Limoneira 2025 Q3 Earnings Sharp Net Loss Amid Revenue Decline

Limoneira (LMNR) reported its fiscal 2025 Q3 earnings on September 9, 2025, delivering results that significantly underperformed expectations. The company swung to a net loss of $916,000, representing a 114.7% deterioration year-over-year, while earnings per share plummeted 116.7% to a loss of $60. Revenue declined by 25.0%, missing the implied expectations of modest growth or stability.

Revenue
Limoneira’s total revenue for the quarter fell to $47.48 million, down from $63.30 million in the prior-year period, driven by softness in the Fresh Lemons segment. The Fresh Lemons division accounted for the largest portion at $28.12 million, followed by Lemon Packing at $14.56 million. Avocados revenue stood at $8.49 million, while Other Agribusiness and Corporate and Other segments contributed $3.27 million and $1.54 million, respectively. An elimination entry of -$8.49 million further impacted the overall top-line result.

Earnings/Net Income
Limoneira reported a net loss of $916,000 for Q3 2025, compared to a net income of $6.22 million in the same period last year. On a per-share basis, the company swung to a loss of $60 from a profit of $360, reflecting a 116.7% negative change. The sharp deterioration in earnings highlights significant challenges in the company's core operations.

Price Action
Limoneira’s stock traded mixed in the period surrounding the earnings release. The stock edged down 0.32% during the latest trading day, gained 0.51% during the most recent full trading week, and advanced 1.32% month-to-date.

Post-Earnings Price Action Review
Harold Edwards, President, CEO & Director, emphasized progress in executing the company’s two-part value creation strategy focused on agriculture production optimization and land and water value creation. While acknowledging challenging lemon market conditions in the early part of Q3, Edwards pointed to improved pricing in July from strategic storage efforts and confidence in achieving FY2025 volume goals for lemons and avocados. Looking ahead to FY2026, the CEO cited expected pricing improvements driven by international shortages and a projected $5 million in annual EBITDA enhancements from the Sunkist partnership. Edwards also outlined avocado expansion plans, with 700 acres of nonbearing avocado trees set to become full-bearing by FY2027, and highlighted real estate development at the Limco Del Mar property as a key value driver. The CEO concluded with a forward-looking tone, underscoring the company’s resilience and long-term growth potential.

Guidance
Limoneira expects fresh lemon volumes of 4.5 million to 5 million cartons for fiscal year 2025 and avocado volumes of approximately 7 million pounds. Avocado production is anticipated to rise significantly by FY2027 due to newly planted acreage. The company forecasts $5 million in annual cost savings and EBITDA enhancements from the Sunkist partnership starting in FY2026. Limoneira also anticipates an additional $155 million in real estate distributions over the next five fiscal years and plans to continue avocado planting to support long-term production growth.

Additional News
On September 8, 2025, Punch Newspapers reported on Nigerian political and economic developments, including the Federal Inland Revenue Service (FIRS) collaborating with the Economic and Financial Crimes Commission (EFCC) to enforce tax compliance. The article also highlighted a 5% fuel surcharge recently introduced in Nigeria under the Harmonized Tax Act, which is expected to impact consumer prices. In another notable report, Nigerian students were noted to increasingly rely on artificial intelligence for academic support, as observed by Google. Additionally, President Bola Tinubu announced tighter oversight for stablecoin transactions, reflecting regulatory tightening in the fintech sector. These developments provide a broader context to market sentiment but are not directly tied to Limoneira’s earnings results.