ALICO INC (NASDAQ:ALCO) Q3 2025 Earnings: Revenue and EPS Miss Amid Strategic Transition to Land Development

ALICO INC (NASDAQ:ALCO) Reports Q3 2025 Earnings: Misses Revenue and EPS Estimates Amid Strategic Shift

Alico Inc. released its third-quarter fiscal 2025 results, revealing a significant miss on both revenue and earnings per share (EPS) compared to analyst expectations. The company reported revenue of $8.39 million, falling short of the estimated $9.08 million, while its diluted EPS came in at -$2.39, far below the projected -$0.36. The market reaction has been muted in after-hours trading, with no immediate price movement, though the stock has seen modest gains over the past month (+2.6%).

Key Financial Highlights vs. Estimates

• Revenue: $8.39M (actual) vs. $9.08M (estimate) – -7.6% miss
• EPS: -$2.39 (actual) vs. -$0.36 (estimate) – 563% worse than expected
• Net Loss: $18.29M attributable to common stockholders, compared to a $2.04M loss in the prior-year quarter.

The sharp decline in earnings was primarily driven by $40.7 million in accelerated depreciation related to the company’s citrus trees as part of its strategic shift away from citrus production. This was partially offset by $16 million in crop insurance proceeds following Hurricane Milton’s impact in October 2024.

Strategic Transformation Progress

Alico is undergoing a major transition from a citrus-focused agribusiness to a diversified land management and development company. Key developments include:

• Completion of final major citrus harvest in Q3 2025.
• $9.3M in land and equipment sales, exceeding its fiscal 2025 target of $20M.
• Strong liquidity position, with $42.1M in cash and a current ratio of 9.37:1.
• Corkscrew Grove Villages project advancing, with legislative approval for a stewardship district to support infrastructure financing.

Market Reaction & Outlook

Despite the earnings miss, the stock has shown resilience, gaining 3.3% over the past week and 2.8% over the past two weeks, suggesting investor optimism around Alico’s long-term land development strategy.

Looking ahead, management expects:

• Adjusted EBITDA of ~$20M for FY2025, with cash reserves sufficient to cover operating expenses through 2027.
• Net debt reduction to ~$60M by year-end, down from $85.2M currently.

Analyst estimates for Q4 2025 project revenue of $306K and EPS of -$0.35, while full-year 2025 expectations stand at $53.66M in sales and -$1.18 EPS.

Conclusion

Alico’s Q3 results reflect the financial impact of its strategic pivot, with near-term losses overshadowed by progress in land monetization and development initiatives. While the transition remains a work in progress, the company’s strong balance sheet and real estate potential may justify the market’s cautious optimism.

For more detailed earnings estimates and historical performance, visit ALICO’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.