NYSE:ALEX
Alexander & Baldwin, Inc.
A diversified Hawaiian holding company combining agricultural production with substantial real estate assets and investment portfolios.
Key Metrics
Investment Thesis
Bull Case
Investors may buy this stock due to its diversified business model that provides stable cash flows from real estate leases alongside cyclical agricultural profits. The company's strong balance sheet, evidenced by $1.41B in net fixed assets and positive operating cash flow, offers a margin of safety against potential market downturns.
Bear Case
Concerns exist regarding the heavy reliance on Hawaii's specific climate conditions which poses significant operational risk to the core agricultural segment. Additionally, the company faces capital pressure with combined investing and financing cash outflows exceeding $100M, which may limit future expansion or dividend growth.
About Alexander & Baldwin, Inc.
Alexander & Baldwin Inc. (NYSE: ALEX) is a diversified holding company with primary operations in agriculture, real estate, and natural resources, serving markets across Hawaii, the U.S. mainland, and internationally. The company leverages its extensive land holdings to generate revenue through sugarcane farming, commercial real estate leasing, and investment partnerships while maintaining a significant cash reserve relative to its operational scale.
Analysis
Management Discussion
The company reported net profit of $64.7M in 2025 following a recovery from losses in 2022, driven by strong operating cash flow of $79.5M despite a decline in revenue to $206.7M. Management successfully navigated capital outflows with significant debt issuances and maintained a healthy equity position while managing substantial non-cash adjustments.
Industry Overview
The Hawaiian agriculture and real estate sectors are characterized by limited land availability and high sensitivity to weather patterns, creating a niche market where established landowners like ALEX hold a dominant position. Industry dynamics are currently shifting towards sustainability practices and diversification away from single-commodity dependence.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $230.5M | $208.9M | $236.6M | $206.7M |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $230.5M | $208.9M | $236.6M | $206.7M |
| Operating Expenses | $114.8M | $144.3M | $156.9M | $126.7M |
| Operating Income | $115.7M | $64.6M | $79.8M | $80.0M |
| G&A | $35.9M | $34.0M | $29.8M | $28.1M |
| Stock-Based Comp | $4.9M | $6.1M | $4.8M | $5.9M |
| D&A | $38.0M | $36.8M | $36.3M | $38.3M |
| Depreciation | $29.4M | $29.2M | $29.9M | $32.1M |
| Amortization | $8.1M | $7.1M | $5.8M | $5.5M |
| Other OpEx | $78.9M | $110.3M | $127.1M | $98.5M |
| Non-Operating Income | $-96.9M | $-23.8M | $-15.6M | $-15.5M |
| Interest Expense | $22.0M | $23.0M | — | — |
| Interest Income | — | — | $2.2M | $792.0K |
| Pre-Tax Income | $18.8M | $40.8M | $64.2M | $64.5M |
| Income Tax | $-18.3M | $0 | $174.0K | $-69.0K |
| Continuing Ops | $37.1M | $40.8M | $64.0M | $64.6M |
| Discontinued Ops | $-86.6M | $-7.8M | $-3.5M | $89.0K |
| Net Income | $-49.5M | $33.0M | $60.5M | $64.7M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $-49.5M | $33.0M | $60.5M | $64.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $33.3M | $13.5M | $33.4M | $11.3M |
| PP&E (Net) | $1.40B | $1.38B | $1.42B | $1.41B |
| Goodwill | $8.7M | $8.7M | $8.7M | $8.7M |
| Operating Leases | $5.4M | $1.7M | $148.0K | $15.1M |
| Total Assets | $1.79B | $1.65B | $1.67B | $1.66B |
| Total Liabilities | $743.6M | $643.2M | $666.9M | $672.3M |
| Shareholders' Equity | $1.04B | $1.00B | $1.00B | $987.2M |
| Retained Earnings | $-774.5M | $-809.3M | $-814.2M | $-825.4M |
| AOCI | $1.8M | $3.2M | $6.1M | $18.0K |
| Total L&E | $1.79B | $1.65B | $1.67B | $1.66B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-49.5M | $33.0M | $60.5M | $64.7M |
| Non-Cash Adjustments | $115.0M | $38.3M | $41.5M | $22.0M |
| Working Capital Changes | $-31.5M | $-4.2M | $-4.0M | $-7.2M |
| Cash from Operations | $34.0M | $67.1M | $98.0M | $79.5M |
| Cash from Investing | $44.6M | $7.1M | $-16.1M | $-45.5M |
| Debt Issuances | $0 | $0 | $60.0M | $198.0M |
| Debt Repayments | $23.2M | $35.1M | $167.0M | $40.7M |
| Dividends Paid | $57.7M | $64.3M | $65.0M | $65.7M |
| Cash from Financing | $-115.2M | $-94.9M | $-62.0M | $-56.1M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-36.6M | $-20.7M | $19.9M | $-22.1M |
| Beginning Cash | $71.0M | $34.4M | $13.8M | $33.7M |
| Ending Cash | $34.4M | $13.7M | $33.7M | $11.5M |
Frequently Asked Questions
How does Alexander & Baldwin, Inc. make money?
Agriculture (sugarcane cultivation and processing), Commercial Real Estate (leasing and property management), and Natural Resources/Investments (including timber, minerals, and equity stakes in joint ventures).
What are the main risks for ALEX?
Exposure to natural disasters such as hurricanes which can devastate agricultural assets, fluctuations in global sugar commodity prices affecting operating margins, and potential regulatory changes regarding land use or environmental standards.
What is ALEX's competitive advantage?
Ownership of over 100,000 acres of land providing a scalable asset base, a diversified revenue stream across multiple sectors mitigating sector-specific volatility, and a strong balance sheet with significant non-operating cash reserves.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.