Tejon Ranch Co. reported financial results for the fourth quarter and full year ended December 31, 2025, revealing a $2.9 million decrease in net income attributable to common stockholders, down to $1.6 million or $0.06 per share, compared to $4.5 million or $0.17 per share in the same period of 2024. The company attributed the decline to one-time proxy defense costs of approximately $3.4 million, which were not part of its core operations.

Key Financial Metrics Show Mixed Results

Despite the drop in net income, the company reported a 8% increase in revenues and other income, including equity in earnings from unconsolidated joint ventures, to $23.3 million in the fourth quarter of 2025, compared to $21.6 million in the same period of 2024. The farming segment saw the most significant growth, with revenues rising 26% to $12.2 million, driven by the return of pistachio production, an alternate bearing crop.

The company also reported an 9% increase in adjusted EBITDA, a non-GAAP financial measure, to $11.4 million for the fourth quarter of 2025 compared to $10.5 million in the previous year. Adjusted EBITDA is a key metric used by the company to monitor its cash flow performance and assess its operational efficiency.

Fiscal 2025 Financial Highlights

For the full year of 2025, Tejon Ranch Co. reported net income attributable to common stockholders of $0.1 million, or $0.00 per share, compared to $2.7 million, or $0.10 per share, in 2024. The company noted that the lower net income for 2025 included one-time costs related to proxy defense and other non-recurring expenses.

Total revenues and other income for 2025 rose 7% to $58.7 million, compared to $54.7 million in 2024. The farming segment saw a 35% increase in revenue to $18.7 million, while the commercial/industrial segment revenue rose 20% to $15.0 million. Adjusted EBITDA for the full year of 2025 increased 8% to $25.3 million, compared to $23.4 million in 2024.

Matthew Walker, president and CEO of Tejon Ranch Co., said in a statement that the company’s strategy is beginning to show results, with both revenues and adjusted EBITDA improving over the prior year. He noted that the underlying performance of the business improved significantly, with stronger profitability in commercial real estate and a year-over-year improvement in farming revenues.

Commercial/Industrial Real Estate Developments

The company highlighted progress in its commercial/industrial real estate segment, including the completion of Phase 1 of Terra Vista at Tejon, its first multi-family residential development located at Tejon Ranch Commerce Center (TRCC). Phase 1 includes 228 of the planned 495 residential units, with leasing beginning in the second quarter of 2025 and the final units delivered in October 2025. As of March 19, 2026, 71% of the units have been leased.

Additionally, the construction of the more than 700,000-square-foot Nestlé USA distribution facility on the east side of TRCC has been completed. Nestlé is currently completing equipment installation and commissioning activities as it prepares the facility to become operational.

Farming Segment Sees Strong Growth

The farming segment reported a 34.6% increase in revenues to $18.7 million in 2025, driven by the return of pistachio production, which contributed $5.3 million in revenue, absent in 2024 due to a down-bearing year. This highlights the significant earnings impact of the two-year pistachio cycle.

Almond revenues grew to $7.8 million in 2025 from $7.1 million in 2024, reflecting stronger pricing and continued maturation of the almond portfolio. Wine grape revenues rose to $3.4 million from $2.7 million, highlighting broad-based improvement across all three permanent crop categories.

The farming segment operating loss narrowed sharply to ($0.1 million) in 2025 from ($3.6 million) in 2024, a $3.5 million improvement that brings the segment to near breakeven, signaling a meaningful inflection point as permanent crops mature and the full earnings power of the pistachio and almond portfolios comes into focus.

Mineral Resources Segment Shows Stability

The mineral resources segment generated $2.8 million in operating income in 2025, supported by stable royalty streams across rock/aggregate and cement, and a higher blended oil & gas royalty rate of 14.6%, up from 13.4% in 2024. This improvement in royalty contract terms was achieved even as production volumes declined.

Rock and aggregate volumes and pricing both improved year-over-year to 1,494,000 tons sold (from 1,442,000) and the average price per ton increased from $1.40 to $1.46, reflecting continued construction demand and multi-year positive pricing momentum.

Liquidity and Capital Resources

At December 31, 2025, total capital, including debt, was $584.5 million. The company had total liquidity of approximately $91.0 million, consisting of cash and securities totaling approximately $24.9 million and $66.1 million available on its line of credit.

2026 Outlook and Strategic Focus

Looking ahead, the company remains focused on TRCC as its primary development platform and long-term value driver, pursuing commercial and industrial development, multi-family development, leasing and investment activity, both directly and through joint ventures. The company may also pursue selective land sales on an opportunistic basis and continues to advance its residential projects, including Mountain Village, Grapevine and Centennial at Tejon Ranch.

California remains a highly regulated environment for real estate development, and delays, including litigation-related matters, can occur. As a result, the company expects net income to fluctuate from year to year based on development activity, commodity prices, production within its farming and mineral resources segments, and the timing of land sales and leasing activity.

The company expects its 2026 farming operations to reflect elevated production costs, including fuel, fertilizer, pest control and labor. Winter chill hours to date have been below historical averages, which may affect bloom timing and crop development. The company’s pistachio orchards are expected to be in a down-bearing year consistent with the crop’s alternate bearing cycle. Final yields will depend on spring weather conditions, although tighter industry inventories may help support commodity pricing.