This article first appeared on GuruFocus .
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Net Income:$11.4 million for the second quarter.
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Adjusted EBITDA:$16.9 million for the second quarter.
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Cash Position:$52.9 million at quarter-end.
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Land Sales:$26.9 million land sale in January, with year-to-date land sales totaling $34.6 million.
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Revenue:$5.3 million for the three months ended March 31, 2026, compared to $18 million in the prior-year period.
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Share Repurchase Program:$10 million deployed, acquiring 245,399 shares through April.
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Total Debt:$85.5 million at quarter-end.
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Net Debt:$32.6 million at quarter-end.
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Working Capital:$52.2 million with a current ratio of 9.63:1.
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Available Borrowings:$92.5 million under the credit facility.
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Revenue from Other Operations:Increased 113% in the quarter, driven by farm lease and sod revenue.
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Guidance for Adjusted EBITDA:Approximately $14 million for fiscal 2026.
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Year-End Cash Guidance:Approximately $40 million.
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Net Debt Guidance:Approximately $45 million by year-end.
Release Date: May 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Alico Inc ( NASDAQ:ALCO ) reported a net income of $11.4 million and adjusted EBITDA of $16.9 million, demonstrating strong financial performance.
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The company successfully closed a $26.9 million land sale, generating a gain of approximately $19.8 million, validating its land monetization strategy.
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Alico Inc ( NASDAQ:ALCO ) received unanimous approval from the Collier County Board of Commissioners for the Corkscrew Grove East Village project, marking a significant regulatory milestone.
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The company has a strong cash position with $52.9 million at quarter-end and $92.5 million of available borrowing under its line of credit, providing financial flexibility.
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Alico Inc ( NASDAQ:ALCO ) has diversified its revenue streams, with approximately 97% of its farmable acres generating revenue through agricultural partnerships.
Negative Points
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Total revenue for the three months ended March 31, 2026, was $5.3 million, a significant decrease from $18 million in the prior-year period.
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The ongoing wind down of citrus operations has led to a significant decrease in revenue from this segment.
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The company faces the challenge of securing state and federal approvals for the Corkscrew Grove East Village project, which are expected by 2027 and 2028, respectively.
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Alico Inc ( NASDAQ:ALCO ) has yet to decide on the development path for Corkscrew Grove, whether to partner, sell, or develop in-house, which could impact future strategy.
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The company's guidance for year-end cash has been updated to approximately $40 million, reflecting the impact of the $10 million share repurchase program.
Q & A Highlights
Q: Could you discuss your plans for developing Corkscrew Ranch, including potential partnerships or self-development? A: John Kiernan, President & CEO, stated that Alico is considering several options, including selling the land outright, partnering with home builders, or developing it internally. The decision will depend on the timing of approvals and market conditions, with a commitment expected within the next year.
Q: How much agricultural or sand land is available for sale, and what is the expected price per acre? A: John Kiernan explained that Alico's entire portfolio, now 46,000 acres, is valued between $650 million and $750 million, based on a conservative estimate of $4,000 to $5,000 per acre. Recent sales have been around $9,000 per acre, indicating potential value increases.
Q: Are there any other major milestones for Corkscrew Grove East Villages in the next few years? A: John Kiernan mentioned that aside from state and federal approvals, the next significant milestone would be deciding on the monetization strategy for the project, which could involve selling, partnering, or self-developing.
Q: Can you provide more details on the financial impact of the recent land sale? A: Bradley Heine, CFO, noted that the $26.9 million land sale in January significantly improved financial results, contributing to a net income of $11.4 million for the quarter and enhancing cash reserves to $52.9 million.
Q: What is the current status of Alico's share repurchase program? A: John Kiernan confirmed that Alico has repurchased 245,399 shares for $10 million through April 2026, reflecting confidence in the company's value and commitment to returning capital to shareholders.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
