Alico, Inc.

What they do

Alico owns land in eight Florida counties (Charlotte, Collier, DeSoto, Glades, Hardee, Hendry, Highlands and Polk) and holds approximately 44,700 acres of oil, gas and mineral rights. Historically it operated two segments: Alico Citrus and Land Management and Other Operations. After the Strategic Transformation announced January 6, 2025, the citrus division was substantially wound down following the April 2025 harvest, and beginning in the third quarter of fiscal 2026 the company reports as one segment. Current revenue comes from citrus product sales and grove leases, farming, grazing and hunting leases, rock and sand mining royalties, sod sales, and oil extraction leases.

Revenue drivers

• Land Management and Other Operations — Includes grazing and hunting leases, conservation, rock mining royalties and improved farmland leasing; generated $7.9M in the quarter ended June 30, 2026 versus $0.6M a year earlier, and $10.5M for the nine months versus $1.9M.
• Alico Citrus — Citrus groves historically produced fruit for fresh and processed markets, including fruit resale and harvesting, marketing and hauling services; revenue fell to $1.1M in the quarter ended June 30, 2026 from $7.8M a year earlier as operations wound down.
• Agricultural leases with purchase options — On June 18, 2026 the company signed a lease for approximately 3,280 acres in Hendry County with an option to purchase at $29,520 (about $9,000 per acre) if exercised by June 30, 2029, generating recurring lease income while preserving sale optionality.
• Land sales and development — The company regularly reviews land holdings for surplus parcels to sell, develop, lease or exchange; the Corkscrew Grove East Village project is advancing through state and federal permitting after April 2026 local entitlement approval.

Recent performance

For the three months ended June 30, 2026, Alico reported operating revenue of $9.0M versus $8.4M a year earlier, income from operations of $1.9M versus a loss of $25.4M, and net income attributable to common stockholders of $2.1M, or $0.29 per diluted share, versus a loss of $18.3M, or $2.39 per share. Nine-month revenue was $16.3M versus $43.3M, reflecting the citrus wind-down, while nine-month net income was $10.0M versus a loss of $138.8M. Fiscal 2025 full-year results included a net loss of $147.3M, or $19.29 per diluted share, on revenue of $44.1M. Cash and cash equivalents were $55.6M at June 30, 2026, up from $38.1M at September 30, 2025, with total stockholders' equity of $104.8M.

Strategy

Alico announced a Strategic Transformation on January 6, 2025 to wind down the Alico Citrus division and focus on long-term diversified land usage and real estate development, supported by a workforce reduction of up to 172 employees completed by May 30, 2025. The company terminated its agreement with Tropicana in May 2025 after the 2024/2025 crop year obligations were settled. Management is executing land monetization through leases with purchase options and advancing the Corkscrew Grove East Village through permitting, while reducing overhead including a new office lease expected to deliver savings starting in the second quarter of next fiscal year. During fiscal 2026 through June 30, 2026, the company repurchased 245,399 shares at a weighted average price of $40.76 for $10.0M. On June 23, 2026, it acquired the 49% of Citree it did not own for $2,007.

Risks

• Strategic transformation execution — If the company cannot successfully develop and execute its strategic growth initiatives in land development and diversified farming, its business, financial condition and prospects may be adversely affected.
• Florida geographic concentration — Properties are concentrated in Florida, so adverse weather, natural disasters and climate-related events could impose significant costs and losses.
• Revenue shift concentration — A significant portion of revenue was historically from citrus, and the transformation shifts expected revenue to real estate development and diversified farming, where any adverse event could disproportionately harm the business.
• Workforce reduction consequences — The workforce reduction may not produce intended outcomes and may yield unintended consequences and additional costs.

Outlook

Management raised fiscal year 2026 guidance to approximately $15M of Adjusted EBITDA, approximately $48M of cash and approximately $37M of net debt. The company states that its strengthened liquidity position extends its operating runway through fiscal 2029 without requiring any additional asset sales. It expects to continue reducing overhead and advancing its development pipeline, including Corkscrew Grove East Village, on its own timeline. Management characterizes the transformation as a multi-year effort.