Financial Data and Key Metrics Changes - For Q4 FY 2025, total net revenue was $42.8 million, a decrease from $43.9 million in Q4 FY 2024. Agribusiness revenue was $41.3 million compared to $42.5 million in the previous year [13][19] - The operating loss for Q4 FY 2025 was $11.1 million, compared to a loss of $2.8 million in Q4 FY 2024. The net loss applicable to common stock was $8.8 million, compared to a loss of $2 million in the same period last year [17][20] - For FY 2025, total net revenue was $159.7 million, down from $191.5 million in FY 2024, primarily due to decreased agribusiness revenues [19][20] Business Line Data and Key Metrics Changes - Agribusiness revenue for Q4 FY 2025 included $19.2 million in fresh packed lemon sales, significantly up from $8.4 million in Q4 FY 2024. Approximately 821,000 cartons of U.S. packed fresh lemons were sold at an average price of $23.33 per carton [13][14] - Avocado revenue was $300,000 in Q4 FY 2025, down from $8.9 million in Q4 FY 2024, with approximately 396,000 pounds sold at an average price of $0.79 per pound [15] - Orange revenue increased to $2.9 million in Q4 FY 2025 from $1.7 million in Q4 FY 2024, with 148,000 cartons sold at an average price of $19.67 per carton [16] Market Data and Key Metrics Changes - The company expects fresh lemon volumes of 4-4.5 million cartons and avocado volumes of 5-6 million pounds for FY 2026, indicating a strategic shift towards higher-demand products [24] - The transition to Sunkist is anticipated to enhance customer access and pricing stability, with a focus on contracted sales rather than open market sales [32] Company Strategy and Development Direction - The company is transforming its business model by reducing reliance on volatile lemon pricing and expanding into avocados and real estate development [5][9] - A planned organic recycling joint venture is expected to generate $4-$5 million in additional EBITDA starting in FY 2027 [7] - The company aims to achieve $10 million in cost savings in FY 2026, driven by operational restructuring and the Sunkist partnership [5][24] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of the Sunkist partnership in improving cost structure and customer relationships, which is expected to yield financial benefits in FY 2026 [24] - The company anticipates a significant increase in avocado production capacity over the next few years, contributing to revenue growth [6][24] - Management expressed confidence in the long-term value of water rights and the potential for monetization through fallowing programs [39][46] Other Important Information - The company completed the sale of its Chilean assets for $15 million and is advancing the monetization of other non-strategic assets valued at approximately $40 million [8] - Long-term debt increased to $72.5 million as of October 31, 2025, compared to $40 million at the end of FY 2024 [22] Q&A Session Summary Question: Can you provide more details on the $10 million cost savings from the Sunkist partnership? - Management explained that the savings come from reduced sales and marketing costs and improved operational efficiencies, including renegotiated storage contracts [28][29] Question: How does the company plan to monetize its water rights? - Management discussed the complexities of water rights in water-scarce areas and the potential for monetization through conservation and fallowing programs [36][39] Question: What is the outlook for lemon pricing in the near term? - Management indicated that lemon prices are expected to stabilize, with a potential average price in the $20 range, depending on market conditions [72]

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Financial Performance - Total net revenues for fiscal year 2025 were $159.7 million, a 17% decrease from $191.5 million in fiscal year 2024, primarily due to decreased agribusiness revenue from lemons, avocados, and farm management [192]. - Agribusiness revenues decreased by 17% to $153.7 million in fiscal year 2025, with significant declines in avocados (53%) and farm management (84%) revenues [192]. - The company reported an operating loss of $20.4 million for fiscal year 2025, compared to an operating income of $6.2 million in fiscal year 2024 [189]. - Net loss attributable to Limoneira Company was $15.98 million in fiscal year 2025, compared to a net income of $7.72 million in fiscal year 2024 [191]. - EBITDA for fiscal year 2025 was $(9.93) million, a significant decline from $21.31 million in fiscal year 2024 [191]. - Adjusted EBITDA for fiscal year 2025 was $(6.45) million, compared to $26.72 million in fiscal year 2024 [191]. - Net loss for fiscal year 2025 was $(16.4) million, compared to a net income of $7.2 million for fiscal year 2024, primarily due to an increase in operating loss of $14.2 million and a decrease in total other income of $18.3 million [221]. Revenue Breakdown - The agribusiness division's lemon revenue included $124.96 million from lemons, down 8% from $136.18 million in fiscal year 2024 [192]. - Fresh lemons segment total net revenues for fiscal year 2025 were $75.8 million, a 13% decrease from $86.9 million in fiscal year 2024 [205]. - Lemon packing segment total net revenues for fiscal year 2025 were $49.1 million, slightly down from $49.3 million in fiscal year 2024 [206]. - Avocados segment revenue for fiscal year 2025 was $11.7 million, a 53% decrease from $25.1 million in fiscal year 2024 [209]. - Other agribusiness segment total net revenues for fiscal year 2025 were $17.0 million, a 31% decrease from $24.6 million in fiscal year 2024 [210]. - Corporate and other operations revenues for fiscal year 2025 were $6.0 million, up from $5.6 million in fiscal year 2024 [213]. Cost and Expenses - Total costs and expenses for fiscal year 2025 were $180.1 million, a 9% decrease from $197.7 million in fiscal year 2024, mainly due to reduced agribusiness costs and selling, general and administrative expenses [194]. - Agribusiness costs and expenses decreased by 6% to $154.8 million in fiscal year 2025, with notable reductions in growing costs (37%) and harvest costs (25%) [194]. - Total costs and expenses for the fresh lemons segment in fiscal year 2025 were $77.6 million, an 8% decrease from $84.2 million in fiscal year 2024 [205]. - Lemon packing costs and expenses for fiscal year 2025 were $47.4 million, an 11% increase from $42.8 million in fiscal year 2024 [207]. - Other agribusiness costs and expenses for fiscal year 2025 were $15.6 million, a 33% decrease from $23.4 million in fiscal year 2024 [212]. - Selling, general and administrative expenses for fiscal year 2025 were $24.5 million, down from $27.5 million in fiscal year 2024 [199]. Cash Flow and Capital Expenditures - Cash flows from operating activities were $(6.0) million for fiscal year 2025, a significant decrease from $17.9 million in fiscal year 2024 [219]. - Capital expenditures for fiscal year 2025 amounted to $13.5 million, primarily related to orchard development [221]. - The company expects to receive approximately $155.0 million from joint ventures over the next five years [231]. - The company declared cash dividends of $0.30 per common share, totaling $5.4 million for both fiscal years 2025 and 2024 [226]. Debt and Interest Rate Exposure - The company has an aggregate borrowing capacity of $115.0 million, with $72.5 million outstanding under the Revolving Credit Supplement as of October 31, 2025 [220]. - The total debt outstanding under the AgWest Farm Credit Facility was $72.5 million as of October 31, 2025 [240]. - As of October 31, 2025, a 100 basis points increase in interest rates would increase interest rate expense by $0.7 million for fiscal year 2026 [241]. - A 100 basis points increase in interest rates would decrease net income by $0.5 million for fiscal year 2026 [241]. - The annual average impact of a 100 basis points increase in interest rates on interest rate expense is projected to be $0.7 million for each of the three subsequent fiscal years [241]. - The annual average impact on net income from a 100 basis points increase in interest rates is projected to be $0.5 million for each of the three subsequent fiscal years [241]. - The company has strategies in place to manage exposure to interest rate risk [241]. - Potential strategies include the early pay down of outstanding debt under the AgWest Farm Credit Facility [241]. Taxation - The effective tax rate for fiscal year 2025 was 22.1%, a decrease from 37.9% in fiscal year 2024 [199]. - The company paid income taxes of $0.7 million for fiscal year 2025, a decrease from $5.2 million in fiscal year 2024 [227].

Financial Performance - Total net revenues for fiscal year 2025 were $159.7 million, a decrease from $191.5 million in fiscal year 2024[14] - Fourth quarter net revenues were $42.8 million, compared to $43.9 million in the same quarter of the previous fiscal year[7] - Agribusiness revenues for the fiscal year ended October 31, 2025, were $153.7 million, down 17.3% from $185.9 million in 2024[33] - Total revenues from external customers in the agribusiness segment for Q4 2025 were $41.309 million, slightly down from $42.478 million in Q4 2024[37] - Total net revenues for the three months ended October 31, 2025, were $42.8 million, a decrease of 2.4% from $43.9 million in the same period of 2024[33] Net Loss and Earnings - The company reported a net loss applicable to common stock of $16.5 million for fiscal year 2025, compared to a net income of $7.2 million in fiscal year 2024[14] - Net loss attributable to Limoneira Company for the fiscal year ended October 31, 2025, was $16.0 million, compared to a net income of $7.7 million in 2024[33] - For the three months ended October 31, 2025, Limoneira Company reported a net loss of $8.691 million, compared to a net loss of $1.859 million for the same period in 2024[36] - Adjusted net loss income for diluted EPS was $7.955 million for Q4 2025, significantly worse than the adjusted net income of $1.599 million in Q4 2024[36] - The diluted net loss income per common share was $(0.49) for Q4 2025, compared to $(0.11) for Q4 2024[36] Operational Costs and Expenses - Operating loss for the three months ended October 31, 2025, was $11.1 million, compared to a loss of $2.8 million in the same period of 2024[33] - Operating loss for the agribusiness segment in Q4 2025 was $(6.248) million, compared to an operating income of $2.658 million in Q4 2024[37] - Total agribusiness costs and expenses for Q4 2025 were $47.557 million, compared to $39.820 million in Q4 2024[38] - Third-party grower and supplier costs increased to $24.608 million in Q4 2025 from $18.654 million in Q4 2024[38] Strategic Initiatives - Strategic transformation costs in Q4 2025 totaled approximately $7 million, expected to yield $10 million in savings in fiscal year 2026[4] - The merger with Sunkist Growers Inc. aims to improve efficiency and reduce costs, although specific financial impacts are not guaranteed[29] Future Projections - The company anticipates fresh lemon volumes of 4.0 million to 4.5 million cartons and avocado volumes of 5.0 million to 6.0 million pounds for fiscal year 2026[23] - The company expects to receive approximately $180 million in total proceeds from its real estate development over seven fiscal years[24] Asset and Liability Changes - Long-term debt as of October 31, 2025, was $72.5 million, up from $40.0 million at the end of fiscal year 2024[17] - Total current assets increased to $40.5 million as of October 31, 2025, from $25.8 million in 2024[31] - Total liabilities rose to $120.3 million as of October 31, 2025, compared to $96.3 million in 2024[31] - Cash and cash equivalents decreased to $1.5 million as of October 31, 2025, from $3.0 million in 2024[31] Agribusiness Performance - Agribusiness revenues in Q4 2025 included $19.2 million in fresh packed lemon sales, up from $8.4 million in Q4 2024, with 821,000 cartons sold at an average price of $23.33 per carton[7] - Revenues from fresh lemons in Q4 2025 were $26.279 million, up from $20.075 million in Q4 2024[38] - Average price per carton of lemons increased to $23.33 in Q4 2025 from $17.95 in Q4 2024[38] - The company harvested 1,600 acres of lemons in Q4 2025, down from 1,900 acres in Q4 2024[38]

Market Overview - U.S. stock futures rose on Tuesday following a higher close on Monday, with major benchmark indices advancing [1] - Investors are awaiting economic data, including delayed reports on third-quarter GDP and durable goods, as well as updates on industrial production and consumer confidence [1][11] - Trading will be closed on Thursday, with an abbreviated session on Wednesday [1] Treasury Yields and Market Sentiment - The 10-year Treasury bond yielded 4.15%, while the two-year bond was at 3.50% [2] - The CME Group's FedWatch tool indicates an 80.1% likelihood of the Federal Reserve keeping interest rates unchanged [2] Stock Performance - Major indices showed slight gains: Dow Jones up 0.04%, S&P 500 up 0.07%, Nasdaq 100 up 0.11%, and Russell 2000 up 0.02% [2] - The SPDR S&P 500 ETF Trust (SPY) increased by 0.10% to $685.52, and the Invesco QQQ Trust ETF (QQQ) rose by 0.15% to $620.15 [2] Stocks in Focus - Parsons Corp. (PSN) jumped 6.16% after winning a contract under the Missile Defense Agency's SHIELD program [4] - XMax Inc. (XWIN) shares fell 4.45% after filing for a public offering of 1.1875 million shares at $4.21 each [4] - ZIM Integrated Shipping Services Ltd. (ZIM) rose 7.29% after receiving acquisition proposals and is evaluating offers [4] - Trump Media & Technology Group Corp. (DJT) increased by 1.80% after purchasing over $40 million in Bitcoin [4] Economic Insights - LPL Research anticipates a generally positive outlook for the U.S. economy and stock market in 2026, with a modest slowdown expected early in the year before a rebound [8] - The bull market is projected to extend, driven by AI investment and easing monetary policy, with a year-end S&P 500 target range of 7,300–7,400 [9] Strategic Recommendations - LPL's committee maintains a tactical neutral stance on equities, advising investors to prepare for volatility while favoring growth style over value [10]

Market Overview - U.S. stock futures rose on Tuesday following a higher close on Monday, with major benchmark indices advancing [1] - Investors are awaiting economic data, including delayed reports on third-quarter GDP and durable goods, as well as updates on industrial production and consumer confidence [1][11] - Trading will be closed on Thursday, with an abbreviated session on Wednesday [1] Treasury Yields and Market Sentiment - The 10-year Treasury bond yielded 4.15%, while the two-year bond was at 3.50% [2] - The CME Group's FedWatch tool indicates an 80.1% likelihood of the Federal Reserve keeping interest rates unchanged [2] Stock Performance - Major indices showed slight gains: Dow Jones up 0.04%, S&P 500 up 0.07%, Nasdaq 100 up 0.11%, and Russell 2000 up 0.02% [2] - The SPDR S&P 500 ETF Trust (SPY) increased by 0.10% to $685.52, and the Invesco QQQ Trust ETF (QQQ) rose by 0.15% to $620.15 [2] Stocks in Focus - Parsons Corp. (NYSE:PSN) jumped 6.16% after winning a contract under the Missile Defense Agency's SHIELD program [4] - XMax Inc. (NASDAQ:XWIN) shares fell 4.45% after filing for a public offering of 1.1875 million shares at $4.21 each [4] - ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) rose 7.29% after receiving acquisition proposals and is evaluating offers [4] - Trump Media & Technology Group Corp. (NASDAQ:DJT) increased by 1.80% after purchasing over $40 million in Bitcoin [4] Economic Insights - LPL Research anticipates a generally positive outlook for the U.S. economy and stock market in 2026, with a modest slowdown expected early in the year before a rebound [8] - The bull market is expected to extend, driven by AI investment and easing monetary policy, with a year-end S&P 500 target range of 7,300–7,400 [9] Strategic Recommendations - LPL's committee maintains a tactical neutral stance on equities, advising investors to prepare for volatility while favoring growth style over value [10]

Market Sentiment - The CNN Money Fear and Greed index improved, moving to the "Greed" zone with a current reading of 56, up from 49.7 [4] - U.S. stocks experienced gains, with the Dow Jones increasing by over 200 points and the S&P 500 recording gains for the third consecutive session [1][3] Company News - UniFirst Corp. received an acquisition proposal from Cintas Corp. at $275 per share in cash [2] - Investors are anticipating earnings results from Limoneira Co. and Good Times Restaurants Inc. [3] Economic Data - The Chicago Fed National Activity Index rose to -0.21 in September from -0.31 in August [2] Sector Performance - Most sectors on the S&P 500 closed positively, with materials, industrials, and financials showing the largest gains, while consumer staples stocks declined [2]

Market Overview - The U.S. stock market began a holiday-shortened week with strong performance, driven by a resurgence in AI-related stocks, leading to a cautiously optimistic sentiment among investors [1][2] - All three major U.S. stock indexes closed higher, with the Dow Jones Industrial Average rising 0.4% to 48,134.89, the Nasdaq Composite increasing 1.3% to 23,307.62, and the S&P 500 climbing 0.8% to 6,834.50 [2] Sector Performance - The technology sector showed significant gains, with the Technology Select Sector SPDR (XLK) among the top performers, while the Energy Select Sector SPDR (XLE) decreased by 1.5% [3] - The CBOE Volatility Index (VIX) fell by 11.6% to 14.91, indicating reduced market apprehension [3] Economic Data and Indicators - Key economic data releases are anticipated, including the third-quarter GDP estimate and the December Consumer Confidence survey, which could influence Federal Reserve monetary policy [5] - The University of Michigan reported a December consumer sentiment index of 52.9, up from 51 in November, with short-term inflation expectations decreasing to 4.2% [6] Major Stock News - NVIDIA Corp. shares rose by 3.9% due to reports of potential sales of high-end AI chips to approved customers in China [7] - Oracle Corp. saw a 6.6% increase following news of TikTok's U.S. operations being sold to a joint venture that includes Oracle [8] - Micron Technology Inc. shares jumped 7% after strong fiscal first-quarter earnings and positive outlook for the second quarter [9] - Tesla shares reached a record high, closing up 1.7% at $489 after winning a court battle regarding CEO Elon Musk's pay package [9] - Ride-sharing companies Uber and Lyft experienced gains of 2.8% and 4.2%, respectively, after announcing plans for robotaxi services in London [10] Earnings Announcements - FedEx Corporation reported adjusted earnings of $4.82 per share, leading to a 0.6% rise in its stock [11] - HEICO Corp. shares surged 5.8% after exceeding earnings expectations, while Carnival Corp. shares climbed 9.8% after beating earnings estimates [11] - Conagra Brands Inc. shares fell 2.5% after reporting revenues that missed expectations [11] Commodities - Gold futures surpassed $4,400 an ounce, and silver prices also reached new highs, driven by expectations of Federal Reserve rate cuts and geopolitical tensions [13] Market Outlook - As the year ends, technology and AI remain key market drivers, with upcoming economic data and a shortened trading week likely influencing investor strategies [14]

Core Insights - The rivalry between Mission Produce Inc. (AVO) and Limoneira Company (LMNR) highlights different strategic approaches in the consumer staples market, with AVO focusing on a premium, brand-driven model and LMNR leveraging volume and diversification [1][2] Group 1: Mission Produce (AVO) - AVO's competitive advantage lies in its vertically integrated model, controlling the entire avocado supply chain from farming to global distribution, which ensures consistent supply and quality [3][4] - The company is expanding its portfolio beyond avocados into mangoes and blueberries, enhancing revenue stability and positioning itself as a multi-category fresh produce provider [6] - AVO is transitioning towards efficiency and cash generation, with a strengthening balance sheet and manageable tariff dynamics, positioning it for improved shareholder returns [7][8] Group 2: Limoneira (LMNR) - LMNR's investment appeal is based on its premium agribusiness operations and valuable real assets, maintaining a strategic niche in high-quality domestic supply of lemons and avocados [9][10] - The company is focused on agricultural optimization and asset monetization, benefiting from a diversified crop portfolio and a strong asset-backed balance sheet [10][14] - LMNR's long-term growth is supported by the maturation of newly planted acreage and partnerships that enhance its market position [12][14] Group 3: Financial Performance and Estimates - AVO's EPS estimates for fiscal 2025 and 2026 have remained unchanged, while LMNR's estimates suggest year-over-year declines of 9.5% and 28.4% respectively [15][21] - In the past six months, AVO has outperformed with a total return of 9.2%, contrasting with LMNR's decline of 9.8% [22] - AVO trades at a forward price-to-sales (P/S) multiple of 0.68X, below its 5-year median, while LMNR's P/S multiple is 1.9X, indicating a valuation edge for AVO [26] Group 4: Conclusion - AVO is positioned as a compelling long-term investment due to its strong return profile, attractive valuation, and growth potential, while LMNR remains fundamentally solid with durable value from its asset base [27][28]

Core Points - Limoneira Company has completed the sale of its Chilean ranches, Pan de Azucar and San Pablo, for approximately $15 million, with an initial cash receipt of $6.8 million [1][3] - The transaction aligns with the company's strategy to monetize non-strategic land and water assets while maintaining a 47% interest in a citrus packing, selling, and marketing business in Chile [1][3] - The company has identified a pipeline of real estate development assets valued between $355 million and $405 million for long-term monetization [3] Agriculture Strategy - The company aims to streamline operations, expand avocado production, and optimize lemon packing through a partnership with Sunkist [6] - Plans include expanding an organic recycling facility and selling non-strategic land assets valued at approximately $40 million [6] Land and Water Assets - Limoneira is also looking to sell certain water rights valued between $50 million and $70 million as part of its asset monetization strategy [6]