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ALICO, INC.

ALCO
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Business Summary

Alico, Inc. is a Florida-based agribusiness and land management company that owns approximately 49,537 acres of land across eight Florida counties and approximately 44,700 acres of oil, gas, and mineral rights throughout Florida . The company's business model is undergoing a "Strategic Transformation" to shift its focus from citrus production to long-term diversified land usage and real estate development . Historically, the company generated revenue primarily from the sale of citrus products, with a mix of fresh and processed citrus sales, as well as grove management services. However, due to increasing financial challenges from citrus greening disease and environmental factors, the Alico Citrus division has substantially wound down its primary operations after the 2024-2025 harvest . The company's revenue streams now also include farming, grazing, and hunting leases, rock mining royalties, sod sales, and oil extraction rights .

The company operates through two primary business segments: Alico Citrus and Land Management and Other Operations . The Alico Citrus segment historically involved planting, owning, cultivating, and managing citrus groves to produce fruit for sale to fresh and processed citrus markets, along with purchasing and reselling fruit and providing value-added services like harvesting, marketing, and hauling . However, this segment has largely ceased primary operations after the 2024-2025 harvest . For the year ended September 30, 2025, Alico Citrus revenues were $41,337 thousand , representing 93.8% of total operating revenues . Sales to the processed market accounted for 96.0% of Alico Citrus revenues in 2025 , while fresh citrus market sales were 1.3% . Grove management services contributed 2.2% of total citrus revenues in 2025 .

The Land Management and Other Operations segment includes activities such as grazing and hunting leasing, management and conservation of unimproved native pastureland, rock mining royalties, and owning and/or leasing improved farmland . This segment's land holdings total 10,240 gross acres , or 20.7% of the company's total acreage . Revenues from Land Management and Other Operations were $2,729 thousand for the year ended September 30, 2025, representing 6.2% of total operating revenues . This segment saw an 86.4% increase in Leasing and Royalties revenue to $2,393 thousand in 2025, and a 12.0% increase in Other revenue to $336 thousand .

For the fiscal year ended September 30, 2025, Alico reported total operating revenues of $44,066 thousand , a decrease from $46,643 thousand in the prior year. The company incurred a gross loss of $192,194 thousand , significantly higher than the $56,383 thousand gross loss in 2024. Operating expenses totaled $236,260 thousand . The loss from operations was $203,901 thousand , compared to a loss of $67,454 thousand in the previous year. Net loss attributable to common stockholders was $147,334 thousand , a substantial decline from net income of $6,973 thousand in 2024. Basic and diluted EPS were both $(19.29) . Cash and cash equivalents stood at $38,128 thousand , up from $3,150 thousand in 2024. Total debt, including current portion, was $85,950 thousand at September 30, 2025, down from $92,551 thousand in 2024. Net cash provided by operating activities was $20,126 thousand , a significant improvement from net cash used in operating activities of $(30,497) thousand in the prior year.

Year-over-year, Alico Citrus revenues decreased by 8.3% from $45,059 thousand in 2024 to $41,337 thousand in 2025, primarily due to a 26.4% decrease in pound solids produced as a result of Hurricane Milton , partially offset by a 29.9% increase in the blended price per pound solids . Grove Management Services revenues within Alico Citrus decreased by $1,932 thousand (68.4%) due to the termination of a grove management agreement . Conversely, Land Management and Other Operations revenues increased by 72.3% from $1,584 thousand in 2024 to $2,729 thousand in 2025, reflecting the strategic shift away from citrus . The gross loss widened significantly, primarily driven by accelerated depreciation of approximately $162,095 thousand on citrus trees and an impairment of young trees and long-lived assets totaling $24,966 thousand in the Alico Citrus segment.

During the fiscal year, Alico announced a Strategic Transformation on January 6, 2025, to wind down its Alico Citrus division and focus on diversified land usage and real estate development . In connection with this, the Board approved a workforce reduction of up to 172 employees , incurring aggregate charges of $2,638 thousand . In May 2025, the company entered into a Mutual Contract Termination Agreement with Tropicana, ending their citrus supply agreements after the 2024/2025 crop year . The company also sold approximately 2,796 acres of citrus and ranch land for $23,807 thousand , recognizing a gain of $20,319 thousand . Subsequent to year-end, on November 4, 2025, the company sold 579 acres of citrus land for $6,077 thousand and on November 19, 2025, sold its Frostproof office and shop for $1,675 thousand . The Corkscrew Grove Stewardship District (CGSD) was established in June 2025 to facilitate financing and development of community infrastructure , and Alico deposited $5,071 thousand with the Florida Department of Transportation on November 14, 2025, to fund a wildlife underpass as part of the Corkscrew Grove Villages project .

Business Outlook

Alico's strategic outlook is centered on its "Strategic Transformation" to wind down its Alico Citrus division and pivot towards a long-term diversified land usage and real estate development strategy . The company plans to maintain its commitment to the Florida agriculture industry through diversified farming operations on nearly all its land holdings following this citrus production transition . A significant portion, approximately 25%, of its land holdings are being positioned for strategic development opportunities, while about 75% will remain for diversified agricultural ventures . The company's objective is to maximize shareholder value by identifying the highest and best use for all of its land, balancing near-term and long-term growth potential .

A major growth area is real estate development, particularly the Corkscrew Grove Villages project in eastern Collier County . Alico is undertaking a multi-year entitlement process for its approximately 4,600-acre grove near Fort Myers , which includes environmental assessments, conservation strategies, and market assessments . The Corkscrew Grove Stewardship District (CGSD) was established in June 2025 to facilitate financing and development of community infrastructure within its boundaries . Alico will provide funding to the Florida Department of Transportation (FDOT) to support the construction of a wildlife underpass as part of the Corkscrew Villages project, having deposited $5,071 thousand with FDOT on November 14, 2025 . This underpass is expected to commence construction within the next six months, subject to final permitting and approval . The payment to the CGSD is reimbursable to the company under the CGSD Funding Agreement .

Operationally, the company expects lower employee costs, lower costs of maintaining citrus groves, and lower capital expenditures as a result of the Strategic Transformation and workforce reduction . The company incurred aggregate charges of $2,638 thousand in connection with the workforce reduction, primarily for severance payments and employee benefits . The company's cost of sales in the Alico Citrus segment increased significantly in 2025 due to accelerated depreciation of approximately $162,095 thousand on citrus trees and an impairment of young trees and long-lived assets of $24,966 thousand . The estimated useful life of citrus trees has been changed to a range of four to sixteen months , depending on whether they will be abandoned after the Fiscal Year 2025 harvest or retained/leased for another year, expected to conclude in April 2026 .

Regarding capital allocation, the Board approved a stock repurchase program on March 25, 2025, authorizing the repurchase of up to $50,000 thousand of common stock, expiring on April 1, 2028 . As of September 30, 2025, no repurchases have been made under this plan . The company expects to continue paying quarterly cash dividends at levels comparable to recent periods, subject to Board discretion, results of operations, cash flows, capital requirements, market conditions, and financing arrangements . The company plans to use available cash and proceeds from asset sales for general corporate purposes and to pay down indebtedness . Management believes that a combination of cash-on-hand, cash generated from operations, asset sales, and availability under its revolving line of credit (RLOC) will provide sufficient liquidity for debt service, working capital, and capital expenditures for at least the next twelve months and over the long term . The company's RLOC has an available capacity of $92,500 thousand as of September 30, 2025 .

The company explicitly flagged several structural headwinds and execution risks to its growth plan. Successfully executing the diversified land usage and real estate development strategy depends on securing necessary regulatory approvals and permits, effectively managing resources for new initiatives, attracting and retaining skilled personnel, navigating market fluctuations, managing commercial relationships, maintaining lender relationships, and addressing environmental and zoning matters . The Strategic Transformation may not be successful in generating revenues or improving operating profit, or may take longer than anticipated . The workforce reduction may lead to unintended consequences such as loss of institutional knowledge, attrition, decreased morale, and difficulty pursuing new opportunities . Adverse weather conditions and climate-related events, particularly in Florida, can affect the timing, feasibility, and economics of land initiatives, potentially damaging or delaying infrastructure, increasing costs, and affecting property valuations . The land development business is highly competitive, with competitors potentially having greater access to capital, larger land inventories, and stronger relationships . Macroeconomic conditions, including rising inflation, armed conflicts, geopolitical instability, and government shutdowns, could adversely affect customer demand, real estate absorption, financing availability, and stock price volatility .

Risk Factors

Alico faces material risks including the potential failure to successfully develop and execute its strategic growth initiatives, which could adversely affect its business, financial condition, and prospects . The recent workforce reduction may not yield intended outcomes, potentially leading to loss of institutional knowledge, decreased morale, and additional costs . Adverse weather conditions, natural disasters, and climate change, particularly given the geographic concentration of properties in Florida, have historically imposed and could continue to impose significant costs and losses, including damage to crops and delays in land development projects . The company's significant revenue shift from citrus to real estate development and diversified farming operations makes it vulnerable to adverse events or market conditions affecting these new areas . The land development business is highly competitive, and Alico may struggle to maintain market share against competitors with greater capital access, larger land inventories, and established development platforms . Harm to the company's reputation, whether from product issues, ESG concerns, or negative publicity, could adversely affect its business and financial results . Tax risks include the potential for Section 1031 Exchanges to be deemed taxable, or changes in tax laws, which could result in corporate income tax payments and reduced cash availability . The company's ability to utilize its federal net operating loss carryforwards of approximately $45,362 thousand and state NOLs of approximately $42,631 thousand may be limited by ownership changes or state-level restrictions . Significant corporate transactions, including asset dispositions, may not achieve intended results, could trigger financial covenants, or distract management . Agricultural operations face significant competition from domestic and foreign producers, with foreign growers potentially having lower costs and less regulation . Earnings are sensitive to supply, demand, and pricing dynamics for land sales, leases, and development activities, which are influenced by interest rates, financing availability, and infrastructure costs . Compliance with environmental laws, including those related to hazardous substances and water use regulations, could substantially increase costs or restrict access to water . The company is dependent on key management personnel, and their loss could adversely affect the business . Material weaknesses in internal control over financial reporting, despite recent remediation efforts, could lead to errors in reported results and damage investor confidence . Inflation can significantly increase operating costs, particularly for raw materials like fertilizers, herbicides, insecticides, and fuel, which the company may be unable to pass on to customers . Macroeconomic conditions, such as rising inflation, armed conflicts, geopolitical instability, and government shutdowns, could reduce customer demand, slow real estate absorption, disrupt supply chains, and impact financing availability . The company maintains $85,950 thousand in principal amount of indebtedness, which could limit operational flexibility, increase vulnerability to economic downturns, and expose it to variable interest rate risks .

Management Priorities

Management's message to shareholders emphasizes a significant "Strategic Transformation" to wind down the Alico Citrus division and focus on a long-term diversified land usage and real estate development strategy . This strategic shift is driven by increasing financial challenges from citrus greening disease and environmental factors . The company aims to maximize shareholder value by identifying the highest and best use for its extensive land portfolio, balancing near-term and long-term growth potential . Management explicitly stated plans to position approximately 25% of land holdings for strategic development opportunities, while approximately 75% will remain for diversified agricultural ventures . Key strategic priorities include the successful execution of the diversified land usage and real estate development strategy, which involves securing necessary regulatory approvals and permits for land development projects, effectively managing and allocating resources to new business initiatives, and attracting and retaining skilled personnel with expertise in these areas . Management also highlighted its commitment to environmental stewardship and conservation, as evidenced by the collaboration with the Florida Department of Transportation on a wildlife underpass for the Corkscrew Grove Villages project . The Board declared a fourth quarter of fiscal year 2025 dividend of $0.05 per share of outstanding common stock, and the company expects to continue paying quarterly cash dividends at comparable levels, subject to various factors .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Overview
  2. [2] Item 1, Business — Overview
  3. [3] Item 1, Business — Overview
  4. [4] Item 7, MD&A — Business Overview
  5. [5] Item 1, Business — Overview
  6. [6] Item 1, Business — Alico Citrus
  7. [7] Item 1, Business — Overview
  8. [8] Item 7, MD&A — Consolidated Results of Operations
  9. [9] Item 7, MD&A — Consolidated Results of Operations
  10. [10] Item 1, Business — Alico Citrus
  11. [11] Item 1, Business — Alico Citrus
  12. [12] Item 1, Business — Alico Citrus
  13. [13] Item 1, Business — Land Management and Other Operations
  14. [14] Item 1, Business — Land Management and Other Operations
  15. [15] Item 1, Business — Land Management and Other Operations
  16. [16] Item 7, MD&A — Consolidated Results of Operations
  17. [17] Item 7, MD&A — Consolidated Results of Operations
  18. [18] Item 7, MD&A — Land Management and Other Operations
  19. [19] Item 7, MD&A — Land Management and Other Operations
  20. [20] Item 7, MD&A — Consolidated Results of Operations
  21. [21] Item 7, MD&A — Consolidated Results of Operations
  22. [22] Item 7, MD&A — Consolidated Results of Operations
  23. [23] Item 7, MD&A — Consolidated Results of Operations
  24. [24] Item 7, MD&A — Consolidated Results of Operations
  25. [25] Item 7, MD&A — Consolidated Results of Operations
  26. [26] Item 7, MD&A — Consolidated Results of Operations
  27. [27] Item 7, MD&A — Consolidated Results of Operations
  28. [28] Item 7, MD&A — Consolidated Results of Operations
  29. [29] Item 7, MD&A — Consolidated Results of Operations
  30. [30] Item 7, MD&A — Liquidity and Capital Resources
  31. [31] Item 7, MD&A — Liquidity and Capital Resources
  32. [32] Item 8, Note 8 — Long-Term Debt and Lines of Credit
  33. [33] Item 8, Note 8 — Long-Term Debt and Lines of Credit
  34. [34] Item 7, MD&A — Consolidated Statements of Cash Flows
  35. [35] Item 7, MD&A — Consolidated Statements of Cash Flows
  36. [36] Item 7, MD&A — Comparison of the year ended September 30, 2025 and 2024 for the Alico Citrus Segment
  37. [37] Item 7, MD&A — Consolidated Results of Operations
  38. [38] Item 7, MD&A — Consolidated Results of Operations
  39. [39] Item 7, MD&A — Comparison of the year ended September 30, 2025 and 2024 for the Alico Citrus Segment
  40. [40] Item 7, MD&A — Comparison of the year ended September 30, 2025 and 2024 for the Alico Citrus Segment
  41. [41] Item 7, MD&A — Comparison of the year ended September 30, 2025 and 2024 for the Alico Citrus Segment
  42. [42] Item 7, MD&A — Comparison of the year ended September 30, 2025 and 2024 for the Alico Citrus Segment
  43. [43] Item 7, MD&A — Comparison of the year ended September 30, 2025 and 2024 for the Alico Citrus Segment
  44. [44] Item 7, MD&A — Comparison of the year ended September 30, 2025 and 2024 for the Alico Citrus Segment
  45. [45] Item 7, MD&A — Comparison of the year ended September 30, 2025 and 2024 for the Land Management and Other Operations Segment
  46. [46] Item 7, MD&A — Consolidated Results of Operations
  47. [47] Item 7, MD&A — Consolidated Results of Operations
  48. [48] Item 7, MD&A — Business Segments
  49. [49] Item 7, MD&A — Comparison of the year ended September 30, 2025 and 2024 for the Alico Citrus Segment
  50. [50] Item 7, MD&A — Comparison of the year ended September 30, 2025 and 2024 for the Alico Citrus Segment
  51. [51] Item 1, Business — Overview
  52. [52] Item 1, Business — Overview
  53. [53] Item 1A, Risk Factors — Our workforce reduction may not result in our intended outcomes and may yield unintended consequences and additional costs.
  54. [54] Item 1, Business — Overview
  55. [55] Item 1, Business — Alico Citrus
  56. [56] Item 1, Business — Alico Citrus
  57. [57] Item 7, MD&A — Recent Developments
  58. [58] Item 7, MD&A — Recent Developments
  59. [59] Item 7, MD&A — Recent Developments
  60. [60] Item 7, MD&A — Recent Developments
  61. [61] Item 7, MD&A — Recent Developments
  62. [62] Item 1, Business — Our Strategy
  63. [63] Item 1A, Risk Factors — If we are unable to successfully develop and execute our strategic growth initiatives, or if they do not adequately address the challenges or opportunities we face, our business, financial condition and prospects may be adversely affected.
  64. [64] Item 1, Business — Our Strategy
  65. [65] Item 1, Business — Our Strategy
  66. [66] Item 7, MD&A — Recent Developments
  67. [67] Item 1A, Risk Factors — If we are unable to successfully develop and execute our strategic growth initiatives, or if they do not adequately address the challenges or opportunities we face, our business, financial condition and prospects may be adversely affected.
  68. [68] Item 1A, Risk Factors — If we are unable to successfully develop and execute our strategic growth initiatives, or if they do not adequately address the challenges or opportunities we face, our business, financial condition and prospects may be adversely affected.
  69. [69] Item 7, MD&A — Recent Developments
  70. [70] Item 7, MD&A — Recent Developments
  71. [71] Item 7, MD&A — Recent Developments
  72. [72] Item 7, MD&A — Recent Developments
  73. [73] Item 7, MD&A — Recent Developments
  74. [74] Item 7, MD&A — Sources and Uses of Liquidity and Capital
  75. [75] Item 1A, Risk Factors — Our workforce reduction may not result in our intended outcomes and may yield unintended consequences and additional costs.
  76. [76] Item 1A, Risk Factors — Our workforce reduction may not result in our intended outcomes and may yield unintended consequences and additional costs.
  77. [77] Item 7, MD&A — Comparison of the year ended September 30, 2025 and 2024 for the Alico Citrus Segment
  78. [78] Item 7, MD&A — Comparison of the year ended September 30, 2025 and 2024 for the Alico Citrus Segment
  79. [79] Item 8, Note 5 — Property and Equipment, Net
  80. [80] Item 8, Note 5 — Property and Equipment, Net
  81. [81] Item 7, MD&A — Sources and Uses of Liquidity and Capital
  82. [82] Item 7, MD&A — Sources and Uses of Liquidity and Capital
  83. [83] Item 8, Note 1 — Stock Repurchase Program
  84. [84] Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities — Dividend Policy
  85. [85] Item 7, MD&A — Borrowing Facilities and Long-term Debt
  86. [86] Item 7, MD&A — Sources and Uses of Liquidity and Capital
  87. [87] Item 8, Note 8 — Long-Term Debt and Lines of Credit
  88. [88] Item 8, Note 8 — Long-Term Debt and Lines of Credit
  89. [89] Item 1A, Risk Factors — If we are unable to successfully develop and execute our strategic growth initiatives, or if they do not adequately address the challenges or opportunities we face, our business, financial condition and prospects may be adversely affected.
  90. [90] Item 1A, Risk Factors — If we are unable to successfully develop and execute our strategic growth initiatives, or if they do not adequately address the challenges or opportunities we face, our business, financial condition and prospects may be adversely affected.
  91. [91] Item 1A, Risk Factors — Our workforce reduction may not result in our intended outcomes and may yield unintended consequences and additional costs.
  92. [92] Item 1A, Risk Factors — Adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change and weather events, particularly because our properties are geographically concentrated in Florida, have in the past and could in the future impose significant costs and losses on our business and adversely affect our results of operations, financial position and cash flows.
  93. [93] Item 1A, Risk Factors — The land development business is highly competitive, and we cannot assure you that we will maintain our current market share.
  94. [94] Item 1A, Risk Factors — Macroeconomic conditions, such as rising inflation, armed conflicts and geopolitical instability, and pandemics or health crises could adversely affect our business, financial condition, results of operations and cash flows.
  95. [95] Item 1A, Risk Factors — If we are unable to successfully develop and execute our strategic growth initiatives, or if they do not adequately address the challenges or opportunities we face, our business, financial condition and prospects may be adversely affected.
  96. [96] Item 1A, Risk Factors — Our workforce reduction may not result in our intended outcomes and may yield unintended consequences and additional costs.
  97. [97] Item 1A, Risk Factors — Adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change and weather events, particularly because our properties are geographically concentrated in Florida, have in the past and could in the future impose significant costs and losses on our business and adversely affect our results of operations, financial position and cash flows.
  98. [98] Item 1A, Risk Factors — A significant portion of our revenues are historically derived from our citrus business and our Strategic Transformation involves expected significant revenue shift to real estate development and diversified farming operations and any adverse event affecting these areas could disproportionately harm our business.
  99. [99] Item 1A, Risk Factors — The land development business is highly competitive, and we cannot assure you that we will maintain our current market share.
  100. [100] Item 1A, Risk Factors — Harm to our reputation could have an adverse effect on our business, financial condition and results of operations.
  101. [101] Item 1A, Risk Factors — If a transaction intended to qualify as a Section 1031 Exchange is later determined to be taxable or if we are unable to identify and complete the acquisition of a suitable replacement property to effect a Section 1031 Exchange, we may face adverse consequences, and if the laws applicable to such transactions are amended or repealed, we may not be able to dispose of properties in the future on a tax deferred basis.
  102. [102] Item 1A, Risk Factors — Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.
  103. [103] Item 1A, Risk Factors — Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.
  104. [104] Item 1A, Risk Factors — Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.
  105. [105] Item 1A, Risk Factors — We may undertake one or more significant corporate transactions that may not achieve their intended results, may adversely affect our financial condition and our results of operations, or result in unforeseeable risks to our business.
  106. [106] Item 1A, Risk Factors — We face significant competition in our agricultural operations.
  107. [107] Item 1A, Risk Factors — Our earnings are sensitive to supply, demand and pricing dynamics for land sales, leasing and development activities, as well as any remaining agricultural products.
  108. [108] Item 1A, Risk Factors — Compliance with applicable environmental laws may substantially increase our costs of doing business, which could reduce our profits.
  109. [109] Item 1A, Risk Factors — Our business may be adversely affected if we lose key employees.
  110. [110] Item 1A, Risk Factors — Material weaknesses and other control deficiencies relating to our internal control over financial reporting could result in errors in our reported results and could have a material adverse effect on our operations, investor confidence in our business and the trading price of our securities.
  111. [111] Item 1A, Risk Factors — Inflation can have a significant adverse effect on our operations.
  112. [112] Item 1A, Risk Factors — Macroeconomic conditions, such as rising inflation, armed conflicts and geopolitical instability, and pandemics or health crises could adversely affect our business, financial condition, results of operations and cash flows.
  113. [113] Item 1A, Risk Factors — We maintain a significant amount of indebtedness, which could adversely affect our financial condition, results of operations or cash flows, and may limit our operational and financing flexibility and negatively impact our business.
  114. [114] Item 1A, Risk Factors — Some of our debt is based on variable rates of interest, which could result in higher interest expenses in the event of an increase in the interest rates.
  115. [115] Item 1, Business — Overview
  116. [116] Item 1, Business — Overview
  117. [117] Item 1, Business — Overview
  118. [118] Item 1, Business — Our Strategy
  119. [119] Item 1, Business — Our Strategy
  120. [120] Item 1, Business — Our Strategy
  121. [121] Item 1, Business — Our Strategy
  122. [122] Item 1A, Risk Factors — If we are unable to successfully develop and execute our strategic growth initiatives, or if they do not adequately address the challenges or opportunities we face, our business, financial condition and prospects may be adversely affected.
  123. [123] Item 7, MD&A — Recent Developments
  124. [124] Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities — Dividend Policy
  125. [125] Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities — Dividend Policy

Analysis on 5/19/2026