← Back

Limoneira: Limoneira's Transformation and Financial Performance

Limoneira reported total net revenue of $42.8 million for fiscal year 2025, a decline from $43.9 million in the previous fiscal year's fourth quarter. The company's agribusiness revenue was $41.3 million, with $300,000 from avocado sales, $19.2 million from fresh packed lemon sales, and $2.9 million from orange sales. The net loss applicable to common stock was $8.8 million, compared to a net loss of $2 million in 2024, resulting in a net loss per diluted share of 49¢. Adjusted net loss for diluted EPS was $8 million or 45¢ per diluted share. Notably, the actual EPS came out at '-0.02' relative to estimates at '-0.10667', indicating a better-than-expected performance. With a P/E Ratio of -14.29 and an EV/EBITDA of -28.44, the market is pricing in significant challenges for the company.

LMNR

USD 13.5

1.81%

A-Score: 5.0/10

Publication date: December 23, 2025

Full Report

Author: Analystock.ai

📋 Highlights
  • Strategic Partnership Savings The Sunkist partnership aims to generate $10 million in cost savings by 2026 and enhance access to premium retail accounts.
  • Avocado Production Expansion 700 acres of avocado farms will come into production, boosting capacity by nearly 100% and generating $12,000–$14,000 profit per acre.
  • Organic Recycling Venture A 50/50 joint venture with Agerman will process 300,000 tons of organic waste annually, yielding $4–$5 million EBITDA by 2027.
  • Cost-Cutting Initiatives Operational restructuring reduced SG&A expenses by $10 million in 2025, with 50% further savings expected in 2026.
  • Real Estate Pipeline $155 million in expected real estate distributions over 5 years, including the Limco Del Mar infill parcel with potential $1M/acre valuation post-entitlement.

Operational Efficiency Improvements

The company has been working on streamlining operations and potential cost-cutting, with expected SG&A savings of around $10 million in the next year. The transition to Sunkist and other projects are expected to contribute to these savings. Limoneira's President and CEO, Harold Edwards, highlighted that the partnership with Sunkist is expected to generate $10 million in cost savings in fiscal year 2026. The company has also been working on integrating computer systems and renegotiating leases, such as the Oxnard Lemon lease, which saved $700,000.

Avocado and Lemon Production Outlook

The company's avocado production is expected to increase with 700 acres coming into production over the next few years. Limoneira expects an average of 7,000 pounds per acre, with prices averaging $1.30 per pound, resulting in operating profit of $12,000 to $14,000 per acre. For fiscal year 2026, the company expects fresh lemon volumes of 4 to 4.5 million cartons and avocado volumes of 5 to 6 million pounds. Lemon pricing is expected to be higher than last year's, with current prices around $20 per carton.

Balance Sheet and Debt Management

The company aims to pay down $40 million in debt and has reworked covenants with its lender, Farm Credit Ag West. Limoneira's strategy is to generate growing cash flows from its core business to sustainably pay down debt and make future capital allocation decisions. With a Net Debt / EBITDA ratio of -6.81, the company's debt levels are significant, but its plans to monetize assets and develop real estate could help alleviate this burden.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 15.0%. With a P/S Ratio of 1.45, the market is expecting some growth from the company. However, the negative ROE of -8.86% and ROIC of -6.48% indicate that the company's profitability is a concern. The company's water rights in California and Arizona, as well as its real estate pipeline, including the Limco Del Mar infill land parcel, present potential opportunities for growth and monetization.

Limoneira's A-Score