Pure Cycle reiterated its fiscal 2026 guidance range of $26 million to $30 million in revenue and $0.43 to $0.52 in earnings per share. In the Q&A, Harding and his team said the breadth of the guidance range is largely driven by variability in industrial water sales to oil and gas operators, which management characterized as high-margin but timing-dependent.Management said the results put the company ahead of its internal forecast: Harding noted that through the first quarter, Pure Cycle achieved about a th ...

Financial Data and Key Metrics Changes - The company reported a record-setting first quarter with revenues exceeding $9 million and gross profits of approximately $6.2 million, achieving about a third of its fiscal year forecast [6][25]. - Net income and earnings per share saw significant increases, with year-to-date results ahead of guidance, achieving about 37% of the full-year guidance [6][25]. Business Segment Data and Key Metrics Changes - The land development segment showed strong performance, particularly with the completion of Phase 2C and ongoing work on Phase 2D, which is about 80% complete and ahead of schedule [5][14]. - The water utility segment experienced strong customer growth with a 22% compound annual growth rate (CAGR) in recurring revenue, although it was softer than normal due to timing issues with building permits and oil and gas deliveries [9][10]. - The single-family rental segment has 19 homes completed and rented, with another 40 units under contract, indicating a steady growth in recurring revenues [21][22]. Market Data and Key Metrics Changes - The company operates in a growing area of the Denver metropolitan region, with significant development occurring around the Lowry Ranch, which is expected to enhance the company's asset value [20][61]. - Home prices in the Sky Ranch area have appreciated by 30%-40% since the initial phases, indicating strong demand and market performance despite broader market challenges [42][43]. Company Strategy and Development Direction - The company aims to continue diversifying its activities across land development, water utilities, and single-family rentals, focusing on building a recurring revenue base and fortifying its balance sheet [4][24]. - Future growth is anticipated to come from the completion of the interchange project, which is expected to unlock additional commercial opportunities and enhance overall revenue streams [27][63]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing construction projects and the potential for increased oil and gas revenues as operators begin fracking later in the year [10][11]. - The company is cautious about water acquisitions, preferring strategic opportunities that complement its existing portfolio, while being more aggressive in land acquisitions [35][36]. Other Important Information - The company has a strong balance sheet and continues to invest in its business lines to create shareholder value [4][24]. - The company is exploring opportunities for data centers in the Sky Ranch area, leveraging its water availability to attract high water-use customers [40][41]. Q&A Session Summary Question: What should be the estimated earnings range for fiscal 2027? - Management indicated that fiscal 2027 will be influenced by Phase 2E and the interchange construction, suggesting it may not be a breakout year but will set the stage for future growth [31][32]. Question: What are the opportunities for water acquisition? - Management stated that while they have a strong water portfolio, any acquisitions would need to be strategic and adjacent to existing assets [35][36]. Question: What is the outlook for land acquisitions? - Management expressed optimism about land acquisition opportunities, noting more active conversations with landowners compared to previous years [37]. Question: What is the potential for data centers in the area? - Management highlighted the advantages of Sky Ranch for data centers due to water availability and proximity to infrastructure, indicating ongoing discussions with potential users [40][41]. Question: What is the current trend in home price appreciation in the Denver market? - Management reported strong appreciation in home values in Sky Ranch, with average increases of 30%-40% for earlier phases, driven by demand and community amenities [42][43].

Financial Performance - Q1 2026 net income increased approximately 16% to $46 million, and EPS increased approximately 19% to $019, reflecting higher profitability year over year[19] - As of Q1 2026, approximately 31% of the full-year revenue forecast and 32% of the gross profit forecast have been achieved[26] - As of Q1 2026, approximately 37% of the full-year net income and EPS forecasts have been achieved[30] Water & Wastewater Utilities - Recurring water and wastewater revenue increased approximately 26% from Q1 2024 to Q1 2026[38] - The company estimates its portfolio can serve approximately 60000 connections, generating approximately $23 billion in revenues based on current rates[50] - To date, the company has added around 1695 connections, representing 28% of its overall capacity[50] Land Development - Phase 2C is 89% complete by Q1 2026, with all $173 million revenue payments received[54] - Phase 2D is 65% complete by Q1 2026, with $45 million milestone payments received and $145 million remaining for FY26[55] - Quarter-over-quarter land development revenue increased to $65 million in Q1 2026[57] Single-Family Rentals - Single-family rental revenue increased approximately 20% from Q1 2024 to Q1 2026[85] - The company has completed 19 rental units at Sky Ranch, which are now fully leased[83] - The company has 40 additional homes under contract, with occupancy expected through FY2026[83] Capital Position - As of Q1 '26, the company has $239 million in cash and restricted cash and a $518 million Note Receivable[13] - The company's water rights portfolio supports up to 60000 connections[100]

Core Viewpoint - Alico, Inc. will present at the Noble Capital Markets 21st Annual Emerging Growth Equity Conference on December 3, 2025, highlighting its strategic transformation and growth opportunities in agribusiness and land management [1][2]. Company Overview - Alico, Inc. is a Florida-based agribusiness and land management company with over 125 years of experience [3]. - The company operates approximately 49,537 acres across 8 Florida counties, focusing on strategic land development and diversified agricultural operations [3]. - Alico aims to create long-term shareholder value while maintaining a commitment to responsible land stewardship and conservation [3].

Summary of Pure Cycle Corporation Conference Call Company Overview - **Company Name**: Pure Cycle Corporation - **Ticker**: PCYO - **Industry**: Water and Wastewater Management, Land Development Key Points and Arguments 1. **Leadership Team**: The company boasts a strong leadership team with extensive experience in water management and land development, including a CFO with a background in audit and a VP of Engineering with over 40 years in the field [2][3][4] 2. **Business Segments**: Pure Cycle operates in three primary segments: water and wastewater services, land development, and single-family rentals [4][5] 3. **Water Rights Portfolio**: The company holds a valuable portfolio of water rights in Denver, Colorado, with a modest cost basis of $14.5 million, which has appreciated significantly over 35 years [5][9] 4. **Revenue Potential from Water Services**: The company can serve approximately 60,000 residential units with its water rights, generating potential top-line revenue of about $2.5 billion from connection fees, with a construction cost of around $1 billion [10][12] 5. **Land Development**: Pure Cycle is a master-planned community developer, delivering lots to national homebuilders and retaining some for its own rental portfolio. The company has delivered about 1,000 lots, generating approximately $80 million in sales [6][17] 6. **Single-Family Rentals**: The company is building single-family homes, with plans to maintain about 10% of the overall community in its portfolio, aiming for a total of 300 rental units [20][22] 7. **Financial Position**: Pure Cycle has a strong balance sheet with $60 million in liquidity and minimal debt of $7 million, primarily used for financing construction [7][8][22] 8. **Market Position**: The company focuses on entry-level homes, which are in high demand, and anticipates growth in customer accounts to 2,500-3,000 over the next three to five years [22][23] 9. **Growth Outlook**: The company plans to complete the Sky Ranch project, which includes 5,000 single-family units, within the next five years, while also increasing its rental portfolio [24][25] Additional Important Information - **Connection Fees**: The company charges approximately $42,000 per connection, which is expected to increase by about 3% annually [10][23] - **Water Supply Value**: Water supply can increase land value significantly, with water being nearly three times as valuable as land without it [14] - **Community Development**: The company is developing a charter school campus as part of its community development efforts, enhancing the attractiveness of its residential offerings [18] - **Shareholder Value**: Pure Cycle is actively engaged in share repurchases to address perceived undervaluation in the market [25][26]

Financial Data and Key Metrics Changes - The company reported approximately $4 million in revenue for Q2, with a gross margin of about 38%, primarily driven by royalty income from mineral royalties [8][10] - Year-to-date revenue reached approximately $10 million, with a gross profit margin exceeding 50% and continued growth in earnings per share [9][15] - The company is on track to meet its fiscal 2025 guidance of around $31 million in revenue, with Q2 typically being the softest quarter due to seasonal factors [12][15] Business Line Data and Key Metrics Changes - The water utility segment performed well, driven by the receipt of TAPIs as new phases of development opened, with strong demand from home builders [17][20] - The land development segment has seen significant activity, with three phases under construction and a robust market for entry-level homes [28][31] - The single-family rental segment maintained high occupancy rates, with 14 homes completed and strong demand anticipated as new units come online [32][35] Market Data and Key Metrics Changes - The Denver real estate market is experiencing a push for affordability, with builders adapting to the current interest rate environment, which has stabilized consumer sentiment [98][100] - Demand for homes in the I-70 corridor remains strong, with builders actively constructing homes and expressing confidence in the market [101][102] Company Strategy and Development Direction - The company aims to continue investing in land and water assets, with a focus on land acquisition as a higher priority than additional water rights [91][140] - The development of the Sky Ranch community is a key focus, with plans for commercial opportunities and infrastructure improvements, including a new interchange [68][135] - The company is positioned to capitalize on market opportunities created by uncertainty, leveraging its existing assets for growth [44][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenging markets, highlighting a strong liquidity position with over $20 million available [60][64] - The outlook for the next three to five years includes steady customer growth and increased tap sales, with a full build-out of Sky Ranch projected over seven years [66][70] Other Important Information - The company has a strong partnership with National Heritage Academy for a K-12 school, which is seen as a valuable asset for the community [150][152] - The company is exploring opportunities for affordable housing in collaboration with the state of Colorado, which owns significant land in the area [158][161] Q&A Session Summary Question: Status of I-70 interchange and potential acquisitions - The CEO indicated that the permit for the I-70 interchange is expected to be submitted soon, with construction anticipated to start by late 2025 [85][86] - Regarding acquisitions, the CEO noted that while there is interest from sellers, personal circumstances often dictate their willingness to sell [88][90] Question: Update on demand in the Denver real estate market - Management confirmed strong demand for homes, particularly in the entry-level segment, and noted that builders are actively constructing homes [96][100] Question: Prioritization of land acquisition over water rights - The CEO clarified that land acquisition is prioritized due to the need for additional land to utilize existing water rights effectively [140][141] Question: Status of the local school - The CEO provided an update on the K-12 school, highlighting plans for a high school to be built by 2026, which will serve the community well [150][152] Question: Opportunities for affordable housing - The CEO mentioned that while the company is not adjacent to federal land, there are opportunities to partner with the state of Colorado for affordable housing initiatives [158][161]