Limoneira Company (LMNR) 27th Annual ICR Conference 2025 summary

Strategic transition and business model evolution

• Transitioning to an asset-lighter model by increasing third-party grower partnerships and reducing direct production, aiming for 80% of citrus supply from partners within five years.

• Focused on monetizing land through strategic conversion from agriculture to urban development, targeting a 10x value increase.

• Actively selling non-strategic assets, with $130 million already monetized and $50 million more expected.

• Streamlining operations, reducing debt, and improving return on invested capital, with net debt now at $37 million.

• Enhanced ESG initiatives and improved ESG scores, reflecting ongoing sustainability efforts.

Growth drivers and operational highlights

• Real estate development, especially the Harvest at Limoneira project, is a major growth engine, with $180 million in cash expected over five years.

• Expansion of avocado production in Ventura County, shifting from 2,000 acres of lemons to 2,000 acres of avocados over five years, targeting 30 million pounds of production.

• Farm management services and agency business are key non-capital-intensive growth areas.

• New technologies, such as drone spraying, are being adopted to drive efficiency and cost savings.

• Packing house investments enable automated, high-volume citrus processing, supporting over a billion lemons sold annually.

Financial performance and forward-looking statements

• EBITDA has grown by $4 million over the past three years, with a target to reach a $50 million run rate in the near future.

• Revenues are growing, dividends have remained steady, and 2025 guidance includes 5–5.5 million cartons of lemons and 7–8 million pounds of avocados.

• Cost reductions and supply chain optimization have restored profitability despite industry oversupply and inflationary pressures.

• Additional water monetization opportunities are expected in Yuma, Arizona, and Santa Paula, with new fallowing programs and water rights sales anticipated.

• Real estate assets, including a 724-acre vineyard and commercial developments, are being positioned for future monetization.