Lindsay Announces Irrigation Project Valued at More Than $100 Million
Lindsay announces a historic multi-year supply agreement valued at over $100 million to deliver Zimmatic™ irrigation systems and FieldNET™ remote management technology in the Middle East and North Africa (MENA) region. The project supports localized food production and water conservation efforts. Pivot shipments will begin in Q4 2024 and continue through 2025. This significant contract showcases Lindsay's capacity to undertake large-scale projects and addresses food security challenges in water- areas, leveraging advanced AI-driven agronomic data for precision farming.
- Multi-year supply agreement valued at over $100 million.
- Largest project in Lindsay's history.
- Supports localized food production and water conservation in MENA.
- Showcases Lindsay's capacity for large-scale, complex projects.
- Leverages AI-driven agronomic data for unprecedented precision.
- FieldNET technology enables efficient water management.
- Pivot shipments to begin in Q4 2024, continuing through 2025.
- Revenue from the project will be recognized over multiple years, delaying immediate financial benefits.
- Potential risks in executing large-scale, complex projects in a challenging region.
- Dependence on the successful adoption and integration of advanced technologies by local growers.
Insights
From a financial perspective, the announcement of a
A project of this magnitude can positively impact Lindsay's stock price by boosting investor confidence. The market often reacts favorably to such major contract wins, viewing them as evidence of the company's strong market position and execution capability. Investors should also consider the diversification benefit as the project is based in the MENA region, potentially reducing Lindsay’s dependence on other markets.
Rating: 1 (Positive)
From a market outlook perspective, Lindsay's substantial project in the MENA region aligns well with global trends in sustainable agriculture and water management. The MENA region, known for its arid climate, faces significant challenges in food security and water conservation. Lindsay's Zimmatic™ irrigation systems and FieldNET™ remote management technology address these critical needs, positioning the company as a leader in agritech innovations.
This project could pave the way for future opportunities in similar markets facing water scarcity issues. By leveraging advanced technology to enhance agricultural productivity and resource efficiency, Lindsay may attract interest from other regions with similar challenges, expanding its market reach.
In the long term, such projects can help Lindsay establish a strong foothold in emerging markets, driving sustained growth. However, it’s important to monitor the execution risks, such as geopolitical instability in the MENA region, which could impact project timelines and profitability.
Rating: 1 (Positive)
Analyzing this from an agricultural technology standpoint, Lindsay's deployment of Zimmatic™ and FieldNET™ technologies in the MENA region represents a significant advancement in precision irrigation. FieldNET’s capacity to integrate artificial intelligence for agronomic data analysis offers farmers unparalleled accuracy in water management, essential in regions with limited water resources.
The ability to monitor and control irrigation systems remotely allows for optimized water use, ensuring crops receive necessary moisture without wastage. This precision can significantly boost agricultural productivity, enhancing food security in the MENA region while conserving scarce water resources.
Moreover, the data-driven approach of FieldNET Advisor™ can help farmers make informed decisions, potentially leading to higher yields and better crop quality. This integration of technology into traditional agriculture practices represents a forward-thinking move that could set standards for future agricultural projects globally.
Rating: 1 (Positive)
Lindsay to provide efficient water management and technology solutions to address food security in the
“This partnership demonstrates Lindsay’s ability to execute large-scale and complex projects that address the critical needs of our customers, and enhances their ability to increase food production, conserve limited water resources and improve quality of life,” said Randy Wood, Lindsay President and CEO. “Our global team members work tirelessly to support our customers, and as leaders in water management and innovation, we look forward to executing this project and partnering to help address food security in the region.”
FieldNET technology provides a project-wide view to monitor and control pivots, and customized recommendations based on millions of agronomic data points synthesized with artificial intelligence for unprecedented accuracy through FieldNET Advisor™. In areas where available water is limited, Lindsay’s FieldNET technology allows growers to do more with less.
Gustavo Oberto, President of Global Irrigation for Lindsay, commented further, “Lindsay’s proven ability to provide this integrated solution, at scale, positions the organization to drive meaningful impact on food security and expansion of agricultural production in the region. We are proud to have earned the trust of our partners to provide precision irrigation solutions that help maximize production, conserve valuable and scarce resources and expand the region’s potential.”
Pivot shipments for this project will begin in the fiscal fourth quarter of 2024 and are expected to continue through 2025.
About Lindsay Corporation
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.
FieldNET, FieldNET Advisor, Zimmatic, FieldWise, Barrier Systems, Road Zipper and Snoline are trademarks or registered trademarks of Lindsay Corporation and/or its affiliates.
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 Lindsay Corporation files with the Securities and Exchange Commission. Forward-looking statements include information concerning possible or assumed future results of operations 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, Lindsay Corporation claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Lindsay Corporation undertakes no obligation to update any forward-looking information contained in this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240603997741/en/
For further information, contact:
Lindsay Corporation:
Alicia Pfeifer
Vice President, Investor Relations & Treasury
402-933-6429
Alicia.Pfeifer@lindsay.com
Alpha IR:
Joe Caminiti or Stephen Poe
312-445-2870
LNN@alpha-ir.com
Source: Lindsay Corporation
FAQ
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