Limoneira Company Q1 FY2026 earnings call

• The company is executing a strategic transformation for sustainable long - term value creation. Fresh utilization improved in the first quarter. There were $2.5 million in specific expenses in the first quarter, including $1 million in packing house repairs recoverable from insurance proceeds, $500,000 in costs related to closing Chilean farming operations, and $1 million in foreign exchange fluctuation on receivables from selling Chilean farming assets. The Sunkist partnership is functioning as planned, avocado operations are expanding with 1,600 acres planted. Asset monetization initiatives are progressing, such as Windfall Farms vineyard divestment targeted by the end of fiscal year 2026 and water rights monetization ongoing. The company expects $10 million in selling, general, and administrative savings in fiscal year 2026 compared to fiscal year 2025

Total net revenues were $18.2 million in Q1 2026, compared to $34.3 million in the first quarter of fiscal year 2025. Agribusiness revenues totaled $16.8 million, compared to $32.9 million in the prior year first quarter. Fresh - packed lemon sales were $11.9 million compared to $21.2 million in the same period last year. There was no avocado revenue in the first quarter of fiscal year 2026 compared to $162,000 in the prior year period. Total costs and expenses in the first quarter were $28.8 million, down 27% from $39.7 million in the first quarter of fiscal year 2025. Operating loss for the first quarter of fiscal year 2026 was $10.6 million compared to an operating loss of $5.3 million in the prior year period. Adjusted net loss for diluted EPS in the first quarter of fiscal year 2026 was $8.5 million or 48 cents per diluted share

• Anticipate sequential improvement with second quarter showing improvement compared to the first quarter and third and fourth quarters being the strongest periods of the year. Reiterate full - year fiscal 2026 guidance: fresh lemon volumes of 4 to 4.5 million cartons and avocado volumes of 5 to 6 million pounds. The real estate pipeline is expected to yield $155 million over the next five fiscal years. The planned organic recycling joint venture is expected to contribute to EBITDA when operational in fiscal year 2027

Risks detailed in the company's Form 10Qs and 10Ks filed with the SEC, including risks from market realities, volatile lemon pricing, foreign exchange fluctuations, and uncertainties in water rights monetization negotiations, especially regarding the Colorado River

Q: About the $10 million SG&A savings, how much would be visible in the first half versus the back half and any offsets?

A: There were some lingering or dragging costs from fiscal year 2025 that entered the first quarter of 2026, so the run rate was slightly behind in Q1 versus Q2, Q3, Q4. The actual reduction isn't linear. Expect a total reduction of $10 million from the SG&A overhead line item by the end of the year.

Q: What about avocado weather conditions?

A: It's been an idyllic winter in California, no real cold, moderate east winds. There's been good rain, and entering record heat levels which will accelerate fruit growth and bloom for next year's crop setting.

Q: Avocado pricing and lemon pricing?

A: Mexico has an extraordinarily large crop putting downward pricing pressure on avocados. Lemon pricing started similar to 2025 Q1 then softened, with trough expected, and higher fresh utilization in the first quarter bodes well for the rest of the year.

Q: Water assets monetization in drought areas?

A: Santa Paula water basin conserved water is in demand. For Colorado River water rights, there are negotiations among seven states, and while monetization details are unclear now, expect near - term programs for monetization of Colorado River water rights