Limoneira (NASDAQ:LMNR) reported first-quarter fiscal 2026 results that management said reflect a company in transition, as the citrus grower and agribusiness operator works through a return to Sunkist for lemon sales and marketing and continues broader strategic initiatives spanning cost reductions, avocado expansion, asset sales, and real estate development.
Transition quarter marked by lower revenue and specific costs
For the first quarter, Limoneira posted total net revenues of $18.2 million, down from $34.3 million in the prior-year quarter. Agribusiness revenue declined to $16.8 million from $32.9 million, while other operations revenue was $1.4 million and “essentially flat” year over year.
CEO Harold Edwards said first-quarter results also included $2.5 million in “specific expenses” tied to the transition period, including:
- $1.0 million in packing house repairs (which the company said was recovered through insurance proceeds in the second quarter, with an additional $1.4 million of insurance proceeds expected in the second quarter)
- $0.5 million related to closing Chilean farming operations
- $1.0 million tied to foreign exchange fluctuations on receivables from the sale of Chilean farming assets
Edwards said adjusted net loss included about $0.06 per share of loss related to the packing house repairs and closing the Chilean farming operations.
Lemon volumes fell on cadence shift; fresh utilization improved
Fresh packed lemon sales were $11.9 million versus $21.2 million a year earlier. Limoneira sold approximately 681,000 cartons of U.S. packed fresh lemons at an average price of $17.41 per carton, compared with 1,147,000 cartons at $18.44 per carton in the prior-year quarter. CFO Greg Hamm emphasized that the decline in volume was “entirely related to the change in cadence” under the Sunkist agreement. He also noted that per-carton pricing for fiscal 2026 is now reported net of the Sunkist marketing fee, which management said is $0.60 per carton.
On the call, Edwards added that average pricing can be affected by product mix, and he said the company saw a “much higher percentage of fresh utilization” in the first quarter. That, he explained, meant more lower-grade fruit that previously went to juice was sold into the fresh market, which can pressure average price but increase fresh-market volume. Management said it expects that dynamic to be positive over the full season.
Brokered lemons and other lemon sales were $1.0 million, down from $2.2 million, reflecting the transition of brokerage operations to Sunkist. The company reported no avocado revenue in the quarter due to harvest timing, compared with $162,000 a year earlier. Orange revenue was $10,000 versus $1.6 million, which management linked to the sale of Chilean agricultural properties and the shift of brokerage operations to Sunkist. Specialty citrus, wine grape, and other revenues increased to $700,000 from $500,000.
Costs declined, but losses widened
Total costs and expenses were $28.8 million, down 27% from $39.7 million in the prior-year quarter. Hamm said the decrease was driven by reduced agribusiness volumes and the elimination of citrus sales and marketing costs following the transition to Sunkist, which also lowered selling, general, and administrative expenses.
Despite lower costs, operating loss widened to $10.6 million from $5.3 million. Hamm attributed the larger operating loss primarily to decreased agribusiness revenues, the quarter’s $1.0 million of packing house repairs and $0.5 million of Chile closure costs, and the fact that the prior-year quarter included a $1.5 million gain on sales of water rights. He also cited $1.0 million in foreign exchange fluctuations on Chilean receivables recorded in other expenses for fiscal 2026.
Net loss applicable to common stock after preferred dividends was $9.6 million, or $0.53 per diluted share, compared with a net loss of $3.2 million, or $0.18 per diluted share, a year ago. On an adjusted basis, the company reported an adjusted net loss of $8.5 million, or $0.48 per diluted share, versus an adjusted net loss of $2.5 million, or $0.14 per diluted share, in the prior-year period. Adjusted EBITDA was a loss of $7.7 million, compared with a loss of $2.3 million last year.
On the balance sheet, long-term debt was $89.9 million as of January 31, 2026, up from $72.5 million at the end of fiscal 2025. Net debt was $88.6 million, after $1.3 million of cash on hand.
Cost savings, avocado expansion, and monetization efforts
Management reiterated expectations for approximately $10 million in annual selling, general, and administrative savings in fiscal 2026, largely tied to the Sunkist partnership. In response to an analyst question, Edwards said the savings would not be linear through the year and noted the first quarter still included some “lingering” costs from fiscal 2025. He said the company has tried to be conservative and expects a total $10 million reduction for the year, with a more “fixed overhead” profile heading into fiscal 2027.
Limoneira also highlighted avocado expansion plans. Edwards said the company has 1,600 acres planted, with 800 acres currently bearing fruit, and the additional 800 acres are expected to begin bearing over the next two to four years. Discussing conditions in California, Edwards described the winter as “almost idyllic,” citing moderate winds, strong rains, and tree conditions that he said support fruit growth and next year’s bloom. However, he also noted that heavy shipments from Mexico have pressured avocado pricing in the U.S. market, with management citing current price levels around $1.00 per pound for 48s and roughly $1.05 to $1.10 for 60s, and suggesting pricing could improve as Mexico’s crop tapers.
Guidance reiterated; real estate and water rights remain part of strategy
For fiscal 2026, Limoneira reiterated guidance for fresh lemon volumes of 4.0 million to 4.5 million cartons and avocado volumes of 5 million to 6 million pounds. Edwards said the company expects sequential improvement through the year, with the third and fourth quarters anticipated to be the strongest periods under the new Sunkist cadence.
Beyond core operations, management reiterated expectations for $155 million in proceeds over the next five fiscal years from Harvest at Limoneira and related projects, including Phase 3 (approximately 550 home lots and 300 apartments) and 35 acres of East Area II medical pavilion development that management believes could begin to be monetized in fiscal 2026. The company also discussed planned asset divestitures, including advancing the monetization of its Windfall Farms vineyard in Paso Robles and Argentina agricultural assets, with Windfall Farms targeted for completion by the end of fiscal 2026.
On water rights, Edwards said demand remains for conserved pumping rights in the Santa Paula Basin, referencing prior-year sales at $30,000 per acre-foot as a “placeholder” for potential value. He also discussed Limoneira’s Class 3 Colorado River water rights, noting ongoing multi-state negotiations and mandated cuts in Colorado River consumptive use. While he said monetization pathways remain unclear, Edwards stated the company expects to announce near-term programs it can participate in and expressed hope that more specifics could be shared by the next quarterly call.
Separately, Edwards introduced Greg Hamm as the company’s new CFO, succeeding Mark Palamountain, and said Hamm had been with the company since 2004 and previously served as vice president and corporate controller.
About Limoneira (NASDAQ:LMNR)
Limoneira Company (NASDAQ: LMNR), founded in 1893 and based in Santa Paula, California, is a diversified agribusiness and real estate enterprise. As one of the oldest citrus producers in the United States, Limoneira has built a reputation for cultivating and marketing high-quality citrus fruits, avocados and specialty crops. The company’s vertically integrated model encompasses farming, packing, processing and marketing activities designed to deliver fresh produce to domestic and international markets.
In its agricultural operations, Limoneira specializes in lemons, oranges and avocados, employing modern irrigation, harvesting and packing technologies to maintain consistent product quality and supply.
