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MAUI LAND & PINEAPPLE CO INC (MLP)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue rose 74% YoY to $4.60M, driven by stronger leasing and land development activity; sequentially, revenue declined 21% vs Q1 as Honokeana project contracting revenue moderated ($0.9M in Q2 vs $2.3M in Q1) .
  • GAAP net loss improved to ($1.00M), or ($0.05) per share, versus ($1.87M)/($0.10) in Q2 2024 and ($8.64M)/($0.44) in Q1 2025; operating loss improved sequentially to ($0.71M) .
  • Pension plan annuitization created substantial YTD non-cash expense; management now expects the offsetting non-cash other comprehensive gain to be recorded in Q3 2025 (timing shift from prior Q1 disclosure) .
  • Commercial real estate occupancy reached 89% (up from 86% at start of year), with leasing revenues up YoY; management highlights ongoing re-tenanting and market-rate resets as tailwinds .
  • Potential stock reaction catalysts: confirmation of pension termination OCI gain in Q3, sustained leasing momentum, and milestones on land sales/development and the agave venture ramp .

What Went Well and What Went Wrong

  • What Went Well

    • Leasing strength: Q2 leasing revenue grew to $3.20M from $2.17M YoY; management attributes to improved occupancy, market-rate resets, and water system revenue .
    • Portfolio activation: CRE occupancy increased to 89% by June 30, aided by new leases and asset repositioning; land planning/entitlement advancing across Kapalua and Upcountry Maui .
    • Strategic tone: “The Company’s strong financial performance and significant revenue growth in the first half of 2025 validate our path to unlock value by maximizing the productivity of our land and commercial properties.” — CEO Race Randle .

  • What Went Wrong

    • Pension expense drag: Six-month pension/post-retirement expense of $7.50M drove YTD net loss; timing of the offsetting comprehensive gain shifted out to Q3 2025 .
    • Liquidity drift: “Cash and Investments Convertible to Cash” declined to $7.03M from $9.52M at year-end, reflecting pension contributions and development/agave investments .
    • Cost pressures: Higher leasing Opex (insurance, maintenance, utilities), and elevated (though declining) share-based comp weighed on results; water conservation and electricity costs also rose YTD .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD)$2.65M $5.80M $4.60M
Operating Loss ($USD)($1.88M) ($1.78M) ($0.71M)
Net Income (Loss) ($USD)($1.87M) ($8.64M) ($0.999M)
Diluted EPS ($)($0.10) ($0.44) ($0.05)

Segment revenue (three months):

Segment Revenue ($USD)Q2 2024Q1 2025Q2 2025
Land Development & Sales$0.20M $2.30M $1.14M
Leasing$2.17M $3.22M $3.20M
Resort Amenities & Other$0.27M $0.29M $0.26M

KPIs and balance sheet:

KPI / MetricDec 31, 2024Jun 30, 2025
Total CRE Occupancy (%)86% (baseline per management) 89%
Cash & Investments Convertible to Cash ($USD)$9.52M $7.03M
Revolver Availability ($USD)$12.0M $12.0M

Non-GAAP (context):

  • Adjusted EBITDA (six months ended June 30, 2025): ($0.191M), including a ($0.56M) cash pension contribution in Q2 .
  • Adjusted EBITDA (Q1 2025): $0.20M .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Pension termination OCI gain timing2025Anticipated to be recorded in Q2 2025 Anticipated to be recorded in Q3 2025 Lowered/Delayed
Share-based comp trajectoryForwardExpect decrease as options no longer used Expect decrease as options no longer used Maintained
CRE cashflow trajectoryMulti-year“Anticipate cashflow from our commercial properties to increase in the coming years” “Anticipate cashflow from our commercial properties to increase in the coming years” Maintained
Agave venture status/timelineMulti-yearNew venture announced (initiation) Planting initiated; 7–9 year growth cycle to maturity Progressing/Clarified timeline

Note: No formal quantitative revenue/margin/OpEx/tax guidance provided in Q2 materials –.

Earnings Call Themes & Trends

(Company did not provide a Q2 earnings call transcript; themes compiled from Q2 10-Q and press release.)

TopicPrevious Mentions (Q1 2025)Current Period (Q2 2025)Trend
Agave ventureAnnounced new scalable agri-business initiative Planting initiated; >12,000 plants in ground; 7–9 year cycle Advancing
Leasing/tourism recoveryLeasing rev +45% YoY; re-tenanting, water revenues contributing Leasing rev +47% YoY; occupancy 89%; water revenues higher Improving
Pension plan terminationNon-cash settlement expense $6.9M in Q1; OCI gain expected in Q2 YTD pension expense $7.5M; OCI gain now expected in Q3 Timing delayed, resolution near
Housing relief (Honokeana)$2.28M contracting rev; no-profit cost-recovery model ~$0.9M Q2 contracting rev; total ~$3.1M YTD spend on behalf of State Ongoing, variable by phase
Regulatory/legal (wastewater DOH)Plan submitted; Order deferred; solution path defined Continued coordination to implement plan Ongoing
CRE/land strategyPortfolio activation, market-rate lease resets –Continued occupancy gains, asset repositioning –Positive execution

Management Commentary

  • CEO framing: “The Company’s strong financial performance and significant revenue growth in the first half of 2025 validate our path to unlock value by maximizing the productivity of our land and commercial properties.” — Race Randle, CEO .
  • Strategic initiatives: “We intentionally deployed capital to grow and diversify revenue streams… launch our agave venture… reinvestment in asset management and commercial properties yielded strong results, with a 46% gain in leasing revenue over the same six month period last year.” — Race Randle .
  • Pension clarification: “We made the strategic financial decision to annuitize former employees’ pensions, which temporarily impacted our GAAP earnings this quarter and will be offset next quarter with a comprehensive gain.” — Wade Kodama, CFO (timing now guided to Q3) .
  • Leasing momentum rationale: Increases driven by occupancy gains, market-rate resets, renovations, and water system revenues, with competition acknowledged in Maui/Hawai‘i markets .

Q&A Highlights

  • No Q2 2025 earnings call transcript was available; no Q&A highlights to report [List returned no earnings-call-transcript for Q2; see document set 5–7 on Aug 14, 2025 without a transcript].

Estimates Context

  • S&P Global consensus for EPS and revenue was not available for Q2 2025 (and Q1 2025), so no beat/miss analysis vs Wall Street can be provided. Values retrieved from S&P Global.
  • Actuals for comparison reference: Q2 revenue $4.60M; EPS ($0.05). Q1 revenue $5.80M; EPS ($0.44) .

Key Takeaways for Investors

  • Mix shift explains sequential revenue decline: Q2’s lower Honokeana contract revenue vs Q1 masked strong underlying leasing performance and improved operating loss .
  • Pension overhang nearing resolution: expect the non-cash OCI gain in Q3; watch for clean GAAP optics post-termination .
  • Leasing recovery gaining traction: occupancy at 89% with YoY leasing revenue growth underscores pricing power and demand normalization in West Maui .
  • Liquidity adequate but trending lower YTD due to pension and development spend; $12M revolver availability provides flexibility into year-end facility renewal discussions .
  • Agave venture offers long-dated optionality; near-term cash needs manageable via working capital/partners, but revenue is multi-year out (7–9 years to maturity) .
  • Near-term focus: confirmation of pension OCI gain, continued leasing/occupancy progress, and incremental land-sale milestones (remnant parcels/JV distributions) to support capex/soft costs – .
  • Risk checks: regulatory remediation (wastewater), tourism sensitivity, and execution risk on development/leasing remain active monitors .