50%/50% Joint Venture Expected to Transform Green Waste and Food Waste into Agricultural Benefits, Optimizing Underutilized Land and Conserved Water While Generating Expected Substantial EBITDA for Both Partners

Limoneira Company (the "Company" or "Limoneira") (NASDAQ:LMNR), a diversified lemon and avocado growing and lemon packing company with related agribusiness activities and real estate development operations, today announced the official signing of definitive agreements to form a 50%/50% joint venture with California Wood Recycling, Inc. dba Agromin, California's largest organics waste recycler. This milestone follows the letter of intent announced in April 2025 and marks a significant advancement in Limoneira's diversification strategy and commitment to sustainable agriculture.

The joint venture will develop a 70-acre, state-of-the-art commercial composting center on Limoneira property in Santa Paula, California, the only permitted commercial composting center in Ventura County. The facility will expand from the existing 15-acre green waste composting operation into a comprehensive organic recycling center capable of processing approximately 295,000 tons of organic waste annually. The facility is expected to become operational in the second half of fiscal year 2027 and, at capacity, is projected to contribute significant EBITDA which will be shared equally between Limoneira and Agromin. The joint venture is expected to generate revenue in multiple ways including gate fees from waste haulers as they deliver green waste to the facility and the sale of compost from the recycled material. Limoneira will also lease the 70-acre site to the joint venture for approximately $560,000 annually. The lease agreement includes 89-acre feet of annual water supply to the facility.

The joint venture is intended to directly address California's ongoing efforts to meet Senate Bill 1383 mandates for organic waste diversion and greenhouse gas reduction. As of 2026, California continues to face significant challenges in meeting these environmental requirements. The facility will be permitted to process both green waste and food waste, a complex transition that required 15 years of planning and permitting. As the only permitted commercial composting center in Ventura County, the facility will help communities meet these mandates over the next 50 years while creating usable agricultural products. Additionally, this joint venture is expected to divert approximately 75% of Ventura County's landfilled organic waste to the state-of-the-art commercial composting center.