Limoneira Company (LMNR) investor relations material

Executive summary

• Second quarter revenue reached $23.9 million, surpassing expectations despite a strategic transition in lemon sales and marketing cadence due to the Sunkist partnership and significant non-cash charges totaling $23.8 million, including impairments and asset disposals.

• Net revenues for the six months ended April 30, 2026, declined 39% year-over-year to $42.1 million, driven by lower agribusiness sales, especially lemons and avocados, due to the transition of lemon sales to Sunkist and the sale of Chilean farms.

• Operating loss widened to $32.2 million for the six months, and net loss attributable to common stockholders was $30.8 million, both impacted by asset impairments and losses on asset disposals.

• The Board paused all dividends in March 2026 to support strategic investments in avocado production and real estate development.

• Strategic initiatives included the Agromin joint venture and a $16 million partial sale of the Paso Robles vineyard, advancing land and water asset monetization.

Financial highlights

• Q2 FY 2026 net revenues were $23.9 million, down from $35.1 million year-over-year, mainly due to strategic exits and the Sunkist transition.

• Operating loss was $21.7 million in Q2, compared to $3.3 million loss in Q2 2025, driven by $17.1 million in non-cash charges.

• Net loss applicable to common stock was $21.4 million ($1.20 per diluted share) in Q2, versus $3.5 million ($0.20 per share) last year.

• Adjusted net loss was $5.2 million ($0.29 per share) in Q2, and Adjusted EBITDA was a loss of $1.7 million, both exceeding internal expectations.

• As of April 30, 2026, total assets were $293.8 million and total liabilities were $130.1 million.

Outlook and guidance

• Positive Adjusted EBITDA is expected in Q3 and Q4 FY 2026, driven by increased avocado volumes, improved lemon pricing, and cost savings.

• Full-year guidance reiterated for fresh lemon volumes (4–4.5 million cartons) and raised for avocado volumes (5.5–6.5 million pounds).

• Real estate pipeline expected to generate $155 million in proceeds over the next five years, with Harvest at Limoneira projected to provide $180 million in proceeds over seven years.

• Organic recycling joint venture anticipated to contribute earnings in FY 2027.

• The Board expects to resume dividends once incremental cash flows from strategic investments materialize.