Lindsay Corporation Reports Fiscal 2026 First Quarter Results
MWN-AI** Summary
Lindsay Corporation (NYSE: LNN) reported its first quarter results for fiscal year 2026, ending November 30, 2025, revealing solid margins in a challenging agricultural environment, despite a decline in revenues. The company's total revenues fell to $155.8 million, a decrease of 6% from $166.3 million in the same period last year. This drop was primarily attributed to reduced sales in the irrigation segment, although gains in infrastructure revenues—up 17%—partially offset this decline. The company highlighted increased sales of road safety products as a key contributor to infrastructure growth.
President and CEO Randy Wood noted ongoing challenges affecting farmer sentiment in the U.S., including trade volatility, lower commodity prices, and rising input costs. Yet, through effective price and cost management strategies, Lindsay was able to maintain its irrigation segment's gross margins. Operating income also declined by 6%, totaling $19.6 million compared to the previous year’s $20.9 million. Operating margin held steady at 12.6%.
Lindsay’s irrigation segment specifically faced a revenue drop of 9%, with North American sales decreasing to $74.3 million and international sales falling 15% to $59.1 million. Operating income for irrigation was $23.0 million, reflecting a 7% decrease, but operating margin improved slightly. Conversely, the infrastructure segment's operating income rose to $4.5 million, aided by higher revenue from road safety equipment.
Looking ahead, the company anticipates continued soft market conditions in North America and expects to recognize approximately $70 million in revenue from a significant irrigation project in the MENA region during the fiscal year. Lindsay Corporation remains focused on growth and innovations, recently announcing a new share repurchase program of up to $150 million.
MWN-AI** Analysis
Lindsay Corporation (NYSE: LNN) reported its fiscal 2026 first-quarter results, revealing a 6% dip in total revenues to $155.8 million, primarily due to lower irrigation segment sales. However, the increased margins in the irrigation segment indicate resilience amidst a challenging agricultural environment.
Investors should note the continued pressure from North American farmers facing trade uncertainties and lower commodity prices, resulting in less demand for irrigation equipment. Despite this, Lindsay's ability to maintain its operating margin at 12.6% demonstrates effective cost management. The international irrigation sector, especially in the MENA region, is touted for growth potential, highlighted by a significant $80 million project recently secured, which is expected to bolster future revenues.
On the infrastructure front, Lindsay's 17% revenue growth underscores its successful diversification strategy, with increased demand for road safety products. The company's focus on innovation and productivity improvements remains a strategic advantage, further affirming its position in the market.
While record share repurchases worth $30 million reflect Lindsay's confidence in its long-term growth prospects, the board’s new authorization of up to $150 million for additional buybacks should attract shareholder interest and support stock price stability.
Going forward, analysts recommend monitoring the impacts of macroeconomic indicators such as commodity prices, trade agreements, and credit availability, particularly in Brazil where economic challenges persist. Despite short-term headwinds, long-term investments in innovative projects align with global sustainability trends, suggesting that Lindsay Corporation could be a prudent investment for those seeking exposure to agricultural and infrastructure sectors.
Overall, Lindsay appears positioned to navigate through current adversities, offering a balanced risk-reward scenario amid uncertain economic conditions. Investors may find it beneficial to accumulate shares during dips, particularly as the company capitalizes on its strategic initiatives.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Margins remain solid despite lower revenues amid a challenging agricultural environment
Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its first quarter of fiscal 2026, which ended on November 30, 2025.
Key Highlights:
- Improved Irrigation operating margin despite lower revenues in North America and international markets
- Increased Infrastructure revenues 17 percent on higher sales of road safety products
- Secured $80 million irrigation and technology project in the MENA region, subsequent to quarter-end
- Completed share repurchases of $30 million during the quarter
“In the U.S., farmer sentiment continues to reflect trade uncertainty, lower commodity prices, and higher input costs, however, our team's diligent focus on price management, operational efficiencies, and cost management led to improved gross margin in our irrigation segment that muted the impact of softer demand" said Randy Wood, President and Chief Executive Officer. "Our international irrigation business continues to perform well in the current environment, with the lower quarterly revenue performance largely reflecting the impact of timing between project activity in the Middle East North Africa (MENA) region. In Brazil, elevated interest rates, credit availability, and slower loan approvals continue to constrain demand, resulting in lower order levels than expected. Increased road construction activity supported a good start to the fiscal year for our infrastructure business, which delivered a 17% improvement in sales while maintaining strong margins. During the quarter, we continued to fund growth investments in innovation, new products, and productivity improvements while also conducting share repurchases of $30.3 million."
Wood continued, "Subsequent to quarter-end, we announced a new supply agreement to provide Zimmatic™ irrigation systems and FieldNET™ remote management and irrigation scheduling technology to a customer in the MENA region. The contract revenue is valued at approximately $80 million and supports localized food production in the region. I am proud of our team's strong and developing track record of success in delivering transformative projects across the MENA region, and this new project further underscores Lindsay's role as a trusted partner in advancing sustainable agriculture and enhancing food security for this growing region. FieldNET is a strategic differentiator in large projects, helping farm managers enhance productivity while optimizing resources and conserving water."
Wood concluded, "During the quarter, we announced that our Board of Directors authorized a new share repurchase program of up to $150 million of our outstanding common stock. This authorization provides us the ability to return capital to shareholders while maintaining balance sheet strength and the financial flexibility to continue investing in growth opportunities and innovation."
First Quarter Summary
Consolidated Financial Summary | First Quarter | |||||||
(dollars in millions, except per share amounts) | FY2026 | FY2025 | $ Change | % Change | ||||
Total revenues | $155.8 | $166.3 | ($10.5) | (6%) | ||||
Operating income | $19.6 | $20.9 | ($1.3) | (6%) | ||||
Operating margin | 12.6% | 12.6% | ||||||
Net earnings | $16.5 | $17.2 | ($0.6) | (4%) | ||||
Diluted earnings per share | $1.54 | $1.57 | ($0.03) | (2%) |
Revenues for the first quarter of fiscal 2026 were $155.8 million, a decrease of $10.5 million, or 6 percent, compared to $166.3 million in the prior year. The decrease was primarily driven by lower revenues in the irrigation segment, which was partially offset by higher infrastructure segment revenues compared to the prior year.
Operating income for the first quarter of fiscal 2026 was $19.6 million, a decrease of $1.3 million, or 6 percent, compared to $20.9 million in the prior year. Lower operating income in the irrigation segment was partially offset by higher operating income in the infrastructure segment. Operating margin was 12.6 percent of sales, comparable to the prior year first quarter.
Net earnings for the first quarter of 2026 were $16.5 million, or $1.54 per diluted share, compared to $17.2 million, or $1.57 per diluted share, in the prior year. Net earnings were impacted by lower operating income and a slightly higher effective tax rate, which were partially offset by an increase in other income.
First Quarter Segment Results
Irrigation Segment | First Quarter | |||||||
(dollars in millions) | FY2026 | FY2025 | $ Change | % Change | ||||
Revenues: | ||||||||
North America | $74.3 | $77.7 | ($3.4) | (4%) | ||||
International | $59.1 | $69.4 | ($10.3) | (15%) | ||||
Total revenues | $133.4 | $147.1 | ($13.7) | (9%) | ||||
Operating income | $23.0 | $24.7 | ($1.8) | (7%) | ||||
Operating margin | 17.2% | 16.8% |
Irrigation segment revenues for the first quarter of fiscal 2026 were $133.4 million, a decrease of $13.7 million, or 9 percent, compared to $147.1 million in the prior year. North America irrigation revenues of $74.3 million decreased $3.4 million, or 4 percent, compared to the prior year. The decrease in revenues resulted primarily from lower unit sales volume, and was partially offset by higher average selling prices compared to the prior year. Unfavorable market conditions continue to weigh on farmer sentiment and temper demand for irrigation equipment in North America.
International irrigation revenues for the first quarter of fiscal 2026 of $59.1 million decreased $10.3 million, or 15 percent, compared to the prior year. The decrease resulted primarily from lower sales volumes in Brazil, along with lower project revenues in the MENA region due to the timing of project activity. Elevated interest rates and credit constraints continue to be headwinds to capital investment by farmers in Brazil. Revenues in the current year quarter were favorably impacted by the effects of foreign currency translation of approximately $1.5 million compared to the prior year.
Irrigation segment operating income for the first quarter of fiscal 2026 was $23.0 million, a decrease of $1.8 million, or 7 percent, compared to the prior year. Operating margin was 17.2 percent of sales, compared to 16.8 percent of sales in the prior year. The decrease in operating income resulted primarily from lower revenues, the impact of which was partially offset by improved operating margin.
Infrastructure Segment | First Quarter | |||||||
(dollars in millions) | FY2026 | FY2025 | $ Change | % Change | ||||
Total revenues | $22.4 | $19.2 | $3.2 | 17% | ||||
Operating income | $4.5 | $4.1 | $0.4 | 9% | ||||
Operating margin | 20.1% | 21.5% |
Infrastructure segment revenues for the first quarter of fiscal 2026 were $22.4 million, an increase of $3.2 million, or 17 percent, compared to $19.2 million in the prior year. The increase was primarily attributable to higher sales of road safety products while Road Zipper System™ revenues were similar compared to the prior year.
Infrastructure segment operating income for the first quarter of fiscal 2026 was $4.5 million, an increase of $0.4 million, or 9 percent, compared to the prior year. Operating margin was 20.1 percent of sales, compared to 21.5 percent of sales in the prior year. Increased operating income resulted primarily from higher revenues, which were partially offset by higher operating expenses compared to the prior year.
The backlog of unfulfilled orders at November 30, 2025 was $119.2 million compared with $168.2 million at November 30, 2024. Included in these backlogs are amounts of $8.5 million and $17.4 million, respectively, for orders that are not expected to be fulfilled within the subsequent 12 months. The backlog in both segments was lower compared to the prior year, with the decrease primarily attributed to deliveries relating to the large irrigation project in the MENA region that was included in the backlog as of November 30, 2024.
Outlook
Mr. Wood concluded, “We expect North America irrigation market conditions to remain soft in the near term until growers gain further trade certainty and see improvement in commodity prices that support net farm income. We continue to expect growth in Brazil due to the solid drivers of secular demand that support investments in irrigation, although credit constraints will remain a headwind. Notably, we began delivery of the new irrigation project in the MENA region in our second quarter, and we expect to recognize approximately $70 million of revenue for the project in our current fiscal year."
“In infrastructure, we face a difficult revenue comparison in our second quarter, as a $20 million Road Zipper System project in the prior year quarter will not be replaced. We anticipate growth in Road Zipper leasing revenues and higher sales of road safety products to offset approximately half of the revenue impact of this project throughout the fiscal year. We continue to actively manage a robust pipeline of Road Zipper System projects, but we do not expect to deliver a large project in fiscal 2026.”
First Quarter Conference Call
Lindsay’s fiscal 2026 first quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. Interested investors may participate in the call by dialing (833) 535-2202 in the U.S., or (412) 902-6745 internationally, and requesting the Lindsay Corporation call. Additionally, the conference call will be simulcast live on the internet and can be accessed via the investor relations section of the Company's website, www.lindsay.com . Replays of the conference call will remain on our website through the next quarterly earnings release. The Company will have a slide presentation available to augment management's formal presentation, which will also be accessible via the Company's website.
About the Company
Lindsay Corporation (NYSE: LNN) is a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology. Established in 1955, the company has been at the forefront of research and development of innovative solutions to meet the food, fuel, fiber and transportation needs of the world’s rapidly growing population. The Lindsay family of irrigation brands includes Zimmatic™ center pivot and lateral move agricultural irrigation systems, FieldNET™ and FieldWise™ remote irrigation management technology, FieldNET Advisor™ irrigation scheduling technology, and industrial IoT solutions. Also a global leader in the transportation industry, Lindsay Transportation Solutions manufactures equipment to improve road safety and keep traffic moving on the world’s roads, bridges and tunnels, through the Barrier Systems™, Road Zipper™ and Snoline™ brands. For more information about Lindsay Corporation, visit www.lindsay.com .
Concerning Forward-looking Statements
This release contains forward-looking statements that are subject to risks and uncertainties, and which reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results. You can find a discussion of many of these risks and uncertainties in the annual, quarterly and current reports that the Company files with the Securities and Exchange Commission. Forward-looking statements include information concerning possible or assumed future results of operations and planned financing of the Company and those statements preceded by, followed by or including the words “anticipate,” “estimate,” “believe,” “intend,” "expect," "outlook," "could," "may," "should," “will,” or similar expressions. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking information contained in this press release.
LINDSAY CORPORATION AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||
(Unaudited) | |||||||||||
Three months ended | |||||||||||
(in thousands, except per share amounts) | November 30, | November 30, | |||||||||
Operating revenues | $ | 155,818 | $ | 166,281 | |||||||
Cost of operating revenues | 105,716 | 116,315 | |||||||||
Gross profit | 50,102 | 49,966 | |||||||||
Operating expenses: | |||||||||||
Selling expense | 11,019 | 10,211 | |||||||||
General and administrative expense | 14,838 | 15,008 | |||||||||
Engineering and research expense | 4,640 | 3,864 | |||||||||
Total operating expenses | 30,497 | 29,083 | |||||||||
Operating income | 19,605 | 20,883 | |||||||||
Other income: | |||||||||||
Interest income, net | 3,319 | 493 | |||||||||
Other (expense) income, net | (1,038 | ) | 658 | ||||||||
Total other income | 2,281 | 1,151 | |||||||||
Earnings before income taxes | 21,886 | 22,034 | |||||||||
Income tax expense | 5,362 | 4,870 | |||||||||
Net earnings | $ | 16,524 | $ | 17,164 | |||||||
Earnings per share: | |||||||||||
Basic | $ | 1.55 | $ | 1.58 | |||||||
Diluted | $ | 1.54 | $ | 1.57 | |||||||
Shares used in computing earnings per share: | |||||||||||
Basic | 10,673 | 10,853 | |||||||||
Diluted | 10,699 | 10,903 | |||||||||
Cash dividends declared per share | $ | 0.37 | $ | 0.36 |
LINDSAY CORPORATION AND SUBSIDIARIES | |||||||||||
SUMMARY OPERATING RESULTS | |||||||||||
(Unaudited) | |||||||||||
Three months ended | |||||||||||
(in thousands) | November 30, | November 30, | |||||||||
Operating revenues: | |||||||||||
Irrigation: | |||||||||||
North America | $ | 74,312 | $ | 77,669 | |||||||
International | 59,125 | 69,418 | |||||||||
Irrigation total | 133,437 | 147,087 | |||||||||
Infrastructure | 22,381 | 19,194 | |||||||||
Total operating revenues | $ | 155,818 | $ | 166,281 | |||||||
Operating income: | |||||||||||
Irrigation | $ | 22,954 | $ | 24,736 | |||||||
Infrastructure | 4,494 | 4,124 | |||||||||
Corporate | (7,843 | ) | (7,977 | ) | |||||||
Total operating income | $ | 19,605 | $ | 20,883 |
The Company manages its business activities in two reportable segments as follows:
Irrigation – This reporting segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems, as well as various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, remote irrigation management and scheduling technology, irrigation consulting and design and industrial IoT solutions.
Infrastructure – This reporting segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment.
LINDSAY CORPORATION AND SUBSIDIARIES | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(Unaudited) | |||||||||
(in thousands) | November 30, | November 30, | August 31, | ||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 199,622 | $ | 194,066 | $ | 250,575 | |||
Receivables, net | 129,014 | 120,875 | 113,027 | ||||||
Inventories, net | 146,388 | 158,255 | 136,859 | ||||||
Other current assets | 31,974 | 28,948 | 32,303 | ||||||
Total current assets | 506,998 | 502,144 | 532,764 | ||||||
Property, plant, and equipment, net | 155,138 | 117,982 | 142,307 | ||||||
Intangibles, net | 23,353 | 24,591 | 23,331 | ||||||
Goodwill | 84,421 | 83,941 | 84,459 | ||||||
Operating lease right-of-use assets | 17,566 | 15,009 | 18,096 | ||||||
Deferred income tax assets | 18,573 | 12,375 | 19,525 | ||||||
Equity method investment | 8,107 | — | 8,763 | ||||||
Other noncurrent assets | 14,244 | 14,959 | 11,591 | ||||||
Total assets | $ | 828,400 | $ | 771,001 | $ | 840,836 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 57,248 | $ | 53,185 | $ | 48,670 | |||
Current portion of long-term debt | 186 | 229 | 233 | ||||||
Other current liabilities | 90,991 | 76,435 | 94,689 | ||||||
Total current liabilities | 148,425 | 129,849 | 143,592 | ||||||
Pension benefits liabilities | 3,350 | 4,101 | 3,418 | ||||||
Long-term debt | 114,792 | 114,948 | 114,810 | ||||||
Operating lease liabilities | 16,722 | 14,824 | 17,354 | ||||||
Deferred income tax liabilities | 1,816 | 646 | 1,024 | ||||||
Other noncurrent liabilities | 25,133 | 18,174 | 27,788 | ||||||
Total liabilities | 310,238 | 282,542 | 307,986 | ||||||
Shareholders' equity: | |||||||||
Preferred stock | — | — | — | ||||||
Common stock | 19,188 | 19,145 | 19,167 | ||||||
Capital in excess of stated value | 113,268 | 104,995 | 113,042 | ||||||
Retained earnings | 758,003 | 700,345 | 745,397 | ||||||
Less treasury stock - at cost | (341,476) | (299,703) | (311,224) | ||||||
Accumulated other comprehensive loss, net | (30,821) | (36,323) | (33,532) | ||||||
Total shareholders' equity | 518,162 | 488,459 | 532,850 | ||||||
Total liabilities and shareholders' equity | $ | 828,400 | $ | 771,001 | $ | 840,836 |
LINDSAY CORPORATION AND SUBSIDIARIES | |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
(Unaudited) | |||||||||
Three months ended | |||||||||
(in thousands) | November 30, 2025 | November 30, 2024 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
Net earnings | $ | 16,524 | $ | 17,164 | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 5,312 | 5,412 | |||||||
Provision for uncollectible accounts receivable | (252 | ) | 62 | ||||||
Deferred income taxes | 1,477 | 1,589 | |||||||
Share-based compensation expense | 1,370 | 1,977 | |||||||
Unrealized foreign currency transaction gain | (248 | ) | (511 | ) | |||||
Other, net | 413 | (217 | ) | ||||||
Changes in assets and liabilities: | |||||||||
Receivables | (15,123 | ) | (6,442 | ) | |||||
Inventories | (8,993 | ) | (5,968 | ) | |||||
Other current assets | 303 | 1,251 | |||||||
Accounts payable | 5,251 | 16,656 | |||||||
Other current liabilities | (7,522 | ) | (9,978 | ) | |||||
Other noncurrent assets and liabilities | 891 | 608 | |||||||
Net cash (used in) provided by operating activities | (597 | ) | 21,603 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
Purchases of property, plant, and equipment | (14,476 | ) | (9,142 | ) | |||||
Proceeds from settlement of net investment hedge | — | 835 | |||||||
Payments for settlement of net investment hedge | — | (98 | ) | ||||||
Other investing activities, net | (1,152 | ) | (401 | ) | |||||
Net cash used in investing activities | (15,628 | ) | (8,806 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
Dividends paid | (3,918 | ) | (3,912 | ) | |||||
Common stock withheld for payroll tax obligations | (1,253 | ) | (1,450 | ) | |||||
Repurchase of common shares | (30,252 | ) | — | ||||||
Other financing activities, net | 51 | 52 | |||||||
Net cash used in financing activities | (35,372 | ) | (5,310 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 644 | (4,300 | ) | ||||||
Net change in cash and cash equivalents | (50,953 | ) | 3,187 | ||||||
Cash and cash equivalents, beginning of period | 250,575 | 190,879 | |||||||
Cash and cash equivalents, end of period | $ | 199,622 | $ | 194,066 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260108164393/en/
For further information, contact:
LINDSAY CORPORATION:
Alicia Pfeifer
Vice President, Investor Relations & Treasury
402-933-6429
Alicia.Pfeifer@lindsay.com
Alpha IR Group:
Joe Caminiti or Stephen Poe
312-445-2870
LNN@alpha-ir.com
FAQ**
How does Lindsay Corporation LNN plan to navigate the ongoing challenges in the North American irrigation market and improve farmer sentiment amid trade uncertainties and lower commodity prices?
With the $80 million irrigation project secured in the MENA region, what specific strategic advantages does Lindsay Corporation LNN see in this market for future growth and project opportunities?
Given the decline in irrigation revenues, what measures is Lindsay Corporation LNN implementing to enhance operational efficiencies and manage costs effectively?
How does Lindsay Corporation LNN intend to utilize the newly authorized share repurchase program to return capital to shareholders while ensuring continued investment in growth areas?
**MWN-AI FAQ is based on asking OpenAI questions about Lindsay Corporation (NYSE: LNN).
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