Limoneira Plunges 12.79% on Q2 Loss, Lemon Pricing Pressure

On June 10, 2025, Limoneira's stock experienced a significant drop of 12.79% in pre-market trading, reflecting investor concerns over the company's recent financial performance and strategic decisions.

Limoneira reported a fiscal Q2 loss of $3.4 million, or 20 cents per share, marking a sharp decline from the previous year's earnings of 44 cents per share. The company's total net revenue for the quarter was $35.1 million, falling short of analyst estimates and indicating a decline from the previous year's $44.6 million. This underperformance was primarily due to significant pricing pressure in the lemon segment, which was exacerbated by an oversupplied market.

Despite the challenges in the lemon market, Limoneira's avocado business delivered strong pricing performance, contributing positively to the company's results. The company also announced a strategic merger with Sunkist Growers, aiming to achieve $5 million in annual cost savings and EBITDA improvement starting in fiscal year 2026. This move is expected to enhance the company's supply chain efficiency and market position.

Limoneira's President and CEO, Harold Edwards, acknowledged the pricing pressure in the lemon market but highlighted the strong performance of other business lines, particularly the avocado segment. The company's ability to manage costs and improve operational efficiency will be crucial in navigating the current market conditions and achieving long-term value for shareholders.