Limoneira Q3 adj EPS $0.02 misses estimate on lower citrus sales
- Limoneira Q3FY26 adjusted EPS was $0.02, missing the $0.19 analyst estimate
- Total net revenue fell 7.8% YoY to $43.8 million due to lower citrus sales
- Adjusted EBITDA rose 30% to $3.9 million despite top-line decline
- Company entered agreement to sell Windfall Farms for $15 million
- Avocado volume guidance for FY26 raised to 7.0–7.25 million pounds
*this image is generated using AI for illustrative purposes only.
Limoneira Company (NASDAQ: LMNR) reported third-quarter fiscal year 2026 adjusted earnings per share of $0.02, missing the analyst consensus estimate of $0.19 by 89.47%. Total net revenue declined to $43.8 million from $47.5 million year-over-year, driven by lower lemon sales volume and reduced avocado pricing.
The company posted an operating loss of $3 million compared to $600,000 in the same quarter last year. Net loss applicable to common stock was $3 million, or $0.17 per diluted share, widening from a $1 million loss, or $0.06 per share, in Q3FY25.
Financial Performance
Total costs and expenses decreased to $46.8 million from $48.41 million in the prior year period. This reduction was primarily driven by lower agribusiness costs and selling, general and administrative (SG&A) expenses, which fell to $4 million from $5 million. These savings were partially offset by asset impairment charges related to Windfall Farms.
Agribusiness revenues totaled $42.2 million, down from $45.9 million in Q3FY25. Other operations revenue remained stable at $1.6 million versus $1.5 million previously.
| Metric | Q3FY26 | Q3FY25 | Change |
|---|---|---|---|
| Total Net Revenue | $43.8 million | $47.5 million | -7.8% |
| Agribusiness Revenue | $42.2 million | $45.9 million | -8.1% |
| Adjusted EBITDA | $3.9 million | $3.0 million | +30.0% |
| Operating Loss | $3.0 million | $0.6 million | Wider |
| Net Loss Per Share | $0.17 | $0.06 | Wider |
Segment Details
Fresh lemon carton sales reached $27.3 million, up from $23.8 million in the prior year. The company sold approximately 1,373,000 cartons at an average price of $19.88 per carton, compared to 1,397,000 cartons at $17.02 per carton in Q3FY25. Brokered lemon sales were immaterial this quarter, down from $3.8 million previously, following the transition of citrus brokerage operations to Sunkist.
Avocado sales volume increased to 7 million pounds at an average price of $1.15 per pound, compared to 5.7 million pounds at $1.50 per pound in the prior year. The volume increase included harvest delayed from the second quarter to maximize pricing. There was no orange or specialty citrus revenue in Q3FY26, reflecting the Sunkist transition.
What the Numbers Show
Despite a 7.8% decline in total net revenue, adjusted EBITDA grew by 30%. This divergence highlights the impact of cost discipline; SG&A expenses dropped by $1 million (20%) while revenue fell by only $3.7 million. The operational efficiency gains effectively insulated underlying profitability from top-line headwinds caused by the Sunkist transition and lower avocado prices.
Balance Sheet and Asset Monetization
Long-term debt less current portion stood at $100.7 million as of July 31, 2026, up from $72.5 million at the end of FY25. Cash and cash equivalents were $2.2 million, compared to $1.5 million previously.
The company expects to close the sale of Windfall Farms for $15 million on September 14, 2026. Proceeds will be used to reduce debt and expand avocado acreage. Additionally, Limoneira received $5.4 million in insurance proceeds during the first nine months of FY26 and expects an additional $2 million in Q4FY26.
Outlook
Management lowered fresh lemon volume guidance for FY26 to 4.0–4.25 million cartons due to higher imports from Argentina. Conversely, avocado volume guidance was raised to 7.0–7.25 million pounds for FY26. The company projects a 30% increase in avocado production for FY27, targeting over 10 million pounds, driven by new acreage planted in 2023 and 2024.
How will the completion of the Windfall Farms sale and subsequent debt reduction impact Limoneira's interest expense and financial flexibility in FY27?
What specific strategies is management implementing to mitigate the margin pressure from rising Argentine lemon imports against domestic production?
Will the projected 30% increase in avocado production for FY27 be sufficient to offset the structural revenue loss from exiting the citrus brokerage business?
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