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)
TEJON RANCH CO. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands, except per share data)
December 31
2025
2024
ASSETS
Current Assets:
Cash and cash equivalents
$
9,524
$
39,267
Marketable securities - available-for-sale
15,370
14,441
Accounts receivable
9,389
7,916
Inventories
3,347
3,972
Prepaid expenses and other current assets
1,632
3,806
Total current assets
39,262
69,402
Real estate and improvements - held for lease, net
79,177
16,253
Real estate development (includes $128,549 at December 31, 2025 and $124,136 at December 31, 2024, attributable to Centennial Founders, LLC, Note 17)
356,567
377,905
Property and equipment, net
59,311
56,387
Investments in unconsolidated joint ventures
29,986
28,980
Net investment in water assets
62,593
55,091
Other assets
3,573
3,980
TOTAL ASSETS
$
630,469
$
607,998
LIABILITIES AND EQUITY
Current Liabilities:
Trade accounts payable
$
5,240
$
9,085
Accrued liabilities and other
2,188
5,549
Deferred income
2,062
2,162
Total current liabilities
9,490
16,796
Revolving line of credit
93,942
66,942
Long-term deferred gains
10,935
11,447
Deferred tax liability
9,849
9,059
Other liabilities
15,697
14,798
Total liabilities
139,913
119,042
Commitments and contingencies
Equity:
Tejon Ranch Co. stockholders' equity
Common stock, $0.50 par value per share:
Authorized shares - 50,000,000
Issued and outstanding shares - 26,916,837 at December 31, 2025 and 26,822,768 at December 31, 2024
13,460
13,412
Additional paid-in capital
350,242
348,497
Accumulated other comprehensive (loss) income
(177
)
87
Retained earnings
111,673
111,598
Total Tejon Ranch Co. stockholders' equity
475,198
473,594
Non-controlling interest
15,358
15,362
Total equity
490,556
488,956
TOTAL LIABILITIES AND EQUITY
$
630,469
$
607,998
TEJON RANCH CO.CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except earnings per share)
Three-Months Ended December 31,
Year EndedDecember 31,
2025
2024
2025
2024
Revenues:
Real estate - commercial/industrial
$
4,217
$
4,055
$
15,006
$
12,552
Multifamily
536
—
732
—
Mineral resources
2,359
2,527
9,636
10,214
Farming
12,240
9,676
18,738
13,925
Ranch operations
1,754
1,677
5,479
5,195
Total revenues
21,106
17,935
49,591
41,886
Costs and expenses:
Real estate - commercial/industrial
1,634
1,905
8,002
7,910
Multifamily
1,116
—
2,279
—
Real estate - resort/residential
1,269
299
2,277
2,615
Mineral resources
1,811
2,009
6,807
7,052
Farming
9,443
8,145
18,850
17,551
Ranch operations
1,477
1,153
5,261
4,864
Corporate expenses
2,064
2,298
14,068
11,092
Total expenses
18,814
15,809
57,544
51,084
Operating loss
2,292
2,126
(7,953
)
(9,198
)
Other income:
Investment income
165
430
914
2,273
Loss on sale of real estate
(20
)
—
—
—
Other loss, net
(55
)
(82
)
(164
)
(292
)
Total other income, net
90
348
750
1,981
Loss from operations before equity in earnings of unconsolidated joint ventures and income tax expense
2,382
2,474
(7,203
)
(7,217
)
Equity in earnings of unconsolidated joint ventures, net
2,094
3,270
8,362
10,881
Income before income taxes
4,476
5,744
1,159
3,664
Income tax expense
2,897
1,262
1,088
976
Net income
1,579
4,482
