Tejon Ranch Co. Announces Fourth Quarter and Year-Ended December 31, 2025 Financial Results

TEJON RANCH, Calif., March 19, 2026 (GLOBE NEWSWIRE) -- Tejon Ranch Co. (NYSE:TRC), ("Tejon" or the "Company"), a diversified real estate development and agribusiness company, today announced financial results for the fourth quarter and year-ended December 31, 2025.

Fourth-Quarter 2025 Financial Highlights

• Net income attributable to common stockholders decreased by $2.9 million to $1.6 million ($0.06/share basic and diluted), compared to $4.5 million ($0.17/share) in fourth quarter of 2024.

• Revenues and other income, including equity in earnings from unconsolidated joint ventures, increased 8% to $23.3 million, compared to $21.6 million.

• Farming segment revenues increased 26% to $12.2 million, compared to $9.7 million.

• Adjusted EBITDA, a non-GAAP measure, increased 9% to $11.4 million, compared to $10.5 million.

• Delivered final buildings of the 228 unit phase 1 of Terra Vista at Tejon multifamily community. As of March 19, 2026, 71% of the units have been leased.
  
  

Fiscal 2025 Financial Highlights

• Net income attributable to common stockholders of $0.1 million, ($0.00/share), compared to $2.7 million, or $0.10 per share basic and diluted, in 2024.

• Revenues and other income, including equity in earnings of unconsolidated joint ventures, increased 7% to $58.7 million, compared to $54.7 million in 2024.

• Farming segment revenue increased 35% to $18.7 million vs. 2024.

• Commercial/industrial segment revenue increased 20% to $15.0 million vs. 2024.

• Adjusted EBITDA, increased 8% to $25.3 million for 2025, compared to $23.4 million for 2024.
  
  

Tejon Ranch Co. provides Adjusted EBITDA, a non-GAAP financial measure, because it offers additional information for monitoring the Company's cash flow performance. A table providing a reconciliation of Adjusted EBITDA to its most comparable GAAP measure, as well as an explanation of, and important disclosures about, this non-GAAP measure, is included in the tables at the end of this press release.

Executive Summary

“Last year we focused on establishing a clear direction for the company and aligning the organization around it,” said Matthew Walker, president and CEO of Tejon Ranch Company. “Our strategy is now beginning to gain traction in our operating performance. Our $49.6 million in revenues and $25.3 million in Adjusted EBITDA both improved over last year, reflecting the strength of our underlying businesses and the progress we’re making in executing our strategy. While our reported net income this year includes approximately $3.4 million in one-time proxy defense costs, the underlying performance of the business improved, led by stronger profitability in commercial real estate and a significant year-over-year improvement in farming.

“The broader story is the continued activity across our operating platform, particularly at the Tejon Ranch Commerce Center. In December for example, leveraging the opening of the neighboring Hard Rock Tejon Casino, fuel and food revenue increased at TA Petro Travel Center, and the Outlets at Tejon generated its highest retail sales of any month ever. Those trends are continuing through the first quarter. Our 2025 results included two land transactions at TRCC, the sale of a hotel site and the back-end revenue recognition tied to the Nestlé land sale. We are also encouraged by our success beyond TRCC, where farming revenues in 2025, which was an on-bearing year, were the highest in ten years.

“We continue to set the table for future growth. Over the past year we’ve simplified our organization, reduced overhead and clarified where and how capital will be deployed. We are not done yet, but we are encouraged with the progress in strengthening our communication, governance and overall alignment with our shareholders. Last year included several non-recurring costs including our activism defense expenses, and adjusting for those our net income would show improvement over 2024. Our responsibility now is to put more of the Ranch to work, converting land into recurring cash flow. A significant step in that process is the advancement of Centennial, our master-planned community in Los Angeles County, which is about to enter a more public phase of its entitlement process addressing the court’s identified issues.

“We recognize that investors will ultimately judge us by our results which means driving long term value through earnings growth and returns on invested capital.”

Commercial/Industrial Real Estate Highlights

• Leasing and occupancy updates as of December 31, 2025:

  • TRCC industrial portfolio, through the Company's joint venture partnerships, consists of 2.8 million square feet of gross leasable area (GLA) and is 100% leased.

  • TRCC commercial portfolio, wholly owned and through joint venture partnerships, consists of 620,907 square feet of GLA and is 98% leased.

  • In total, TRCC comprises 7.1 million square feet of GLA.

  • Outlets at Tejon maintained strong performance with 93% occupancy as of December 31, 2025.

• Construction of Phase 1 of Terra Vista at Tejon, the Company's first multi-family residential development located at TRCC, has been completed. 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.

• 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 Highlights

• Farming segment revenues increased 34.6% to $18.7 million in 2025, driven by the return of pistachio production, an alternate bearing crop, which contributed $5.3 million in revenue which was absent from 2024's down-bearing year, underscoring the significant earnings impact of 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.

• 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 Highlights

• 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, demonstrating improving royalty contract terms 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:

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.

As part of its crop diversification strategy, the Company planted 150 acres of olives in 2025 and expects to plant an additional 150 acres in 2026.

Earnings Conference Call Information

The Company will host a conference call to discuss its fourth quarter 2025 financial results:

• Date: Thursday, March 19, 2026

• Time: 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time

• Dial-In: (877) 704-4453 (U.S.) or +1 (201) 389-0920 (International)

• Conference Call Playback: (844) 512-2921 (U.S.) or +1 (412) 317-6671 (International) Passcode: 13757466
  
  

The full playback can be accessed through Thursday, April 16, 2026.

About Tejon Ranch Co.

Tejon Ranch Co. (NYSE: TRC) is a diversified real estate development and agribusiness company, whose principal asset is its 270,000-acre land holding located approximately 60 miles north of Los Angeles and 15 miles southeast of Bakersfield.

More information about Tejon Ranch Co. can be found on the Company's website at www.tejonranch.com.

Forward Looking Statements:

This release contains forward-looking statements within the meaning of the federal securities laws. Generally speaking, any statement not based upon historical fact is a forward-looking statement. In particular, statements regarding the Company’s business plans, strategies, prospects, objectives, milestones, future operating results, financial condition, expectations regarding capital allocation, cost savings, entitlement and development timelines, partnerships, regulatory reforms, and other future events or circumstances are forward-looking statements. These statements reflect the Company’s current expectations and beliefs about future developments and their potential effects on the Company. Forward-looking statements are not guarantees of performance and speak only as of the date of this report.

Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “will,” “should,” “would,” “likely,” “improve,” “commit,” and similar expressions, as well as discussions of strategy, objectives, and intentions, are intended to identify forward-looking statements. These statements are based on current assumptions and involve known and unknown risks, uncertainties, and other factors - many of which are beyond the Company’s control - that could cause actual results to differ materially from those expressed or implied. Such factors include, but are not limited to, market, economic, geopolitical and weather conditions; the availability and cost of financing for land development and other activities; competition; commodity prices and agricultural yields; success in obtaining and maintaining governmental entitlements and permits; the timing and outcome of regulatory or litigation processes; demand for commercial, industrial, residential, and retail real estate; and other risks inherent in real estate and agricultural operations.

No assurance can be given that actual results will not differ materially from those expressed or implied by these forward-looking statements. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events, or otherwise. Investors are cautioned not to place undue reliance on these forward-looking statements. For a discussion of risks and uncertainties that could cause actual results to differ, please refer to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and subsequent filings with the U.S. Securities and Exchange Commission.

(Financial tables follow)

Non-GAAP Financial Measure

This press release includes references to the Company’s non-GAAP financial measure “EBITDA.” EBITDA represents the Company's share of consolidated net income in accordance with GAAP, before interest, taxes, depreciation, and amortization, plus the allocable portion of EBITDA of unconsolidated joint ventures accounted for under the equity method of accounting based upon economic ownership interest, and all determined on a consistent basis in accordance with GAAP. EBITDA is a non-GAAP financial measure and is used by the Company and others as a supplemental measure of performance. Tejon Ranch also uses Adjusted EBITDA to assess the performance of the Company's core operations, for financial and operational decision making, and as a supplemental or additional means of evaluating period-to-period comparisons on a consistent basis. Adjusted EBITDA is calculated as EBITDA, excluding stock compensation expense and certain identified non-recurring items that are not indicative of our on-going operations or that may obscure our underlying results and trends. The Company believes EBITDA and Adjusted EBITDA provide investors relevant and useful information, when reconciled to their most comparable GAAP financial measure, because they permit investors to view income from operations on an unlevered basis before the effects of taxes, depreciation and amortization, and stock compensation expense. By excluding interest expense and income, EBITDA and Adjusted EBITDA allow investors to measure the Company's performance independent of its capital structure and indebtedness and, therefore, allow for a more meaningful comparison of the Company's performance to that of other companies, both in the real estate industry and in other industries. The Company believes that excluding charges related to share-based compensation facilitates a comparison of its operations across periods and among other companies without the variances caused by different valuation methodologies, the volatility of the expense (which depends on market forces outside the Company's control), and the assumptions and the variety of award types that a company can use. In addition, the Company excludes certain items impacting comparability, such as shareholder activism advisory costs and legal expenses associated with the Centennial litigation, to provide investors with a clearer understanding of the Company’s core operating performance across periods. EBITDA and Adjusted EBITDA have limitations as measures of the Company's performance. EBITDA and Adjusted EBITDA do not reflect Tejon Ranch's historical cash expenditures or future cash requirements for capital expenditures or contractual commitments. While EBITDA and Adjusted EBITDA are relevant and widely used measures of performance, they do not represent net income or cash flows from operations as defined by GAAP, and they should not be considered as alternatives to those indicators in evaluating performance or liquidity. Further, the Company's computation of EBITDA and Adjusted EBITDA may not be comparable to similar measures reported by other companies.

Adjusted Farming EBITDA before fixed water obligations is not a measure of financial performance prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and should not be considered in isolation or as a substitute for net income, operating income, or other performance measures prepared in accordance with GAAP. The Company defines Adjusted Farming EBITDA before fixed water obligations as net income (loss) before interest, taxes, depreciation, and amortization, further adjusted to exclude non-recurring items such as gains or losses on asset sales, impairments, share-based compensation, and other non-cash charges, and before deducting the Company’s fixed water obligations. Management uses this measure to evaluate the core operating performance of its farming operations and to facilitate period-to-period comparisons by isolating the impact of variable farming costs from the fixed water infrastructure costs. The Company believes this measure provides investors with additional insight into the underlying cash flow potential of its agricultural operations. A reconciliation of Adjusted Farming EBITDA before fixed water obligations to the most directly comparable GAAP measure, Operating loss from farming, is provided below.

Reconciliation of Adjusted Farming EBITDA before Fixed Water Obligations
(Unaudited)

The Company evaluates the performance of its farming operations using Adjusted Farming EBITDA before fixed water obligations, a non-GAAP financial measure. Management believes this measure provides a meaningful representation of the underlying profitability and cash flow potential of its agricultural operations by excluding both non-operating items and the fixed water obligation, which represents a non-controllable infrastructure cost incurred regardless of the level of farming activity in this segment.

The fixed water obligations reflects the Company’s allocated share of infrastructure and financing costs associated with the transmission and delivery of water to the Company’s property. These obligations primarily consist of annual assessments levied to repay bonds issued by the State of California to finance the construction and on-going maintenance of the state water project system and local water districts water systems. The landowners who holding water rights, including the Company, are responsible for repaying these bonds through fixed annual payments.

Unlike variable water costs which are included in farming expenses, management views the fixed water obligation as an infrastructure cost that supports long-term access to water resources, rather than an essential operating cost of farming. Accordingly, Adjusted Farming EBITDA before fixed water obligations allows management and investors to evaluate the operating performance of the Company’s farming segment independent of the fixed costs associated with water infrastructure.