Limoneira Company Announces First Quarter Fiscal Year 2026 Financial Results
Key Terms
non-gaap adjusted ebitda financial
net debt financial
acre-feet technical
water rights regulatory
Total Costs and Expenses Decline
Company Reiterates Avocado and Lemon Volume Guidance for Full Year Fiscal 2026
Near-Term Water Monetization Expected in Fiscal Year 2026 as Company Advances Water Value Creation Strategy
The Company continues to execute on its value creation strategy of growing agriculture income and monetizing land and water assets.
-
Agriculture initiatives include:
- Streamlining operations;
- Expanding avocado production;
- Optimizing lemon packing with recently announced Sunkist partnership; and
- Expanding organic recycling facility.
-
Land and water assets initiatives include:
- Selling non-strategic land assets (remaining near-term pipeline); and
- Selling certain water rights (near and medium-term pipeline).
Management Comments
Harold Edwards, President and Chief Executive Officer of the Company, stated, “Our first quarter results reflect the strategic transformation we are executing to position Limoneira for sustainable, long term value creation. While the cadence of lemon sales will shift due to our return to Sunkist, with the first and second quarters expected to have lower sales and the third and fourth quarters higher, we’re pleased that fresh utilization improved in the first quarter and we remain on track with our volume guidance for both lemons and avocados in fiscal 2026. While we experienced
Mr. Edwards continued, “Beyond our core agricultural operations, our diversified value creation strategy continues to advance. Harvest at Limoneira Phase 2 home sales are underway with robust demand, and we expect to receive an additional
Fiscal Year 2026 First Quarter Results
For the first quarter of fiscal year 2026, total net revenues were
Agribusiness revenues in the first quarter of fiscal year 2026 include
The Company recognized no avocado revenue in the first quarter of fiscal year 2026, compared to
The Company recognized
Specialty citrus and wine grape revenues were
Due to the termination of the farm management agreement with PGIM Real Estate Finance, LLC effective March 31, 2025, there was no farm management revenue in the first quarter of fiscal year 2026, compared to
Total costs and expenses in the first quarter of fiscal year 2026 were
Operating loss for the first quarter of fiscal year 2026 was
On March 10, 2026, the Company received
Net loss applicable to common stock, after preferred dividends, for the first quarter of fiscal year 2026 was
Adjusted net loss for diluted EPS in the first quarter of fiscal year 2026 was
Non-GAAP adjusted EBITDA was a loss of
Balance Sheet and Liquidity
During the first quarter of fiscal year 2026, net cash used in operating activities was
Long-term debt as of January 31, 2026, was
Real Estate Development and Water Transactions
In April 2024, Harvest at Limoneira closed on lot sales representing 554 residential units, thus completing the sell-out of Phase 2 of the development. In February 2026, Harvest at Limoneira celebrated the grand opening of five new neighborhoods in Phase 2 and home sales are underway.
In September 2025, Limoneira announced a plan to explore providing housing on the Limco Del Mar Ranch to address Ventura County’s housing needs. Limoneira believes that infill development, such as the Limco Del Mar project, offers the opportunity for efficient, balanced, and well-planned development that has the potential to stimulate economic growth, create jobs, and contribute to vibrant livable communities.
The Company’s farming operations in
Fiscal Year 2026 Guidance and Longer-Term Outlook
The Company continues to expect fresh lemon volumes to be in the range of 4.0 million to 4.5 million cartons for fiscal year 2026. The Company continues to expect avocado volumes to be in the range of 5.0 million to 6.0 million pounds for fiscal year 2026.
The Company expects to receive total proceeds of approximately
Harvest at Limoneira Cash Flow Projections (in millions)
Fiscal Year |
|
2024 Actual |
|
2025 Actual |
2026 |
|
2027 |
|
2028 |
|
2029 |
|
2030 |
|
Projected Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company has 800 acres of non-bearing avocados estimated to become full bearing over the next two to four years, which the Company expects will enable strong organic growth in the coming years. Additionally, the Company plans to continue expanding its plantings of avocados over the next two fiscal years. The foregoing describes organic growth opportunities and does not include potential acquisition opportunities for the Company in its highly fragmented industry.
Conference Call Information
The Company will host a conference call to discuss its financial results on March 12, 2026, at 1:30 pm Pacific Time (4:30 pm Eastern Time). Investors interested in participating in the live call can dial (877) 407-0789 from the
About Limoneira Company
Limoneira Company, a 133-year-old international agribusiness headquartered in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Limoneira’s current expectations about future events and can be identified by terms such as “could,” “expect,” “may,” “anticipate,” “outlook,” “plans,” “intend,” “should,” “will,” “likely,” “strive,” and similar expressions referring to future periods.
Limoneira believes the expectations reflected in the forward-looking statements are reasonable but cannot guarantee future results, level of activity, performance or achievements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Therefore, Limoneira cautions you against relying on any of these forward-looking statements. Factors that may cause future outcomes to differ materially from those foreseen in forward-looking statements include, but are not limited to: success in executing the Company’s business plans and strategies, including the transition of the Company's lemon sales and marketing to Sunkist Growers Inc. and managing the risks involved in the foregoing; the ability of the transition to Sunkist to improve efficiency and reduce cost; changes in laws, regulations, rules, quotas, tariffs and import laws; weather conditions that affect production, transportation, storage, import and export of fresh produce; increased pressure from crop disease, insects and other pests; disruption of water supplies or changes in water allocations; disruption in the global supply chain; pricing and supply of raw materials and products; market responses to industry volume pressures; pricing and supply of energy; inability to pay debt obligations; ability to maintain compliance with debt covenants under our loan agreements or obtain modifications, waivers or deferrals of such covenants; changes in interest rates and the impact of inflation; availability of financing for land development activities; general economic conditions for residential and commercial real estate development; political changes and economic crises; international conflict; acts of terrorism; labor disruptions, strikes or work stoppages; government restrictions on land use; the impact of foreign exchange rate movements; loss of important intellectual property rights; and market and pricing risks due to concentrated ownership of stock. Other risks and uncertainties include those that are described in Limoneira’s SEC filings that are available on the SEC’s website at http://www.sec.gov. Limoneira undertakes no obligation to subsequently update or revise the forward-looking statements made in this press release, except as required by law.
LIMONEIRA COMPANY |
|||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||||
(in thousands, except share and per share data) |
|||||||
|
January 31, 2026 |
|
October 31, 2025 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash |
$ |
1,267 |
|
|
$ |
1,509 |
|
Accounts receivable, net |
|
10,282 |
|
|
|
15,432 |
|
Cultural costs |
|
1,784 |
|
|
|
2,406 |
|
Prepaid expenses and other current assets |
|
9,722 |
|
|
|
4,444 |
|
Receivables/other from related parties, net |
|
2,934 |
|
|
|
2,973 |
|
Assets held for sale |
|
— |
|
|
|
13,718 |
|
Total current assets |
|
25,989 |
|
|
|
40,482 |
|
Property, plant and equipment, net |
|
173,549 |
|
|
|
172,645 |
|
Real estate development |
|
11,133 |
|
|
|
10,628 |
|
Equity in investments |
|
72,660 |
|
|
|
72,167 |
|
Goodwill |
|
1,373 |
|
|
|
1,506 |
|
Intangible assets, net |
|
2,441 |
|
|
|
2,621 |
|
Other assets |
|
20,385 |
|
|
|
11,088 |
|
Total assets |
$ |
307,530 |
|
|
$ |
311,137 |
|
|
|
|
|
||||
Liabilities, Convertible Preferred Stock and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
6,517 |
|
|
$ |
7,896 |
|
Growers and suppliers payable |
|
2,461 |
|
|
|
6,885 |
|
Accrued liabilities |
|
6,629 |
|
|
|
9,290 |
|
Payables to related parties |
|
6,749 |
|
|
|
5,989 |
|
Current portion of long-term debt |
|
25 |
|
|
|
31 |
|
Total current liabilities |
|
22,381 |
|
|
|
30,091 |
|
Long-term liabilities: |
|
|
|
||||
Long-term debt, less current portion |
|
89,918 |
|
|
|
72,450 |
|
Deferred income taxes |
|
12,563 |
|
|
|
15,378 |
|
Other long-term liabilities |
|
2,018 |
|
|
|
2,381 |
|
Total liabilities |
|
126,880 |
|
|
|
120,300 |
|
Commitments and contingencies |
|
— |
|
|
|
— |
|
Series B Convertible Preferred Stock – |
|
1,479 |
|
|
|
1,479 |
|
Series B-2 Convertible Preferred Stock – |
|
9,331 |
|
|
|
9,331 |
|
Stockholders’ equity: |
|
|
|
||||
Series A Junior Participating Preferred Stock – |
|
— |
|
|
|
— |
|
Common Stock – |
|
181 |
|
|
|
180 |
|
Additional paid-in capital |
|
171,285 |
|
|
|
171,365 |
|
Accumulated deficit |
|
(11,980 |
) |
|
|
(1,070 |
) |
Accumulated other comprehensive loss |
|
(5,494 |
) |
|
|
(6,270 |
) |
Treasury stock, at cost, 250,977 shares at January 31, 2026 and October 31, 2025 |
|
(3,493 |
) |
|
|
(3,493 |
) |
Noncontrolling interests |
|
19,341 |
|
|
|
19,315 |
|
Total stockholders' equity |
|
169,840 |
|
|
|
180,027 |
|
Total liabilities, convertible preferred stock and stockholders’ equity |
$ |
307,530 |
|
|
$ |
311,137 |
|
LIMONEIRA COMPANY |
|||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||
(in thousands, except per share data) |
|||||||
|
Three Months Ended January 31, |
||||||
|
|
2026 |
|
|
|
2025 |
|
Net revenues: |
|
|
|
||||
Agribusiness |
$ |
16,756 |
|
|
$ |
32,852 |
|
Other operations |
|
1,449 |
|
|
|
1,453 |
|
Total net revenues |
|
18,205 |
|
|
|
34,305 |
|
Costs and expenses: |
|
|
|
||||
Agribusiness |
|
23,019 |
|
|
|
33,499 |
|
Other operations |
|
1,071 |
|
|
|
1,171 |
|
Gain on sales of water rights |
|
— |
|
|
|
(1,488 |
) |
Loss (gain) on disposal of assets, net |
|
73 |
|
|
|
(6 |
) |
Selling, general and administrative |
|
4,593 |
|
|
|
6,475 |
|
Total costs and expenses |
|
28,756 |
|
|
|
39,651 |
|
Operating loss |
|
(10,551 |
) |
|
|
(5,346 |
) |
Other (expense) income: |
|
|
|
||||
Interest income |
|
8 |
|
|
|
15 |
|
Interest expense, net of patronage dividends |
|
(779 |
) |
|
|
(260 |
) |
Equity in earnings of investments, net |
|
176 |
|
|
|
102 |
|
Other (expense) income, net |
|
(863 |
) |
|
|
11 |
|
Total other expense |
|
(1,458 |
) |
|
|
(132 |
) |
Loss before income tax benefit |
|
(12,009 |
) |
|
|
(5,478 |
) |
Income tax benefit |
|
2,696 |
|
|
|
2,407 |
|
Net loss |
|
(9,313 |
) |
|
|
(3,071 |
) |
Net income attributable to noncontrolling interests, net |
|
(114 |
) |
|
|
(3 |
) |
Net loss attributable to Limoneira Company |
|
(9,427 |
) |
|
|
(3,074 |
) |
Preferred dividends |
|
(125 |
) |
|
|
(125 |
) |
Net loss applicable to common stock |
$ |
(9,552 |
) |
|
$ |
(3,199 |
) |
|
|
|
|
||||
Basic net loss per common share |
$ |
(0.53 |
) |
|
$ |
(0.18 |
) |
|
|
|
|
||||
Diluted net loss per common share |
$ |
(0.53 |
) |
|
$ |
(0.18 |
) |
|
|
|
|
||||
Weighted-average common shares outstanding-basic |
|
17,909 |
|
|
|
17,791 |
|
Weighted-average common shares outstanding-diluted |
|
17,909 |
|
|
|
17,791 |
|
Non-GAAP Financial Measures
Due to significant depreciable assets associated with the nature of the Company’s operations and interest costs associated with the Company's capital structure, management believes that earnings before interest, income taxes, depreciation and amortization ("EBITDA") and adjusted EBITDA, which excludes stock-based compensation, loss (gain) on disposal of assets, net and foreign currency transaction losses, are important measures to evaluate the Company's results of operations between periods on a more comparable basis. Adjusted EBITDA in fiscal year 2025 did not exclude foreign currency transaction losses which has now been excluded as management believes this is a better representation of cash generated by operations. Foreign currency transaction losses were immaterial in fiscal year 2025. Such measurements are not prepared in accordance with
EBITDA and adjusted EBITDA are summarized and reconciled to net loss attributable to Limoneira Company, which management considers to be the most directly comparable financial measure calculated and presented in accordance with GAAP, as follows (in thousands):
|
Three Months Ended January 31, |
||||||
|
|
2026 |
|
|
|
2025 |
|
Net loss attributable to Limoneira Company |
$ |
(9,427 |
) |
|
$ |
(3,074 |
) |
Interest income |
|
(8 |
) |
|
|
(15 |
) |
Interest expense, net of patronage dividends |
|
779 |
|
|
|
260 |
|
Income tax benefit |
|
(2,696 |
) |
|
|
(2,407 |
) |
Depreciation and amortization |
|
2,158 |
|
|
|
2,016 |
|
EBITDA |
|
(9,194 |
) |
|
|
(3,220 |
) |
Stock-based compensation |
|
344 |
|
|
|
932 |
|
Loss (gain) on disposal of assets, net |
|
73 |
|
|
|
(6 |
) |
Foreign currency transaction losses |
|
1,043 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
(7,734 |
) |
|
$ |
(2,294 |
) |
The following is a reconciliation of net loss attributable to Limoneira Company to adjusted net loss for diluted EPS (in thousands, except per share data):
|
Three Months Ended January 31, |
||||||
|
|
2026 |
|
|
|
2025 |
|
Net loss attributable to Limoneira Company |
$ |
(9,427 |
) |
|
$ |
(3,074 |
) |
Effect of preferred stock and unvested, restricted stock |
|
(139 |
) |
|
|
(144 |
) |
Stock-based compensation |
|
344 |
|
|
|
932 |
|
Loss (gain) on disposal of assets, net |
|
73 |
|
|
|
(6 |
) |
Foreign currency transaction losses |
|
1,043 |
|
|
|
— |
|
Tax effect of adjustments at federal and state rates |
|
(402 |
) |
|
|
(255 |
) |
Adjusted net loss for diluted EPS |
$ |
(8,508 |
) |
|
$ |
(2,547 |
) |
|
|
|
|
||||
Diluted net loss per common share |
$ |
(0.53 |
) |
|
$ |
(0.18 |
) |
Adjusted diluted net loss per common share |
$ |
(0.48 |
) |
|
$ |
(0.14 |
) |
|
|
|
|
||||
Weighted-average common shares outstanding - diluted |
|
17,909 |
|
|
|
17,791 |
|
Adjusted weighted-average common shares outstanding - diluted |
|
17,909 |
|
|
|
17,791 |
|
Supplemental Information |
||||||||||||||||||
(in thousands): |
||||||||||||||||||
|
Agribusiness Segment Information for the Three Months Ended January 31, 2026 |
|||||||||||||||||
|
Fresh Lemons |
Lemon Packing |
Avocados |
Other Agribusiness |
Total Agribusiness |
|||||||||||||
Revenues from external customers |
$ |
8,718 |
|
$ |
6,958 |
|
$ |
— |
|
$ |
1,080 |
$ |
16,756 |
|
||||
Costs and expenses, excluding depreciation and amortization: |
|
|
|
|
|
|||||||||||||
Labor and benefits |
|
— |
|
|
3,801 |
|
|
— |
|
|
— |
|
3,801 |
|
||||
Packing supplies and fruit treatments |
|
— |
|
|
2,047 |
|
|
— |
|
|
— |
|
2,047 |
|
||||
Harvest costs |
|
998 |
|
|
— |
|
|
— |
|
|
169 |
|
1,167 |
|
||||
Growing costs |
|
2,548 |
|
|
— |
|
|
29 |
|
|
807 |
|
3,384 |
|
||||
Third party grower and supplier costs |
|
7,492 |
|
|
— |
|
|
— |
|
|
30 |
|
7,522 |
|
||||
Other segment items |
|
— |
|
|
3,152 |
|
|
— |
|
|
24 |
|
3,176 |
|
||||
Total costs and expenses, excluding depreciation and amortization |
|
11,038 |
|
|
9,000 |
|
|
29 |
|
|
1,030 |
|
21,097 |
|
||||
Depreciation and amortization |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
1,922 |
|
||||
Operating (loss) income |
$ |
(2,320 |
) |
$ |
(2,042 |
) |
$ |
(29 |
) |
$ |
50 |
$ |
(6,263 |
) |
||||
|
Agribusiness Segment Information for the Three Months Ended January 31, 2025 |
|||||||||||||||||
|
Fresh Lemons |
Lemon Packing |
Avocados |
Other Agribusiness |
Total Agribusiness |
|||||||||||||
Revenues from external customers |
$ |
16,446 |
|
$ |
11,815 |
|
$ |
162 |
|
$ |
4,429 |
$ |
32,852 |
|
||||
Costs and expenses, excluding depreciation and amortization: |
|
|
|
|
|
|||||||||||||
Labor and benefits |
|
— |
|
|
4,215 |
|
|
— |
|
|
— |
|
4,215 |
|
||||
Packing supplies and fruit treatments |
|
— |
|
|
3,111 |
|
|
— |
|
|
— |
|
3,111 |
|
||||
Harvest costs |
|
1,761 |
|
|
— |
|
|
15 |
|
|
45 |
|
1,821 |
|
||||
Growing costs |
|
2,926 |
|
|
— |
|
|
22 |
|
|
1,314 |
|
4,262 |
|
||||
Third party grower and supplier costs |
|
12,472 |
|
|
— |
|
|
— |
|
|
1,880 |
|
14,352 |
|
||||
Other segment items |
|
— |
|
|
3,265 |
|
|
— |
|
|
699 |
|
3,964 |
|
||||
Total costs and expenses, excluding depreciation and amortization |
|
17,159 |
|
|
10,591 |
|
|
37 |
|
|
3,938 |
|
31,725 |
|
||||
Depreciation and amortization |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
1,774 |
|
||||
Operating (loss) income |
$ |
(713 |
) |
$ |
1,224 |
|
$ |
125 |
|
$ |
491 |
$ |
(647 |
) |
||||
Supplemental Information (continued) |
|||||||||||||
(in thousands, except acres and average price amounts): |
|||||||||||||
Lemons |
Q1 2026 |
Q1 2025 |
|
Lemon Packing |
Q1 2026 |
Q1 2025 |
|||||||
|
|
|
|
Cartons packed and sold |
|
681 |
|
|
1,147 |
||||
Acres harvested |
|
1,400 |
|
1,600 |
|
Revenue |
$ |
6,958 |
|
$ |
11,815 |
||
Limoneira cartons sold |
|
147 |
|
194 |
|
Direct costs |
$ |
9,000 |
|
$ |
10,591 |
||
Third-party grower cartons sold |
|
534 |
|
953 |
|
Operating (loss) income |
$ |
(2,042 |
) |
$ |
1,224 |
||
Average price per carton |
$ |
17.41 |
$ |
18.44 |
|
|
|
|
|||||
|
|
|
|
Avocados |
Q1 2026 |
Q1 2025 |
|||||||
|
|
|
|
Pounds sold |
|
— |
|
|
73 |
||||
Lemon revenue |
$ |
37 |
$ |
1,263 |
|
Average price per pound |
$ |
— |
|
$ |
2.25 |
||
40-pound carton equivalents |
|
— |
|
113 |
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||||
Other: |
|
|
|
|
|
|
|||||||
Packing and handling |
$ |
2,857 |
$ |
4,545 |
|
|
|
|
|||||
Lemon by-product sales |
$ |
— |
$ |
356 |
|
|
|
|
|||||
Brokered lemons and other lemon sales |
$ |
928 |
$ |
945 |
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||||
Agribusiness costs and expenses |
Q1 2026 |
Q1 2025 |
|
|
|
|
|||||||
Packing costs |
$ |
9,000 |
$ |
10,591 |
|
|
|
|
|||||
Harvest costs |
|
1,167 |
|
1,821 |
|
|
|
|
|||||
Growing costs |
|
3,384 |
|
4,262 |
|
|
|
|
|||||
Third-party grower and supplier costs |
|
7,522 |
|
14,352 |
|
|
|
|
|||||
Other costs |
|
24 |
|
699 |
|
|
|
|
|||||
Depreciation and amortization |
|
1,922 |
|
1,774 |
|
|
|
|
|||||
Agribusiness costs and expenses |
$ |
23,019 |
$ |
33,499 |
|
|
|
|
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20260312786886/en/
Investors
John Mills
Managing Partner
ICR 646-277-1254
Source: Limoneira Company