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By Karen Roman
Alico, Inc. (Nasdaq: ALCO) beats the cold-front and starts the year hot. The first quarter marked a clear earnings inflection point, driven by the successful shift away from citrus towards a land-centric operating model.
ALCO generated a stand-out $7.7 million from land sales in the first quarter and turned around adjusted EBITDA from negative $6.7 million a year earlier to $2.7 million. Year-to-date land monetization reached $34.5 million through January 2026, strengthening liquidity and reducing earnings volatility.
As agricultural land utilization scales, the operating base continues to stabilize: Approximately 97% of ALCO’s 32,500 farmable acres are now leased. Diversified land management programs, including farming leases, grazing, mining royalties, and sod, cover roughly 89% of total agricultural acreage. These arrangements provide recurring cash flows with lower capital intensity and improve earnings visibility.
ALCO’s development pipeline remains a key source of long-term upside potential. The Corkscrew Grove Villages project advanced with legislative approval of its stewardship district, and a local county entitlement decision is expected in 2026, with construction potentially beginning as soon as 2028 or 2029. A total of four priority development projects representing about 10% of the land base are estimated to hold $335 million to $380 million in present value, underscoring significant embedded optionality.
The priority for 2026 is set: a clear focus on continued cash generation and balance-sheet flexibility. Meanwhile, adjusted EBITDA is expected to reach approximately $14 million with cash balances possibly rising to around $50 million by year-end. While quarterly results could remain lumpy due to episodic land sales, the company’s strengthened liquidity, advancing entitlements, and diversified land income streams position ALCO for sustained earnings-growth and incremental value recognition.
Check out the link below for our detailed earnings coverage and the latest on ALCO’s turn-around story.
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