Alico Inc ((ALCO)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Alico Inc. has made notable strides in its strategic transformation, as highlighted in its latest earnings call. The company is transitioning towards a diversified land company, with significant achievements in land sales and regulatory approvals. Despite facing challenges such as decreased revenue and increased losses, largely due to external factors like Hurricane Milton, Alico has managed to strengthen its cash position and remains optimistic about its future prospects.
Completion of Major Citrus Harvest
Alico Inc. announced the completion of its final major citrus harvest, marking a pivotal shift from its traditional, capital-intensive citrus production to a focus on land development and diversified usage. This transition is a significant step in the company’s strategic transformation.
Exceeding Land Sales Guidance
The company reported year-to-date land sales of $23.5 million from approximately 2,794 acres sold, surpassing its original guidance of $20 million for fiscal 2025. This achievement underscores Alico’s successful execution of its land sales strategy.
Cash and Liquidity Strength
Alico has strengthened its cash position to $42.1 million, supported by $16 million in crop insurance proceeds. This robust liquidity profile positions the company well for future investments and operational needs.
Regulatory Milestone for Corkscrew Grove
Alico reached a significant regulatory milestone with the approval of House Bill 4041 for the Corkscrew Grove stewardship district. This approval facilitates development and infrastructure financing, advancing the company’s land development initiatives.
Increased EBITDA
The company’s EBITDA increased to $19.2 million for the third quarter of 2025, a substantial rise from $1.3 million in the same period of 2024. This increase reflects improved operational efficiency and strategic focus.
Revenue Decline
Alico experienced a 38% decline in revenue, down to $8.4 million for the third quarter of 2025 compared to $13.6 million in the prior year period. This decrease was primarily attributed to lower harvest volumes due to Hurricane Milton.
Net Loss Increase
The net loss attributable to Alico common stockholders increased to $18.3 million for the third quarter of 2025, up from $2 million in the same period of 2024. This increase in net loss highlights the financial challenges faced by the company.
Impact of Hurricane Milton
Hurricane Milton significantly impacted Alico’s operations, leading to lower harvest volumes and contributing to decreased revenue and increased operating expenses.
Increased Operating Expenses
Total operating expenses rose to $36.4 million for the third quarter of 2025, from $17.9 million in the previous year. This increase was due to the winding down of citrus operations and tree impairment.
Forward-Looking Guidance
Looking ahead, Alico anticipates $20 million in adjusted EBITDA for fiscal 2025, with potential land sales reaching $45 million. The company projects significant real estate development value from its 5,500 acres of high-value properties. These projections reflect Alico’s confidence in its strategic direction and future growth potential.
In conclusion, Alico Inc.’s earnings call reflected a mixed sentiment, with significant progress in strategic transformation and land sales, but also challenges from external factors impacting revenue and losses. The company’s strengthened cash position and optimistic forward-looking guidance provide a promising outlook for its future endeavors.