Financial Data and Key Metrics Changes - For Q4 FY2025, total net revenue was $42.8 million, a decrease from $43.9 million in Q4 FY2024 [15] - Agribusiness revenue was $41.3 million compared to $42.5 million in the same quarter last year [15] - Operating loss for Q4 FY2025 was $11.1 million, compared to an operating loss of $2.8 million in Q4 FY2024 [18] - Net loss applicable to common stock for Q4 FY2025 was $8.8 million, compared to a net loss of $2 million in Q4 FY2024 [18] - For FY2025, total net revenue was $159.7 million, down from $191.5 million in FY2024 [20] - Adjusted EBITDA for FY2025 was a loss of $6.5 million compared to income of $26.7 million in FY2024 [22] Business Line Data and Key Metrics Changes - Fresh packed lemon sales in Q4 FY2025 were $19.2 million, up from $8.4 million in Q4 FY2024, with 821,000 cartons sold at an average price of $23.33 per carton [15] - Avocado revenue in Q4 FY2025 was $300,000, down from $8.9 million in Q4 FY2024, with 396,000 pounds sold at an average price of $0.79 per pound [16] - Orange revenue in Q4 FY2025 was $2.9 million, compared to $1.7 million in Q4 FY2024 [17] - Specialty citrus and other revenues were $2.9 million in Q4 FY2025, down from $3.5 million in Q4 FY2024 [17] Market Data and Key Metrics Changes - The California avocado crop typically experiences alternate years of high and low production, impacting revenue [16] - The company expects fresh lemon volumes of 4-4.5 million cartons and avocado volumes of 5-6 million pounds for FY2026 [24] Company Strategy and Development Direction - The company is transforming its business model by reducing exposure to volatile lemon pricing and expanding into avocados and organic recycling [5][10] - A partnership with Sunkist is expected to generate $10 million in cost savings for FY2026 [6][24] - The company is also focusing on real estate development projects, expecting $155 million in distributions over the next five fiscal years [8] Management's Comments on Operating Environment and Future Outlook - Management highlighted a significant transformation in the business model, moving from a commodity lemon producer to a diversified agricultural and real estate company [11] - The company anticipates improved financial performance in FY2026 due to cost savings and enhanced customer access through the Sunkist partnership [11][24] 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 [9] - Long-term debt as of October 31, 2025, was $72.5 million, up from $40 million at the end of FY2024 [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 [29][30] 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 [39][40] Question: What is the outlook for lemon pricing? - Management indicated that lemon prices are expected to stabilize, with a potential average price in the $20 range, depending on market conditions [76][77] Question: What is the company's strategy regarding debt management? - Management emphasized the goal of reducing debt while increasing EBITDA through core operations and asset monetization [80][81]

Financial Data and Key Metrics Changes - For the fourth quarter of fiscal year 2025, total net revenue was $42.8 million, a decrease from $43.9 million in the same quarter of the previous year [15] - Agribusiness revenue was $41.3 million compared to $42.5 million in the fourth quarter last year, while other operations revenue increased slightly to $1.5 million from $1.4 million [15] - The operating loss for the fourth quarter of fiscal year 2025 was $11.1 million, compared to an operating loss of $2.8 million in the fourth quarter of fiscal year 2024 [18] - Net loss applicable to common stock after preferred dividends was $8.8 million for the fourth quarter of fiscal year 2025, compared to a net loss of $2 million in the same period of fiscal year 2024 [18] - For the fiscal year ended October 31, 2025, total net revenue was $159.7 million, down from $191.5 million the previous year, primarily due to decreased agribusiness revenues [20] Business Line Data and Key Metrics Changes - Agribusiness revenue for the fourth quarter included $19.2 million in fresh packed lemon sales, significantly up from $8.4 million during the same period of fiscal year 2024 [15] - Brokered lemons and other lemon sales were $12.5 million in the fourth quarter of fiscal year 2025, down from $14.7 million in the previous year [16] - Avocado revenue dropped to $300,000 in the fourth quarter of fiscal year 2025 from $8.9 million in the same period of fiscal year 2024, attributed to lower production [16] - Orange revenue increased to $2.9 million in the fourth quarter of fiscal year 2025 from $1.7 million in the same period of fiscal year 2024 [17] Market Data and Key Metrics Changes - The California avocado crop typically experiences alternate years of high and low production, which impacted the volume sold in fiscal year 2025 [16] - The average price per carton for U.S. packed fresh lemons was $23.33 in the fourth quarter of fiscal year 2025, compared to $17.95 in the same period of fiscal year 2024 [15] Company Strategy and Development Direction - The company is transforming its business model by reducing exposure to volatile lemon pricing and expanding into avocados, with a goal of generating $10 million in cost savings in fiscal year 2026 [5][6] - The return to Sunkist is expected to enhance customer access and improve packing margins, while the avocado production capacity is set to increase significantly over the next few years [7][10] - The company is also pursuing a 50/50 organic recycling joint venture and real estate development projects, with expected distributions totaling $155 million over the next five fiscal years [8] Management Comments on Operating Environment and Future Outlook - Management expressed confidence that fiscal year 2026 will mark the beginning of the financial impact from the transformation, with expectations for improved financial performance [11] - The company anticipates a 50% reduction in SG&A expenses, approximately $10 million in savings, and expects avocado production to contribute meaningfully starting in fiscal year 2027 [10][24] - Management highlighted the importance of diversifying revenue streams and optimizing the asset base to create a more resilient business model [10] Other Important Information - The company successfully completed the sale of its Chilean assets for $15 million and is advancing the monetization of its Windfall Farms vineyard and other agricultural assets valued at approximately $40 million [9] - Long-term debt as of October 31, 2025, was $72.5 million, up from $40 million at the end of fiscal year 2024, with a net debt position of $71 million [22] Q&A Session Summary Question: Can you provide more details on the $10 million cost savings and customer relationships? - Management explained that the cost savings come from transitioning to Sunkist and renegotiating storage contracts, with a significant reduction in sales and marketing costs per carton [29][32] Question: What is the outlook for lemon pricing? - Management indicated that lemon prices are expected to stabilize, with a potential average price in the $20 range, depending on market conditions [75] Question: Can you elaborate on the water rights strategy? - Management discussed the complexities of water rights in water-scarce areas and the potential for monetizing conserved water rights, particularly in California and Arizona [39][40] Question: What is the development strategy for Limco Del Mar? - Management outlined the entitlement process for the Limco Del Mar project, emphasizing community engagement and the potential increase in land value upon successful entitlement [55][60]

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]

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]

Group 1 - Limoneira has diversified its agricultural portfolio by planting avocados in addition to lemons, indicating a strategic shift in response to market conditions [1] - The company has re-engaged with Sunkist, suggesting a renewed partnership that may enhance its market position and operational efficiency [1] Group 2 - The article highlights the author's extensive experience in investment analysis, particularly in identifying undervalued companies, which may provide context for the analysis of Limoneira [1]

Core Insights - Limoneira has diversified its agricultural portfolio by planting avocados in addition to lemons, indicating a strategic shift to adapt to market conditions [1] - The company has re-engaged with Sunkist, suggesting a renewed partnership that may enhance its market presence and operational efficiency [1] Company Strategy - Limoneira's decision to plant avocados reflects a proactive approach to leverage opportunities in the agricultural sector, potentially increasing revenue streams [1] - The collaboration with Sunkist may provide Limoneira with better distribution channels and marketing support, which could lead to improved sales performance [1]

Financial Data and Key Metrics Changes - For the third quarter of fiscal year 2025, total net revenue was $47.5 million, down from $63.3 million in the same quarter of the previous fiscal year [11] - Agribusiness revenue decreased to $45.9 million from $61.8 million year-over-year, primarily due to pricing pressure in the lemon market [11][12] - Operating loss for the third quarter was $600,000 compared to operating income of $9 million in the previous year [15] - Net loss applicable to common stock was $1 million, down from net income of $6.5 million in the same quarter of fiscal year 2024 [15] - Adjusted net loss for diluted EPS was $400,000 or $0.02 per diluted share, compared to adjusted net income of $7.8 million or $0.42 per diluted share in the same period of fiscal year 2024 [16] Business Line Data and Key Metrics Changes - Fresh-packed lemon sales were $23.8 million, down from $25.8 million year-over-year, with 1.4 million cartons sold at an average price of $17.02 per carton compared to $18.43 in the previous year [12] - Avocado revenue was $8.5 million, down from $13.9 million, with approximately 5.7 million pounds sold at an average price of $1.50 per pound compared to $1.57 in the previous year [13] - Orange revenue increased to $1.7 million from $1.2 million, with 94,000 cartons sold at an average price of $18 per carton compared to $26.98 in the previous year [14] - Farm management revenues dropped to $100,000 from $3.2 million due to the termination of a farm management agreement [14] Market Data and Key Metrics Changes - The company experienced pricing pressures in the lemon market during the first two months of the quarter, but saw improvements in July [5] - The California avocado crop typically experiences alternating years of high and low production, impacting volume this year compared to last year [13] - The company expects fresh lemon volumes to be in the range of 4.5 million to 5 million cartons for fiscal year 2025, with avocado volume around 7 million pounds [18] Company Strategy and Development Direction - The company is focused on a two-part value creation strategy: agriculture production optimization and land and water value creation [5] - A strategic partnership with Sunkist is expected to drive $5 million in annual cost savings and EBITDA enhancements starting in fiscal year 2026 [6] - The company is exploring development options for the Linco del Mar property to address housing shortages in Ventura County [8][9] - The company anticipates significant increases in avocado production as newly planted acreage matures in fiscal year 2027 and beyond [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving volume goals for both lemons and avocados in fiscal year 2025, with expectations for improved pricing in fiscal 2026 due to anticipated shortages in international markets [5][18] - The company is optimistic about the profitability of lemons returning with more normalized pricing and fresh utilization levels in fiscal year 2026 [6][19] - Management highlighted the importance of community-based planning for the Linco del Mar property, aiming to stimulate economic growth and create jobs [9] Other Important Information - Total costs and expenses for the third quarter decreased to $48.1 million from $54.3 million in the previous year [15] - Long-term debt increased to $63.3 million from $40 million at the end of fiscal year 2024, resulting in a net debt position of $61.3 million [17] - The company expects to receive approximately $155 million from real estate projects over the next five fiscal years [8][18] Q&A Session Summary Question: Expectations of costs associated with Linco del Mar development - Management indicated that costs would be similar to previous developments, estimating $3 million to $5 million over three to five years, with most costs capitalized [24][25] Question: Vision for Linco del Mar development - Management stated that Limoneira is currently leading the project and is open to partnerships, similar to the successful relationship with the Lewis Group in past developments [25][27] Question: Normalized pricing for lemons and supply constraints - Management noted that lemon prices rebounded in August, with expectations for a higher starting price entering the next year due to supply constraints from Spain and Turkey [30][31] Question: Expectations for avocado volumes in 2026 - Management indicated it is too early to predict avocado volumes for 2026 but expects a breakout year for volume improvement in 2027 [33]

Financial Data and Key Metrics Changes - Total net revenue for Q3 FY2025 was $47.5 million, down from $63.3 million in Q3 FY2024 [11] - Agribusiness revenue decreased to $45.9 million from $61.8 million year-over-year [11] - Operating loss for Q3 FY2025 was $600,000 compared to operating income of $9 million in Q3 FY2024 [15] - Net loss applicable to common stock for Q3 FY2025 was $1 million, down from net income of $6.5 million in Q3 FY2024 [15] - Adjusted net loss for diluted EPS was $400,000 or $0.02 per diluted share, compared to adjusted net income of $7.8 million or $0.42 per diluted share in Q3 FY2024 [16] - Non-GAAP adjusted EBITDA for Q3 FY2025 was $3 million, down from $13.8 million in Q3 FY2024 [16] Business Line Data and Key Metrics Changes - Fresh-packed lemon sales were $23.8 million in Q3 FY2025, down from $25.8 million in Q3 FY2024, with 1.4 million cartons sold at an average price of $17.02 per carton compared to $18.43 in the prior year [12] - Avocado revenue was $8.5 million in Q3 FY2025, down from $13.9 million in Q3 FY2024, with 5.7 million pounds sold at an average price of $1.50 per pound compared to $1.57 in the previous year [13] - Orange revenue increased to $1.7 million in Q3 FY2025 from $1.2 million in Q3 FY2024, with 94,000 cartons sold at an average price of $18 per carton [14] - Farm management revenues dropped to $100,000 in Q3 FY2025 from $3.2 million in Q3 FY2024 due to the termination of a farm management agreement [14] Market Data and Key Metrics Changes - The company experienced pricing pressures in the lemon market during the first two months of Q3 FY2025, but saw improvements in July [5] - The California avocado crop typically experiences alternating years of high and low production, impacting volumes [13] - The company expects fresh lemon volumes for FY2025 to be in the range of 4.5 million to 5 million cartons, while avocado volume is anticipated to be approximately 7 million pounds [18] Company Strategy and Development Direction - The company is focused on a two-part value creation strategy: agriculture production optimization and land and water value creation [5] - A strategic partnership with Sunkist is expected to drive $5 million in annual cost savings and EBITDA enhancements starting in FY2026 [6] - The company is exploring development options for the Linco del Mar property to address housing shortages in Ventura County [8] - The company anticipates significant increases in avocado production as newly planted acreage matures in FY2027 and beyond [7] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving volume goals for both lemons and avocados in FY2025 despite current challenges [5] - The company expects pricing to improve in FY2026 due to anticipated shortages in several international areas [5] - Management highlighted the importance of the Sunkist partnership in enhancing resilience to market volatility [12] - The company is optimistic about long-term growth opportunities through real estate development and agricultural production [19] Other Important Information - Long-term debt as of July 31, 2025, was $63.3 million, up from $40 million at the end of FY2024 [17] - The company expects future distributions from real estate projects to total approximately $155 million over the next five fiscal years [8] Q&A Session Summary Question: Expectations of costs associated with Linco del Mar development - Management indicated that costs would be similar to previous developments, estimating $3 million to $5 million over three to five years, with most costs capitalized [24][25] Question: Vision for Linco del Mar development - Management stated that Limoneira is currently leading the project and is open to partnerships similar to the Lewis Group for future development [25][27] Question: Normalized pricing for lemons and supply constraints - Management noted that lemon prices rebounded in August and expect supply constraints from Spain and Turkey to support pricing in the upcoming year [30][31] Question: Expectations for avocado volumes in 2026 - Management indicated it is too early to predict avocado volumes for 2026 but expects a significant breakout year in 2027 [33]

Financial Data and Key Metrics Changes - For the third quarter of fiscal year 2025, total net revenue was $47.5 million, down from $63.3 million in the same quarter of the previous fiscal year [11] - Agribusiness revenue decreased to $45.9 million from $61.8 million year-over-year, primarily due to pricing pressure in the lemon market [11][12] - Operating loss for the third quarter was $600,000 compared to operating income of $9 million in the previous year [15] - Net loss applicable to common stock was $1 million, down from net income of $6.5 million in the same quarter of fiscal year 2024 [15] - Adjusted net loss for diluted EPS was $400,000 or $0.02 per diluted share, compared to adjusted net income of $7.8 million or $0.42 per diluted share in the same period of fiscal year 2024 [16] Business Line Data and Key Metrics Changes - Fresh-packed lemon sales were $23.8 million, down from $25.8 million year-over-year, with 1.4 million cartons sold at an average price of $17.02 per carton compared to $18.43 in the previous year [12] - Avocado revenue was $8.5 million, down from $13.9 million, with approximately 5.7 million pounds sold at an average price of $1.50 per pound compared to $1.57 in the previous year [13] - Orange revenue increased to $1.7 million from $1.2 million, with 94,000 cartons sold at an average price of $18 per carton [14] - Farm management revenues significantly declined to $100,000 from $3.2 million due to the termination of a farm management agreement [14] Market Data and Key Metrics Changes - The company experienced pricing pressures in the lemon market during the first two months of the quarter but saw improvements in July [5] - The California avocado crop typically experiences alternating years of high and low production, impacting volume this year compared to last year [13] - The company anticipates shortages in several international areas, which may lead to improved pricing in fiscal year 2026 [5] Company Strategy and Development Direction - The company is focused on a two-part value creation strategy: agriculture production optimization and land and water value creation [5] - A strategic partnership with Sunkist is expected to drive $5 million in annual cost savings and EBITDA enhancements starting in fiscal year 2026 [6] - The company is exploring development options for the Linco del Mar property to address housing shortages in Ventura County [8][9] - The company aims to divest additional real estate assets in fiscal year 2026 and expects to receive $155 million from real estate projects over the next five fiscal years [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving volume goals for both lemons and avocados in fiscal year 2025 despite current challenges [5] - The company expects lemons to return to profitability with normalized pricing and fresh utilization levels in fiscal year 2026 [19] - Management highlighted the importance of community-based planning for the Linco del Mar property to stimulate economic growth and create jobs [9] Other Important Information - Long-term debt increased to $63.3 million from $40 million at the end of fiscal year 2024, resulting in a net debt position of $61.3 million [17] - The company recorded $1.7 million in proceeds from selling water pumping rights, generating $1.5 million in gains [9] Q&A Session Summary Question: Expectations of costs associated with Linco del Mar development - Management indicated that costs would be similar to previous developments, estimating $3 to $5 million over three to five years, with most costs capitalized [24][25] Question: Vision for long-term development of Linco del Mar - Management stated that they are currently leading the project and may consider partnerships similar to the Lewis Group in the future [25][26] Question: Normalized pricing expectations for lemons - Management noted that lemon prices rebounded in August and expect supply constraints from Spain and Turkey to support pricing in the upcoming year [30][31] Question: Expectations for avocado volumes in 2026 - Management indicated it is premature to provide specific expectations but noted that significant volume improvement is anticipated in 2027 [33]

Core Insights - Mission Produce Inc. (AVO) and Limoneira Company (LMNR) represent contrasting approaches in the fresh produce market, with AVO focusing on avocados and LMNR on a diversified citrus portfolio [1][2][3] Investment Case for AVO - Mission Produce is a leading vertically integrated supplier of Hass avocados, with a strong global presence and year-round supply capabilities [3][5] - The company is expanding its portfolio to include mangoes and blueberries, which helps mitigate risks associated with avocado price volatility [4][6] - AVO's scale and infrastructure allow it to effectively manage supply chain disruptions, maintaining customer commitments even during trade tensions [5][6] - The structural drivers of rising avocado consumption and AVO's adaptability position it well for long-term growth in the fresh produce sector [6] Investment Case for LMNR - Limoneira is a major U.S. lemon producer with a growing focus on avocados, aiming to increase production through new plantings [7][9] - The partnership with Sunkist Growers is expected to yield $5 million in annual savings and enhance efficiency, positioning LMNR as a multi-citrus player [10] - Limoneira's real estate and water monetization initiatives provide additional income streams, although its earnings are still subject to crop cycles and commodity pressures [11] Performance Comparison - AVO shares have increased by 16.9% over the past three months, while LMNR shares have declined by 4.3%, indicating diverging market momentum [8][18] - AVO trades at a forward price-to-sales (P/S) multiple of 0.71X, below its 5-year median, while LMNR's P/S multiple is 2X [20][23] Conclusion - Mission Produce is viewed as the more compelling investment choice due to its strong market position, attractive valuation, and growth potential in avocados and adjacent categories [25][26] - Limoneira, while offering diversification, faces challenges that may slow its growth trajectory compared to AVO [24][26]