Limoneira Hits High Gear: Q3 2026 Results Show Strong Avocado Growth and Strategic Realignment
Limoneira, a leading agribusiness and real estate company, reported strong third-quarter results for fiscal year 2026, with adjusted EBITDA exceeding prior-year levels. Despite lower-than-expected lemon sales volume, the company's value creation strategy is gaining momentum, driven by growth in avocado production and progress toward targeted cost savings.
During the quarter, Limoneira continued to execute on its strategy of growing long-term agricultural income through operational streamlining, expanded avocado production, optimized lemon packing with a recently announced Sunkist partnership, and expansion of its organic recycling facility. The company also identified over $200 million in non-strategic land assets, water rights, and real estate development opportunities.
Harold Edwards, President and CEO of Limoneira, highlighted the quarter's performance, noting that "adjusted EBITDA exceeded prior year third-quarter results." He attributed this success to higher total agribusiness operating income, driven by stronger-than-expected avocado volume and progress toward targeted cost savings. The company now expects to achieve the lower end of its lemon volume guidance due to increased imports hitting the U.S. market.
However, Limoneira's avocado growth story is continuing to gain traction. The company has raised its avocado volume guidance for fiscal year 2026 and expects to produce more than 10 million pounds of avocados in fiscal year 2027, a 30% increase over the previous year. This growth is driven by the success of avocados planted on 400 acres in 2023 and 2024, which are expected to set a crop this year and contribute to volume in fiscal year 2027.
California avocados command premium pricing due to their superior quality, and Limoneira's strategic location provides logistical advantages to the highest per capita consumption markets in the United States. As Edwards noted, "our growth is driven by the 400 acres of avocados we planted in 2023 and 2024, which are expected to set a crop this year and contribute to volume in fiscal year 2027."
Limoneira's strategic realignment is also yielding positive results. The company expects the sale of Windfall Farms for $15 million to close on September 14th, 2026, marking the latest step in its ongoing strategy to monetize non-strategic assets, strengthen its balance sheet, reduce debt, and redeploy capital into higher-return opportunities across its core agribusiness and real estate platforms.
As Edwards concluded, "we expect another quarter of positive adjusted EBITDA and additional asset monetization events" in the fiscal fourth quarter. With its value creation strategy on track, Limoneira is poised to deliver strong results in the coming months."
