Core Insights - Alico, Inc. (Nasdaq: ALCO) has successfully transitioned from a citrus-focused model to a land-centric operating model, resulting in a strong start to the year with significant earnings improvement [1] Financial Performance - In the first quarter, ALCO generated $7.7 million from land sales and improved adjusted EBITDA from negative $6.7 million a year earlier to $2.7 million [2] - Year-to-date land monetization reached $34.5 million through January 2026, enhancing liquidity and reducing earnings volatility [2] Operational Stability - Approximately 97% of ALCO's 32,500 farmable acres are now leased, contributing to operational stability [3] - Diversified land management programs, including farming leases, grazing, mining royalties, and sod, cover about 89% of total agricultural acreage, providing recurring cash flows with lower capital intensity [3] Development Pipeline - The Corkscrew Grove Villages project has received legislative approval for its stewardship district, with a local county entitlement decision expected in 2026 and potential construction starting in 2028 or 2029 [4] - Four priority development projects, representing about 10% of the land base, are estimated to hold a present value of $335 million to $380 million, indicating significant long-term upside potential [4] Future Outlook - The focus for 2026 is on continued cash generation and balance-sheet flexibility, with adjusted EBITDA expected to reach approximately $14 million and cash balances potentially rising to around $50 million by year-end [5] - Despite potential fluctuations in quarterly results due to episodic land sales, the company's strengthened liquidity and diversified land income streams position it for sustained earnings growth and incremental value recognition [5]

Core Viewpoint - Alico is transitioning away from capital-intensive citrus production towards land monetization and management, reflecting improved profitability metrics and a focus on real estate development opportunities [5][7][21] Financial Performance - Alico reported total revenue of $1.9 million for Q1 fiscal 2026, a significant decline from $16.9 million in the prior-year period, primarily due to the conclusion of its citrus business [3] - The net loss attributable to common stockholders was $3.5 million, or $0.45 per diluted share, an improvement from a net loss of $9.2 million, or $1.20 per diluted share, in the prior-year quarter [2][4] - Adjusted EBITDA for the quarter was $2.7 million, compared to negative $6.7 million in the previous year [2] Land Sales and Utilization - Alico generated $7.7 million in land sales during the first quarter, with year-to-date land sales totaling approximately $34.5 million [4][10] - The company achieved 97% utilization of its approximately 32,500 farmable acres, reflecting a strategic shift towards land management [7][12] Development Pipeline - The Corkscrew Grove stewardship district was approved, with four near-term projects covering about 5,500 acres and an estimated present value of $335–$380 million [6][19] - Alico anticipates a decision from Collier County in 2026, with potential construction starting as early as 2028, contingent on federal permits [6][19] Balance Sheet and Liquidity - Alico ended the quarter with $34.8 million in cash and a current ratio of 14.39 to 1, with total debt at $85.5 million and net debt at $50.7 million [13][14] - The company expects to end fiscal 2026 with approximately $50 million in cash and reduce net debt to around $35 million [15] Shareholder Returns - Since 2015, Alico has returned over $190 million to shareholders through dividends, share repurchases, and voluntary debt reduction [21]

Financial Data and Key Metrics Changes - In Q1 2026, the company reported total revenue of $1.9 million, a significant decrease from $16.9 million in the prior year period, primarily due to the conclusion of its citrus business [15] - The net loss improved to $3.5 million, or $0.45 per diluted share, compared to a net loss of $9.2 million, or $1.20 per diluted share in the prior year [16] - Positive EBITDA of $2.4 million was achieved, compared to negative $6.7 million in the prior year, marking a $9.1 million improvement [16] - The balance sheet remains strong with $34.8 million in cash and cash equivalents at quarter end, and a current ratio of 14.39 to 1, indicating exceptional financial flexibility [17] Business Line Data and Key Metrics Changes - The Alico Citrus segment generated $0.9 million in revenue with a gross loss of $6.5 million, down from $16.3 million in revenue and an $8.8 million gross loss in the prior year [15] - Land Management and Other Operations revenue increased by 77%, driven by higher rock and sand royalties and farming lease revenue [16] Market Data and Key Metrics Changes - The company achieved $7.7 million in land sales during the quarter, contributing to a total of $34.5 million in land sales year-to-date through January 2026 [17] - The market capitalization of Alico is approximately $320 million, while the management's NPV analysis values the land portfolio between $650 million and $750 million, indicating a significant valuation disconnect [21] Company Strategy and Development Direction - Alico's strategy focuses on land monetization and utilization, with a commitment to responsible land stewardship [4] - The company is advancing its development pipeline, particularly the Corkscrew Grove Villages project, which is expected to begin construction as early as 2028 [8] - Alico aims to optimize agricultural operations while balancing capital allocation with shareholder returns [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial stability built through strategic transformation, highlighting the positive EBITDA generation and strong balance sheet [19] - The anticipated decision from Collier County regarding the Corkscrew Grove Villages entitlement process is expected in 2026, with a focus on securing necessary approvals [13] Other Important Information - Alico has returned over $190 million to shareholders since 2015 through dividends, share repurchases, and voluntary debt reduction [10] - The company maintains a balanced portfolio approach, with 75% of land used for agricultural activities and 25% identified for strategic development [9] Q&A Session Summary Question: Timing for Corkscrew Grove Villages approval - Management indicated that the approval could be expected by the end of September 2026, but local calendar control is not in their hands [25] Question: Next steps post-approval for Corkscrew - Management noted that conversations with national home builders and developers are ongoing, but no agreements have been finalized yet [26] Question: Cash flow from farmland utilization - Management stated that they have not provided additional forecasted information regarding cash flow from farmland utilization but will consider it for future updates [27][28]

Financial Data and Key Metrics Changes - In the first quarter of fiscal 2026, the company reported total revenue of $1.9 million, a decrease from $16.9 million in the prior year period, primarily due to the conclusion of its citrus business [14] - The net loss improved to $3.5 million or $0.45 per diluted share, compared to a net loss of $9.2 million or $1.20 per diluted share in the prior year [15] - Positive EBITDA of $2.4 million was achieved, compared to negative $6.7 million in the prior year, marking a $9.1 million improvement [15] - The balance sheet remains strong with $34.8 million in cash and cash equivalents at quarter end, and a current ratio of 14.39 to 1 [16] Business Line Data and Key Metrics Changes - The Alico Citrus segment generated $0.9 million in revenue with a gross loss of $6.5 million, down from $16.3 million in revenue and an $8.8 million gross loss in the prior year [14] - Revenue from land management and other operations increased by 77%, driven by higher rock and sand royalties and farming lease revenue [15] Market Data and Key Metrics Changes - The company achieved $7.7 million in land sales during the quarter, contributing to a total of $34.5 million in land sales year-to-date through January 2026 [16][17] - The management's NPV analysis values the land portfolio between $650 million and $750 million, while the current market capitalization is approximately $320 million [10][21] Company Strategy and Development Direction - The company is focused on land monetization and utilization strategy, with a commitment to responsible land stewardship [5][7] - The establishment of the Corkscrew Grove Stewardship District is a significant regulatory milestone that supports sustainable, community-focused growth [8] - The company aims to optimize agricultural operations while advancing residential and commercial development projects [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial stability built through strategic transformation and highlighted the potential for significant value creation from the land portfolio [18][21] - The company anticipates ending fiscal year 2026 with approximately $50 million in cash and reducing net debt to about $35 million [17][18] Other Important Information - Alico has returned over $190 million to shareholders since 2015 through dividends, share repurchases, and voluntary debt reduction [10] - The company maintains a balanced portfolio approach, with 75% of land used for agricultural activities and 25% identified for strategic development [9] Q&A Session Summary Question: Timing for Corkscrew approval - Management indicated that the approval could be expected by the end of September 2026, but local calendar control is not guaranteed [25] Question: Next steps post-approval for Corkscrew - Management noted that conversations with national home builders and developers are ongoing, but no agreements have been finalized [26] Question: Cash flow from farmland utilization - Management stated that they have not provided additional forecasted information regarding cash flow from farmland utilization but will consider providing clarity in future calls [27][28]

Financial Data and Key Metrics Changes - The company reported total revenue of $1.9 million for Q1 2026, a significant decrease from $16.9 million in the prior year period, primarily due to the conclusion of its citrus business [16] - The net loss improved to $3.5 million or $0.45 per diluted share, compared to a net loss of $9.2 million or $1.20 per diluted share in the prior year [17] - Positive EBITDA of $2.4 million was achieved, compared to negative $6.7 million in the prior year, marking a $9.1 million improvement [17] - The balance sheet remains strong with $34.8 million in cash and cash equivalents at quarter end, and a current ratio of 14.39 to 1 [18] Business Line Data and Key Metrics Changes - The Alico Citrus segment generated $0.9 million in revenue with a gross loss of $6.5 million, down from $16.3 million in revenue and an $8.8 million gross loss in the prior year [16] - Land management and other operations revenue increased by 77%, driven by higher rock and sand royalties and farming lease revenue [17] Market Data and Key Metrics Changes - The company achieved $7.7 million in land sales during the quarter, contributing to a total of $34.5 million in land sales year-to-date through January 2026 [19] - The management's NPV analysis values the land portfolio between $650 million and $750 million, while the current market capitalization is approximately $320 million [11][22] Company Strategy and Development Direction - The company is focused on land monetization and utilization strategy, with a commitment to responsible land stewardship [5][7] - Alico is advancing its development pipeline, particularly the Corkscrew Grove Villages project, which is expected to begin construction as early as 2028 [9][10] - The company aims to optimize agricultural operations while balancing capital allocation with shareholder returns [12][13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial stability built through strategic transformation, highlighting the positive EBITDA generation and strong balance sheet [20] - The company anticipates ending fiscal year 2026 with approximately $50 million in cash and reducing net debt to about $35 million [20] Other Important Information - Alico has entered into a ten-year lease with Bayer Crop Science for an agricultural research station, achieving 97% utilization of its farmable agricultural acreage [6][7] - The company has returned over $190 million to shareholders since 2015 through dividends, share repurchases, and voluntary debt reduction [11] Q&A Session Summary Question: Timing for Corkscrew Grove Villages approval - Management indicated that the approval could be expected by the end of September 2026, but local calendar control is not in their hands [26] Question: Next steps after approval for Corkscrew - Management mentioned that conversations with national home builders and developers are ongoing, but no agreements have been finalized yet [27] Question: Cash flow from farmland utilization - Management stated that they have not provided additional forecasted information regarding cash flow from farmland utilization but will take the request offline for future clarity [28]

Financial Performance - Total operating revenues for the three months ended December 31, 2025, were $1,887,000, a decrease of 88.8% compared to $16,894,000 for the same period in 2024[17]. - Alico Citrus segment reported revenues of $883,000, down from $16,326,000 year-over-year, indicating a significant decline in performance[17]. - The net loss attributable to Alico, Inc. common stockholders for the three months ended December 31, 2025, was $3,481,000, compared to a net loss of $9,167,000 for the same period in 2024[17]. - Loss per common share for the three months ended December 31, 2025, was $0.45, an improvement from $1.20 in the prior year[17]. - For the three months ended December 31, 2025, Alico reported a net loss of $3,595,000, a decrease from a net loss of $9,251,000 in the same period of 2024[23]. - The Company recorded a gross loss of $5,554,000 for the three months ended December 31, 2025, compared to a gross loss of $8,238,000 for the same period in 2024[92]. Assets and Liabilities - Total assets decreased to $194,962,000 as of December 31, 2025, down from $201,527,000 at September 30, 2025[15]. - Total liabilities decreased to $90,498,000 from $93,533,000, indicating a reduction of 3.3%[15]. - Alico's total stockholders' equity decreased to $104,464,000 from $107,994,000, a decline of 3.5%[15]. - The Company’s long-term debt as of December 31, 2025, was $82,751,000, slightly down from $82,797,000 as of September 30, 2025[77]. - The Company’s total accrued liabilities decreased to $2,428,000 as of December 31, 2025, from $4,563,000 as of September 30, 2025[75]. Cash and Cash Equivalents - Cash and cash equivalents were $34,756,000, down from $38,128,000, reflecting a decrease of 8.5%[15]. - Cash and cash equivalents at the end of the period were $34,756,000, down from $38,128,000 at the end of September 2025[44]. - Net cash used in operating activities for the three months ended December 31, 2025, was $5,469,000, compared to $7,597,000 in the same period of 2024[23]. - The company had total receivables relating to sales of citrus of $591,000 as of December 31, 2025[34]. Strategic Initiatives - Alico announced a Strategic Transformation to wind down its Alico Citrus division due to financial challenges, focusing on diversified land usage and real estate development[25]. - The company sold approximately 600 acres of land for $7,653 during the three months ended December 31, 2025, with no land sales reported in the same period of 2024[70]. - The company had an agreement to sell approximately 2,950 acres of citrus land for $26,859, which translates to $9,110 per acre, with the sale completed on January 14, 2026[69]. Operating Expenses - Total operating expenses decreased to $7,441,000 from $25,132,000, reflecting a reduction of 70.4%[17]. - The Company accrued severance costs of $309,000 for four employees during the three months ended December 31, 2025[76]. - Interest expense for the three months ended December 31, 2025, was $965,000, compared to $898,000 for the same period in 2024[78]. - The Company recorded operating lease costs of $37,000 for the three months ended December 31, 2025, consistent with the previous year[96]. Stockholder Information - The company declared cash dividends of $0.05 per common share for the quarter[17]. - The weighted average common shares outstanding for the three months ended December 31, 2025, were 7,652, compared to 7,633 for the same period in 2024, showing a slight increase[48]. - Stock-based compensation expense for the Board of Directors was $110,000 for the three months ended December 31, 2025, compared to $119,000 in the same period of 2024[99]. - Total stock-based compensation expense for the three months ended December 31, 2025, was $176,000, slightly down from $179,000 in 2024[106]. Tax and Regulatory Matters - The effective tax rate for the three months ended December 31, 2025, was a benefit of 14.3%, differing from the Federal Statutory rate of 21.0% due to a change in the valuation allowance[85]. - The company expects to adopt ASU 2023-09 regarding income tax disclosures effective October 1, 2025, which will not impact its results of operations or financial condition[62]. Inventory and Assets Held for Sale - As of December 31, 2025, total inventories amounted to $4,624, an increase from $4,220 as of September 30, 2025, primarily due to unharvested fruit crop on the trees valued at $4,184[67]. - As of December 31, 2025, the carrying value of assets held for sale was $6,321, down from $9,176 as of September 30, 2025[69]. - The estimated useful life of the Company's citrus trees was changed to approximately 3.50 years, resulting in a net reduction in depreciation of $205,000 for the three months ended December 31, 2025[74]. Subsidiary Performance - Citree, a less-than-100%-owned subsidiary, reported net losses of $233 for the three months ended December 31, 2025, with 51% attributable to the company[61]. - The company has no significant customer concentration as Tropicana is no longer a customer following a Mutual Contract Termination Agreement in May 2025[52].

Core Insights - Alico, Inc. reported a net loss of $3.5 million for the first quarter ended December 31, 2025, an improvement from a net loss of $9.2 million in the same period last year, indicating a positive trend in financial performance [2][3][4] - The company achieved $7.7 million in land sales during the first quarter, contributing to a total of $34.5 million in land sales year-to-date through January 2026, reflecting strong demand for its Florida properties [1][2] - Alico's farmable land utilization reached 97% following the completion of lease agreements in January 2026, showcasing effective land management strategies [1][11] Financial Performance - Total revenue for the first quarter was $1.9 million, a significant decrease of 88.8% compared to $16.9 million in the prior year [3][34] - EBITDA for the quarter was $2.4 million, compared to a negative EBITDA of $6.7 million in the previous year, indicating improved operational efficiency [3][5] - Adjusted EBITDA was reported at $2.7 million, also reflecting a substantial turnaround from the previous year's negative figure [5][42] Land Management and Operations - The Alico Citrus segment reported operating revenues of $0.9 million, down from $16.3 million in the prior year, as the company winds down its citrus operations [7][8] - Land Management and Other Operations saw a revenue increase of 76.8% compared to the same period last year, driven by higher rock and sand royalties and farming lease revenue [9] - The company has diversified its land management programs, creating multiple revenue streams from agricultural partnerships, which now utilize approximately 89% of its total agricultural acres [12] Strategic Development - Alico is advancing its development pipeline with the Corkscrew Grove Villages project, which is expected to receive a decision from Collier County in 2026 [2][17] - The project aims to develop approximately 4,660 acres into two villages with a total of around 9,000 homes and significant commercial space, aligning with sustainable growth initiatives [17][21] - Alico's commitment to responsible land stewardship is evident through its conservation efforts, having sold over 46,800 acres for environmental protection [20] Balance Sheet and Liquidity - As of December 31, 2025, Alico reported $34.8 million in cash, with a current ratio of 14.39 to 1, indicating strong liquidity [2][15] - Total debt stood at $85.5 million, with net debt at $50.7 million, reflecting a slight increase from the previous quarter [15][43] - The company has available borrowings under its line of credit amounting to approximately $92.5 million, providing additional financial flexibility [15]

Financial Performance - Alico reported a net loss of $3.5 million for Q1 2026, an improvement of 62.0% from a net loss of $9.2 million in Q1 2025[4]. - Revenue for Q1 2026 was $1.9 million, down 88.8% from $16.9 million in Q1 2025, primarily due to the wind-down of citrus operations[4]. - EBITDA for Q1 2026 was $2.4 million, compared to a negative EBITDA of $6.7 million in the prior year, indicating a significant turnaround in financial performance[5]. - Alico reported total operating revenues of $1,887,000 for the three months ended December 31, 2025, a decrease of 88.8% compared to $16,894,000 for the same period in 2024[32]. - The gross loss for the quarter was $5,554,000, compared to a gross loss of $8,238,000 in the prior year, indicating an improvement in operational efficiency[32]. - Net loss attributable to Alico, Inc. common stockholders was $3,481,000, a reduction from a net loss of $9,167,000 in the same quarter of 2024, reflecting a 62% improvement[32]. - EBITDA for the three months ended December 31, 2025, was $2.412 million, a significant improvement from a negative EBITDA of $6.672 million in the prior year[37]. - Adjusted EBITDA for the same period was $2.721 million, reflecting a recovery from the previous year's negative Adjusted EBITDA of $6.672 million[37]. Cash and Debt Position - Alico's cash position was $34.8 million as of December 31, 2025, with a current ratio of 14.39 to 1[16]. - Cash and cash equivalents at the end of the period were $34,756,000, down from $38,128,000 at the end of the previous quarter[31]. - Alico's total debt was $85.5 million at December 31, 2025, with net debt increasing to $50.7 million from $47.4 million at the end of the previous quarter[16]. - Alico's net debt as of December 31, 2025, was $50.745 million, an increase from $47.419 million as of September 30, 2025[38]. - Total debt as of December 31, 2025, was $85.501 million, with cash and cash equivalents of $34.756 million deducted to arrive at net debt[38]. - Long-term debt, net, was reported at $82.751 million as of December 31, 2025, slightly down from $82.797 million as of September 30, 2025[38]. - The company has a current portion of long-term debt of $250,000, consistent across the reporting periods[38]. Land Management and Operations - Alico achieved 97% utilization of its farmable land, following new lease agreements signed in January 2026[11]. - The company completed $7.7 million in land sales during Q1 2026, contributing to a total of $34.5 million in land sales year-to-date through January 2026[2]. - Land Management and Other Operations revenue increased by 76.8% year-over-year, driven by higher rock and sand royalties and farming lease revenue[9]. - The company is advancing its Corkscrew Grove Villages development, with a decision from Collier County expected in 2026[3]. Strategic Outlook - The company expects to achieve Adjusted EBITDA of approximately $14 million for fiscal year 2026, with an anticipated cash balance of $50 million by year-end[22]. - The company anticipates a strategic transformation focusing on land development and diversified agricultural operations, aiming to enhance long-term shareholder value[25]. - Alico's strategic transformation aims to provide a clearer view of core operating results through revised financial metrics[35]. - The company emphasizes the importance of non-GAAP measures like EBITDA and Adjusted EBITDA to evaluate operational performance and liquidity[36].

Core Insights - Alico (ALCO) owns approximately 50,000 acres of land in Florida, strategically located in areas experiencing high population growth [1] - The company has decided to cease its citrus cultivation operations due to challenges such as crop diseases and hurricanes, indicating a significant shift in its business strategy [1] Company Overview - Alico's land holdings are positioned in regions with increasing population density, which may present future development opportunities [1] - The termination of citrus operations suggests a pivot towards alternative agricultural or land development ventures, reflecting adaptability in response to environmental challenges [1]

Core Viewpoint - Alico, Inc. will release its financial results for the first quarter ended December 31, 2025, on February 4, 2026, after market close [1] Financial Results Announcement - The financial results will be discussed in a conference call on February 5, 2026, at 8:30 am Eastern Time [2] - Interested parties can join the call by dialing specific numbers for the United States and international participants [2] Conference Call Details - A telephone replay of the conference call will be available approximately three hours after the call concludes, lasting until February 19, 2026 [3] - Specific dial-in numbers and a passcode for the playback are provided for both U.S. and international listeners [3] Company Overview - Alico, Inc. is a Florida-based agribusiness and land management company with over 125 years of experience [4] - The company operates approximately 49,537 acres across 8 Florida counties as of September 30, 2025, focusing on strategic land development and diversified agricultural operations [4] - Alico aims to create long-term shareholder value while maintaining a commitment to responsible land stewardship and conservation [4]