets operational efficiencies and entry into higher-quality customer segments beginning in fiscal 2026.

"Our strategic partnership with Sunkist for citrus sales and marketing remains on track to drive $5 million in annual cost savings and EBITDA enhancements starting in fiscal year 2026. This partnership will unlock access to new high-quality customers while creating the operational efficiencies we've discussed."
-- Harold Edwards, President and Chief Executive Officer

This initiative should deliver meaningful margin improvement and reduce volatility in the lemon segment, supporting EBITDA upside.

Real estate monetization anchors Limoneira’s growth outlook

Limoneira received a $10 million cash distribution in April 2025 from its 50/50 real estate joint venture, and management reaffirmed an aggregate $155 million of expected project distributions over the next five fiscal years. Ongoing assets such as Harvest at Limoneira continue to outperform sales schedules, and the Lienco Del Mar project adds further upside potential.

"Harvest at Limoneira is selling homes ahead of schedule, and we continue to expect future distributions from our real estate projects to total approximately $155 million over the next five fiscal years. Today, I'm also excited to announce our exploration of development options for our Lienco Del Mar property. This 221-acre agricultural infill property bordered by developed areas in the city of Ventura presents an opportunity for residential development that directly addresses Ventura County's critical housing shortage."
-- Harold Edwards, President and Chief Executive Officer

Avocado acreage expansion to drive 2027 volume surge

Avocado revenue fell to $8.5 million from $13.9 million year-over-year following alternating-year production declines. However, the company is preparing for a near doubling of full-bearing avocado acreage, with 700 acres of nonbearing trees reaching production maturity over the next two to four years, beginning in fiscal 2027.

"We anticipate a significant increase in avocado production as our newly planted acreage begins maturing in fiscal year 2027 and beyond. We have 700 acres of nonbearing avocados estimated to become full bearing over the next two to four years, enabling strong organic growth. This will be a near 100% increase in avocado-producing acreage."
-- Harold Edwards, President and Chief Executive Officer

Pending execution, this expansion could transform Limoneira’s agribusiness revenue mix, generating stronger long-term growth and dampening volatility from citrus market cycles.

Looking Ahead

Management guides for fiscal 2025 (ending October 31, 2025) fresh lemon volumes of 4.5 million to 5 million cartons and avocado volumes near 7 million pounds, with expectations for normalized lemon pricing and $5 million annual EBITDA enhancement (non-GAAP) from the Sunkist partnership in fiscal 2026. Real estate projects are estimated to generate $155 million in distributions from fiscal 2026 through fiscal 2030, and first significant value creation from the Lienco Del Mar development is targeted upon entitlement. No specific EBITDA or EPS guidance for fiscal 2026 was provided within the transcript.

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This article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.