Alico, Inc. reported a significant decline in its financial performance for the fiscal year ending September 30, 2025, with total operating revenues of $44.1 million, down 5.5% from $46.6 million in the previous year. The company experienced a net loss attributable to common stockholders of $147.3 million, a stark contrast to a net income of $7.0 million in 2024. This downturn was primarily driven by a substantial loss from operations amounting to $203.9 million, compared to a loss of $67.5 million in the prior year. The decline in revenue was largely attributed to a 26.4% decrease in pound solids produced due to adverse weather conditions, specifically Hurricane Milton, which impacted the citrus harvest.
In response to ongoing financial challenges, Alico announced a Strategic Transformation on January 6, 2025, aimed at winding down its Alico Citrus division and shifting focus towards diversified land usage and real estate development. This strategic pivot was necessitated by the long-term effects of citrus greening disease and environmental factors that have adversely affected citrus production. As part of this transformation, the company approved a workforce reduction of up to 172 employees, which was implemented between January and May 2025. Additionally, Alico terminated its grove management agreement with Tropicana, its largest customer, in May 2025, further impacting its revenue streams.
Operationally, Alico's citrus segment generated 93.8% of total revenues, down from 96.6% in the previous year, reflecting the company's transition towards land management and other operations, which saw a revenue increase of 72.3% to $2.7 million. The company managed approximately 49,537 acres of land across eight Florida counties, with 39,297 acres dedicated to citrus cultivation. The average price per pound solids for citrus increased significantly, with early and mid-season oranges priced at $3.69, up 36.2% from the previous year, indicating a shift in market dynamics despite lower production volumes.
Looking ahead, Alico's management expressed cautious optimism regarding its strategic initiatives, which include the development of the Corkscrew Grove Villages project and the establishment of a wildlife corridor in collaboration with the Florida Department of Transportation. The company aims to leverage its land holdings for long-term growth while maintaining a commitment to environmental stewardship. However, the ongoing risks associated with climate change, market competition, and the need for regulatory approvals pose challenges to the successful execution of its new business strategy. Alico's ability to navigate these complexities will be critical to its future financial stability and operational success.
About ALICO, INC.
Alico, Inc. is a leading agribusiness based in Florida, specializing in citrus production and land management. With over 53,000 acres of land, Alico cultivates citrus for both fresh and processed markets, primarily supplying Tropicana. The company is focused on sustainable practices and innovative solutions to combat challenges like citrus greening. Alico aims to maximize shareholder value through strategic land use and partnerships, addressing significant market opportunities in the citrus industry.
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