Limoneira pauses dividend to fund avocado expansion and housing projects

Limoneira Company (NASDAQ: LMNR) announced its board of directors has paused regular cash dividends on common stock to support strategic investments in avocado production expansion and housing development.

The Santa Paula, California-based agricultural company said the dividend suspension will provide financial flexibility to reduce debt and pursue higher-return opportunities. The board indicated it expects to resume dividends aligned with historical practice when prudent to do so.

"Our Board and management team are committed to deploying capital in ways that generate the highest returns for shareholders," said Harold Edwards, president and chief executive officer.

The company is expanding avocado production with 800 acres of non-bearing avocados expected to become full bearing over the next few years. Limoneira stated this expansion will make it one of the largest avocado producers in the United States.

Other strategic initiatives include optimizing lemon production through a partnership with Sunkist and expanding an organic recycling facility. The company expects approximately $10 million in selling, general and administrative savings for fiscal year 2026 from the Sunkist partnership.

Limoneira reiterated its fiscal year 2026 guidance of 4.0 million to 4.5 million cartons for fresh lemon volumes and 5.0 million to 6.0 million pounds for avocado volumes.

The company expects to receive approximately $180 million in total proceeds from its Harvest development projects over seven fiscal years, with $10 million received in fiscal year 2025 and $15 million in fiscal year 2024.

A planned organic recycling joint venture with Agromin is expected to process 300,000 tons of organic waste annually and contribute to earnings when operational in fiscal year 2027.

You May Also Be Interested In

• Cerebras Systems posts 94% revenue jump, announces OpenAI deal
• Morgan Stanley Private Credit Fund Caps Redemptions At 5%
• DXL board reviews revised $0.84-per-share takeover bid from Zodiac