Limoneira Company (LMNR) Q1 2026 earnings summary

Executive summary

• Q1 2026 results reflect a company in strategic transition, with net revenues of $18.2 million, down 47% year-over-year, mainly due to the transition of lemon sales to Sunkist and exit from brokerage and farm management businesses.

• Operating loss widened to $10.6 million from $5.3 million last year, with net loss at $9.6 million ($0.53 per share) versus $3.2 million ($0.18 per share) in Q1 2025.

• Strategic initiatives include cost structure improvements, avocado production expansion, asset monetization, and a return to Sunkist for lemon sales.

• The company completed the sale of Chilean agricultural properties for $15 million, recording an immaterial gain and writing off related goodwill.

• Total costs and expenses declined 27% year-over-year, reflecting operational transformation and cost discipline.

Financial highlights

• Agribusiness revenues were $16.8 million, down from $32.9 million year-over-year, with fresh packed lemon sales at $11.9 million (681,000 cartons at $17.41/carton), down from $21.2 million (1,147,000 cartons at $18.44/carton).

• Adjusted EBITDA loss was $7.7 million, compared to a $2.3 million loss in the prior year.

• Net cash used in operating activities was $11.7 million, with $3.4 million used in investing and $15.3 million provided by financing activities, mainly from net borrowings.

• Costs and expenses fell 27% year-over-year to $28.8 million.

• No avocado revenue in Q1 FY26 due to harvest timing.

Outlook and guidance

• Sequential improvement is expected throughout 2026, with Q2 better than Q1 and Q3/Q4 as the strongest periods.

• Reiterated full-year guidance: 4–4.5 million cartons of fresh lemons and 5–6 million lbs of avocados.

• $10 million in SG&A savings expected for FY26, primarily from the Sunkist partnership.

• Significant avocado production increases anticipated in FY27 as non-bearing acreage matures.

• Anticipates $155 million in proceeds from real estate projects over the next five fiscal years.