Limoneira Company (LMNR) Q1 2025 earnings summary

Executive summary

• Operating loss improved to $5.3M from $7.7M YoY, driven by gains on water rights sales and lower agribusiness and SG&A expenses, despite a temporary oversupplied lemon market impacting top-line results.

• Asset-lighter business model, land and water monetization, and expansion in avocados and citrus have strengthened the long-term outlook.

• Strategic alternatives review initiated in December 2023, focusing on value drivers and operational improvements, with potential sale or merger under consideration.

• Monetized premium water rights for $1.7M, recording a $1.5M gain from three sales in January 2025.

Financial highlights

• Total net revenue for Q1 FY25 was $34.3M, down from $39.7M in Q1 FY24, mainly due to lower agribusiness revenues from lemons and specialty citrus.

• Agribusiness revenue was $32.9M (vs. $38.3M YoY); other operations revenue was $1.5M (vs. $1.4M YoY).

• Adjusted EBITDA loss improved to $2.3M (vs. $4.8M YoY); adjusted net loss per diluted share was $0.14 (vs. $0.18 YoY).

• Net loss applicable to common stock was $3.2M (vs. $3.7M YoY); net loss per diluted share improved to $0.18 from $0.21 YoY.

• Total costs and expenses decreased 16% to $39.7M YoY.

Outlook and guidance

• Lemon volumes expected at 5M–5.5M cartons and avocado volumes at 7M–8M pounds for FY25; FY25 avocado volume expected to be lower than FY24 due to alternate bearing.

• Expects $165M–$180M in proceeds from real estate joint ventures over the next six to seven years.

• Lemon business expected to strengthen in H2 FY25 due to seasonal pricing and reduced Spanish imports.

• Plans to expand avocado production by 1,000 acres through FY27, with strong organic growth from non-bearing plantings.

• Management expects sufficient liquidity from operations and credit facilities to meet obligations for the next 12 months.