Limoneira Company (LMNR) investor relations material

Financial performance and profitability trends

• Lemon sales prices have remained relatively flat since 2019, while costs per carton have increased significantly, resulting in periods where costs exceeded sales prices from 2019 to 2025.

• Total lemon cost per carton rose 74% from 2010 to 2026, driven by higher cultural, packing, and harvest costs, each increasing 60–82%.

• SG&A expenses peaked in 2023 but are projected to decrease by $12 million (49%) in 2026 due to the return to Sunkist partnership.

• Operating profit is expected to rebound to $20.7 million in 2026, following a period of volatility and cost pressures.

• Revenue reached $191.5 million in 2024, with a history of growth driven by increased lemon production, grower partner packing, and real estate activities.

Operational and strategic initiatives

• Fresh utilization rates for lemons are projected to reach 78% in 2026, with every 1% change impacting cost by $0.05 per carton.

• The company is scaling avocado operations, targeting 2,000 acres by 2027 and aiming for 34 million pounds of production by 2031.

• Strategic partnerships with Sunkist and Agromin are expected to drive operational efficiency, cost savings, and new revenue streams.

• The Sunkist partnership is anticipated to deliver $10 million in SG&A savings in 2026 and improve supply chain and customer access.

• Organic recycling initiatives with Agromin are projected to contribute $50 million in EBITDA over 10 years.

Land, water, and asset value creation

• The company holds 7,000 acres of agricultural land, 550 acres of entitled development land, and 3,000 acres of long-term developable land, with a net asset value of $540–$595 million.

• Water assets include 8,500 acre-feet of adjudicated water and 11,500 acre-feet of pumping rights, valued at $60–$75 million.

• Near- and medium-term value creation opportunities total $425–$495 million through asset sales, water monetization, and real estate development.

• Long-term land development pipeline includes $3 billion+ potential from 3,000 acres, with phased projects such as Harvest at Limoneira and Limco Del Mar.

• Recent and anticipated land sales and water deals are expected to generate significant cash proceeds, supporting debt reduction and reinvestment.