Alico, Inc. (ALCO): Business Model Canvas [Dec-2025 Updated]

You're looking at Alico, Inc. (ALCO) right in the middle of a defintely major strategic pivot, moving from the uncertainty of agriculture to realizing high-value land development embedded in their massive portfolio. Honestly, seeing a company holding ~50,550 acres execute this shift is compelling, especially as they pulled in $23.8 million from strategic land sales in fiscal year 2025, even as their total revenue hit $44.1 million from the final citrus push and other operations. This Business Model Canvas lays out the nine blocks showing how they are balancing entitlement work for future communities with managing their existing leasing revenue streams. Keep reading to see the precise structure behind this transformation.

Alico, Inc. (ALCO) - Canvas Business Model: Key Partnerships

Alico, Inc.'s Key Partnerships are central to executing its strategic transformation into a diversified land company, balancing immediate agricultural revenue with long-term real estate monetization.

Florida Department of Transportation (FDOT) for infrastructure and wildlife corridor development.

Alico, Inc. is actively partnering with the Florida Department of Transportation (FDOT) to design and construct a wildlife underpass along State Road 82 in Collier County. This partnership is tied directly to the Corkscrew Grove Villages project. Alico, Inc. has committed approximately $5 million toward the design and construction costs for this underpass. The planned underpass is designed to be about 16 feet wide by 7 feet tall and includes wildlife fencing. Construction on this infrastructure is expected to begin before the end of 2025, subject to final approvals, with completion currently projected for 2027.

Corkscrew Grove Stewardship District for infrastructure financing and natural area management.

The creation of the Corkscrew Grove Stewardship District, established by legislation signed in 2025, is a critical partnership framework. This special district will assist Alico, Inc. in several key areas related to the Corkscrew Grove Villages development on approximately 4,600 acres.

• The District will help Alico, Inc. finance infrastructure.
• It will help restore and manage natural areas.
• It will oversee the administration of the master-planned communities and lands within its boundaries.

The Corkscrew Grove master plan includes two 1,500-acre villages and over 7,000 acres designated for permanent conservation. A final decision from county commissioners regarding the first village, East Village, is anticipated in 2026.

Financial institutions like MetLife Investment Management for credit agreement amendments.

Alico, Inc. maintains a key relationship with MetLife Investment Management, LLC, which holds its primary debt facilities. On September 29, 2025, Alico, Inc. entered into an Eighth Amendment to its credit agreement with MetLife Investment Management, LLC. This amendment secured $10 million in additional fixed rate borrowings. The proceeds were used to retire all existing indebtedness with Prudential Mortgage Capital Company, LLC. This refinancing action eliminates $1.16 million in annual mandatory principal payments that were required under the Prudential debt. The maturity date for these borrowings under the MetLife agreement is now extended to May 1, 2034. At the end of fiscal year 2025, Alico, Inc. reported total debt of $85.5 million, resulting in net debt of $47.4 million. The company's liquidity position is strong, with a current ratio of 9.37 reported by InvestingPro analysis, and a debt-to-equity ratio of 0.76.

The financial structure is supported by these lending partners, as shown below:

Agricultural tenants for leasing the 75% of land retained for diversified farming.

Following the conclusion of its final major citrus harvest in fiscal year 2025, Alico, Inc. is focusing on leasing the 75% of its land holdings designated for diversified agriculture. The company has successfully negotiated lease agreements for approximately 5,250 acres with third-party citrus growers.

• Leasing diversifies revenue away from weather-dependent citrus.
• Strong interest noted from cattle operators, sugarcane growers, and soy producers.
• The goal is to optimize these agricultural leasing programs in the near term.

The company ended fiscal year 2025 with $38.1 million in cash and cash equivalents, which management stated provides enough liquidity to meet expected operating expenses through fiscal year 2027, supporting the transition period.

Real estate development firms for future joint ventures in the 25% development portfolio.

Approximately 25% of Alico, Inc.'s total land holdings are identified for strategic commercial and residential development opportunities. Management estimated the total value of the landholdings to be between $650 million and $750 million. The company is advancing its development pipeline, led by the Corkscrew Grove Villages project.

The development focus is phased:

• Approximately 10% of acres are targeted for development within the next five years (from January 2025).
• The remaining 15% is slated for development following that initial period.

While specific real estate development firm names aren't detailed as partners in the same way as the lenders or government entities, the partnership structure relies on the Corkscrew Grove Stewardship District to facilitate infrastructure and community administration for the master-planned communities. Construction on the first village is anticipated to begin as early as 2028 or 2029.

Alico, Inc. (ALCO) - Canvas Business Model: Key Activities

Advancing the entitlement process for the Corkscrew Grove Villages master-planned community.

Strategic land sales and monetization, generating $23.8 million in FY 2025.

Optimizing diversified agricultural leasing programs on non-development land holdings.

Maintaining rigorous corporate and operational cost controls post-citrus wind-down.

Managing and maintaining approximately 49,537 acres of Florida land.

The focus on land monetization and development is supported by key operational metrics:

The shift to a diversified land company model involves specific actions related to leasing and cost structure:

• Designating approximately 75% of land holdings for diversified agricultural leasing.
• Successfully negotiated lease agreements for approximately 5,250 acres with third-party citrus growers.
• Workforce reductions from approximately 200 employees to 25 employees to align with the new model.
• Cash position provides enough liquidity to meet expected operating expenses through fiscal year 2027.

The company completed its final major citrus harvest in fiscal year 2025, marking the end of capital-intensive citrus production operations.

Alico, Inc. (ALCO) - Canvas Business Model: Key Resources

You're looking at the core assets Alico, Inc. (ALCO) is relying on as it solidifies its new identity as a diversified land company. The transformation away from citrus is complete, so the resources now center on real estate potential and a lean operational structure. Honestly, the land itself is the star of the show here.

The most significant tangible resource is the sheer scale of the real estate holdings. Alico, Inc. maintains an extensive land portfolio of approximately 50,550 acres across eight Florida counties as of the end of fiscal year 2025. This massive footprint is the foundation for both its ongoing agricultural leasing revenue and its high-value development pipeline. To be fair, the company also holds approximately 48,700 acres of oil, gas, and mineral rights in the state.

Financially, the balance sheet strength achieved through the strategic shift is a key resource, providing operational runway. At the close of fiscal year 2025, Alico, Inc. reported $38.1 million in cash and cash equivalents. Management noted this liquidity was sufficient to cover expected operating expenses through fiscal year 2027, which definitely lowers near-term funding risk.

The human capital resource has been drastically right-sized to match the new, less capital-intensive business. The workforce is now a reduced, streamlined group of approximately 25 employees post-transformation, a significant drop following workforce reductions earlier in 2025. [cite: 18 (reduction context)]

Here's a quick look at the key quantifiable assets supporting the new model:

The entitlement rights and zoning for the future Corkscrew Grove Villages development represent the primary non-tangible, high-value resource. This project is central to the plan to monetize strategic land parcels. The development rights cover a significant portion of the land earmarked for monetization.

• Total planned community size for Corkscrew Grove Villages: 3,000 acres.
• The plan envisions two distinct villages: Corkscrew Grove East Village and Corkscrew Grove West Village, each being 1,500 acres.
• The application for the first village was filed in March 2025, with a final Collier County decision anticipated in 2026.
• Construction commencement is projected following permit completion, estimated for 2028 or 2029.
• The 3,000 acres are part of a larger strategy to monetize approximately 5,500 acres across four counties within five years.

Also part of the resource base are the remaining agricultural assets, which are now managed for stable, non-citrus income. Alico plans to retain approximately 75% of its total landholdings for diversified agricultural leasing programs.

Alico, Inc. (ALCO) - Canvas Business Model: Value Propositions

You're looking at Alico, Inc. (ALCO) as it solidifies its pivot away from volatile citrus production and into a land-centric enterprise. The core value proposition now centers on monetizing the inherent worth of its real estate holdings.

Unlocking embedded land value through strategic real estate development is the primary driver. This is being executed by earmarking a specific portion of the total land for higher-and-better use projects. The strategic plan involves dedicating approximately 25% of its land holdings for future development, while the remaining 75% is retained for diversified agricultural leasing and resource management.

The development pipeline offers tangible, large-scale opportunities. Specifically, Alico is advancing four near-term real estate development projects totaling approximately 5,500 acres across four separate counties. Management estimates the present value of this near-term developable land to be between $335 million and $380 million, expected to be realized within the next five years. The crown jewel is the Corkscrew Grove Villages project in Collier County, which is planned to create a new residential and commercial hub. This single project envisions two distinct 1,500-acre mixed-use villages, which translates to providing entitled land for approximately 9,000 homes and 560,000 square feet of commercial space. You should note that the final decision from county commissioners is expected in 2026, with construction potentially starting as early as 2028 or 2029.

For the portion retained, Alico is offering diversified agricultural and natural resource leasing opportunities. This strategy lowers operational risk by moving away from weather-dependent citrus operations. The company detailed ongoing diversified leasing agreements covering approximately 5,250 acres. Land management and other operations also contributed to a $1.1 million gross profit increase, bolstered by rock and sand royalties and farm lease revenue.

The transition is supported by financial stability metrics that demonstrate enhanced liquidity following the exit from citrus production. The company ended fiscal year ended September 30, 2025, with a very strong current ratio of 9.56 to 1.00. This liquidity position is supported by $38.1 million in cash and cash equivalents, which management stated provides enough liquidity to meet expected operating expenses through fiscal year 2027.

Here's a quick look at the key figures underpinning this new value proposition as of year-end 2025:

The value proposition is also supported by these operational and balance sheet highlights:

• Cash and cash equivalents at year-end: $38.1 million.
• Net debt reduction year-over-year: $41.6 million.
• Net debt as of year-end 2025: $47.4 million.
• Fiscal Year 2025 Revenue: $44.1 million.
• Final citrus harvest completed, concluding capital-intensive production.
• Average realized price per pound solids for citrus (before cessation): $3.66.

Finance: draft 13-week cash view by Friday.

Alico, Inc. (ALCO) - Canvas Business Model: Customer Relationships

You're looking at how Alico, Inc. (ALCO) manages its relationships now that the company has fully transitioned away from capital-intensive citrus production to a diversified land company. This shift means customer focus is now heavily weighted toward land development partners and long-term agricultural lessees.

Direct, long-term contractual relationships with real estate developers and builders

The relationship with real estate developers centers on the planned community known as Corkscrew Grove Villages, which sits on approximately 4,600 acres in Collier County. This is a key component of the strategy to monetize select acreage for higher-value development opportunities. The total estimated value of near-term developable land across four strategic assets, including this project, is projected to be between $335 million and $380 million over the next five years. You should note that the timeline for these developer relationships is still in the entitlement phase; a final decision from Collier County is expected in 2026, with construction potentially starting in 2028 or 2029 if all approvals are granted. Alico, Inc. owns approximately 51,300 acres across 8 Florida counties as of September 30, 2025, and this development pipeline represents a significant future customer base for land sales or joint ventures.

Here's the quick math on the land strategy supporting these developer relationships:

Formal, professional engagement with government entities like the FDOT and Stewardship District

A critical relationship for the development segment involves government entities, specifically the Florida Department of Transportation (FDOT) and the Corkscrew Grove Stewardship District (CGSD). The CGSD was formally established in June 2025 to help finance infrastructure and manage development within its boundaries. Alico, Inc.'s CEO, John Kiernan, serves as the Board Chairman of the CGSD, showing a very direct level of engagement. This structure was key to a strategic partnership announced in November 2025 with FDOT to design and construct a wildlife underpass along State Road 82, aligning with the Corkscrew Grove Villages project. Alico, Inc. committed approximately $5 million toward the design and construction costs for this underpass, and on November 14, 2025, the company deposited $5,071 with FDOT to fund the project, with the expectation that this payment is reimbursable under the CGSD Funding Agreement. Construction on the underpass is currently expected to be completed in 2027.

Business-to-business (B2B) leasing agreements with agricultural operators

For the portion of land retained for agriculture, Alico, Inc. maintains B2B leasing agreements for various uses. The Land Management and Other Operations segment, which includes lease income from farm leases, grazing rights, and hunting leases, accounted for 6.2% of total operating revenues for the fiscal year ended September 30, 2025. This is up from 3.4% in the prior year, reflecting the strategic shift. While the company completed its final major citrus harvest in April 2025, it still has leasing arrangements in place. For instance, a lease representing approximately 637 acres was extended for one year through June 30, 2025, which was an expansion of about 2% over owned land production at that time. These leasing customers provide a steady, albeit smaller, revenue stream as the company focuses on development.

• Lease income sources include: grazing rights leases, hunting leases, a farm lease, and leases for oil extraction rights.
• The company sold approximately 2,796 acres of land for approximately $23,807 thousand in fiscal year 2025.
• Land sales proceeds for fiscal year 2025 totaled $23.8 million, exceeding the initial guidance of $20 million.

Investor relations managed through earnings calls and SEC filings for transparency

Transparency with investors is managed through formal reporting, especially given the significant corporate overhaul in fiscal year 2025. The company reported its fourth quarter and full fiscal year results for the period ended September 30, 2025, with the 10-K filing occurring on November 24, 2025. For the full fiscal year 2025, Alico, Inc. reported total operating revenues of $44,066 thousand and an Adjusted EBITDA of $22.5 million, which surpassed the management expectation of approximately $20 million. The reported net loss attributable to common stockholders for FY 2025 was $147.3 million, or $19.29 per diluted share, largely driven by non-cash charges of $162.7 million in accelerated depreciation. The company ended the year with $38.1 million in cash and cash equivalents against total debt of $85.5 million, resulting in net debt of $47.4 million. Management stated this cash position provides enough liquidity to meet expected operating expenses through fiscal year 2027. You can review the details of these relationships and performance metrics in the earnings call transcripts and SEC filings available on the Investor Relations portion of the company's website.

Alico, Inc. (ALCO) - Canvas Business Model: Channels

Direct sales to large-scale real estate developers for land parcels.

For the fiscal year ended September 30, 2025, Alico, Inc. generated land sales proceeds of $23.8 million, exceeding the $20 million guidance. This figure included a gain of $20.3 million from the sale of 96 acres. The company has designated approximately 25% of its land holdings for future development.

The near-term real estate development pipeline consists of 4 projects: Corkscrew Grove Villages, Bonnet Lake, Saddlebag Grove, and Plant World, totaling approximately 5,500 acres. Management estimates the present value of these 5,500 acres to be between $335 million and $380 million, expected to be realized within the next 5 years.

Direct leasing and royalty agreements for agricultural, rock, and sand operations.

The Land Management and Other Operations (LMOO) segment is a key focus following the exit from citrus production. This segment generated revenue of $2.7 million, a 72% increase, with gross profit nearly doubling by 95% to $2.3 million. These revenues stem from diversified activities such as farm leases and rock/sand mining royalties. Alico, Inc. detailed ongoing diversified leasing agreements covering approximately 5,250 acres. The company intends to optimize these agricultural operations by maximizing revenue from diversified leasing programs in fiscal year 2026.

Investor relations website and financial news services for capital markets communication.

Alico, Inc. communicates material financial information through several channels:

• Investor relations portion of the company website, alicoinc.com.
• SEC filings, including Form 10-Q and Form 10-K.
• Press releases, public conference calls, and webcasts.
• Social media channels, including The Alico Facebook Feed and The Alico Twitter Feed.

The common stock trades on the Nasdaq Global Select Exchange under the symbol ALCO. The Investor Relations contact is John Kiernan, Senior V.P. & Chief Financial Officer, reachable at (239) 226-2000 or JKiernan@alicoinc.com.

Public-private partnerships for large-scale infrastructure projects.

Alico, Inc. is engaged in partnerships related to its land development strategy. The company has a strategic partnership with the Florida Department of Transportation (FDOT) for a wildlife underpass project valued at $5 million. Furthermore, regulatory milestones involve securing approvals for the Corkscrew Grove Villages development, with a Collier County decision anticipated in 2026.

Alico, Inc. (ALCO) - Canvas Business Model: Customer Segments

You're looking at the customer base for Alico, Inc. (ALCO) after its full pivot away from citrus production as of the fiscal year ended September 30, 2025. The focus is now squarely on monetizing the land portfolio through development and leasing.

Large-scale residential and commercial real estate developers

• Designated approximately 25% of total land holdings for future development.
• The Corkscrew Grove Villages project encompasses approximately 4,600 acres.
• Realized land sales proceeds of $23.8 million for Fiscal Year 2025.
• Recognized a gain of $20.3 million on the Fiscal Year 2025 land sales.
• Currently has 3,526 acres under contract for $34.5 million.

Agricultural operators and farmers seeking long-term land leases

This segment is served by the 75% of land retained for diversified agricultural leasing, which is part of the Land Management and Other Operations (LMOO) segment.

Mining and resource companies for rock and sand royalty income

Royalty income from rock and sand mining is a key driver within the LMOO segment, alongside farm leases.

• Rock and sand royalty income contributed to the LMOO revenue increase.

Institutional and individual investors (ALCO shareholders)

The shareholder base reflects the market's view of the land company strategy, with a high concentration of insider ownership.

Specific institutional holders include Blackrock Inc. with 5.07% ownership.

Alico, Inc. (ALCO) - Canvas Business Model: Cost Structure

You're looking at the cost side of Alico, Inc. (ALCO) as they finalize their shift from citrus production to a diversified land company. This transition brings some heavy, one-time charges that you need to account for when assessing the underlying operational performance.

The most significant costs impacting the bottom line in Fiscal Year 2025 were non-cash in nature, directly tied to winding down the citrus operations. These charges are crucial because they mask the performance of the continuing land management and development segments.

The transition created these large, non-recurring hits. To be fair, the underlying business is showing different cost trends. For instance, the total debt at the end of FY 2025 stood at $85.5 million.

Infrastructure spending related to the Corkscrew Grove Villages project is a key future cost driver, though much of it is structured as a commitment that may be reimbursed. Alico, Inc. committed approximately $5 million for the design and construction of a wildlife underpass connected to the project, which aligns with the State Road 82 widening. The company is expecting a final decision from county commissioners on the project in 2026.

Operating expenses for the Land Management and Other Operations segment reflect the shift away from citrus. You see changes here due to asset sales and ongoing stewardship activities:

• General and administrative expenses increased by $0.6 million for the full fiscal year 2025 compared to fiscal year 2024.
• Operating expenses for Land Management and Other Operations saw a decrease of 32.7% for the nine months ended June 30, 2025, versus the prior year, largely due to lower property and real estate taxes following the sale of the Alico Ranch.
• These expenses cover real estate, property taxes, legal, and professional fees associated with land management and leasing activities.

The company is actively managing these costs as part of its Strategic Transformation, aiming to optimize agricultural leasing programs and maintain rigorous corporate and operational cost controls moving into fiscal 2026.

Alico, Inc. (ALCO) - Canvas Business Model: Revenue Streams

You're looking at Alico, Inc. (ALCO) revenue streams as of late 2025, which clearly show the company's pivot away from being purely a citrus grower to a diversified land company. For the full fiscal year ended September 30, 2025, Alico, Inc. reported total operating revenues of approximately $44.1 million.

The revenue composition for fiscal year 2025 reflects this strategic shift, with significant contributions from asset realization alongside agricultural output. Here's a quick look at the major components:

The revenue from the final major citrus harvest was a key component, contributing to the $44.1 million total revenue figure for the fiscal year. This segment, Alico Citrus operations, accounted for 93.8% of the total operating revenues for fiscal year 2025. Despite the completion of the final harvest, the average realized price per pound solids increased to $3.66.

The Land Management and Other Operations (LMOO) segment is growing in importance, representing 6.2% of total operating revenues for the year, up from 3.4% in the prior year. This segment generated revenue of $2.7 million. This LMOO category captures the income streams that will define Alico, Inc.'s future focus as a diversified land company.

The income derived from these ongoing land-use activities includes several distinct sources:

• Income from diversified agricultural leases.
• Revenue from grazing leases.
• Income from hunting leases.
• Royalty income from rock and sand mining operations.

Also, Grove Management Services revenues decreased by $1,932 thousand due to the termination of a Grove Management Agreement.