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    ALCO
    Earnings call· Jun 2026(Q3 FY26)

    ALICO Q3 FY26 earnings call ALCO

    Aug 11, 2026 Source

    Executive summary

    Alico Q3 FY26 — Strong Balance Sheet and Raised Guidance

    Alico delivered a strong Q3 FY26, marked by significant balance sheet improvements and a raised full-year Adjusted EBITDA outlook. The company's strategic transformation, focused on land monetization and real estate development, is progressing, supported by increased liquidity and reduced net debt. Management anticipates an "EBITDA usage quarter" in Q4 due to revenue seasonality and ongoing costs.

    Highlights

    5

    • Cash and cash equivalents increased to $55.6 million, up $17.5 million since fiscal year-end.

    • Net debt reduced to $29.8 million at quarter end, a $17.6 million reduction from fiscal year-end.

    • Fiscal year 2026 Adjusted EBITDA guidance raised to approximately $15 million from $14 million.

    • Completed $10 million of share repurchases, acquiring 245,399 shares.

    • Agricultural lease agreement for 3,280 acres with an option to purchase at $9,000 per acre, validating land monetization.

    Concerns

    1

    • Q4 FY26 is expected to be an "EBITDA usage quarter" due to lower revenue and ongoing expenses, following $24.2 million adjusted EBITDA through 9 months.

    Guidance & targets

    5
    CategoryTargetConfidence
    Adjusted EBITDA
    Approximately $15 million
    high materiality
    High
    Cash and cash equivalents
    Approximately $48 million
    medium materiality
    High
    Net debt
    Approximately $37 million
    medium materiality
    High
    Liquidity runway
    At least 3 additional fiscal years
    high materiality
    High
    Corkscrew Grove East Village construction commencement
    2028 or 2029
    high materiality
    Medium

    Operational metrics

    22
    Cash and cash equivalents
    $55.6 millionUp $17.5 million since fiscal year-end
    Q3 FY26

    Strongest balance sheet position since strategic transformation began in January 2025.

    Net debt
    $29.8 millionReduction of $17.6 million from fiscal year-end
    Q3 FY26

    Compared to $47.4 million at fiscal year-end.

    Total revenue
    $9 millionIncrease of 7.7%
    Q3 FY26

    Compared to $8.4 million in the prior year period.

    Total revenue
    $16.3 millionDown from $43.3 million
    9M FY26

    Decline primarily reflecting the substantial completion of citrus wind-down.

    Net income attributable to Alico common stockholders
    $2.1 millionCompared to a net loss of $18.3 million
    Q3 FY26

    Improvement due to completion of accelerated depreciation on citrus trees and increased lease income from land management.

    EBITDA
    $4.6 millionCompared to $19.2 million
    Q3 FY26

    Decline principally due to a decrease in crop insurance proceeds and a lower gain on the sale of property and equipment.

    Adjusted EBITDA
    $4.6 millionCompared to $19.3 million
    Q3 FY26

    Compared to prior year period.

    EBITDA
    $23.7 millionCompared to a loss of $2.2 million
    9M FY26

    Compared to prior year period.

    Adjusted EBITDA
    $24.2 millionCompared to $25.3 million
    9M FY26

    Compared to prior year period.

    Net proceeds from land and equipment sales
    $35 million
    9M FY26

    Contributed to the increase in cash and cash equivalents.

    Share repurchase program completed
    $10 million
    9M FY26

    Completed during the quarter, contributing to capital allocation.

    Advance to Corkscrew Grove Stewardship District
    $5.1 million
    9M FY26

    Offset cash increase.

    Citree acquisition cash payment
    $2 million
    Q3 FY26

    Cash paid for the remaining 49% interest in Citree.

    Working capital
    $50.6 million
    Q3 FY26

    At quarter end.

    Current ratio
    7.96 to 1
    Q3 FY26

    At quarter end.

    Total debt
    $85.4 millionEssentially unchanged from fiscal year-end
    Q3 FY26

    At quarter end.

    Available borrowings under credit facility
    $92.5 million
    Q3 FY26

    Approximately.

    Minimum liquidity requirement
    $5.8 million
    Q3 FY26

    At quarter end.

    Farmable acreage leased
    98%
    Q3 FY26

    Approximately 98% of farmable acreage continues to be leased.

    Citree outstanding debt
    $3.3 million
    Q3 FY26

    Outstanding debt of Citree joint venture, which Alico took sole responsibility for after acquiring the remaining interest.

    Land portfolio acreage
    47,300 acres
    Q3 FY26

    Approximately 47,300 acre Florida portfolio.

    Corkscrew Grove Villages land preservation
    6,000 acres
    Q3 FY26

    More than 6,000 acres preserved as part of the project.

    Deals & partnerships

    2
    UndisclosedAgricultural lease agreement with option to purchase$29.5 millionOption holds through June 2029

    Entered into an agricultural lease agreement for approximately 3,280 acres in Hendry County. The option to purchase is for $29.5 million or $9,000 per acre, which escalates annually after June 2029. This transaction validates the land monetization strategy.

    Citree joint venture partnerAcquisition of remaining 49% interest in Citree joint venture$2 million cash

    Alico acquired the remaining 49% interest in Citree, a joint venture through which it held a 51% interest in approximately 1,200 acres of land within Joshua Grove in DeSoto County. This simplifies the corporate structure and gives full control over the property.

    Risks & headwinds

    2
    Q4 FY26 EBITDA usageQ4 FY26

    Expected to be an "EBITDA usage quarter" to reach full-year guidance of $15 million from $24.2 million YTD.

    Mitigation: Not explicitly stated as mitigation, but management explains it's due to seasonality (most revenue already earned) and ongoing recurring expenses.

    Permitting timelines for Corkscrew Grove East VillageCY28-CY29

    Potential construction commencement in 2028 or 2029

    Mitigation: Process is progressing, and the company believes it remains on track, but it is pending receipt of all required approvals from the South Florida Water Management District, U.S. Army Corps of Engineers, and U.S. Fish and Wildlife Service.

    What to watch in Q4 FY26

    5

    Corkscrew Grove East Village Permitting

    next quarter
    CurrentMoved into state and federal permitting following local entitlement approval in April.
    TargetContinued progress towards approvals from South Florida Water Management District, U.S. Army Corps of Engineers, and U.S. Fish and Wildlife Service.

    Why it matters

    Critical for advancing the company's real estate development strategy and unlocking land value.

    Corkscrew Grove East Village has moved into state and federal permitting following its local entitlement approval in April. That process is progressing and we believe that we remain on track for potential construction commencement in 2028 or 2029 pending receipt of all required approvals from the South Florida Water Management District, U.S. Army Corps of Engineers, and U.S. Fish and Wildlife Service.

    Q&A highlights

    1

    The analyst asked for clarification on the bridge from the $24 million adjusted EBITDA reported through the first 9 months to the full-year guidance of approximately $15 million.

    Management explained that Q4 FY26 is expected to be an "EBITDA usage quarter" because most of the year's revenue from citrus harvest and beneficial lease income has already been earned in prior quarters, while recurring expenses like property taxes and G&A continue at a steady pace.

    “In the last quarter of the year, the substantial portion of our revenue has already been earned for the year related to the harvest -- the last citrus harvest and some beneficial lease income that we received in the third quarter. The fourth quarter will be much lower on a run rate basis of revenue. And accordingly, the expenses, many of which are spread evenly across the year will continue around the same pace. So as a result, we expect this to be more of an EBITDA usage quarter.”

    asked by Raimzhan Bayterek · answered by Bradley Heine

    2 min read7 chapters

    Detailed Narrative

    01

    Strategic Transformation Progress

    Alico is executing its multi-year transformation strategy, focusing on land monetization and real estate development. Key achievements include a new agricultural lease agreement, the acquisition of the remaining interest in Citree, and the advancement of the Corkscrew Grove East Village project through state and federal permitting. The company emphasizes building financial flexibility to pursue its strategy on its own terms.

    02

    Balance Sheet Strength and Flexibility

    The company significantly strengthened its balance sheet, ending Q3 FY26 with $55.6 million in cash and cash equivalents, an increase of $17.5 million since fiscal year-end. Net debt was reduced by $17.6 million to $29.8 million. This enhanced liquidity, combined with $92.5 million in available borrowings, provides the flexibility to advance development projects without immediate asset sales, supporting operations through at least FY29.

    03

    Land Monetization and Development

    A new agricultural lease agreement for 3,280 acres in Hendry County includes an option to purchase at $29.5 million ($9,000 per acre), validating the company's land valuation and monetization strategy. The Corkscrew Grove East Village project is progressing through state and federal permitting, with potential construction commencement targeted for 2028 or 2029, following local entitlement approval.

    04

    Operational Discipline and Cost Management

    Alico remains focused on reviewing its operating cost structure to improve cash flow. Initiatives include a new office lease expected to deliver savings starting in Q2 FY27. Approximately 98% of farmable acreage continues to be leased, contributing to recurring revenue streams.

    05

    Capital Allocation

    The company completed $10 million of its share repurchase program during the quarter, repurchasing 245,399 shares in total, including 38,059 in Q3. This, combined with regular common dividends, demonstrates a commitment to returning capital to shareholders while simultaneously building cash reserves.

    06

    Segment Reporting Change

    Beginning this quarter, Alico is no longer presenting Alico Citrus and Land Management and Other Operations as separate reportable segments. Following the substantial completion of its citrus wind-down, the business is now managed and evaluated as a single reportable segment, though revenue will continue to be disclosed by activity for comparability.

    07

    Q4 Outlook and EBITDA Bridge

    Despite strong year-to-date performance, Q4 FY26 is anticipated to be an "EBITDA usage quarter." This is attributed to the substantial portion of annual revenue already earned from citrus harvest and beneficial lease income in prior quarters, while recurring expenses like property taxes and G&A continue at a steady pace.

    AI-generated summary of the company’s earnings call. Not investment advice.