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The call presented a mix of near-term financial pain and strategic progress. Q2 GAAP results were materially impacted by noncash impairments, asset disposals and foreign exchange losses, producing significant operating and net losses. However, management emphasized multiple positive developments that support improved future performance: stronger lemon pricing (> $20/carton), higher fresh utilization (>80%), raised avocado volume guidance with higher expected prices, ongoing SG&A savings ($10M target), monetization initiatives (water rights, Windfall Farms partial sale), a large real estate pipeline (~$155M expected proceeds), and an organic recycling JV expected to drive earnings in FY27. Management reiterated confidence in achieving positive adjusted EBITDA in Q3 and Q4 and expects several monetization events to bolster liquidity. Given the balance of substantial strategic catalysts and near-term accounting/headline losses, the overall tone was constructive and forward-looking.
Management guided to positive adjusted EBITDA in Q3 and Q4 of FY26 and reiterated full-year fresh lemon volumes of 4.0–4.5 million cartons while raising avocado volume guidance to 5.5–6.5 million pounds; they forecast $10 million of annual SG&A savings in FY26, expect a monetization event for Class 3 Colorado River water rights in FY26, and see $155 million of real estate proceeds over the next five fiscal years. Strategic asset moves include the planned Q4 FY26 closing of an 80% Windfall Farms sale for $16 million ( $10M cash at closing, $6M seller note), a 50/50 AgriMin organic recycling JV able to process up to 295,000 tons annually that should contribute earnings in FY27, and water- and crop-substitution plans on 600 Yuma acres; operationally they note 1,700 acres of avocados planted with ~800 acres currently bearing, another ~800 acres to begin bearing over 2–4 years (nearly doubling capacity), plus 400 acres planted in 2023–24 expected to set a crop this year and add volume in FY27.
Company reported Q2 total net revenues of $23.9M and said it exceeded internal expectations for revenue and adjusted EBITDA for the quarter, validating operational improvements under the Sunkist partnership.
Lemon pricing above $20 per carton (Q2 average per-carton price on sold cartons was $16.63 net of Sunkist vs $14.52 prior year, a ~14.5% increase) and management reported fresh utilization above 80% and a forecasted ~+$1/carton month-over-month trend through October.
Raised full-year avocado volume guidance to 5.5M–6.5M pounds; delayed part of Q2 harvest (~500k pounds pushed into Q3) to capture higher pricing. Q2 avocado sales were ~285k lbs at $0.96/lb; current market pricing cited ~$1.30–$1.40/lb (expected blended ~ $1.30).
1,700 acres of avocados planted with ~800 acres currently bearing; an additional ~800 acres expected to begin bearing over the next 2–4 years (~~100% increase in bearing capacity). 400 acres planted in 2023–2024 expected to set a crop this year and add volume in FY27.
Announced 80% sale of Windfall Farms (Paso Robles) for $16M (structure: $10M cash at closing + $6M seller note) while retaining 20% interest; completed other partial sales/transactions aimed to unlock non-core asset value and redeploy capital to higher-return opportunities.
Formed 50/50 organic recycling JV with AgriMin to process up to 295,000 tons of organic waste annually; expected to generate meaningful shared earnings when operational in FY27.
Harvest at Limoneira expected to generate ~$155M in proceeds over the next 5 fiscal years. Phase 2 home sales robust (2–7 homes/week), Phase 3 (~500 lots) targeted to market in FY27, 300 apartments approved with expected groundbreaking H2 2027, and a 25-acre East Area 2 medical pavilion could begin monetization in FY26.
Management expects a monetization event from Class 3 Colorado River water rights in FY26 and highlighted Santa Paula Basin conserve pumping rights as valuable non-operational resources that can be converted to cash while maintaining agricultural operations.
Company is tracking toward targeted $10M in annual SG&A savings (net of a Q2 allowance on foreign receivables) as a result of the Sunkist partnership and other cost-structure changes.
Received aggregate insurance proceeds of $2.3M in March 2026 related to a packing house incident ($1.2M recognized as reduction of agribusiness costs; $1.1M in other operating income).
Greetings. And welcome to Luminaire's Second Quarter 26 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. It is now my pleasure to introduce you to our host, John Mills with ICR.
Thank you.
You may begin.
Good afternoon, everyone, and thank you for joining us for Limoneira's second quarter fiscal year 26 conference call. On the call today are Harold S. Edwards, President and Chief Executive Officer; and Greg Hamm, Chief Financial Officer. By now, everyone should have access to the second quarter fiscal year 26 earnings release which went out today at approximately 04:05PM Eastern Time. If you have not had a chance to view the release, it is available on the investor relations portion of the company's website at limonera.com. This call is being webcast and a replay will be available on Limoneira's website as well. Before we begin, we would like to remind everyone that prepared remarks contain forward-looking statements and management may make additional forward-looking statements in response to your questions. Such statements involve a number of known and unknown risks and uncertainties, many of which are outside the company's control, and could cause its future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements.
Important factors that could cause or contribute to such differences include risks detailed in the company's Form 10 Qs, and 10 Ks filed with ...