ALICO, INC.

Management Comments

John Kiernan, President and Chief Executive Officer of the Company, stated, “We completed our last major citrus harvest in April. Alico will conduct a final harvest on the majority of the 3,783 acres of remaining operational citrus groves in fiscal year 2026 and we have negotiated agreements to lease another 5,250 acres of different groves to third-party citrus growers next season. We are also in discussions or under contract with other vegetable and fruit growers who are clearing as many as 1,000 acres for us this season in lieu of lease payments. We are disappointed but not surprised that orange production this current season declined at Alico and across Florida. The continued challenges facing the citrus industry reinforce our recent strategic decision to wind down Alico’s citrus operations as it was not economically viable for us. By winding down our capital-intensive citrus production, we have strengthened our financial position.”

Mr. Kiernan continued, “Our Strategic Transformation to become a diversified land company has already exceeded our fiscal year 2025 goals. At this time, we are forecasting that our cash balance at the end of this fiscal year will be approximately $25 million, and our net debt will be approximately $60 million with only the required $2.5 million balance outstanding under our revolving line of credit. Alico now expects to generate approximately $20 million in Adjusted EBITDA in fiscal year 2025. These projections are supported by the previously announced estimate of $20 million of land sales and cash generated by the 2024/25 citrus harvest. We currently project that land sales could potentially exceed $50 million this year, but we recognize that each pending transaction has its own challenges, just as all previous sales Alico has transacted over the past decade have experienced, and there is no certainty regarding timing until sales are closed.”