Limoneira Co Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Pooran Sharma - STEPHENS - Analyst : Good afternoon and thanks for the question. Just wanted to start off with the partnership here. Just wanted to start off with the partnership here. I know you just mentioned here $10 million of cost savings. Just wondering if you could just give us a little bit more granularity into kind of operationally how you expect to get that $10 million? And then also, you did quote better customer relationships in your prepared comments. Just wondering if you could parse that out a little bit more, maybe just give us a sense on how much of your lemon volumes are moving toward contracted versus open and maybe how this compares to your guys' business before the partnership? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 23, 2025 / 9:30PM, LMNR.OQ - Q4 2025 Limoneira Co Earnings Call

Question: Pooran Sharma - STEPHENS - Analyst : Great. Appreciate the color there. Maybe wondering if we could talk about some of the strategic assets or I should say, noncore assets that you're selling off. And I wanted to specifically focusing on water. It looks like you made some moves this quarter. I think you've mentioned in the past a range of valuation that you get per acre feet. How does this compare versus your expectations? And could you maybe go through some of the puts and takes in terms of trying to achieve a higher valuation? Do you get pushback from some of the local governments. I would just love to hear some color regarding your water assets.

Question: Pooran Sharma - STEPHENS - Analyst : Got it. I appreciate the call there. I'll, jump back in the queue.

Question: Gerry Sweeney - Roth Capital Partners LLC - Analyst : Good afternoon, Harold and Mark, thanks for taking my call. Just following up on the water side. Obviously, the renegotiation of the Colorado River Compact is underway starting. I think there was a big comp fab in Vegas last week discussing this. I would imagine my sense is or what I'm hearing is that there's going to be a lot of cuts along the river and less allocation. So specifically impacting Arizona and Southern California. I would believe this would be a strong positive for your water rights strategy. Is this can you confirm that and maybe provide a little bit of details around it.

Question: Gerry Sweeney - Roth Capital Partners LLC - Analyst : Just curious on that front cluster, right? So most people I don't know understand that it's first in time in place. So Class 1, the American Indians, they have the most senior water rights in Class III is very senior as well, so that's where you're standing. Is there any talk of cut down to Class III? Or would the cuts come in classes that are below you or later in time? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 23, 2025 / 9:30PM, LMNR.OQ - Q4 2025 Limoneira Co Earnings Call

Question: Gerry Sweeney - Roth Capital Partners LLC - Analyst : Got you. Super helpful. couple more questions. I just before I go to the asset, but Limco Del Mar, obviously, that's infill land right in the town. Any ideas on how that develops? And I would imagine that acreage is highly valuable. And when I say how it develops, I'm just curious if you've come up to a conclusion whether or not I mean, do you sell it? Do you self-develop it? Do you partner again and take a similar track with like you did at the Harvest of Limoneira?

Question: Gerry Sweeney - Roth Capital Partners LLC - Analyst : I would imagine there's a pretty hefty increase in value of the land as well when it moves from the entitlement, if you would win the entitlement vote, that's a pretty heavy lift itself, correct?

Question: Gerry Sweeney - Roth Capital Partners LLC - Analyst : Well, that's good to know. good number.

Question: Gerry Sweeney - Roth Capital Partners LLC - Analyst : Yes. And I know (inaudible) is not easy too. That's a process.

Question: Gerry Sweeney - Roth Capital Partners LLC - Analyst : Got it. Switching gears, I don't want to take this over, but switching gears real quick just to the avocado. So two questions on that front. The cadence of the 700 acres coming into production and in calls past, we've talked about the operating income per acre for avocados, if we could touch upon that again.

Question: Gerry Sweeney - Roth Capital Partners LLC - Analyst : Okay, got you, I really appreciate it, and I'll jump back in queue. Thanks.

Question: Mark Smith - Lake Street Capital Markets LLC - Analyst : Hi guys, I want to look First, at kind of the expense side of things. You guys talked about streamlining operations and potential cost cutting. And I think you gave some the potential SG&A savings next year on the work that you've already done. Can you just give us more update on that? How much of that has worked in, in the transition to Sunkist and how much is kind of other projects that you've been working on?

Question: Mark Smith - Lake Street Capital Markets LLC - Analyst : Okay. And then just you mentioned some lemon pricing. Just any insights you can give us into your outlook for kind of lever pricing here near term or even through the fiscal year?

Question: Mark Smith - Lake Street Capital Markets LLC - Analyst : Excellent. And I think the last question is just kind of comfort around the balance sheet. You guys talked about kind of reworking some covenants and stuff. Just any update and thoughts around the debt and kind of your comfort levels?

Question: Mark Smith - Lake Street Capital Markets LLC - Analyst : Okay, great. Thank you, guys.