Limoneira Company (the “Company” or “Limoneira”) (Nasdaq: LMNR), a diversified agribusiness and real estate development company with a strong heritage in citrus production, today announced its financial results for the third quarter ended July 31, 2025. The report underscores both the current headwinds in the citrus and avocado markets and the Company’s ongoing execution of a two-part value creation strategy focused on agriculture production and land and water monetization.
Management Commentary
Harold Edwards, President and Chief Executive Officer, emphasized that while the quarter reflected ongoing challenges in the lemon market, Limoneira remains firmly committed to its long-term strategy.
“We continue to make progress in unlocking long-term value through our two-pronged approach: strengthening agricultural operations and strategically monetizing land and water assets,” Edwards stated. “Lemon pricing remained under pressure during the first two months of the third quarter, which impacted margins and led us to hold inventory in storage longer. This allowed us to capture more favorable pricing in the final month. Avocado sales tracked on plan, and we expect to achieve our volume goals for both lemons and avocados for the full fiscal year.”
Looking beyond fiscal 2025, Edwards expressed optimism about opportunities on the horizon. “As we transition toward fiscal 2026, we are particularly encouraged by maturing avocado acreage, which should meaningfully boost production in the coming years. We also expect lemon operations to return to profitability as pricing normalizes. Our recently announced citrus sales and marketing partnership with Sunkist is projected to deliver approximately $5 million in annual cost savings and EBITDA benefits beginning in fiscal 2026. This partnership should also expand our reach to new premium customers. On the real estate side, our Harvest at Limoneira project continues to outperform expectations, with homes selling ahead of schedule, and we are well-positioned to divest additional land assets next year. Furthermore, we are initiating a review of options for our Limco Del Mar property in Ventura, a site that offers strong potential for new residential neighborhoods.”
Third Quarter Fiscal 2025 Results
Total net revenues for the third quarter of fiscal 2025 were $47.5 million, down from $63.3 million in the prior-year period. Agribusiness revenues declined to $45.9 million, compared to $61.8 million last year, while revenues from other operations held steady at $1.5 million.
Lemons – Fresh packed lemon sales totaled $23.8 million, compared to $25.8 million in Q3 2024. The Company sold about 1.397 million cartons at an average of $17.02 per carton, versus 1.4 million cartons at $18.43 per carton a year ago. Brokered and other lemon sales were $3.8 million, down significantly from $9.8 million in the prior year.
Avocados – Avocado revenue was $8.5 million, compared to $13.9 million in Q3 2024. The Company sold 5.65 million pounds at an average price of $1.50 per pound, compared to 8.86 million pounds at $1.57 per pound last year.
Oranges – Orange revenue rose to $1.7 million, compared to $1.2 million last year, reflecting higher volumes. The Company sold 94,000 cartons at an average price of $18.00 per carton, versus 43,000 cartons at $26.98 per carton in Q3 2024.
Specialty citrus and wine grapes – Revenues remained stable at $0.6 million for both years.
Farm management – Revenues dropped sharply to $0.1 million, down from $3.2 million last year, primarily due to the termination of the PGIM Real Estate Finance farm management agreement earlier in fiscal 2025.
On the cost side, total expenses were $48.1 million, compared to $54.3 million in the prior year. Despite cost reductions, the Company posted an operating loss of $0.6 million, compared to operating income of $9.0 million in Q3 2024.
The net result was a net loss applicable to common stockholders of $1.0 million, or $0.06 per diluted share, versus net income of $6.5 million, or $0.35 per diluted share, a year ago. On an adjusted basis, the Company reported a net loss of $0.4 million or $0.02 per diluted share, compared to adjusted net income of $7.8 million or $0.42 per diluted share last year.
Adjusted EBITDA came in at $3.0 million, compared to $13.8 million in Q3 2024.
First Nine Months Fiscal 2025 Results
For the nine months ended July 31, 2025, Limoneira generated $116.9 million in net revenues, compared to $147.6 million in the prior-year period. The decline reflected lower sales of lemons, avocados, and reduced farm management revenues.
Operating loss widened to $9.3 million, compared to $3.4 million last year. The Company recorded a net loss of $7.7 million applicable to common stockholders, or $0.43 per diluted share, versus net income of $9.2 million, or $0.51 per diluted share, in the same period of fiscal 2024. Adjusted results showed a net loss of $6.1 million or $0.34 per diluted share, compared to adjusted net income of $12.9 million or $0.70 per diluted share last year.
Balance Sheet and Liquidity
During the first nine months of fiscal 2025, net cash used in operating activities was $7.0 million, compared to net cash provided of $11.3 million in the prior year. Net cash used in investing activities rose to $9.9 million, versus $6.7 million a year ago. Financing activities provided $15.9 million, compared to a use of $7.1 million in the prior year.
Long-term debt stood at $63.3 million as of July 31, 2025, up from $40.0 million at the end of fiscal 2024. After accounting for $2.1 million in cash, the Company’s net debt position was $61.3 million.
Real Estate Development and Water Asset Transactions
Limoneira continues to pursue value from its land holdings. In July, the Company announced plans to evaluate development opportunities for its Limco Del Mar Ranch, a 221-acre agricultural infill property in Ventura. With Ventura County facing housing shortages, the site is well positioned for residential development. The process will include community input, a CEQA review, a SOAR vote, and LAFCO approval for annexation to the City of Ventura.
At the Harvest at Limoneira development, sales momentum remains strong. Phase 1 sold out in 2023, and Phase 2 was completed in 2024 with 554 residential units sold. In total, 1,261 homesites have been sold since inception. The Santa Paula City Council also approved an expansion of the project to 2,050 units, adding 550 more homes than originally planned. A joint venture with The Lewis Group also plans to construct 300 multi-family rental units.
Additionally, in January 2025 the Company sold water pumping rights in the Santa Paula Basin for $1.7 million, generating a $1.5 million gain.
