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Alico, Inc. Closes $26.8 Million Land Sale and Achieves 97% Agricultural Utilization

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Company Has Closed a Total of $34.6 million in Land Sales During Fiscal 2026 Company Has Closed a To...

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AI Summary

Alico closed $34.6 million in land sales during fiscal 2026. Major sale included 2,950 acres for $26.8 million, advancing strategic transformation. 97% of farmable land is now utilized, diversifying revenue streams. Net debt decreased to $47.4 million, enhancing financial flexibility. Alico authorized a $50 million stock buyback program for shareholder value.

Sentiment Rationale

The successful land sales and debt reduction signal strong financial health. Historical precedents show companies enhancing value through similar strategic transformations.

Trading Thesis

The repositioning of Alico paves the way for sustainable revenue in the long run, similar to other successful agribusiness transformations.

Market-Moving

  • Alico closed $34.6 million in land sales during fiscal 2026.
  • Major sale included 2,950 acres for $26.8 million, advancing strategic transformation.
  • 97% of farmable land is now utilized, diversifying revenue streams.

Key Facts

  • Alico closed $34.6 million in land sales during fiscal 2026.
  • Major sale included 2,950 acres for $26.8 million, advancing strategic transformation.
  • 97% of farmable land is now utilized, diversifying revenue streams.
  • Net debt decreased to $47.4 million, enhancing financial flexibility.
  • Alico authorized a $50 million stock buyback program for shareholder value.

Companies Mentioned

  • CAG (CAG)
  • ADM (ADM)
  • BG (BG)

Corporate Developments

The article outlines significant financial maneuvers impacting shareholder value and company positioning, crucial for investors.

Alico, Inc. Closes $26.8 Million Land Sale, Achieving 97% Agricultural Utilization

FORT MYERS, Fla., January 15, 2026 – Alico, Inc. (Nasdaq: ALCO) has completed a significant grove sale, marking a pivotal point in its transformation from a traditional citrus business to a diversified land management company. The company successfully sold approximately 2,950 acres of citrus land in Hendry County for gross proceeds of $26.8 million, part of a larger strategy to generate cash flow from its agricultural assets.

Details of Recent Land Sales

The recent sale is a milestone in Alico's ongoing land monetization efforts. Combining this latest transaction with earlier fiscal year sales, Alico has now closed land transactions totaling $34.6 million in fiscal 2026. Notable sales include:

  • 579 acres of citrus land for $6.1 million
  • Office and shop facility in Frostproof for $1.7 million

These achievements underscore Alico's strategic repositioning within the agricultural sector.

High Agricultural Utilization Rates

Following the signing of new lease agreements, Alico has achieved a remarkable 97% utilization rate of its approximately 32,500 farmable agricultural acreage. The company has diversified its land management strategies, incorporating revenue-generating agreements with:

  • Citrus growers
  • Cattle operators
  • Mining operators
  • Sugarcane producers
  • Sod farming and leasing

These initiatives have resulted in reduced operational complexity and enhanced agricultural productivity across approximately 89% of Alico’s total agricultural acres.

Strategic Insights from Leadership

John Kiernan, President and CEO of Alico, remarked, “These land sales represent the successful continuation of our strategic transformation that began in fiscal year 2025, demonstrating our ability to unlock substantial value from our land portfolio.”

He further noted the significance of the 97% utilization of farmable land, reinforcing Alico's commitment to the Florida agricultural community and optimizing land holdings for diversified agricultural operations.

Financial Performance and Outlook

As of September 30, 2025, Alico reported total debt of $85.5 million, down from $92.1 million at the end of fiscal year 2024. With $38.1 million in cash, the net debt position improved to $47.4 million.

This enhanced financial flexibility, along with proceeds from land sales and agricultural leasing revenue, positions Alico favorably to further advance its development projects. In April 2025, the Board of Directors authorized a $50 million stock buyback program, set to expire on April 1, 2028, as part of its commitment to creating shareholder value.

About Alico, Inc.

Alico, Inc. (Nasdaq: ALCO) is a Florida-based agribusiness with a legacy spanning over 125 years. Following its strategic transformation in 2025, Alico now operates as a diversified land company, stewarding approximately 49,537 acres across eight Florida counties. The company focuses on strategic land development opportunities aimed at creating long-term shareholder value through responsible land stewardship and conservation.

For more information, visit alicoinc.com.

Forward-Looking Statements

This article contains forward-looking statements regarding Alico, Inc.'s plans and expectations, including but not limited to the company's strategic transformations and the success of its land monetization initiatives. Actual results may differ due to various factors including market conditions and operational challenges.

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