Alico’s Land Sales Beat Target as Final Citrus Harvest Completed – Quarterly Update Report
Company Transformation: Alico, Inc. has completed its final major citrus harvest and is transitioning into a diversified land management company, focusing on land development, conservation projects, and alternative agricultural uses to create more stable revenue streams.
Financial Outlook: Despite a 41% decline in citrus operations revenue, Alico's land sales are exceeding targets, and the company maintains a fiscal 2025 EBITDA guidance of $20 million, indicating potential growth opportunities for investors.
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Alico Inc. Completes Sale of 2,950 Acres for $26.8 Million, Advancing Strategic Transformation
- Land Sale Progress: Alico has completed the sale of a 2,950-acre citrus grove in Hendry County for $26.8 million in gross proceeds, marking another milestone in its land monetization strategy and further advancing its transformation from traditional citrus operations to a diversified land company.
- Improved Financial Flexibility: As of September 30, 2025, Alico's total debt stood at $85.5 million, down from $92.1 million at the end of fiscal year 2024, resulting in a net debt position of $47.4 million, significantly enhancing the company's financial flexibility to support future development projects.
- Utilization of Agricultural Land: Alico has achieved a 97% utilization rate of its farmable agricultural land, demonstrating its commitment to the Florida agricultural community while creating diversified revenue streams through revenue-sharing agreements with citrus growers and cattle operators, thus reducing operational complexity.
- Shareholder Return Program: The Alico Board of Directors has authorized a buyback of up to $50 million of common stock, set to expire on April 1, 2028, reflecting the company's ongoing commitment to shareholder value creation while providing flexibility for future capital return options.
Alico (ALCO) Posts Q4 Loss but Exceeds Revenue Projections
Alico's Quarterly Performance: Alico (ALCO) reported a quarterly loss of $1.1 per share, significantly worse than the expected loss of $0.39, marking an earnings surprise of -182.05%. The company has struggled to meet consensus EPS estimates over the last four quarters.
Revenue Insights: Despite the loss, Alico's revenues for the quarter reached $0.8 million, exceeding the Zacks Consensus Estimate by 167.33%, although this is a decline from $0.94 million a year ago. The company has surpassed revenue estimates twice in the last four quarters.
Stock Outlook and Industry Context: Alico shares have increased by 22.4% since the start of the year, outperforming the S&P 500. However, the stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market, influenced by the broader Agriculture - Operations industry, which ranks in the bottom 16% of Zacks industries.
Limoneira's Upcoming Report: Limoneira (LMNR), another company in the same industry, is expected to report a quarterly loss of $0.12 per share, with revenues projected to decline by 14.7% year-over-year to $37.4 million. The consensus EPS estimate for Limoneira has remained unchanged over the past month.
