Alico 2025 Q4 Earnings 53.2% Net Loss Reduction Amid Revenue Surge

Alico (ALCO) delivered a mixed Q4 2025 performance, reporting a 33.9% revenue increase to $2.35 million but narrowing its net loss to $8.50 million (or -$1.11/share) from $18.16 million (or -$2.38/share) in 2024 Q4. The results partially exceeded expectations, with revenue beating estimates and losses improving significantly. The company maintained its $20 million land sales guidance, exceeding it with $23.8 million in proceeds, while emphasizing strategic development projects and long-term value creation.

Revenue

Alico’s total revenue surged 33.9% year-over-year to $2.35 million in Q4 2025, driven by strong land sales and agricultural operations. The citrus division, however, saw a 25.9% decline in harvested boxes due to Hurricane Milton, offset by a 27% increase in average realized prices to $3.66 per pound solids. Land management and other operations contributed to a $1.1 million gross profit increase, bolstered by rock and sand royalties and farm lease revenue.

Earnings/Net Income

The company narrowed its net loss to $8.50 million (or -$1.11/share) in Q4 2025, a 53.2% improvement from $18.16 million (or -$2.38/share) in 2024 Q4. Despite non-cash charges of $162.7 million in accelerated depreciation and $25.0 million in asset impairments, Adjusted EBITDA reached $22.5 million, exceeding its $20 million target. The earnings improvement reflects disciplined cost controls and strategic land monetization.

Post-Earnings Price Action Review

The strategy of buying Alico shares after a revenue drop quarter-over-quarter on the financial report release date and holding for 30 days resulted in a -13.35% return. The benchmark return was 69.21%, leading to an excess return of -82.57% and a CAGR of -4.70%. The strategy had a maximum drawdown of 0.00% and a Sharpe ratio of -0.15, indicating a low-risk but underperforming strategy relative to the market.

CEO Commentary

John Kiernan, President and CEO, emphasized Alico’s transformation from a citrus producer to a diversified land company, with 25% of its land allocated for development. The company ended Q4 with $38.1 million in cash and $47.4 million in net debt, sufficient to fund operations through 2027. Strategic priorities include optimizing agricultural leasing, advancing Corkscrew Grove Villages, and maintaining cost discipline.

Guidance

Alico reaffirmed its cash runway through fiscal 2027 and expects regulatory decisions on Corkscrew Grove Villages in 2026. Adjusted EBITDA is targeted to meet or exceed $20 million, aligning with 2025 performance. The company aims to accelerate agricultural leasing and development projects while maintaining financial flexibility.

Additional News

Alico announced the creation of Corkscrew Grove Villages, a 4,600-acre development project with 9,000 homes and 560,000 square feet of commercial space, pending regulatory approvals. The company also partnered with the Florida Department of Transportation to design a wildlife underpass for State Road 82, aligning with conservation goals. Additionally, Alico declared a $0.05 per share dividend for Q4 2025, reflecting confidence in its capital structure.

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