What were the key takeaways from Limoneira's earnings call?

What does Limoneira do and what are its main business segments?

What is the revenue and EPS growth rate for Limoneira year over year?

What guidance did Limoneira's management provide for the next earnings period?

What factors drove the changes in Limoneira's revenue and profit?

What is Limoneira's gross profit margin?

What is Limoneira's latest dividend and current dividend yield?

What were the key takeaways from Limoneira’s earnings call?

- **Strategic Shift**: Transformed into diversified agricultural and real estate company, reducing lemon dependency and focusing on avocados, recycling, and real estate.
- **Cost Efficiency**: $10 million annual savings from Sunkist partnership, including $0.90/carton savings on 4.5 million cartons.
- **Avocado Growth**: 700 new acres to contribute $4-5 million EBITDA by FY2027, with 1,500 total acres planted.
- **Water Value**: $50-$70 million potential from Colorado River and Santa Paula Basin water rights by FY2027.
- **Real Estate Potential**: $155 million in expected real estate distributions over 5 years, plus $1 million/acre for entitled Limco Del Mar land.

**【CEO Summary Section】**
- **Strategic Transformation**: Shifted from commodity lemon producer to diversified agricultural and real estate company, reducing lemon exposure and focusing on higher-margin avocados, organic recycling, and real estate development.
- **Cost Savings**: $10 million annual savings from Sunkist partnership, including reduced sales and marketing costs ($1.50/carton to $0.60/carton) and renegotiated storage contracts.
- **Avocado Expansion**: 700 new acres of nonbearing avocado trees expected to contribute $4 million-$5 million EBITDA by FY2027. Current bearing acres: 800, with 1,500 total planted.
- **Real Estate Pipeline**: $155 million in expected distributions over 5 years from Harvest at Limoneira. Limco Del Mar infill property in Ventura could generate $1 million/acre if entitled.
- **Water Monetization**: Sold $1.7 million in water rights FY2025, targeting $50-$70 million from Colorado River and Santa Paula Basin rights by FY2027.

**【CFO Financial Commentary】**
- **Q4 FY2025 Results**: Revenue $42.8 million (-2.5% YoY), net loss $8.8 million (-340% YoY). Adjusted EBITDA loss $7 million vs. $1.2 million YoY.
- **FY2025 Full Year**: Revenue $159.7 million (-16% YoY), net loss $16.5 million vs. $7.2 million net income YoY. Adjusted EBITDA loss $6.5 million vs. $26.7 million YoY.
- **Balance Sheet**: Long-term debt $72.5 million (up from $40 million), $41.6 million credit facility availability. Negotiated improved banking covenants.
- **FY2026 Outlook**: Fresh lemon volumes 4-4.5 million cartons, avocado 5-6 million pounds. $10 million SG&A savings from operational restructuring.

**【Q&A Key Highlights】**
- **Sunkist Partnership**: 82% of lemon sales now through Sunkist, with fixed pricing and access to exclusive food service customers. Reduced price volatility and improved margins.
- **Water Strategy**: Class 3 Colorado River rights positioned to benefit from Western U.S. water scarcity. Potential $50-$70 million value from conserved rights by FY2027.
- **Avocado Profitability**: $1.30/lb average price assumption, $12,000-$14,000/acre operating profit with $5,000/acre farming costs.
- **Balance Sheet Management**: Targeting $40 million debt level. FY2026 focus on core business EBITDA growth and asset monetization.

Limoneira Company (LMNR) Q4 2025 Earnings Call Transcript

- **Strategic Growth Drivers**: Sunkist partnership ($5M+ EBITDA uplift), avocado expansion (100%+ growth by FY27), and $155M+ real estate proceeds.
- **Challenges**: Q3 FY25 revenue down 25% to $47.5M due to lemon pricing, but FY26 outlook improving with global supply constraints.
- **Water & Real Estate Value Creation**: $1.7M from water sales, $3-5M in development costs for 221-acre Limco Del Mar project.
- **Avocado Resilience**: FY25 volume goals met despite 48% revenue decline, with FY27+ growth pipeline intact.

**【CEO Opening Remarks】**
- Highlighted two-part strategy: agricultural production optimization and land/water value creation.
- Sunkist partnership expected to deliver $5M annual EBITDA improvement starting FY26, with cost savings and new customer access.
- Avocado expansion: 700 acres of non-bearing trees to become full-bearing by FY27, enabling 100%+ production growth.
- Real estate development: $155M+ expected from projects over 5 years, including exploration of 221-acre Limco Del Mar property for residential development.

**【CFO Financial Commentary】**
- Q3 FY25 Revenue: $47.5M (vs. $63.3M FY24), driven by lemon pricing pressures and lower fresh utilization.
- Net Loss: $1M (vs. $6.5M profit FY24), with adjusted EBITDA of $3M (vs. $13.8M FY24).
- Avocado revenue down 48% to $8.5M due to alternate bearing cycle, but FY25 volume goals met.
- Water monetization: $1.7M from Q1 sales of 30,000 acre-foot pumping rights.

**【Q&A Highlights】**
- **Limco Del Mar Development**: 
  - $3-5M in regulatory/consulting costs (capitalized), with entitlement process expected to take 3-5 years.
  - Potential 50-50 partnership with Lewis Group for development phase.
- **Lemon Market Outlook**: 
  - FY26 pricing support from global supply constraints (Spain, Turkey), with Q3 FY25 prices up 17% YoY to $17.02/carton.
  - Fresh utilization normalization expected in FY26.
- **Avocado Outlook**: 
  - FY26 volume uncertain due to alternate bearing, but FY27+ growth pipeline strong.
  - FY25 volume on plan at 7M lbs, with pricing stable at $1.50/lb.


Limoneira Company (LMNR) Q3 2025 Earnings Call Transcript

- **$5M annual cost savings and EBITDA boost**: Sunkist partnership streamlines citrus operations, reducing selling expenses by $5 million/year.
- **Lemon market challenges**: Q2 revenue down 22% YoY due to oversupply, but Q3+ recovery expected with improved pricing and market share.
- **Avocado growth pipeline**: 2,000-acre expansion by FY2027 to capitalize on demand; new plantings yielding 10,000+ lbs/acre at 3 years old.
- **Strategic monetization**: Water deals and asset divestitures expected to generate $155M over 6 years, supporting long-term EBITDA growth.

**【CEO Summary Section】**
- Announced merger of citrus sales and marketing operations with Sunkist Growers, effective Q1 2026, to reduce costs and improve supply chain efficiency.
- Expected $5 million annual cost savings and $5 million EBITDA improvement through consolidation of sales and marketing functions.
- Transition of citrus brokerage business to Sunkist will reduce top-line revenue but enhance operational resilience.
- Avocado production expansion to 2,000 acres by FY 2027 to capitalize on consumer demand.
- Harvest at Limoneira real estate project showing strong home sales velocity, potentially accelerating Phase 3.
- Water monetization transactions expected to close in FY 2025, alongside divestiture of Chilean farming and Paso Robles vineyard assets.

**【CFO Financial Commentary】**
- Q2 FY2025 total net revenue: $35.1 million (down 21% YoY) due to oversupplied lemon market and pricing pressure.
- Agribusiness revenue: $33.6 million (down 22% YoY), driven by lower lemon prices (-19%) and reduced fresh utilization.
- Operating loss: $3.3 million (improved $1.3 million YoY) due to 22% YoY decline in costs and expenses.
- Adjusted EBITDA: $(0.17) million (vs. $16.6 million YoY) reflecting one-time impacts from strategic transition.
- Net loss: $3.5 million (vs. $6.4 million net income YoY) due to lower revenue and prior-year real estate gains.

**【Q&A Highlights】**
- Sunkist partnership structure: Fixed fee for sales and marketing services, eliminating variable costs; shared use of Sunkist's wash/storage capacity without lease obligations.
- Avocado strategy: Delayed harvest to capture higher pricing; FY2025 volume expected lower due to biennial bearing cycle, but FY2027+ growth from new plantings (3-year-old trees yielding 10,000+ lbs/acre).
- Balance sheet impact: No material change; Sunkist assumes AR and credit risk, simplifying Limoneira's working capital needs.
- Lemon market outlook: Q2 oversupply expected to ease in Q3/2025 with seasonal pricing recovery and improved market share.

Limoneira (LMNR)-9 Jun 25-2025 Q2 Earnings call transcript

- **Strategic Shift Paying Off**: Asset-light model cuts operating loss 30% YoY; avocado revenue offsets lemon softness. 
- **Water Sales Momentum**: $1.7M from 58-acre-foot sales; 2025 pipeline includes utility and lease deals. 
- **Avocado Growth Constraint**: 2,500-acre expansion target limited by geography and nursery shortages. 
- **Lemon Market Recovery**: H2 pricing improvement expected from Spain freeze and QSR channel expansion. 
- **Balance Sheet Strength**: $62.4M JV cash provides liquidity despite $57.9M debt.

**【CEO Opening Remarks】**
- **Strategic Transition**: Shift to an asset-lighter model with land and water monetization, avocado expansion, and citrus diversification. 
- **Financial Improvements**: Agribusiness operating loss down 17% YoY; total operating loss improved 30% YoY. Avocado revenue ($162k) offset lemon market softness. 
- **Lemon Market Outlook**: Q2 challenges expected to ease in H2 due to Spain freeze impact and QSR channel expansion. 
- **Real Estate Gains**: $166M expected from Harvest JV over 6 years; FEMA flood zone revision reduces 1,100 residents' flood insurance costs. 

**【CFO Financial Highlights】**
- **Revenue**: Q1 2025 total net revenue $34.3M (-13.6% YoY) due to lemon price decline (-14.5% to $18.44/carton). Avocado revenue ($162k) and orange sales ($1.6M) offset losses. 
- **Cost Efficiency**: Operating expenses down 16% YoY; adjusted EBITDA loss narrows to $2.3M (-52% YoY). 
- **Water Sales**: $1.7M from 58 acre-foot sales at $30k/acre-foot; additional monetization opportunities expected. 
- **Balance Sheet**: Long-term debt $57.9M; JV with Lewis Group holds $62.4M cash. 

**【Q&A Key Takeaways】**
- **Water Monetization**: 58-acre-foot sales benchmarked against local fees; 2025 pipeline includes utility creation and long-term leases. 
- **Avocado Expansion**: 2,000-2,500 acres targeted in Ventura/SB counties; nursery stock shortages limit industry-wide growth. 
- **Lemon Transition**: 10,500 acres of land and 21k acre-feet of water remain for future monetization. 
- **Tariff Impact**: Potential U.S. avocado tariffs could boost domestic pricing, benefiting California growers.

LMNR

LMNR fundamentals

Earnings Call

You can ask Aime