Executive Summary

Q1 FY25 showed improved efficiency but softer top line: revenue fell to $34.3M (-13.6% YoY) as lemon pricing weakened, yet operating loss improved 31% to $(5.3)M on a 16% reduction in total costs; adjusted EBITDA loss narrowed to $(2.3)M from $(4.8)M YoY .
Lemon unit volumes rose slightly (1.147M U.S.-packed cartons vs 1.137M) but pricing fell to $18.44/carton from $21.06; avocados contributed $0.2M (timing), while oranges improved on pricing; management expects lemon pricing to firm in 2H on seasonal factors and a Spain freeze .
Strategic monetization continued: sold 58 acre-feet of Santa Paula Basin water at $30k/AF for $1.7M (gain ~$1.5M), validating asset value; exploring additional sales/leases and potential water utility formation in 2025 .
FY25 guidance maintained: fresh lemon 5.0–5.5M cartons; avocado 7–8M lbs; Harvest JV distributions remain projected ($8M FY25; $180M total FY24–FY30); quarterly dividend declared at $0.075/share .

What Went Well and What Went Wrong

What Went Well

Cost discipline and operating improvement: total costs fell 16% to $39.7M; operating loss improved to $(5.3)M from $(7.7)M; adjusted EBITDA loss narrowed to $(2.3)M from $(4.8)M .
Real asset monetization momentum: executed $1.7M water rights sales at $30k/AF (gain ~$1.5M), with additional 2025 transactions expected; evaluating long‑term leases at municipal rates and a regulated water utility concept .
Strategic repositioning: reinforcing asset‑lighter model and farm management “technology and expertise partner” approach; FAA approval for drone spray enhances precision/ag-tech narrative and potential margin structure .
- Quote: “We’re actively repositioning our farm management services division as the industry’s premier technology and expertise partner…offering cutting-edge agriculture solutions…” .

What Went Wrong

Lemon pricing pressure: fresh lemon ASP fell to $18.44/carton (from $21.06) despite slightly higher carton volume; brokered/other lemon sales also declined ($2.2M vs $2.9M) amid oversupply .
Farm management revenue down: $1.2M vs $2.0M on similar acreage due to weather/crop decisions; near-term earnings impact while division is repositioned .
Higher net debt: long-term debt rose to $57.9M from $40.0M QoQ; net debt $56.8M (cash $1.1M), though JV held $62.4M cash (50% LMNR economic interest) .

Financial Results

Headline financials (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($M)	$63.3	$43.9	$34.3
Operating (Loss)/Income ($M)	$9.0	$(2.8)	$(5.3)
Net (Loss)/Income to Common ($M)	$6.5	$(2.0)	$(3.2)
Diluted EPS ($)	$0.35	$(0.11)	$(0.18)
Adjusted EBITDA ($M)	$13.8	$1.2	$(2.3)
Adjusted Diluted EPS ($)	$0.42	$(0.09)	$(0.14)

Segment and category detail (Q1 FY25 vs Q1 FY24)

Category	Q1 2025	Q1 2024
Agribusiness revenue ($M)	$32.9	$38.3
Fresh packed lemons ($M)	$21.2	$23.9
Brokered/other lemon sales ($M)	$2.2	$2.9
Avocado revenue ($M)	$0.162	$0.0
Orange revenue ($M)	$1.6	$1.1
Specialty citrus & wine grapes ($M)	$0.5	$1.1
Farm management revenue ($M)	$1.2	$2.0
Other operations revenue ($M)	$1.5	$1.4

KPI volumes and pricing (Q1 FY25 vs Q1 FY24)

KPI	Q1 2025	Q1 2024
U.S.-packed lemon cartons (000s)	1,147	1,137
Avg fresh lemon price ($/carton)	$18.44	$21.06
Avocado pounds sold (000s)	73	—
Avg avocado price ($/lb)	$2.25	—
Orange cartons (000s)	75	80
Avg orange price ($/carton)	$20.91	$14.26

Balance sheet and cash flow highlights (Q1 FY25)

Long-term debt $57.9M; net debt $56.8M (cash $1.1M); JV cash $62.4M (50% LMNR share ≈$31.2M); CFO used $(12.9)M in Q1 .

Estimates comparison

Wall Street consensus (S&P Global) for Q1 FY25 EPS/Revenue/EBITDA was unavailable due to data access limits at time of analysis. We attempted retrieval but could not access S&P Global estimates for LMNR for the relevant periods. Where estimates are required, analysts should cross-check S&P Global directly.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Fresh lemon volume (cartons)	FY2025	5.0–5.5M (Q4 FY24 PR)	5.0–5.5M	Maintained
Avocado volume (lbs)	FY2025	7.0–8.0M (Q4 FY24 PR)	7.0–8.0M	Maintained
Harvest JV projected distributions	FY2025	$8M (FY24–30 total $180M)	$8M (FY24–30 total $180M)	Maintained
Dividend per share (quarterly)	Q2 FY2025 payable 4/11/25	—	$0.075 declared 3/18/25	New declaration

Notes:

On the call, management referenced $165M expected JV proceeds over the next 6 fiscal years, which differs from press release totals of $180M over seven years; we flag this as a timing/presentation discrepancy for follow-up .

Earnings Call Themes & Trends

Topic	Q3 2024 (Prior)	Q4 2024 (Prior)	Q1 2025 (Current)	Trend
Avocado strategy/expansion	Raised FY24 avocado guide; strong pricing/volume tailwinds; harvest timing benefit	Record 15.1M lbs FY24; plan +1,000 acres through FY27; 30M lbs target by 2029	Maintain FY25 7–8M lbs; pricing currently >$2/lb; reiterate +1,000 acres; nursery stock constraints and site suitability discussed	Positive, structural growth
Lemon business	Pricing up in Q3 FY24, strong volumes	Q4 weaker utilization; QSR channel expansion planned	Q1 ASP down; volumes slightly up; expect 2H improvement incl. seasonal pricing and Spain freeze effect	Near-term pressure, 2H recovery expected
Water monetization	Fallowing Colorado River program; expect longer-term accord	Expect meaningful Santa Paula Basin monetization in FY25	Executed $1.7M at $30k/AF; planning further sales/leases; exploring water utility concept	Accelerating
Farm management services	—	Discussed economics and scale opportunity	Repositioned as tech/expertise partner; FAA drone spray approval	Strategic pivot underway
Real estate/JV & regulatory	Phase 2 sold; increased units to 2,050; $180M projection	FEMA flood map change effective 5/15/25; JV cash and distributions	Reiterated projections; JV cash noted	Supportive backdrop
Tariffs/macro	—	—	Potential imported avocado tariffs could favor domestic producers	Potential positive optionality

Management Commentary

“The benefits of optimizing our revenue mix and transitioning to an asset-lighter model are evident…even though our first quarter revenue reflects the temporary oversupplied lemon market.”
“We’re actively repositioning our farm management services division as the industry’s premier technology and expertise partner…”
“Looking ahead, we anticipate our lemon business will strengthen in the second half…as well as a recent freeze in Spain…”
“We continue to see a strong EBITDA outlook that is underpinned by plans to expand avocado production by 1,000 acres through fiscal year 2027…” .

Q&A Highlights

Water rights monetization: Sold ~58 AF at $30k/AF to development and agricultural buyers; more 2025 transactions expected via sales and long‑term leases at municipal rates; evaluating creation of a regulated water utility to aggregate resources and provide service .
Avocado expansion runway: Potential to expand to 2,000–2,500 acres depending on microclimates; constraints include colder areas and limited nursery stock (4–5 year backlog); Ventura/Santa Barbara counties best suited; long-term domestic share still limited vs U.S. consumption .
Lemon volume drivers: Targeting higher fresh utilization via QSR/foodservice penetration and third‑party grower sourcing; utilization improvement to 80% range would support margin mix .

Estimates Context

We attempted to retrieve S&P Global consensus for Q1 FY25 revenue, EPS, and EBITDA but access was unavailable at the time of analysis. As a result, we cannot benchmark reported results versus Wall Street estimates in this recap. Analysts should source S&P Global IQ consensus directly for trading comps and model updates.

Key Takeaways for Investors

Near-term lemon pricing headwinds masked solid operating progress; cost actions and mix optimization cut operating loss >30% YoY, and adjusted EBITDA loss narrowed materially .
Structural avocado pivot remains the core earnings driver into FY26–FY29 (acreage ramp, higher-density plantings, ag-tech), with potential macro tailwinds (import tariffs) .
Asset monetization is tangible: water rights transactions at $30k/AF validate balance sheet optionality; further sales/leases and possible utility formation could create recurring cash flows .
Real estate JV continues to underpin liquidity and value ($180M projected distributions FY24–FY30), though a call reference to $165M over six years introduces a timing nuance to track .
FY25 guidance maintained; management expects 2H lemon recovery (seasonality, Spain freeze effect) and continued progress in QSR channel penetration—potential catalysts if pricing tightens .
Balance sheet leverage increased QoQ with higher long-term debt; JV cash offers partial offset but monitor working capital and seasonal cash usage into Q2 .

Appendix: Additional Relevant Press Releases

Water rights monetization: $1.7M sales at $30k/AF (Jan 23, 2025) .
ROTH Conference preview: strategy focus (asset value realization, avocado to 2,000 acres, 80% grower partner supply target) (Mar 3, 2025) .
Dividend declaration: $0.075 per share, payable Apr 11, 2025 (Mar 19, 2025) .

All figures, quotes, and guidance are drawn from the company’s Q1 FY25 press release and 8‑K, earnings call transcript, and prior-quarter materials, with citations provided.

Limoneira CO (LMNR)·Q1 2025 Earnings Summary