Breaking Down Alico, Inc. (ALCO) Financial Health: Key Insights for Investors

If you're looking at Alico, Inc. (ALCO), you're not evaluating a simple agribusiness anymore; you're betting on a massive real estate and land management pivot. The financial health of Alico, Inc. right now is a study in near-term pain for long-term gain, and we defintely need to look past the headline numbers. Honestly, the Q3 2025 diluted Earnings Per Share (EPS) of -$2.39 was a tough read, falling far short of analyst estimates, driven largely by accelerated depreciation as they wind down citrus operations. But here's the quick math: the company is forecasting approximately $20 million in Adjusted EBITDA for the full fiscal year 2025, plus they've raised their land sales outlook to potentially exceed $50 million as they execute their strategic shift. That's the real story. We need to focus on how they're using their strong $42.1 million cash reserve to manage the transition and reduce net debt to the projected $60 million by year-end.

Revenue Analysis

You're looking at Alico, Inc. (ALCO) at a pivotal moment. The core takeaway is that the company is executing a radical Strategic Transformation away from its historical reliance on citrus farming toward a diversified land management model, which is causing significant near-term revenue volatility but is essential for long-term value.

The numbers reflect this shift: Alico, Inc.'s trailing twelve-month (TTM) revenue as of June 30, 2025, was $44.2 million, marking a -4.72% decrease year-over-year. The last reported quarter, Q3 2025, saw revenue of only $8.39 million, a sharp 38% drop from the prior year, largely due to the winding down of the citrus segment and the impact of Hurricane Milton in late 2024.

Primary Revenue Streams and Segment Contribution

Alico, Inc.'s revenue historically came from two main segments, but their relative contributions are changing dramatically. The old model was heavily weighted toward the Alico Citrus segment, which focused on cultivating citrus trees for processed and fresh markets. The new model elevates the Land Management and Other Operations segment, which is now the key driver of growth and future cash flow.

• Alico Citrus: Revenue from fruit sales, primarily Hamlin and Valencia oranges. This segment concluded its last major harvest in April 2025, and the company is moving to third-party leasing.
• Land Management and Other Operations: Revenue from leasing land for recreational, conservation, and mining activities, including rock and sand royalties, and sod sales. This segment is the future.

Here's the quick math on the shift: Land Management and Other Operations revenue increased a massive 107% in the second quarter of fiscal year 2025 alone, driven by higher rock and sand royalties. This segment's revenue for the nine months ended June 30, 2025, was up an astounding 5768% compared to the same period in the prior year, showing the dramatic, defintely non-linear, effect of the strategic pivot.

The Strategic Revenue Shift

The most significant change in Alico, Inc.'s revenue profile is the intentional move away from capital-intensive citrus production. The company is transitioning its nearly 50,550 acres of land in Florida to a diversified land company, focusing on asset optimization. This means land sales are now a huge part of the financial picture, even if they aren't always classified as operating revenue. Management raised its land sales outlook to potentially exceed $50 million for fiscal year 2025, which is a 150% increase from their prior guidance. This cash injection is what's supporting the transformation and strengthening the balance sheet.

While the citrus segment suffered from a volume decrease due to Hurricane Milton, the blended price per pound solids actually increased by $0.70 in Q2 2025 because of more favorable pricing in a contract with Tropicana. This small win doesn't change the overall strategy, but it shows how contract terms can temporarily cushion the blow of a natural disaster. For a deeper dive into the company's valuation, you should check out the full analysis: Breaking Down Alico, Inc. (ALCO) Financial Health: Key Insights for Investors.

Profitability Metrics

You're looking at Alico, Inc. (ALCO)'s profitability and seeing some alarming negative numbers for fiscal year 2025, and honestly, you should be. The headline figures are brutal, but they're a direct consequence of a deliberate, strategic shift, not a collapse of the core business as it pivots.

The company is in the middle of a major transformation from a citrus-focused agribusiness to a diversified land management and development company. This transition is what's crushing the near-term ratios, as the firm takes massive, non-cash charges to clear the slate. It's a textbook example of a clean-up year.

• Gross Profit Margin: The Trailing Twelve Months (TTM) Gross Profit Margin as of Q3 2025 stood at an extraordinary -444.98%.
• Operating Profit Margin: The TTM Operating Profit Margin was even worse at -528.34%.
• Net Profit Margin: The TTM Net Profit Margin was -355.13%, resulting in a Q3 2025 net loss of $18.29 million.

The Impact of Strategic Transformation

The enormous negative margins are driven almost entirely by one-time, non-cash operational decisions. In the second quarter of 2025, Alico, Inc. reported a substantial net loss, primarily due to a $119.3 million charge for accelerated depreciation on citrus trees as it began winding down its citrus operations. This was followed by another $40.7 million in accelerated depreciation in Q3 2025. That kind of accounting hit will make any profitability ratio look like a disaster, but it's a necessary step to monetize the land for higher-value uses like real estate development.

Here's the quick math: You have to write off the old asset (the citrus groves) to free up the new asset (the land). The reported Q3 2025 revenue was only $8.39 million, so a depreciation charge of over $40 million against that small revenue base instantly creates these massive negative percentages. You need to look past the Net Income line for a clearer picture.

Operational Efficiency and Industry Comparison

The true operational picture is better reflected in the company's forward guidance for Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which strips out the depreciation noise. Management expects to realize an Adjusted EBITDA of approximately $20 million for the full fiscal year 2025. This metric shows the cash-generating ability of the remaining operations and land sales, which is what matters most during a pivot.

To be fair, even before the accelerated depreciation, the traditional agribusiness sector has tight margins. For context, the average Net Profit Margin for the Agricultural Inputs industry is around 1.7%, and the Gross Profit Margin is typically 30.8%. Alico, Inc.'s TTM margins of -355.13% and -444.98% are clearly outliers, but they are outliers by design. If you look at the company's new focus, the Real Estate Development industry has one of the lowest average Net Profit Margins at -16.35%, which means the market is accustomed to negative profitability in this space, especially during early development phases like Alico, Inc.'s Corkscrew Grove Villages project.

Here is a comparison of Alico, Inc.'s profitability metrics against relevant industry benchmarks:

The key takeaway is that the profitability story is currently an accounting story, not a long-term operating one. The action for you is to monitor the strategic shift's progress and the cash flow, not the GAAP net income. For a deeper look at who is buying into this land play, check out Exploring Alico, Inc. (ALCO) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

Alico, Inc. (ALCO) is in the middle of a major strategic shift, and its debt-to-equity (D/E) structure reflects a company actively managing its financial leverage through asset monetization, not new borrowing. The direct takeaway is that Alico, Inc.'s leverage is well below the agricultural industry average, giving it significant financial headroom as it transitions from a citrus producer to a diversified land company.

As of the third quarter of fiscal year 2025 (ending June 30, 2025), Alico, Inc.'s total debt stood at approximately $85.2 million, a reduction from the $92.1 million reported at the end of fiscal year 2024. This reduction is a direct result of their strategy to wind down capital-intensive citrus operations and sell non-core assets. The company's net debt-total debt minus cash and cash equivalents-was approximately $43.2 million as of June 30, 2025, which is a significant improvement from the $89.0 million net debt at the end of the previous fiscal year.

Leverage Compared to Peers

The Debt-to-Equity (D/E) ratio, which measures how much debt a company uses to finance its assets relative to the value of shareholders' equity, is a key metric here. Alico, Inc.'s D/E ratio for the most recent quarter (MRQ) was approximately 73.09% or 0.73. This is a strong position, especially when you look at the broader industry. The total debt-to-equity ratio for the agricultural industry's most recent quarter is closer to 128.92%.

Here's the quick math: Alico, Inc. uses about 73 cents of debt for every dollar of equity, while the industry average uses nearly $1.29. This means Alico, Inc. is less leveraged than many of its peers, giving it more flexibility to weather market volatility or fund its land development projects. You can dive deeper into who is investing in this land-focused strategy by Exploring Alico, Inc. (ALCO) Investor Profile: Who's Buying and Why?

Financing Strategy and Debt Management

Alico, Inc.'s current financing strategy is heavily tilted toward asset monetization to reduce debt and fund its transformation, not new debt issuance. The company has essentially no near-term refinancing risk, as there are no significant debt maturities until 2029. This is a defintely comforting factor for investors.

The company's focus is on using its land portfolio to generate cash and strengthen the balance sheet. They are projecting land sales could potentially exceed $50 million in fiscal year 2025, a massive infusion of cash that directly reduces their need for new debt financing. This cash flow, plus the approximately $92.5 million in available borrowings under their revolving line of credit as of June 30, 2025, gives them a robust liquidity position to execute their strategic transformation.

• Reduce debt: Land sales are actively paying down existing debt.
• Fund growth: Cash from sales and existing credit facilities cover transformation costs.
• Long-term debt: Current portion of long-term debt is small, only $1.410 million.

The balance is clear: Alico, Inc. is leveraging its equity-the inherent value of its land assets-to pay down debt and transition to a less capital-intensive, diversified land company model. They are using their balance sheet strength to drive change, not relying on the debt markets.

Liquidity and Solvency

You need to know if Alico, Inc. (ALCO) has the cash to manage its strategic shift from citrus production to a diversified land company. The direct takeaway is that their liquidity position is exceptionally strong right now, driven by asset sales, but you must look past the headline ratios to the underlying cash flow trends to see the real story of their transformation.

Alico, Inc.'s current liquidity ratios are impressive, which is a significant strength as they exit their capital-intensive citrus business. As of June 30, 2025, the Current Ratio was a massive 9.37 to 1.00. That means for every dollar of short-term debt, the company holds $9.37 in easily convertible assets. The Quick Ratio, which strips out less liquid assets like inventory, was also very strong at approximately 8.87 for the TTM (Trailing Twelve Months) period ending Q3 2025.

This high liquidity is a direct result of their strategy. Working capital-the difference between current assets and current liabilities-increased significantly, hitting $50.0 million at the end of the third quarter of 2025. This is a clear, positive trend from the $32.4 million reported just six months earlier at the end of December 2024. They are building a cash buffer to fund their new focus on land management and real estate development. That's a huge cushion.

Looking at the cash flow statement provides the necessary context for this liquidity:

• Operating Cash Flow (OCF): For the first nine months of fiscal year 2025, Alico, Inc. generated $22.841 million in net cash from operating activities. This is a crucial reversal from the prior year's period, which saw a net cash use.
• Investing Cash Flow (ICF): The company generated $24.693 million from investing activities in the nine months ended June 30, 2025. This is primarily due to net proceeds from the sale of property and equipment totaling $28.172 million. This is the engine of their current liquidity strength.
• Financing Cash Flow (FCF): Alico, Inc. used $8.097 million in financing activities during the same period. This cash went toward net repayments on their revolving lines of credit and principal payments on term loans, which is a healthy sign of debt reduction.

The company's management has been defintely clear on the outlook: they project their cash and liquidity will support operations through fiscal year 2027. They anticipate ending fiscal year 2025 with a cash balance of approximately $25 million. Plus, they had approximately $92.5 million in available borrowings under their line of credit at June 30, 2025, providing a huge liquidity backstop. What this estimate hides, however, is the reliance on successful land sales to maintain this trajectory. The core citrus business is winding down due to economic unviability, so future cash flow will be highly dependent on the new land monetization strategy. For a deeper dive into who is betting on this new direction, you should check out Exploring Alico, Inc. (ALCO) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking at Alico, Inc. (ALCO) and wondering if the recent stock price jump makes it a buy, hold, or sell. The direct takeaway is this: Alico, Inc. is currently trading like a troubled asset with a high Price-to-Book ratio, and the analyst consensus is a clear Sell. The valuation metrics are heavily skewed by negative earnings, which points to significant near-term risk.

As of mid-November 2025, Alico, Inc.'s stock price is around $33.12, which is a solid +30.68% gain over the last 12 months, but that momentum is not supported by recent profitability. To be fair, the 52-week range of $24.76 to $35.90 shows the stock is near the top of its recent trading channel. Still, the underlying fundamentals are weak, which is a major red flag for a company focused on a strategic transformation. You can review the big-picture strategy here: Mission Statement, Vision, & Core Values of Alico, Inc. (ALCO).

Here's the quick math on the key valuation multiples, using the most recent Trailing Twelve Months (TTM) data available in November 2025:

• Price-to-Earnings (P/E) Ratio: -1.61. A negative P/E is simply a sign of negative earnings per share (EPS). The third-quarter 2025 EPS was a miss at ($2.39) against an estimate of ($1.09), which is defintely not a sign of value.
• Price-to-Book (P/B) Ratio: 2.26. This is high for a company with negative profitability, suggesting the market is valuing the company's assets-specifically its 50,550+ acres of Florida land-at more than double their book value.
• Enterprise Value-to-EBITDA (EV/EBITDA): Not Meaningful (NM). The negative net margin of -355.13% and negative Return on Equity (ROE) of -58.27% in Q3 2025 indicate EBITDA is likely negative, rendering the EV/EBITDA multiple useless for comparison.

The market capitalization sits at approximately $253.20 million. This is a small-cap stock, and small-cap stocks with negative profitability are inherently more volatile. Your risk tolerance needs to be high here, plus you have to believe in the long-term value of their land holdings to justify the 2.26 P/B ratio.

When you look at the dividend, Alico, Inc. pays an annualized dividend of only $0.20, resulting in a forward dividend yield of just 0.60%. The payout ratio is negative at -0.97%, which means the dividend is currently not covered by earnings. This is a common situation with negative EPS, but it suggests the dividend is being paid from cash reserves or debt, which isn't sustainable long-term. The analyst community has a clear view on this, with the current consensus rating being a strong Sell.

What this estimate hides is the potential for land value appreciation, which is the core bullish argument for Alico, Inc. But for now, the numbers are saying one thing: wait for a better entry point or clearer signs of a return to profitability before you commit capital. The company is set to release its full-year 2025 financial results on November 24, 2025, which will provide the final picture for the fiscal year.

Risk Factors

You're looking at Alico, Inc. (ALCO) and seeing a company in the middle of a massive change, and honestly, that strategic pivot is the biggest risk you need to map right now. They're moving away from being a major citrus producer to a diversified land company, and that shift comes with real, near-term volatility.

The core of the internal risk is the Strategic Transformation itself. Alico completed its last major citrus harvest in April 2025, effectively concluding the majority of its capital-intensive citrus operations because they were simply not economically viable anymore. This was a direct response to persistent external pressures, but it means their business model is fundamentally different today than it was a year ago. That's a huge operational change.

Operational and External Headwinds

The decision to wind down citrus was driven by a few crushing external factors. The long-term impact of citrus greening disease has made the division unsustainable. Plus, the 2025 fiscal year saw a sharp, immediate hit from the environment.

• Harvest Decline: Alico Citrus harvested approximately 10.8 million pound solids of fruit in the nine months ended June 30, 2025, a significant drop from the 14.7 million pound solids harvested in the same period a year earlier.
• Hurricane Impact: The decrease was largely driven by fruit drop caused by Hurricane Milton in October 2024.

To be fair, they did mitigate some of this immediately, receiving $16.0 million in crop insurance proceeds in the third quarter of 2025. But that's a one-time cushion, not a sustainable revenue stream. You can't bet on insurance every year.

Financial and Strategic Transition Risks

The new strategy leans heavily on land monetization and development, which introduces a new set of financial risks. The short-term numbers reflect the cost of this transition, which is defintely a headwind for profitability.

For the three months ended March 31, 2025, the company reported a massive net loss attributable to common stockholders of $111.4 million. The Q3 2025 net loss of $18.3 million was principally the result of approximately $40.7 million of accelerated depreciation on citrus trees as they wound down the division. Here's the quick math: You're taking a big, one-time accounting hit to clear the books for the future.

The biggest strategic risk now is the real estate market. The new revenue is tied to land sales, which could be impacted by real estate market fluctuations or regulatory delays in their development projects, like Corkscrew Grove Villages. This dependency is the new operational reality, and it's a slower, less predictable revenue cycle than farming.

For a deeper dive into who is betting on this land strategy, you should check out Exploring Alico, Inc. (ALCO) Investor Profile: Who's Buying and Why?

Mitigation and Liquidity Actions

The good news is the company is executing clear mitigation strategies, mainly by shoring up liquidity and managing debt while they wait for the land strategy to fully mature. They've been very clear about their financial targets for the fiscal year 2025:

They've also proactively amended their credit agreement, effective March 31, 2025, to adjust financial covenants and reduce required crop/tree insurance coverage for the 2025/2026 season, giving them more financial flexibility during this multi-year transition.

Growth Opportunities

You're looking at Alico, Inc. (ALCO) right now and seeing a company in the middle of a major, necessary pivot. The direct takeaway is this: its future growth prospects are tied almost entirely to its transition from a struggling citrus grower to a diversified land management and real estate development company. This is a classic asset-play story, where the value is being unlocked from the balance sheet, not the income statement-at least not yet.

The core of the growth strategy is a strategic transformation announced in January 2025 to wind down the capital-intensive citrus operations after the fiscal year 2025 harvest. This move frees up resources and over 51,300 acres of land in Florida for higher-value uses. To be fair, this shift caused a large reported net loss of $111.4 million in Q2 2025, driven by a $119 million non-cash charge for accelerated depreciation of citrus trees, but it's a one-time accounting hit that clears the path forward. That's the quick math on the short-term pain for long-term gain.

The new business model is built on three clear growth drivers, all focused on monetizing the company's extensive land portfolio, which is estimated to be worth between $650 million and $750 million. This is where the real opportunity lies, not in growing oranges. Mission Statement, Vision, & Core Values of Alico, Inc. (ALCO).

• Real Estate Development: Entitling and selling select parcels for commercial and residential use, most notably the Corkscrew Grove Villages project.
• Land Monetization: Opportunistic land sales, which the company has accelerated, raising its outlook to potentially exceed $50 million for fiscal year 2025.
• Diversified Agriculture: Leasing approximately 40,700 acres for profitable, non-citrus activities like sod production, cattle grazing, and sand mining, which is a much more stable revenue stream.

For fiscal year 2025, analyst expectations project total revenue of around $53.66 million, with a full-year Earnings Per Share (EPS) estimate of -$1.18. However, the operational health under the new model is better captured by management's guidance for Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which is expected to be approximately $20 million. This shows the underlying business is generating cash, even as accounting losses from the citrus exit hit the bottom line. That's a defintely important distinction for investors.

Alico, Inc.'s competitive advantage is simple: its sheer size and location. Owning over 51,300 acres in a high-growth state like Florida, where developable land is scarce, gives them a massive, tangible asset. Plus, the company has a strong liquidity position, reporting a current ratio of 9.37:1 as of June 30, 2025, and expects cash reserves to cover operating expenses through fiscal year 2027. This financial cushion allows them to be patient and sell land at the highest and best use (HBU) price, rather than being forced into fire sales. The focus is on disciplined land management and development, not commodity agriculture volatility.

The next concrete step for you is to monitor the progress of the Corkscrew Grove Villages entitlement process. That project is the single biggest value catalyst for the company over the next five years. Finance: track land sale announcements and entitlement milestones quarterly.