Tejon Ranch reported higher third-quarter revenue, net income and adjusted EBITDA, with a sharp improvement in farming results and steady commercial and industrial real estate performance. The company cautioned, however, that farming revenue included substantial insurance proceeds and a pricing adjustment for last year’s pistachio crop, while harvest timing also affected comparisons.
Management says it is pursuing sustainable earnings growth by prioritizing projects that meet its return hurdles, limiting capital spending to available cash and improving returns across its 270,000 acres.
Financial results
- Net income attributable to common stockholders rose to $3.3 million, or 12 cents per share, from $1.7 million, or 6 cents per share, a year earlier.
- Revenue and other income, including Tejon’s share of earnings from unconsolidated joint ventures, increased to $25.0 million from $14.7 million.
- Adjusted EBITDA, a non-GAAP measure, increased to $10.4 million from $5.3 million.
- Corporate expenses, excluding share-based compensation adjustments, fell 39.8% from the year-earlier quarter. For the first nine months, the same expense measure fell 22.4% from the prior year, excluding share-based compensation adjustments and 2025 non-recurring costs.
Real estate and commercial activity
- Commercial and industrial performance was generally steady. Third-quarter segment revenue was $3.2 million, while segment operating income, including earnings from unconsolidated joint ventures, was $4.0 million; both were generally consistent with the prior-year period.
- Tejon’s industrial portfolio at Tejon Ranch Commerce Center, held through joint ventures, totals 2.8 million square feet and was fully leased as of Sept. 30.
- Its commercial portfolio totals about 584,000 square feet and was 95% leased. Occupancy at the Outlets at Tejon was 92%.
- Construction is continuing on a roughly 510,500-square-foot industrial building at the commerce center. Tejon holds a 60% economic interest in the joint venture with Dedeaux Properties developing it. The building is expected to receive its certificate of occupancy in the first quarter of 2027.
- Tejon said the opening of Hard Rock Casino Tejon and continued leasing at Terra Vista are adding to commercial activity at the commerce center. The Tejon Indian Tribe and Hard Rock International have broken ground on a second phase of the casino development, planned to include a 406-room hotel, a 2,800-seat entertainment venue, more gaming space, restaurants and resort amenities.
Farming and other operating results
- Farming revenue climbed to $12.6 million from $4.3 million, and the segment recorded $1.4 million in operating income, compared with a $1.0 million operating loss a year earlier.
- The quarter’s farming revenue included $3.9 million in crop-insurance proceeds and $2.6 million in pricing adjustments tied to the prior year’s pistachio crop. Tejon described both amounts as unusually large.
- Warmer spring weather accelerated the wine-grape harvest, shifting sales into the third quarter. The weather also hurt almond development and reduced kernel weights.
- For the first nine months of 2026, farming revenue rose to $14.3 million from $6.5 million, while the segment’s operating loss narrowed to $0.2 million from $2.9 million. Higher pistachio revenue, insurance proceeds and wine-grape sales contributed to the increase; lower almond carryover-crop sales reduced almond revenue by $387,000, or 11.3%.
- Tejon completed planting another 150 acres of olives in 2026, bringing its olive acreage to about 300 as part of its crop-diversification effort.
- Mineral-resources revenue increased 24.9% to $4.0 million from $3.2 million in the year-earlier quarter.
What stands out
The quarter’s stronger results include significant farming items that Tejon characterized as unusually large, as well as a shift in wine-grape sales caused by harvest timing. Management also said year-to-date earnings benefited from the absence of certain non-recurring costs incurred in 2025 and from an industrial land sale in 2026. It said that, apart from those factors, individual operating segments generated steady growth compared with the year-earlier quarter.
The company’s stated focus is on disciplined investment and improving returns from its land and water assets. Its ongoing industrial development and leasing activity are examples of that strategy; the filing does not quantify the expected financial contribution from these initiatives.