ALCO · Alico, Inc.

Alico, Inc. delivered a strong turnaround in Q2 fiscal 2026, posting net income attributable to common stockholders of $11.4 million and Adjusted EBITDA of $16.9 million, a significant improvement from the prior year's $111.4 million loss and $12.7 million Adjusted EBITDA. This shift was primarily driven by the $26.9 million gross proceeds from selling 2,950 acres of citrus grove in January 2026, compared to $17.9 million from 2,100 acres in the prior-year quarter. Year-to-date land sales reached $34.6 million, underscoring the success of the company's strategic transformation away from citrus production toward land sales, leasing, and development. Citrus segment revenues fell 78% to $3.8 million with gross loss narrowing dramatically due to wind-down, while Land Management and Other Operations revenues surged 113% from diversified leasing including farm, grazing, hunting, and mining royalties, with 97% of 32,500 farmable acres now generating revenue. Management highlighted a balanced capital allocation, repurchasing 245,399 shares for $10.0 million through April 2026 and paying a $0.05 per share dividend. Balance sheet strength improved with cash rising to $52.9 million from $38.1 million at September 30, 2025, reducing net debt to $32.6 million and extending runway through fiscal 2028. A key milestone was securing Collier County entitlements for Corkscrew Grove East Villages in April 2026, advancing federal and state permits for this 4,660-acre project planning 9,000 homes and commercial space, with construction potentially starting in 2028-2029. President John Kiernan emphasized execution on strategic goals, diversified land use, and value creation from the 46,000-acre portfolio. The election of Eric Speron to the board adds real estate and finance expertise. As citrus operations fully wind down post-April 2025 harvest, expect evolving seasonality and revenue timing tied to land transactions.