Alico's Q3 2025 Earnings Call: Unraveling Contradictions in Land Sales and Development Projections

Land Sale Timing and Certainty, Corkscrew Development Milestones and Timeline, Land Sales Projections, Corkscrew Grove Stewardship District and Entitlement Process, and Land Sales and Revenue Projections are the key contradictions discussed in Alico's latest 2025Q3 earnings call.



Strategic Transformation and Citrus Operations Winding Down:
- Alico successfully completed its final major citrus harvest in Q3, marking a significant step in its strategic transformation to becoming a diversified land company. This move allows the company to focus on its long-term land development and diversified usage strategy.
- The decision to wind down citrus operations is aimed at minimizing capital-intensive investments, enabling the company to concentrate on high-value land development projects and sustainable agricultural operations.

Record Land Sales and Financial Position Strengthening:
- The company achieved record land sales of $23.5 million from approximately 2,794 acres sold in fiscal 2025, exceeding its original guidance of $20 million for the year. Additionally, Alico received $16 million in crop insurance proceeds during the quarter.
- These accomplishments strengthened the company's financial position, resulting in a robust $42.1 million cash position, with a strong liquidity profile to execute its strategic transformation strategy.

Regulatory Approvals and Development Milestones:
- The Florida legislature approved House Bill 4041 in June, creating the Corkscrew Grove Stewardship District, which assists Alico in effectively financing infrastructure, managing natural areas, and overseeing master-planned communities.
- The approval of the district and the appointment of a 5-member Board of Supervisors are significant milestones in advancing the Corkscrew Grove Villages development project, with the process on track for a final decision by the Collier Board of County Commissioners in 2026.

Diversified Agricultural Operations and Partnerships:
- Alico negotiated agreements to lease approximately 5,250 acres to third-party citrus growers for the next season and is in discussions with vegetable and fruit growers clearing as many as 500 acres.
- These arrangements generate revenue while maintaining productive use of agricultural lands during the transition period, supporting the company's diversified land company model.

Financial Performance and EBITDA Growth:
- For the 3 months ended June 30, 2025, Alico reported EBITDA of $19.2 million, compared to $1.3 million for the same period in the prior year. Adjusted EBITDA was $19.3 million, compared to $1.3 million for the same period last year.
- The significant increase in EBITDA is attributed to the company's strategic transformation, including the completion of the citrus harvest and the resulting cost efficiencies.