Alico Reports Financial Results for Second Quarter Ended March 31, 2026
Alico, Inc. reported strong financial results for the second quarter ended March 31, 2026, highlighting significant progress in its transition from a traditional citrus producer to a diversified land management, real estate development, and land monetization company. The quarter marked another important step in the company’s multi-year strategic transformation, driven by land sales, improved operational efficiency, and continued advancement of its flagship real estate project, Corkscrew Grove Villages.
For the three months ended March 31, 2026, Alico reported net income attributable to common stockholders of $11.4 million, a substantial turnaround compared with a net loss of $111.4 million in the same quarter of 2025. The dramatic improvement was primarily driven by higher land sale activity during the quarter. Alico completed the sale of approximately 2,950 acres of land, generating $26.9 million in gross proceeds, compared with the sale of approximately 2,100 acres for $17.9 million during the prior-year period.
On a per-share basis, the company posted earnings of $1.49 per diluted share, compared with a loss of $14.58 per diluted share in the second quarter of fiscal 2025.
The company also reported strong profitability metrics, with EBITDA reaching $16.7 million, a major improvement from negative $14.7 million in the prior-year quarter. Adjusted EBITDA increased to $16.9 million, up from $12.7 million a year earlier, reflecting stronger asset monetization and disciplined cost management.
Strategic Transformation Driving New Financial Profile
Alico noted that its financial profile is changing significantly as it completes its transition away from citrus production. Historically, the company’s revenue was heavily seasonal, tied to citrus harvesting cycles that generated most annual income during the first half of the fiscal year.
However, as part of its strategic transformation announced in 2025, Alico has substantially exited the citrus business and shifted its focus toward land sales, long-term leasing, and large-scale real estate development. The company completed its final significant citrus harvest in April 2025.
Management said this transition will gradually reduce historical seasonality, although some fluctuations may continue during the wind-down phase. Going forward, financial performance is expected to be increasingly influenced by the timing of land transactions, lease agreements, and development milestones rather than agricultural harvest cycles.
Citrus Wind-Down Continues
Results from Alico’s Citrus segment reflected the ongoing shutdown of operations.
Revenue from citrus declined by $13.5 million for the quarter and $28.9 million for the first six months of fiscal 2026 compared with the prior year, as expected. However, the company significantly reduced related operating costs, with cost of sales declining by $158.4 million for the quarter and $171.6 million year-to-date, demonstrating successful execution of the wind-down strategy.
This sharp cost reduction helped offset lower citrus revenues and supported overall profitability.
Land Management Becomes Core Revenue Driver
Alico’s Land Management and Other Operations segment continues to emerge as an increasingly important earnings contributor.
The segment includes revenue generated from:
- Agricultural land leases
- Grazing and cattle operations
- Hunting leases
- Mining and aggregate royalties
- Sugarcane farming agreements
- Sod production partnerships
Revenue from this segment increased 113.1% year-over-year during the quarter, largely due to higher farm lease income and increased sod-related revenue.
For the six months ended March 31, 2026, Land Management revenue rose 97.1%, supported by stronger lease income, increased rock and sand royalties, and continued growth in sod production.
Operating expenses for the segment rose modestly as the company invested further in its diversified land-use strategy.
Alico reported that approximately 97% of its 32,500 farmable acres are now actively generating revenue, representing nearly 89% of its total 46,000 agricultural acres—a strong utilization rate that underscores the effectiveness of its new business model.
Strong Balance Sheet and Liquidity
Alico emphasized that it remains financially well-positioned to support both ongoing operations and long-term development projects.
At March 31, 2026:
- Working capital totaled $52.2 million, resulting in a strong current ratio of 9.63-to-1
- Total debt remained stable at $85.5 million
- Net debt declined to $32.6 million, compared with $47.4 million at the end of fiscal 2025
- Available borrowing capacity under its revolving credit line was approximately $92.5 million
- Minimum required liquidity under its lending agreement stood at just $5.8 million
Management said this balance sheet strength provides flexibility to fund future development while continuing shareholder returns.
Dividend and Shareholder Returns
As part of its capital allocation strategy, Alico paid a quarterly cash dividend of $0.05 per share on April 17, 2026, to shareholders of record as of April 3.
Additionally, the company completed $10 million in common share repurchases during the year through April 2026, signaling confidence in the long-term value of the business.
Major Progress at Corkscrew Grove Villages
A major strategic highlight for the quarter was continued progress on Corkscrew Grove Villages, Alico’s flagship real estate development project in southwest Florida.
The master-planned project spans approximately 4,660 acres in northwest Collier County and is expected to include:
- Approximately 9,000 homes
- Around 750 affordable housing units
- Nearly 480,000 square feet of commercial space
- Retail, office, dining, and healthcare facilities
- Additional civic and self-storage space
The development also includes more than 6,000 acres of permanently conserved land, reinforcing Alico’s environmental stewardship commitments.
In April 2026, the company received final local entitlement approvals from the Collier County Board of County Commissioners for the East Village portion of the project—an important regulatory milestone.
Remaining approvals are needed from the:
- U.S. Army Corps of Engineers
- U.S. Fish and Wildlife Service
- South Florida Water Management District
If all permits are secured, construction could begin as early as 2028 or 2029.
Management Commentary
President and CEO John Kiernan said the quarter demonstrated successful execution of the company’s transformation strategy.
He noted that the January land sale, strong adjusted EBITDA, and expanded liquidity position have extended Alico’s expected financial runway through fiscal 2028, giving the company additional flexibility to advance long-term real estate initiatives.
Kiernan also highlighted the company’s diversified land use strategy, emphasizing that nearly all farmable acreage is now income-producing through third-party partnerships.
Board Strengthened with New Director
During the quarter, Alico also expanded its board by appointing Eric Speron, a finance and real estate executive with leadership experience at First Foundation Inc. and J.P. Morgan. Management said his expertise will support the company’s long-term strategic vision.
Source Link:https://www.alicoinc.com/
