Financial Results Limoneira Reports Q2 Fiscal 2025 Performance
Limoneira Company (Nasdaq: LMNR), a diversified agribusiness and real estate development firm, announced its financial results for the second quarter ended April 30, 2025. While facing continued pricing pressure in the lemon market due to oversupply, the company delivered strong performances across its other segments, notably in avocado sales and real estate development.
CEO Insights and Strategic Shifts
President and CEO Harold Edwards commented on the quarter’s mixed performance, citing challenges in the lemon sector but noting encouraging results elsewhere. “The lemon market remains oversupplied, which has affected our pricing. However, our avocado operations are benefiting from strong pricing, and we expect favorable results in the third quarter when the majority of the harvest takes place,” said Edwards.
He also highlighted progress in real estate. “Sales momentum at our Harvest at Limoneira project continues to be strong, potentially accelerating Phase 3. Additionally, we remain on track to close two more water monetization deals this fiscal year.”
Limoneira also unveiled a major operational change: it will merge its citrus sales and marketing functions into Sunkist Growers, returning to a historic partnership. “This move will streamline our supply chain, reduce costs, and provide access to top-tier retail and food service customers,” Edwards said. The transition will begin in Q1 of fiscal 2026 and is expected to generate $5 million in annual savings in selling and marketing costs.
Second Quarter Financial Overview
Total net revenue for Q2 FY2025 was $35.1 million, down from $44.6 million in the same quarter last year. Agribusiness revenue fell to $33.6 million from $43.3 million, while other operations revenue rose slightly to $1.5 million from $1.3 million.
Lemon sales were significantly impacted. Fresh packed lemon revenue dropped to $19.7 million from $25.8 million a year earlier. Limoneira sold 1.36 million cartons at an average of $14.52 per carton, compared to 1.45 million cartons at $17.85 per carton in the prior-year quarter. Brokered and other lemon sales also fell year-over-year.
Avocado revenue rose to $2.8 million from $2.3 million. Although fewer pounds were sold—1.23 million pounds compared to 1.59 million last year—pricing improved, averaging $2.26 per pound compared to $1.47 per pound previously.
Orange revenue increased to $1.6 million, up from $1.2 million, with sales of 92,000 cartons at an average price of $17.07 per carton. Specialty citrus and wine grape revenue declined slightly to $671,000 from $839,000.
Farm management revenue dropped sharply to $300,000 from $2.0 million due to the termination of a management agreement with PGIM Real Estate Finance effective March 31, 2025.
Total costs and expenses decreased to $38.5 million from $49.3 million. Limoneira recorded an operating loss of $3.3 million, an improvement from the $4.7 million loss in the same quarter last year. However, total other income plummeted to $300,000 from $16.5 million, largely due to prior-year real estate gains.
The company posted a net loss of $3.5 million, or $0.20 per diluted share, compared to net income of $6.4 million, or $0.35 per diluted share, in Q2 FY2024. Adjusted net loss per diluted share was $0.17 versus adjusted net income of $0.44 per share a year ago. Adjusted EBITDA was a loss of $167,000, compared to a gain of $16.6 million.
First Half of Fiscal Year 2025
For the six months ended April 30, 2025, total net revenue was $69.4 million, down from $84.3 million a year earlier. Operating loss narrowed to $8.7 million from $12.4 million. Net loss applicable to common stock was $6.7 million, or $0.38 per diluted share, compared to net income of $2.7 million, or $0.15 per diluted share, last year.
Liquidity and Balance Sheet
Net cash used in operating activities improved to $4.0 million from $13.3 million. Net investing cash outflow rose to $6.5 million, while financing activities provided $9.6 million. Long-term debt stood at $54.9 million, with a net debt position of $52.9 million. In April, Limoneira received $10 million in distributions from its Harvest at Limoneira joint venture with The Lewis Group.
Real Estate and Water Monetization Progress
Since inception, the Harvest at Limoneira project has closed 1,261 residential units. In May 2024, the Santa Paula City Council approved increasing the project’s total residential units from 1,500 to 2,050. The expanded plan includes 250 additional for-sale homes and 300 planned rental units in a new joint venture with Lewis.
In January 2025, Limoneira sold water rights for $1.7 million, recording a $1.5 million gain.
