Lemon pricing crisis drives Limoneira's revenue down 20 percent as the company pivots to avocados

California-based citrus and avocado producer Limoneira released its financial report for Q4 and the financial year 2025. In the document, the company reported total net revenue of $42.8 million for Q4 2025, over $1 million short of the same period in 2024. Agribusiness revenue for the period also fell by $1 million, to $41.3 million.

The real difference can be seen in Limoneira’s results for fiscal year 2025, ending October 31. There, the company reported total net revenue of $159.7 million, down 20 percent from 2024, when the company rolled in $191.5 million in total revenue.

In a press release, Limoneira explained that the stark contrast is primarily due to decreased revenue from lemons, avocados, and wine grapes, as well as from farm management. The company said the situation was partially offset by increased agribusiness revenue from oranges, but this was not enough to cover its losses. 

The citrus producer also reported an operating loss of $20.4 million for fiscal year 2025, more than triple the $ 6.2 million total operating loss in 2024. Operating loss for Q4 was $11.1 million, nearly four times the $2.8 million reported for the same period in 2024. 

A “transformational year” for Limoneira

2025 was less than kind to the California company. A worldwide pricing crisis in the lemon category, stemming from global oversupply, significantly impacted its financial performance and forced it to redraw its strategy map.

“Fiscal 2025 represents a transformational year in Limoneira's strategic evolution,” said Harold Edwards, President and Chief Executive Officer of the Company. 

The executive explained that Limoneira is moving its primary focus to avocados, which “provide much greater demand and stronger long-term consumption growth potential.” 

The company continues to execute on its “value-creation strategy” of growing agricultural income and monetizing its land and water assets. 

Edwards said the company expects avocado production capacity to nearly double over the next three to four years and projects that its planned organic recycling joint venture will bring in an extra $4 to $5 million in EBITDA in 2027. Additionally, the company is liquidating real estate assets in Argentina and Paso Robles, California, which it expects will generate $50 to $70 million in value creation through fiscal 2027.

In November 2025, Limoneira closed the sale of its Chilean ranches, Pan de Azúcar and San Pablo, for approximately $15 million, but at a $4 million loss. As part of the transaction, the company maintains its 47 percent interest in a citrus packing, selling, and marketing business in the Latin American country. 

“As cash generation improves, we will evaluate capital allocation opportunities, including share repurchases, dividend enhancements, and debt reduction,” Edwards concluded. 

As for the future, Limoneira expects fresh lemon volumes to be in the range of 4 million to 4.5 million cartons for fiscal year 2026, while avocado production should fall between 5 and 6 million pounds.

*All images courtesy of Limoneira.

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