Alico NASDAQ: ALCO reported second-quarter fiscal 2026 net income of $11.4 million, or $1.49 per diluted share, as the Florida land and agribusiness company continued to shift away from citrus production and toward land monetization, leasing and development initiatives.
President and Chief Executive Officer John Kiernan said the quarter showed “continued execution” of the company’s strategy, pointing to a major land sale, share repurchases, progress on development entitlements and expanded agricultural leasing. Alico ended the quarter with $52.9 million in cash, which Kiernan said extends the company’s financial runway through fiscal 2028.
For the three months ended March 31, 2026, Alico reported total revenue of $5.2 million, down from $18 million in the prior-year period. For the first six months of fiscal 2026, revenue was $7.2 million, compared with $34.9 million a year earlier. Chief Financial Officer Brad Heine said the decline reflected the ongoing wind-down of citrus operations, which began in 2025. Alico completed its last significant citrus harvest in April 2025.
Despite the revenue decline, Alico’s profitability improved sharply from the year-earlier quarter, when it posted a net loss attributable to common stockholders of $111.4 million, or $14.58 per diluted share. Heine said the improvement was principally driven by the citrus wind-down and a January land sale.
Land sale drives quarterly gain
Alico closed a $26.9 million land sale in January involving approximately 2,950 acres, generating a gain of about $19.8 million. Kiernan said the transaction brought year-to-date land sales to $34.6 million and reflected demand for the company’s Florida properties.
“The transaction reflects the strong demand for our Florida properties and validates our land monetization strategy,” Kiernan said. He added that Alico has approximately 46,000 acres remaining in its Florida portfolio, which he said provides opportunities for land monetization while preserving longer-term development optionality.
During the question-and-answer portion of the call, Roth Capital Partners analyst Gerard Sweeney noted that the January sale implied a price of a little more than $9,100 per acre and asked about the valuation of remaining land. Kiernan said Alico continues to estimate the net present value of its approximately 46,000 acres at between $650 million and $750 million. He said the company had previously used a range of $4,000 to $5,000 per acre for land expected to remain in agricultural use, while recent transactions have occurred in the $9,000 range. Kiernan cautioned that Alico was not saying the entire portfolio is worth $9,000 per acre.
Corkscrew Grove East Village receives local approval
Kiernan highlighted the late-April unanimous approval by the Collier County Board of County Commissioners for Corkscrew Grove East Village as the company’s most significant development milestone during and after the quarter. The approved East Village covers 1,446 acres and authorizes up to 4,502 dwelling units, including 362 affordable housing units for essential workers, along with approximately 238,000 square feet of neighborhood-scale retail and office space.
Kiernan said the project is part of Collier County’s Rural Land Stewardship Area program and is intended to balance development with conservation. As part of the plan, Alico will place nearly 5,000 acres into permanent conservation at no cost to taxpayers. In closing remarks, he also referred to the company’s commitment to preserving more than 6,000 acres of conservation areas for the broader Corkscrew Grove Villages project.
With local approval secured, Kiernan said Alico is working with the South Florida Water Management District, the U.S. Army Corps of Engineers and the U.S. Fish and Wildlife Service on remaining state and federal permits. He said the company remains on a timeline for state approval by early 2027 and federal approval by the end of 2028, supporting potential construction commencement in 2028 or 2029.
Asked how Alico may develop or monetize Corkscrew Grove, Kiernan said the company continues to evaluate several paths, including selling entitled land to national or local homebuilders, partnering with builders, or potentially developing the project with in-house capabilities. He said Alico has “nothing to announce” on which path it will take, but expects to decide within roughly the next year.
Leasing and land management revenue grows
Heine said revenue from land management and other operations increased 113% in the quarter, driven by farm lease and sod revenue. For the six-month period, revenue in the category increased 97%, primarily from farm lease revenue, rock and sand royalties and sod revenue.
Alico said diversified land programs now utilize approximately 97% of its roughly 32,500 farmable acres, representing about 89% of its total 46,000 agricultural acres. Kiernan said the company has agricultural partnerships with citrus growers, farmers, cattle ranchers, mining companies, sugarcane producers and sod farming operations.
“These programs reduce operational complexity while maintaining agricultural use of our land,” Kiernan said.
Balance sheet and capital allocation
Alico reported EBITDA of $16.7 million for the quarter, compared with negative $14.7 million in the prior-year period. Adjusted EBITDA was $16.9 million, compared with $12.7 million a year earlier. Heine said the positive EBITDA generation validates the cash-generating capability of the company’s transformed operating model.
Cash and cash equivalents rose to $52.9 million from $38.1 million at fiscal year-end. Heine said the increase reflected the January land sale, partially offset by $8.4 million in share repurchases during the quarter and operational uses of cash. Total debt was $85.5 million, and net debt was $32.6 million at quarter end, down from $47.4 million at fiscal year-end. Alico also had approximately $92.5 million available under its credit facility.
Through April 2026, Alico repurchased 245,399 shares for $10 million under its 10b5-1 share repurchase program. Kiernan said the repurchases reflected a balanced approach to capital allocation and the company’s confidence in the embedded value of its portfolio.
Alico maintained its fiscal 2026 guidance for adjusted EBITDA of approximately $14 million. The company updated its year-end cash guidance to approximately $40 million and net debt guidance to approximately $45 million, reflecting the completed $10 million share repurchase program through April.
Kiernan said the company’s priorities for fiscal 2026 remain focused on optimizing agricultural operations, advancing development projects through entitlement processes, balancing investment with shareholder returns and maintaining financial flexibility.
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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