Alico 2025 Q2 Earnings Strategic Shift Leads to Wider Losses

Alico, Inc. reported its fiscal 2025 Q2 earnings on May 13th, 2025. Despite efforts to transform into a diversified land company, the results show a widened net loss of 595.9% compared to the previous year. The strategic shift away from citrus operations has been marked by significant depreciation charges. Alico has raised its guidance for land sales, projecting potential sales exceeding $50 million for fiscal 2025, while maintaining a strong liquidity position with $14.7 million in cash and $88.5 million in available credit.

Revenue

Alico's total revenue decreased by 2.9% to $17.25 million in 2025 Q2, down from $17.76 million in 2024 Q2. Revenue from Alico Citrus comprised the bulk at $17.25 million, while Land Management and Other Operations contributed $727,000, leading to overall operating revenues of $17.98 million.

Earnings/Net Income

Alico's losses deepened to $14.58 per share in 2025 Q2 from a loss of $2.07 per share in 2024 Q2, marking a 604.3% wider loss. The company's net loss expanded to $-111.43 million in 2025 Q2, representing a 595.9% increase from the $-16.01 million loss recorded in 2024 Q2. The EPS reflects a challenging performance for the quarter.

Post-Earnings Price Action Review

A strategy of purchasing Alico shares post-revenue raise on financial reports and holding for 30 days has consistently underperformed against market averages over the past five years. The annualized return stood at 16.12%, trailing behind the market's average annual return of 19.42%. This approach failed to leverage the market's upward trend, resulting in a 3.3% lag in returns compared to benchmark indices. Despite recent improvements in stock performance over a week and month-to-date, the historical data suggests that this post-earnings strategy has not been optimal for capturing broader market gains.

CEO Commentary

John Kiernan highlighted the completion of citrus operations, citing economic viability concerns amid declining orange production. This strategic decision aims to bolster financial stability as Alico transitions into a diversified land company, surpassing fiscal 2025 objectives.

Guidance

Alico projects a cash balance of approximately $25 million and net debt of around $60 million by fiscal year-end, with $2.5 million due under its credit line. The company forecasts generating about $20 million in Adjusted EBITDA, with potential land sales exceeding $50 million despite transaction uncertainties.

Additional News

In a significant strategic shift, Alico announced the winding down of its citrus operations, pivoting towards real estate and land management. The company plans to develop Corkscrew Grove Villages on 4,660 acres, featuring residential and commercial spaces. This development aligns with regional growth dynamics and emphasizes conservation efforts, permanently protecting over 6,000 acres. Additionally, Alico has entered an amendment to its credit agreement, supporting its transformation into a diversified land company.