Alico NASDAQ: ALCO reported higher third-quarter revenue and a return to profitability as the company continued its transition away from citrus operations and toward land management, agricultural leasing and real estate development.
For the three months ended June 30, 2026, Alico recorded total revenue of $9 million, up 7.7% from $8.4 million a year earlier. Net income attributable to common stockholders was $2.1 million, or $0.29 per diluted share, compared with a net loss of $18.3 million, or $2.39 per diluted share, in the prior-year quarter.
Chief Financial Officer Brad Heine said the year-over-year improvement in net income primarily reflected the completion of accelerated depreciation on citrus trees that had affected the prior-year period, as well as increased lease income from land management operations.
Alico said it will no longer report Alico Citrus and Land Management and Other Operations as separate reportable segments following the substantial completion of its citrus wind-down. The company will continue to disclose revenue by activity on its income statement.
Balance sheet strengthens as cash rises
President and Chief Executive Officer John Kiernan said Alico ended the quarter with $55.6 million in cash and cash equivalents, an increase of $17.5 million from fiscal year-end. Net debt declined to $29.8 million from $47.4 million at fiscal year-end.
The increase in cash reflected approximately $35 million in net proceeds from land and equipment sales during the first nine months of the fiscal year. Those proceeds were partly offset by Alico's completed $10 million share repurchase program, a $5.1 million advance to the Corkscrew Grove Stewardship District and a $2 million acquisition related to Citree.
Alico repurchased 245,399 shares under the program, including 38,059 shares during the third quarter. The company also continued to pay its regular common dividend.
At quarter-end, total debt was $85.4 million, essentially unchanged from fiscal year-end. The company reported $92.5 million of available borrowing capacity under its credit facility, working capital of $50.6 million and a current ratio of 7.96-to-1.
Kiernan said the company believes its liquidity is sufficient to support operations through at least fiscal 2029 without additional asset sales.
Lease agreement and Citree acquisition expand land strategy
During and after the quarter, Alico entered into an agricultural lease agreement covering roughly 3,280 acres in Hendry County. The agreement includes an option for the counterparty to purchase the property for $29.5 million, or $9,000 per acre.
The $9,000-per-acre purchase price remains in effect through June 2029 and then escalates annually. Kiernan said the figure is consistent with per-acre values Alico has realized in recent agricultural land sales. The company said the arrangement provides contracted lease income while preserving a potential future sale outcome if the purchase option is exercised.
Alico also acquired the remaining 49% interest in Citree, a joint venture through which it had held a 51% interest in approximately 1,200 acres at Joshua Grove in DeSoto County. The company paid $2 million in cash and assumed sole responsibility for approximately $3.3 million of Citree debt, which had already been included in Alico's consolidated financial statements.
Following the transaction, Alico owns Citree and its Joshua Grove acreage outright. Kiernan said the acquisition simplifies the company's structure and gives it full control over the property’s future reuse.
Corkscrew project advances through permitting
Alico said its Corkscrew Grove East Village project has entered state and federal permitting after receiving local entitlement approval in April. The company said it remains on track for potential construction to begin in 2028 or 2029, subject to approvals from the South Florida Water Management District, the U.S. Army Corps of Engineers and the U.S. Fish and Wildlife Service.
Kiernan also highlighted the company’s commitment to preserve more than 6,000 acres as part of the Corkscrew Grove Villages project, as well as a wildlife underpass partnership with the Florida Department of Transportation.
The company said approximately 98% of its farmable acreage remains leased. Its diversified land-management activities include agricultural leases, sod operations, and rock and sand royalty arrangements.
Guidance raised, though fourth quarter expected to use EBITDA
Alico raised its fiscal 2026 adjusted EBITDA guidance to approximately $15 million from prior guidance of approximately $14 million. It expects to finish the fiscal year with roughly $48 million in cash and net debt of approximately $37 million, with only the minimum required $2.5 million balance remaining on its revolving credit line.
For the first nine months of fiscal 2026, adjusted EBITDA was $24.2 million, compared with $25.3 million a year earlier. EBITDA was $23.7 million, compared with a loss of $2.2 million in the prior-year period.
During the question-and-answer session, Heine addressed why full-year adjusted EBITDA guidance is below the first nine months’ reported adjusted EBITDA. He said much of the year’s revenue had already been earned through the final citrus harvest and beneficial lease income received in the third quarter, while fourth-quarter expenses such as property taxes and general and administrative costs will continue. As a result, he said Alico expects the fourth quarter to be an EBITDA-usage quarter.
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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