Alico Q3 2025 Earnings Report

Alico EPS Results

• Actual EPS: -$2.39
• Consensus EPS: -$1.09
• Beat/Miss: Missed by -$1.30
• One Year Ago EPS: N/A

Alico Revenue Results

• Actual Revenue: $8.39 million
• Expected Revenue: $16.90 million
• Beat/Miss: Missed by -$8.51 million
• YoY Revenue Growth: N/A

Alico Announcement Details

• Quarter: Q3 2025
• Date: 8/12/2025
• Time: After Market Closes
• Conference Call Date: Wednesday, August 13, 2025
• Conference Call Time: 8:30AM ET

Alico (NASDAQ:ALCO), together with its subsidiaries, operates as an agribusiness and land management company in the United States. The company operates in two segments, Alico Citrus, and Land Management and Other Operations. The Alico Citrus segment engages in planting, owning, cultivating, and/or managing citrus groves to produce fruit for sale to fresh and processed citrus markets, including activities related to the purchase and resale of fruit and value-added services, which include contracting for the harvesting, marketing, and hauling of citrus. The Land Management and Other Operations segment is involved in the activities related to native plant sales, grazing and hunting leasing, management, and/or conservation of unimproved native pastureland; and activities related to rock mining royalties and other insignificant lines of business, as well as in the activities related to owning and/or leasing improved farmland. The company was incorporated in 1960 and is based in Fort Myers, Florida.

Alico Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: We completed our final major citrus harvest in Q3, concluding capital-intensive operations and fully pivoting to a diversified land development model.
• Positive Sentiment: Land and equipment sales generated $9.3 M in the quarter and $23.5 M year-to-date from 2,794 acres, surpassing the $20 M fiscal guide, while $16 M in crop insurance boosted cash to $42.1 M.
• Positive Sentiment: The Florida Legislature approved HB 4041 to establish the Corkscrew Grove Stewardship District, a key regulatory step toward financing infrastructure and advancing entitlements by 2026.
• Negative Sentiment: Third-quarter revenue fell 38% to $8.4 M and net loss widened to $18.3 M (-$2.39 EPS), driven by accelerated depreciation of $40.7 M on citrus trees and lower harvest volumes after Hurricane Milton.
• Positive Sentiment: Management reiterates ~$20 M adjusted EBITDA guidance for FY 25, sees potential for $45 M+ in land sales, and expects liquidity to fund operations through FY 27.

Presentation

[Operator]

Morning, and welcome to the Aleco Third Quarter twenty twenty five Earnings Call. Currently, all participants are in a listen only mode. As a reminder, today's conference is being recorded.

[Operator]

I would now like to turn the call over to your host John Mills, Managing Partner at ICR.

[John Mills, Managing Partner at ICR]

Good morning everyone and thank you for joining us for Alico's third quarter fiscal year twenty twenty five conference call. On the call today are John Kiernan, President and Chief Executive Officer and Brad Heine, Chief Financial Officer. By now everyone should have access to the third quarter fiscal year twenty twenty five earnings release which went out yesterday at approximately four p. M. Eastern Time.

[John Mills, Managing Partner at ICR]

If you've not had a chance to review the release it's available on the Investor Relations portion of the company's website at alicoinc.com. This call is being webcast and a replay will be available on Alico's website as well. Before we begin we'd like to remind everyone that the prepared remarks contain forward looking statements. Such statements are subject to risks uncertainties and other factors that may cause the actual results to differ materially from those expressed or implied in these statements. Important factors that could cause or contribute to such differences include risk detail in the company's quarterly reports on Form 10 Q, annual reports on Form 10 ks, current reports on Form eight ks and any amendments thereto filed with the SEC and those mentioned in earnings release.

[John Mills, Managing Partner at ICR]

The company undertakes no obligation to subsequently update or revise the forward looking statements made on today's call except as required by law. During this call, the company may also discuss non GAAP financial measures including EBITDA, adjusted EBITDA and net debt. For more details on these measures, please refer to the company's press release issued yesterday. And with that, it is my pleasure to turn the call over to the company's President and CEO, Mr. John Kiernan.

[John Kiernan, Director, President & CEO at Alico]

Thank you, John. Good morning, everyone, and thank you for joining us for OEKO's third quarter of the fiscal year twenty twenty five earnings call. I'm pleased to report another quarter of significant progress in executing our strategic transformation to become a diversified land company. We successfully completed our final major citrus harvest during the third quarter, marking a pivotal milestone in our transformation. This harvest represents the conclusion of our capital intensive citrus production operations, allowing us to focus our resources entirely on our long term land development and diversified usage strategy.

[John Kiernan, Director, President & CEO at Alico]

Our land monetization and asset optimization efforts accelerated in the third quarter, generating $9,300,000 from combined land and equipment sales. The land component included approximately six ninety four acres, bringing our year to date land sales to $23,500,000 from approximately 2,794 acres sold, exceeding our original $20,000,000 guidance for fiscal twenty twenty five. Additionally, we received $16,000,000 in crop insurance proceeds during the quarter, which significantly strengthened our financial position and provides additional flexibility as we advance our transformation initiatives. This insurance recovery, combined with our land sales, has resulted in a robust $42,100,000 cash position and a strong liquidity profile to execute our strategic transformation strategy. On the development front, we achieved a major regulatory milestone with the Florida Legislature's approval of House Bill 4,041 to create the Corkscrew Grove Stewardship District in June.

[John Kiernan, Director, President & CEO at Alico]

This represents a crucial step forward in our Corkscrew Grove Villages development project. The enabling legislation received unanimous support from the Collier County Legislation delegation, multiple Florida House committees, the Senate Rules Committee, and both the full Florida House and Senate. The proposal also received unanimous support from the Collier County commissioners. The district will assist ALECO in effectively financing infrastructure, helping restore and manage natural areas, and overseeing the administration of our master planned communities. Following this legislative approval, we appointed a five member Board of Supervisors in August to facilitate collaboration and communications with local, state, and federal government agencies and community stakeholders.

[John Kiernan, Director, President & CEO at Alico]

We also received the first round of comments from the South Florida Water Management District and Collier County regarding our development applications. This feedback is part of the normal regulatory review process, and we're working diligently to address these comments as we advance through the entitlement process. The process remains on track with our expectations, with the final decision by the Collier Board of County Commissioners still anticipated in 2026. Our diversified agricultural operations continue to progress as planned. We've successfully negotiated agreements to lease approximately 5,250 acres to third party citrus growers for next season, and we're in discussions with vegetable and fruit growers who are clearing as many as 500 acres for us this season in lieu of lease payments.

[John Kiernan, Director, President & CEO at Alico]

These arrangements are generating revenue while maintaining productive use of our agricultural lands during our transition period. Our near term real estate development projects, including Corstree Grove Villages, Bonnet Lake, Saddlebag Grove, and Plant World properties continue advancing as planned. These four properties totaling approximately 5,500 acres maintain their estimated present value of between $335,000,000 and $380,000,000 and could be realized within the next five years. This represents significant value for our shareholders from just 10% of our land holdings. With our strategic transformation well underway and our financial position strengthened, we remain confident in our ability to deliver enhanced long term returns for our shareholders.

[John Kiernan, Director, President & CEO at Alico]

Our approach of balancing the development of select high value properties with diversified agricultural operations creates a business model that leverages our core strengths while adapting to market opportunities. I'll now turn it over to our CFO, Brad Heine, to provide more detail on our financial performance.

[Brad Heine, SVP & CFO at Alico]

Thank you, John, and good morning, everyone. For the third fiscal quarter ended 06/30/2025, revenue decreased 38% to $8,400,000 compared to $13,600,000 for the prior year period. For the nine months ended 06/30/2025, revenue decreased 5% to $43,300,000 compared to $45,700,000 for the prior year period. For the three and nine months ended 06/30/2025, Alico citrus harvested approximately two point one million and ten point eight million pound solids of fruit, respectively, compared to four point three million and fourteen point seven million pound solids of fruit in the same periods of the prior fiscal year. As expected, harvest volumes in 2025 were lower compared to 2024 levels, driven by the impact of Hurricane Milton, which hit in Florida in October 2024.

[Brad Heine, SVP & CFO at Alico]

LECO's blended price per pound solid for the three and nine months ended 06/30/2025 increased $0.81 and $0.85 respectively as compared to the same periods in the prior year as a result of more favorable pricing in one of our contracts with Tropicana. As John said, we completed our last major citrus harvest in April and have thus concluded the majority of our capital investment in citrus operations. Land Management and other operations revenue for the three and nine months ended 06/30/2025, increased 5768%, respectively, as compared to the same periods in the prior year. This was primarily the result of an increase in rock and sand royalty income and sod sales, partially offset by lower farming, grazing and hunting lease revenues due to the sale of the Lico Ranch. Total operating expenses for the three and nine months ended 06/30/2025 were $36,400,000 and $229,300,000 respectively, as compared to 17,900,000.0 and $82,400,000 in the same periods in the prior year.

[Brad Heine, SVP & CFO at Alico]

The increase in operating expenses was driven by the decision to wind down our citrus operations and the impairment of our young trees, which were not yet being depreciated. General and administrative expenses for the three and nine months ended 06/30/2025, increased 400,000.0 and $800,000 respectively, as compared to the same periods in the prior year. The increase was primarily due to the acceleration of depreciation on certain administrative assets and higher legal fees, both related to the strategic transformation. Our other income expense for the three months ended 06/30/2025 increased $800,000 compared to the prior year period, driven by sale of approximately six ninety four acres of land in the '5 and a gain of approximately $1,300,000 from the sale of equipment and vehicles as compared to the prior year when we sold seven ninety eight acres of land. Other income expense net for the nine months ended 06/30/2025 decreased $60,000,000 compared to the nine months ended 06/30/2024, principally as a result of fewer acres of land being sold during the nine months ended 06/30/2025, as compared to the prior year period when we sold the Alico Ranch to the State of Florida.

[Brad Heine, SVP & CFO at Alico]

For the three months ended June 2024, the company reported a net loss attributable to Alico common stockholders of $18,300,000 and 2,000,000 respectively. The increase in our net loss was principally the result of accelerated depreciation of approximately $40,700,000 on our citrus trees due to strategic transformation and the decision to wind down our citrus operations, as well as lower revenue due to the impact of Hurricane Milton in October 2024. Partially offsetting this was crop insurance proceeds of $16,000,000 in the current quarter. The increased loss was partially offset by a tax benefit of 7,800,000.0 for the three months ended 06/30/2025. For the three months ended 06/30/2025, the company had a loss of $2.39 per diluted common share compared to a loss of $0.27 per diluted common share for the three months ended 06/30/2024.

[Brad Heine, SVP & CFO at Alico]

For the three months ended 06/30/2025, EBITDA was $19,200,000 compared to $1,300,000 for the three months ended 06/30/2024. For the three months ended 06/30/2025, adjusted EBITDA was $19,300,000 compared to $1,300,000 for the three months ended 06/30/2024. Turning now to our balance sheet and liquidity. Cash and cash equivalents were $42,100,000 as of 06/30/2025, compared to $3,200,000 at the end of fiscal year 2024. Net cash provided by operating activities was $222,800,000 for the nine months ended 06/30/2025, compared to net cash used in operating activities of $18,700,000 for the nine months ending 06/30/2024.

[Brad Heine, SVP & CFO at Alico]

At quarter end, we had 92,500,000 of remaining availability on our line of credit, and there were no significant debt maturities until 2029. Total debt was $85,200,000 and net debt was $43,200,000 as of 06/30/2025, compared to $92,100,000 and $89,000,000 respectively, at the end of fiscal year twenty twenty four. Now I'd like to turn the call back to John to discuss our fiscal year twenty twenty five outlook.

[John Kiernan, Director, President & CEO at Alico]

Thank you, Brad. Let me now share our guidance for fiscal twenty twenty five and where we stand in our transformation journey. We've made substantial strides in our transformation this quarter. And with our final major harvest now complete, we've successfully transitioned from capital intensive citrus production to a diversified land company model. While we continue to have citrus operations from our properties through our roughly 3,800 acres of retained groves and third party growers under lease arrangements, we're no longer making significant capital investments in citrus infrastructure.

[John Kiernan, Director, President & CEO at Alico]

This quarter's $9,300,000 in combined land sales and equipment sales, plus the $16,000,000 crop insurance recovery, demonstrates the strength of our new approach. The legislative approval and establishment of the Corkscrew Grove Stewardship District represents a significant regulatory milestone that validates our development strategy and provides the framework for sustainable community focused growth. With our five member board now appointed and initial regulatory feedback received from the South Florida Water Management District in Collier County, we're advancing steadily through the entitlement process. Everything is progressing as expected, and we remain on track with our previously announced timelines. Our financial productions remain solid.

[John Kiernan, Director, President & CEO at Alico]

We continue to expect approximately $20,000,000 in adjusted EBITDA for fiscal twenty twenty five. We've achieved $23,500,000 year to date in land sales, exceeding our original $20,000,000 guidance. And we believe there is potential to achieve another $25,000,000 before year end. We're positioned to end the fiscal year with approximately at least $25,000,000 in cash and submission liquidity to fund operations through fiscal year twenty twenty seven. What's particularly encouraging is how our diversified agricultural partnerships have been developing alongside our development pipeline.

[John Kiernan, Director, President & CEO at Alico]

Our leasing arrangements with citrus growers and discussions with vegetable and fruit growers are generating revenue while maintaining productive use of our lands during this transition. The transformation we announced in January continues to unfold as planned. We're executing on our strategy to become a diversified land company while maintaining our commitment to responsible stewardship on our 50,500 acre real estate portfolio. With that foundation in place, I'm confident we'll continue delivering on our commitments while building long term value for our shareholders. We look forward to updating you on our continued progress next quarter.

[John Kiernan, Director, President & CEO at Alico]

And with that, we'll open up the line to questions from industry analysts. David?

[Operator]

Absolutely. We'll take our first question from Gerry Sweeney with ROTH Capital. Please go ahead. Your line is open.

[Brandon Rogers, Equity Research Associate at Roth Capital Partners, LLC]

Hi, guys. This is Brandon Rogers on for Jerry Sweeney. Thanks for taking my question.

[John Kiernan, Director, President & CEO at Alico]

Hi, Brandon.

[Brandon Rogers, Equity Research Associate at Roth Capital Partners, LLC]

Alright. So for units, the 23,500,000.0 land sales so far with the potential for 25,000,000 in additional land sales. Are you currently in discussions for those other land sales? And then what is the likelihood you can achieve the 45 plus million in land sales for the year?

[John Kiernan, Director, President & CEO at Alico]

We're basically in a transaction. It has a life and a timetable of its own. There's a diligence and inspection period that's continuing to go on. Right now it's possible that it could close at the end of fiscal twenty twenty five. It's also possible that could roll into fiscal twenty twenty six, but we think it's a good transaction.

[John Kiernan, Director, President & CEO at Alico]

We think it's at a fair value and the timing just is a little bit hazy right now.

[Brandon Rogers, Equity Research Associate at Roth Capital Partners, LLC]

Okay, thank you. And then turning to Corkscrew, construction on the first village to be in 2028, 2029 if all approvals are granted. What are some potential milestones we can watch for between now and the potential entitlement approvals? And then you have, what's the likelihood of the final decision by the Coyer Board of County Commissioners by 2026? And then is there anything that could delay that?

[John Kiernan, Director, President & CEO at Alico]

Okay, so you packed a whole bunch into that one. So let's unpack it. In all of these entitlement projects, there are multiple external variables that the company cannot control. There's all sorts of government reviews, There's additional questioning. We've got some public meetings that'll take place, and all of them have to be scheduled, timed, held.

[John Kiernan, Director, President & CEO at Alico]

Sometimes there's follow ups. So the current timetable that we've articulated in our earnings release, we believe with good confidence based on what we've achieved so far, as well as the visibility into going forward, that yes, we would be on track for the potential securing of the permits, particularly at our corkscrew property on the timeframe that you had described. But some of those are just out of our control. We've done a very good job of basically turning around quickly, of filing efficiently and accurately. We've tried to be very, very transparent with all constituents as we've gone through these entitlement processes, but some of that is just simply out of our control.

[Brandon Rogers, Equity Research Associate at Roth Capital Partners, LLC]

Understood. And then if I can squeeze one more in. Addition to the Coorsgrove stewardship, have you decided if Alika will partner with other groups on development? And then if so, can you give us any additional color on the strategy around bringing the project to permitting, building into market?

[John Kiernan, Director, President & CEO at Alico]

So the permitting process is the entitlement process that we're going through right now. And right now, we're handling that as a solo effort with many, many engineers, consultants, contractors, attorneys, traffic experts, and so on that are really experienced in Collier County and working on projects of this size and scale. We've spoken previously publicly about our strategy to maintain some optionality. At this point, we don't have a need for a partner at this early entitlement stage. We've got substantial resources to kind of navigate that process without requiring additional capital.

[John Kiernan, Director, President & CEO at Alico]

The Stewardship District that was recently approved also gives us an avenue to raise capital should we need to build infrastructure prior to basically transferring the property over to builders or partnering with builders once the entitlement process is complete. So we've spoken previously that we've had conversations with state and national homebuilders, and they certainly are very much aware of the Coorsetry property itself, as well as our expertise and kind of what the entitlement process is expected to deliver and what we're looking to do, because we've got a website up, we've got a lot of the information on that website as far as the Corse River Grove Villages project. But right now there is nothing to basically share with you or the rest of the investor community on any of those other discussions because they're way, way premature. And from the optionality perspective, we haven't made a decision whether we want to go down a path of whether we want to entitle the process and sell the land, whether we want to entitle the process and basically partner with builders, or whether we want to entitle the property and basically build ourselves. At this point, we haven't made a final decision about any of that.

[Brandon Rogers, Equity Research Associate at Roth Capital Partners, LLC]

All right. Thank you, John. I appreciate it. I'll jump back in queue.

[John Kiernan, Director, President & CEO at Alico]

Thanks, Brandon.

[Operator]

We can pause for a moment to allow any further questions to queue. And there are no further questions on the line at this time. I'll turn the program back to John Kiernan for any additional or closing remarks.

[John Kiernan, Director, President & CEO at Alico]

Thank you, David. And I want to say thank you to everyone for your continued support of OEKO as we navigate this exciting transformation. We look forward to updating you about our further progress in the current quarters and delivering our year end results in late November. So thank you, and we'll talk to you soon.

[Operator]

This does conclude today's program. Thank you for your participation, and you may now disconnect.

Participants

Executives

• John Kiernan, Director, President & CEO
• Brad Heine, SVP & CFO

Analysts

• John Mills, Managing Partner at ICR
• Brandon Rogers, Equity Research Associate at Roth Capital Partners, LLC