Alico Q1 Earnings Call Highlights

Key Points

• Financials improved: Alico posted Q1 land sales of $7.7 million, reduced net loss to $3.5 million (from $9.2M a year ago) and reported positive EBITDA, while guiding to an FY26 adjusted EBITDA of about $14 million and an expected year-end cash balance near $50 million with net debt around $35 million.
• Strategic shift to land monetization: Management is winding down capital‑intensive citrus (Q1 citrus revenue $0.9 million) while growing Land Management revenue (+77%), achieving 97% utilization of ~32,500 farmable acres and closing a ~2,950‑acre grove sale for $26.8 million (YTD land sales ~$34.5 million).
• Development pipeline advancing: The Corkscrew Grove stewardship district was approved and four near‑term projects (~5,500 acres) carry an estimated present value of $335–$380 million; Alico expects a Collier County decision in 2026 with potential construction "as early as 2028," contingent on federal permits.

Alico NASDAQ: ALCO executives told investors the company’s first quarter fiscal 2026 results and a series of post-quarter transactions reflect “momentum” in its land monetization and land utilization strategy, with improved profitability metrics, higher farmable-acre utilization, and additional progress on its real estate development pipeline.

First-quarter land sales, improved loss, and positive EBITDA

President and CEO John Kiernan said Alico generated $7.7 million in land sales during the first quarter, citing “strong demand for our strategically located Florida properties.” He also said the company’s net loss improved to $3.5 million from a $9.2 million loss in the prior-year period, and that Alico produced positive EBITDA of $2.4 million, compared with negative $6.7 million a year ago.

Chief Financial Officer Brad Heine added that the company reported total revenue of $1.9 million for the three months ended Dec. 31, 2025, down from $16.9 million in the prior-year period. Heine said the decline primarily reflected the “substantial conclusion” of Alico’s citrus business.

Heine reported that net loss attributable to common stockholders was $3.5 million, or $0.45 per diluted share, compared with $9.2 million, or $1.20 per diluted share, in the prior-year quarter. He also said adjusted EBITDA was $2.7 million, compared with negative $6.7 million last year.

Citrus wind-down and growth in land management revenue

Management emphasized Alico’s shift away from capital-intensive citrus production. Heine said the Alico Citrus segment generated $0.9 million in revenue and recorded a $6.5 million gross loss in the quarter, compared with $16.3 million in revenue and an $8.8 million gross loss in the prior-year period.

While citrus activity continued on a residual basis, Heine described the reduced scale as evidence of a successful exit from citrus production. He also said Land Management and Other Operations revenue increased 77%, driven by higher rock and sand royalties and farming lease revenue, which he characterized as a reflection of diversified revenue streams established through agricultural partnerships.

Leasing, utilization, and post-quarter transactions

Kiernan highlighted several updates after quarter end, including progress on leasing and a major grove sale:

• 10-year lease with Bayer Crop Science to establish an agricultural research station on 100 acres at Alico’s TRB property in Charlotte County.
• Following new lease agreements signed in January, Alico said it reached 97% utilization of its approximately 32,500 farmable agricultural acres.
• Alico closed on the sale of an additional large citrus grove of approximately 2,950 acres for $26.8 million, leaving the company with an approximately 46,000-acre Florida portfolio.

Heine said Alico’s first-quarter land sales produced a gain of approximately $4.9 million. He also stated that, year to date through January 2026, the company had achieved $34.5 million in total land sales.

Balance sheet, liquidity, and updated full-year guidance

Management pointed to a strengthened balance sheet and liquidity position. Kiernan said the company ended the quarter with $34.8 million in cash and reduced operating complexity. Heine added that the company’s current ratio improved to 14.39 to 1 and that total debt was $85.5 million, with net debt of $50.7 million at quarter end.

Heine said Alico had $92.5 million available under its credit facility and a minimum liquidity requirement of $5.8 million. Net cash used in operating activities improved to $5.5 million from $7.6 million in the prior-year period, which he attributed to better operational efficiency.

Looking ahead, Heine provided updated guidance for fiscal 2026, stating the company expects adjusted EBITDA of approximately $14 million for the full year. From a balance-sheet perspective, he said Alico anticipates ending fiscal 2026 with approximately $50 million in cash, reducing net debt to approximately $35 million by year-end, with only the minimum required $2.5 million remaining on its revolving credit facility.

Heine noted that these projections reflect the company’s current operational plan and said potential capital returns—including increased dividends, special distributions, share repurchases, or tender offers—could change ending cash and net debt versus the “base case” outlook.

Development pipeline and approvals timeline

Kiernan said Alico’s development pipeline was advancing “on schedule,” led by Corkscrew Grove Villages, which he called the “crown jewel” of the portfolio. He highlighted the establishment of the Corkscrew Grove Stewardship District, which he said was approved unanimously by the Florida Legislature and provides a framework to finance infrastructure, restore and manage natural areas, and oversee administration of master planned communities.

He also reiterated Alico’s previously announced partnership with the Florida Department of Transportation tied to the State Road 82 expansion, including a $5 million investment to design and construct a wildlife underpass.

Management said it remains on track for an anticipated final decision from Collier County in 2026, with potential construction beginning “as early as 2028.” In response to an analyst question about timing, Kiernan said the company has not pinned down a specific quarter and noted it does not control the local calendar, but said that from a fiscal-year perspective, “by the end of September” is “not an unreasonable assumption.”

Kiernan said four near-term real estate development projects—Corkscrew Grove Villages, Bonnet Lake, Saddlebag Grove, and Plant World—total about 5,500 acres and maintain an estimated present value of $335 million to $380 million, which he said the company hopes to realize within five years. He also reiterated the company’s broader land allocation view: approximately 25% of land identified for strategic development and 75% for diversified agriculture.

During Q&A, Kiernan said Alico expects federal approvals from the Army Corps of Engineers and Fish and Wildlife to take the longest, adding that “nothing really happens until all those approvals are realized and a permit can be issued.” He also said discussions with national homebuilders and other developers occur in the regular course of business, but that nothing has been negotiated or solidified.

Management also reiterated its focus on shareholder returns, noting that since 2015 Alico has returned more than $190 million to shareholders through dividends, share repurchases, and voluntary debt reduction. Kiernan cited an internal NPV analysis valuing the land portfolio between $650 million and $750 million, compared with what he described as a market capitalization around $320 million during the call.

About Alico NASDAQ: ALCO

Alico, Inc is an agribusiness and land management company headquartered in Fort Myers, Florida. The company owns and manages over 110,000 acres of land in southwestern Florida, with operations focused on citrus groves, sugarcane production, forestry and other row crops. Alico leverages its extensive land holdings to support integrated agricultural and environmental stewardship practices.

In its citrus division, Alico cultivates and markets fresh oranges for both the retail and processing markets, while its sugarcane segment supplies raw cane to domestic sugar mills.

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