Limoneira Announces Financial Outcomes for Second Quarter of Fiscal 2025
Limoneira Company (Nasdaq: LMNR), a leading diversified citrus agribusiness and real estate development company, announced its financial results for the second quarter ended April 30, 2025. Despite headwinds in the lemon market, Limoneira delivered resilient performance in other segments and unveiled a strategic restructuring of its citrus sales operations through a newly formed partnership with Sunkist Growers.
Executive Commentary
Harold Edwards, President and Chief Executive Officer of Limoneira, acknowledged the challenges in the lemon market during the quarter but emphasized strong performance in other core areas. “An oversupply of lemons continued to weigh on pricing during the second quarter,” Edwards explained. “Nonetheless, we experienced favorable pricing trends in our avocado business and continued to make progress in our real estate segment. Our Harvest at Limoneira project is maintaining strong home sales velocity, which could accelerate the launch of Phase 3.”
Edwards further announced a major shift in Limoneira’s citrus sales and marketing strategy. “Today, we are proud to announce the integration of our citrus sales and marketing operations into Sunkist Growers. As one of the largest lemon producers in their network, we are returning to our historical roots with a partner that shares our values. This realignment will optimize our supply chain, lower our costs, and strengthen our relationships with top-tier foodservice and retail customers.”
The transition is expected to take effect in the first quarter of fiscal 2026. At that time, Limoneira’s sales, marketing, and related administrative staff will be integrated into the Sunkist organization. Management anticipates that this move will generate approximately $5 million in annual cost savings in selling and marketing, beginning in fiscal year 2026.
“We remain focused on driving long-term value creation by advancing our avocado and citrus operations, expanding our real estate development, and monetizing high-value land and water assets,” Edwards concluded. “We believe this multifaceted strategy positions us for sustainable stockholder returns.”
Second Quarter Fiscal 2025 Financial Overview
For the second quarter of fiscal 2025, Limoneira reported total net revenue of $35.1 million, down from $44.6 million in the prior year period. The decline was primarily attributable to reduced lemon pricing and volume. Agribusiness revenue totaled $33.6 million, compared to $43.3 million in the second quarter of fiscal 2024. Revenue from other operations increased modestly to $1.5 million from $1.3 million a year earlier.
Lemon Segment Performance
Fresh packed lemon sales came in at $19.7 million, a decline from $25.8 million in the second quarter of the prior year. Volume dropped slightly to approximately 1,357,000 cartons, down from 1,446,000 cartons in Q2 2024, while average pricing declined to $14.52 per carton versus $17.85 last year. Brokered lemons and other lemon-related sales were $2.4 million and $3.8 million in Q2 2025 and Q2 2024, respectively, reflecting continued pricing and volume pressure in the lemon market.
Avocado, Orange, and Specialty Citrus
Avocado revenue grew to $2.8 million from $2.3 million in the prior-year quarter. While volume declined to 1.2 million pounds from 1.6 million pounds, the average price per pound rose significantly to $2.26 compared to $1.47 in Q2 2024.
Orange sales also improved, generating $1.6 million in revenue, up from $1.2 million a year earlier. Approximately 92,000 cartons were sold during the quarter at an average price of $17.07 per carton, compared to 66,000 cartons at $17.58 per carton in the previous year.
Revenue from specialty citrus and wine grapes declined to $671,000 from $839,000. Total volume sold decreased to 22,000 40-pound cartons at an average price of $30.77, compared to 29,000 cartons at $29.24 in Q2 2024.
Farm Management and Cost Control
Farm management revenue dropped sharply to $0.3 million from $2.0 million in the same quarter last year, following the conclusion of a management agreement with PGIM Real Estate Finance, LLC in March 2025.
Total costs and expenses declined to $38.5 million from $49.3 million, reflecting Limoneira’s ongoing cost-control initiatives and reduced operating scale in some business lines.
The company posted an operating loss of $3.3 million in the quarter, a narrowed deficit compared to a $4.7 million loss in Q2 2024. Net loss applicable to common shareholders was $3.5 million, or $0.20 per diluted share, compared to net income of $6.4 million, or $0.35 per diluted share, in the same period last year.
Adjusted net loss for the quarter was $3.1 million or $0.17 per share, compared to an adjusted net income of $8.1 million or $0.44 per share in Q2 2024. Adjusted EBITDA was a loss of $167,000, a notable decline from a $16.6 million gain in the year-ago quarter, largely due to the absence of one-time real estate gains.
Six-Month Financial Performance
For the first half of fiscal 2025, total net revenue stood at $69.4 million, down from $84.3 million in the same period of fiscal 2024. Operating loss improved to $8.7 million from $12.4 million a year earlier. The net loss to common shareholders was $6.7 million, or $0.38 per share, compared to net income of $2.7 million or $0.15 per share in the first half of fiscal 2024.
Adjusted net loss per share for the six-month period was $0.32 versus adjusted net income per share of $0.27 last year.
Balance Sheet and Cash Flow
As of April 30, 2025, Limoneira’s long-term debt totaled $54.9 million, compared to $40.0 million at the end of fiscal 2024. Net debt, accounting for $2.1 million in cash, was $52.9 million. Operating cash outflows were significantly reduced to $4.0 million, compared to $13.3 million in the prior-year period. Investing activities used $6.5 million in cash, while financing activities generated $9.6 million.
In April 2025, the company received $10.0 million from its 50/50 real estate joint venture, Harvest at Limoneira, with The Lewis Group of Companies. The JV held $37.3 million in available cash at quarter-end.
Real Estate and Water Monetization Updates
The company has now closed sales on 1,261 residential lots across Phases 1 and 2 of its Harvest development. In May 2024, Santa Paula City Council approved an expansion plan to increase the project’s unit count to 2,050, adding 250 single-family homes in Phase 3. A separate JV with Lewis is developing 300 rental units.
In January 2025, Limoneira sold water pumping rights in the Santa Paula Basin for $1.7 million, recording a $1.5 million gain.
