Tejon Ranch posts $2.6M in second-quarter earnings

Tejon Ranch Co. swung to a profit during the second quarter as its revenues jumped from a year prior, the Lebec-based agribusiness and real estate development company reported this week.

The results were buoyed by a sizable land sale, though management emphasized the company would have ended the quarter in the black regardless because of improvement in earnings attributed to corporate partnerships, residential leasing progress and corporate expense cuts.

The company's stock price responded modestly and remains near the lower end of its range during the past 12 months.

On Thursday, President and CEO Matthew "Matt" Walker took shareholders' pointed questions during an earnings conference call that was part of the company's pledge to be more open with investors.

Walker touted progress on initiatives including a new artificial-intelligence administrative initiative, new transparency on Tejon Ranch's water business and plans to return to the Los Angeles County Board of Supervisors later this year with a new environmental report addressing concerns with its plans for a master-planned community near Gorman called Centennial.

But he acknowledged frustrations with the company's stock price.

"I'm going to be straightforward about the stock price. It's painful," he said during the call. "I watch it. The board watches it. No one's satisfied. I'm not going to insult you by trying to explain it away. Here's what I do know: We've improved results for two consecutive quarters now."

Tejon Ranch, the only company in Kern County trading on the New York Stock Exchange and the owner of California's largest contiguous private property, reported earning $2.6 million during the three months ended June 30, compared with a $1.7 million loss during the second quarter of 2025.

Its revenues and other income increased almost 57% to reach $17.4 million. The company said this year's corporate expenses through the end of the second quarter came to $4.7 million, a little more than half their total during the same period last year.

A highlight of the quarter was the sale of land to Santa Monica-based Dedeaux Properties for $6.9 million. Tejon Ranch recognized only $2 million of the proceeds during the second quarter. It deferred the rest, noting the deal was a joint partnership with the Lebec company.

Another bright spot was the performance of Tejon Ranch's multi-phase rental housing development near the foot of the Grapevine, Terra Vista, which the company said is more than 80% leased.

Other positives were high foot traffic and sales at the nearby Outlets at Tejon and rising revenue at the nearby travel center the company co-owns.