Limoneira Company (Nasdaq: LMNR) reported fourth‑quarter 2025 revenue of $42.8 million, a 2.4% decline from $43.9 million a year earlier, and a net loss of $8.8 million versus a $2.0 million loss in the same period last year. The company’s adjusted net loss per diluted share was $0.45, missing the consensus estimate of $‑0.10 by $0.35, while revenue beat the $36.0 million estimate by $6.8 million, a 19% upside.
The revenue decline was driven by a 23% drop in lemon sales and a 39% fall in avocado sales, both tied to alternate‑bearing cycles that reduced output in the fourth quarter. Lemon prices have been pressured by global oversupply, while avocado revenue fell sharply as the company’s non‑bearing trees were still in the transition phase. Despite these headwinds, the company’s diversified product mix and strong demand for specialty citrus helped cushion the impact.
The EPS miss was largely a result of a $7 million increase in strategic transformation costs, including the transition to a new Sunkist partnership and the disposal of non‑productive acreage. These one‑time charges offset the modest revenue growth and pushed the loss per share beyond analyst expectations. Management emphasized that the investment is expected to generate $10 million in cost savings in fiscal 2026, which should improve profitability in the coming year.
Looking ahead, Limoneira highlighted its ongoing transformation strategy. The company will begin a $5 million annual cost‑saving partnership with Sunkist in fiscal 2026, expand avocado production capacity by 700 acres of non‑bearing trees, and continue monetizing real‑estate and water‑rights assets, projected to generate $155 million in distributions over five years. While specific revenue or EPS guidance for FY2026 was not disclosed, management signaled confidence that the cost‑saving initiatives and avocado expansion will drive a turnaround in profitability.
After the release, the market reacted positively, with the stock rising 2.71% in after‑hours trading. Investors appeared to weigh the revenue beat and the forward‑looking cost‑saving plans more heavily than the EPS miss, reflecting optimism about the company’s strategic pivot.
Harold Edwards, President and CEO, said the quarter “represents a transformational year in Limoneira’s evolution from an oversupplied lemon business to a more balanced portfolio that includes high‑growth avocado production.” Mark Palamountain, Executive VP, CFO & Treasurer, noted that the $7 million transformation cost “will generate approximately $10 million in savings in fiscal 2026, improving margins and supporting future growth.”
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