Tejon Ranch Farming Reverses Loss on Crop Insurance

The Tip Desk · November 11, 2026 · 4 min read

Farming revenue reached $12.6 million in the third quarter as the company booked $3.9 million of crop insurance proceeds and $2.6 million of pistachio pricing adjustments.

Tejon Ranch Co. (TRC), a California real estate, land and agribusiness company, reported net income attributable to common stockholders of $3.3 million, or $0.12 a share, for the third quarter ended September 30, 2026, up $1.6 million from $1.7 million, or $0.06 a share, a year earlier.

Revenues and other income, including equity in earnings of unconsolidated joint ventures, totaled $25.0 million, an increase of $10.3 million from $14.7 million in the third quarter of 2025. Adjusted EBITDA rose $5.1 million to $10.4 million from $5.3 million. Corporate expenses, excluding share-based compensation adjustments, decreased 39.8% versus the same period last year.

President and Chief Executive Officer Matthew Walker said revenue, net income and EBITDA all improved on a quarterly and year-to-date basis. He said farming revenue included $3.9 million of crop insurance proceeds and $2.6 million of price adjustments on last year’s pistachio crop, both unusually large. Warmer spring weather, he said, accelerated the wine grape harvest into the third quarter and adversely affected almond development, resulting in lower kernel weights. He said year-to-date earnings benefited from the absence of certain non-recurring costs incurred last year and an industrial land sale this year, and that, setting those aside, individual operating segments generated steady growth over the same quarter last year.

Farming segment revenues increased to $12.6 million from $4.3 million in the prior-year period, primarily reflecting higher crop sales, the $2.6 million of pricing adjustments related to prior-year pistachio sales, and the $3.9 million of crop insurance proceeds. The segment generated operating income of $1.4 million, compared with an operating loss of $1.0 million a year earlier. Adjusted Farming EBITDA before fixed water obligations was $2.6 million. The company said it had substantially completed its 2026 harvest.

Mineral resources revenues increased 24.9% to $4.0 million from $3.2 million, primarily driven by higher rock and aggregate royalties and water sales. Segment operating income increased 57.5% to $1.7 million from $1.1 million. During the quarter, National Cement exercised its option to extend the lease term an additional 20 years, through 2047. The company said the extension reinforces the long-term value of its land assets and supports generating recurring revenue from landholdings.

Commercial/industrial segment performance remained stable, with revenues of $3.2 million and segment operating income, including earnings from unconsolidated joint ventures, of $4.0 million, both generally consistent with the prior-year period. Multifamily revenues were $0.9 million, compared with $0.2 million a year earlier. Ranch operations revenues were $1.9 million. Equity in earnings of unconsolidated joint ventures, net, was $2.3 million.

The TRCC industrial portfolio remained 100% leased, the TRCC commercial portfolio remained 95% leased, and occupancy at the Outlets at Tejon was 92% as of September 30, 2026. Construction continues on Building 1B at TRCC through the company’s joint venture with Dedeaux Properties, in which the company holds a 60% economic interest. The approximately 510,500-square-foot Class A industrial building is expected to receive its certificate of occupancy in the first quarter of 2027. The Tejon Indian Tribe and Hard Rock International broke ground on Phase II of the casino development, which will include a 406-room hotel, a 2,800-seat entertainment venue, additional gaming space, restaurants, and resort amenities.

The company completed planting of an additional 150 acres of olives in 2026, bringing total olive acreage to approximately 300 acres.

As of September 30, 2026, total capital, including debt, was $591.3 million. Total liquidity was approximately $74.4 million, consisting of cash and securities totaling approximately $8.8 million and $65.6 million available on its line of credit.

The company said the Tejon Ranch Commerce Center remains its primary mixed-use development platform, with Building 1B on track for an early 2027 delivery. It expects to continue to pursue commercial and industrial development both directly and through joint ventures, including opportunistic land sales, and continues to advance proposed residential communities. Net income will continue to fluctuate based on the timing of land sales, leasing activity, agricultural results, and commodity prices, it said. Water market conditions remain influenced by higher State Water Project allocations in 2026 and the potential for increased precipitation in 2027.