Lindsay Corporation Reports Fiscal 2025 First Quarter Results

Rhea-AI Summary

Lindsay (NYSE: LNN) reported fiscal 2025 first quarter results with consolidated revenues of $166.3 million, up 3% from $161.4 million in the prior year. The growth was driven by a 37% increase in international irrigation revenues to $69.4 million, particularly from projects in the Middle East and North Africa region.

Net earnings reached $17.2 million, or $1.57 per diluted share, representing a 14% increase from $15.0 million ($1.36 per share) in the previous year. North America irrigation revenues declined 13% to $77.7 million due to lower unit sales volume and reduced demand amid projected lower farm income. The infrastructure segment saw a 9% revenue decrease to $19.2 million but improved operating margins to 21.5%.

Post-quarter, Lindsay secured a Road Zipper System contract valued at over $20 million for second quarter delivery and acquired a minority stake in Pessl Instruments GmbH. The company's backlog stood at $168.2 million, significantly higher than $86.8 million in the prior year.

Positive

• Revenue increased 3% to $166.3 million
• Net earnings grew 14% to $17.2 million
• International irrigation revenues up 37% to $69.4 million
• Infrastructure segment operating margin improved to 21.5% from 17.1%
• Secured new $20+ million Road Zipper System contract
• Backlog nearly doubled to $168.2 million from $86.8 million YoY

Negative

• North America irrigation revenues declined 13% to $77.7 million
• Infrastructure segment revenues decreased 9% to $19.2 million
• Overall operating income decreased 1% to $20.9 million
• Operating margin declined to 12.6% from 13.1%

Insights

Financial Analyst

The Q1 FY2025 results present a mixed but overall positive picture. Consolidated revenues increased by $4.9 million (3%) to $166.3 million, while net earnings grew 14% to $17.2 million. The earnings per share improvement of 15% to $1.57 is particularly noteworthy.

The international irrigation segment showed remarkable strength, with 37% revenue growth, effectively offsetting the 13% decline in North America. The infrastructure segment, despite a 9% revenue decline, improved operating margins from 17.1% to 21.5% through enhanced operational efficiency.

Most significantly, the backlog nearly doubled to $168.2 million from $86.8 million year-over-year, providing strong revenue visibility. The newly secured $20+ million Road Zipper contract and strategic investment in Pessl Instruments position the company well for future growth.

Agricultural Market Specialist

The current agricultural market dynamics reveal important trends. Lower commodity prices are pressuring North American and Brazilian markets, impacting grower profitability and equipment demand. However, the MENA region projects are providing important growth support, demonstrating Lindsay's successful geographic diversification strategy.

The projected decline in net farm income for 2024 is creating near-term headwinds, but there are early signs of cycle bottoming with some commodity price stabilization. The new Brazilian state-level financing programs could catalyze irrigation investments in this key market. This counter-cyclical international growth, particularly in developing markets, helps maintain business stability during mature market downturns.

Operations Expert

Despite revenue headwinds, Lindsay's operational execution has been impressive. The infrastructure segment's margin expansion to 21.5% through improved manufacturing efficiency and cost management demonstrates strong operational control. The irrigation segment's ability to maintain a 16.8% operating margin while handling a significant shift toward international project mix shows operational adaptability.

The Pessl Instruments acquisition strategically enhances water management capabilities and global reach. This vertical integration should improve operational synergies and technological capabilities, particularly important as water conservation becomes increasingly critical globally.

01/07/2025 - 06:45 AM

Growth in international irrigation projects support consolidated revenue expansion

OMAHA, Neb.--(BUSINESS WIRE)-- 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 2025 which ended on November 30, 2024.

Key Highlights:

• Irrigation revenue growth driven by international project volume in the Middle East and North Africa (MENA) region
• Infrastructure operating margin expansion leads to improved operating income on lower revenues
• Net earnings and diluted earnings per share increase by 14 percent and 15 percent, respectively, versus prior year quarter

“Our first quarter results demonstrate the resilience of our business, as we were able to deliver revenue growth and expansion to net earnings, despite the ongoing cyclical challenges of the mature irrigation markets. While agricultural market conditions in North America and Brazil remain challenged as lower commodity prices negatively impact grower profitability, our international irrigation business drove revenue growth in the segment, supported by additional volumes from our large project in the MENA region,” said Randy Wood, President and Chief Executive Officer. "Revenues in the quarter for our infrastructure business were slightly lower than the prior year due to the timing of projects, however our diligent focus on cost management and manufacturing efficiency helped expand margins and drive higher operating income."

Wood continued, "Subsequent to quarter end, we finalized a Road Zipper System™ contract valued at more than $20 million which we expect to fully deliver in our fiscal second quarter. In addition, I'm pleased to announce that we also closed our acquisition of a minority interest in Pessl Instruments GmbH, with an option to acquire the remainder of the company at a later date. This investment broadens and strengthens our partnership with Pessl, accelerating innovations in water management, increasing our global reach, and providing new solutions needed to conserve natural resources and expand our world's potential."

First Quarter Summary

Consolidated Financial Summary		First Quarter
(dollars in millions, except per share amounts)		FY2025		FY2024		$ Change		% Change
Total revenues		$166.3		$161.4		$4.9		3%
Operating income		$20.9		$21.1		($0.2)		(1%)
Operating margin		12.6%		13.1%
Net earnings		$17.2		$15.0		$2.1		14%
Diluted earnings per share		$1.57		$1.36		$0.21		15%

Revenues for the first quarter of fiscal 2025 were $166.3 million, an increase of $4.9 million, or 3 percent, compared to revenues of $161.4 million in the prior year. Revenue growth was driven by an increase in international irrigation revenues, which was partially offset by decreases in North America irrigation and infrastructure revenues compared to the prior year.

Operating income for the first quarter of fiscal 2025 was $20.9 million, a decrease of $0.2 million, or 1 percent, compared to operating income of $21.1 million in the prior year. Operating margin was 12.6 percent of sales, compared to operating margin of 13.1 percent of sales in the prior year first quarter. Lower operating income and operating margin in the irrigation segment was partially offset by improved operating income and operating margin in the infrastructure segment.

Net earnings for the first quarter of 2025 were $17.2 million, or $1.57 per diluted share, compared with net earnings of $15.0 million, or $1.36 per diluted share, in the prior year. The current year first quarter results benefited from an increase in other income and a lower effective income tax rate compared to the prior year.

First Quarter Segment Results

Irrigation Segment		First Quarter
(dollars in millions)		FY2025		FY2024		$ Change		% Change
Revenues:
North America		$77.7		$89.4		($11.7)		(13%)
International		$69.4		$50.8		$18.6		37%
Total revenues		$147.1		$140.2		$6.9		5%
Operating income		$24.7		$25.3		($0.6)		(2%)
Operating margin		16.8%		18.1%

Irrigation segment revenues for the first quarter of fiscal 2025 were $147.1 million, an increase of $6.9 million, or 5 percent, compared to $140.2 million in the prior year. North America irrigation revenues of $77.7 million decreased $11.7 million, or 13 percent, compared to the prior year. The decrease in revenues resulted primarily from lower unit sales volume, as well as a less favorable mix of shorter machines and slightly lower average selling prices compared to the prior year. A projected reduction in net farm income for calendar 2024 has led to lower demand for irrigation equipment in the near term.

International irrigation revenues for the first quarter of fiscal 2025 of $69.4 million increased $18.6 million, or 37 percent, compared to the prior year. The increase resulted primarily from revenues related to the large project in the MENA region, along with higher sales in Europe and certain regions of Latin America compared to the prior year. This increase was partially offset by lower sales in Brazil. Revenues in the current year quarter were also impacted by the unfavorable effects of foreign currency translation of approximately $2.1 million compared to the prior year.

Irrigation segment operating income for the first quarter of fiscal 2025 was $24.7 million, a decrease of $0.6 million, or 2 percent, compared to the prior year. Operating margin was 16.8 percent of sales, compared to 18.1 percent of sales in the prior year. The decrease in operating income and operating margin resulted primarily from a higher proportion of international project revenues compared to the prior year, which were dilutive to overall margin.

Infrastructure Segment		First Quarter
(dollars in millions)		FY2025		FY2024		$ Change		% Change
Total revenues		$19.2		$21.2		($2.0)		(9%)
Operating income		$4.1		$3.6		$0.5		14%
Operating margin		21.5%		17.1%

Infrastructure segment revenues for the first quarter of fiscal 2025 were $19.2 million, a decrease of $2.0 million, or 9 percent, compared to $21.2 million in the prior year. The decrease resulted primarily from a difference in the timing of Road Zipper System lease revenues and lower sales of road safety products compared to the prior year.

Infrastructure segment operating income for the first quarter of fiscal 2025 was $4.1 million, an increase of $0.5 million, or 14 percent, compared to the prior year. Operating margin was 21.5 percent of sales, compared to 17.1 percent of sales in the prior year first quarter. Increased operating income and operating margin resulted primarily from improved manufacturing efficiency and lower operating expenses compared to the prior year.

The backlog of unfulfilled orders at November 30, 2024 was $168.2 million compared with $86.8 million at November 30, 2023. Included in these backlogs are amounts of $17.4 million and $2.8 million, respectively, for orders that are not expected to be fulfilled within the subsequent 12 months. The backlog in both segments was higher compared to the prior year, with the increase in irrigation backlog resulting primarily from the addition of the large project in the MENA region.

Outlook

Mr. Wood concluded, “We expect softer market conditions in the North America and Brazil irrigation markets to continue in the near term, although there are indications we are nearing the trough of the cycle with some stabilization and improvement in commodity prices. In addition, new state-level financing programs recently announced in Brazil should provide additional clarity and support for investments in irrigation. We expect continued growth in developing international markets, highlighted by project activity in the MENA region."

“We expect to see growth in our infrastructure business in fiscal 2025 supported by the large Road Zipper System project we secured shortly after the end of our first quarter. The impact of additional U.S. federal infrastructure funding has been tempered by construction cost inflation, however it remains supportive of growth in Road Zipper System leasing and sales of road safety products.”

First Quarter Conference Call

Lindsay’s fiscal 2025 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, 2024					November 30, 2023
Operating revenues		$		166,281			$		161,358
Cost of operating revenues				116,315					111,453
Gross profit				49,966					49,905
Operating expenses:
Selling expense				10,211					9,817
General and administrative expense				15,008					14,662
Engineering and research expense				3,864					4,352
Total operating expenses				29,083					28,831
Operating income				20,883					21,074
Other income (expense):
Interest expense				(752	)				(877	)
Interest income				1,245					1,068
Other income (expense), net				658					(270	)
Total other income (expense)				1,151					(79	)
Earnings before income taxes				22,034					20,995
Income tax expense				4,870					5,976
Net earnings		$		17,164			$		15,019
Earnings per share:
Basic		$		1.58			$		1.36
Diluted		$		1.57			$		1.36
Shares used in computing earnings per share:
Basic				10,853					11,017
Diluted				10,903					11,059
Cash dividends declared per share		$		0.36			$		0.35

LINDSAY CORPORATION AND SUBSIDIARIES
SUMMARY OPERATING RESULTS
(Unaudited)
		Three months ended
(in thousands)			November 30, 2024					November 30, 2023
Operating revenues:
Irrigation:
North America		$		77,669			$		89,377
International				69,418					50,791
Irrigation segment				147,087					140,168
Infrastructure segment				19,194					21,190
Total operating revenues		$		166,281			$		161,358
Operating income:
Irrigation segment		$		24,736			$		25,307
Infrastructure segment				4,124					3,619
Corporate				(7,977	)				(7,852	)
Total operating income		$		20,883			$		21,074

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, 2024			November 30, 2023			August 31, 2024
ASSETS
Current assets:
Cash and cash equivalents		$	194,066		$	159,381		$	190,879
Marketable securities			—			16,278			—
Receivables, net			120,875			143,049			116,601
Inventories, net			158,255			164,144			154,453
Other current assets			28,948			18,450			31,279
Total current assets			502,144			501,302			493,212
Property, plant, and equipment, net			117,982			103,818			112,815
Intangibles, net			24,591			27,005			25,366
Goodwill			83,941			84,029			84,194
Operating lease right-of-use assets			15,009			17,544			15,693
Deferred income tax assets			12,375			12,712			14,431
Other noncurrent assets			14,959			17,508			14,521
Total assets		$	771,001		$	763,918		$	760,232
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	53,185		$	52,242		$	37,417
Current portion of long-term debt			229			227			228
Other current liabilities			76,435			89,502			88,171
Total current liabilities			129,849			141,971			125,816
Pension benefits liabilities			4,101			4,308			4,167
Long-term debt			114,948			115,120			114,994
Operating lease liabilities			14,824			17,746			15,541
Deferred income tax liabilities			646			695			678
Other noncurrent liabilities			18,174			17,218			18,143
Total liabilities			282,542			297,058			279,339
Shareholders' equity:
Preferred stock			—			—			—
Common stock			19,145			19,115			19,124
Capital in excess of stated value			104,995			98,628			104,369
Retained earnings			700,345			647,455			687,093
Less treasury stock - at cost			(299,703)			(277,238)			(299,692)
Accumulated other comprehensive loss, net			(36,323)			(21,100)			(30,001)
Total shareholders' equity			488,459			466,860			480,893
Total liabilities and shareholders' equity		$	771,001		$	763,918		$	760,232

LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Three months ended
(in thousands)		November 30, 2024					November 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$		17,164			$		15,019
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization			5,412					5,307
Provision for uncollectible accounts receivable			62					71
Deferred income taxes			1,589					(1,666	)
Share-based compensation expense			1,977					1,603
Unrealized foreign currency transaction (gain) loss			(511	)				79
Other, net			(217	)				73
Changes in assets and liabilities:
Receivables			(6,442	)				1,689
Inventories			(5,968	)				(7,970	)
Other current assets			1,251					2,762
Accounts payable			16,656					7,087
Other current liabilities			(9,978	)				(4,263	)
Other noncurrent assets and liabilities			608					2,081
Net cash provided by operating activities			21,603					21,872
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment			(9,142	)				(6,941	)
Purchases of marketable securities			—					(12,992	)
Proceeds from maturities of marketable securities			—					2,325
Proceeds from settlement of net investment hedge			835					—
Payments for settlement of net investment hedge			(98	)				—
Other investing activities, net			(401	)				(593	)
Net cash used in investing activities			(8,806	)				(18,201	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid			(3,912	)				(3,861	)
Common stock withheld for payroll tax obligations			(1,450	)				(1,575	)
Other financing activities, net			52					56
Net cash used in financing activities			(5,310	)				(5,380	)
Effect of exchange rate changes on cash and cash equivalents			(4,300	)				335
Net change in cash and cash equivalents			3,187					(1,374	)
Cash and cash equivalents, beginning of period			190,879					160,755
Cash and cash equivalents, end of period	$		194,066			$		159,381

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250107375724/en/

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

What was Lindsay 's (LNN) revenue growth in Q1 2025?

Lindsay reported a 3% revenue growth to $166.3 million in Q1 2025, compared to $161.4 million in the prior year.

How much did LNN's international irrigation revenues increase in Q1 2025?

International irrigation revenues increased by 37% to $69.4 million, primarily driven by projects in the Middle East and North Africa region.

What was the value of Lindsay's (LNN) backlog as of November 30, 2024?

Lindsay's backlog of unfulfilled orders was $168.2 million as of November 30, 2024, compared to $86.8 million in the previous year.

How did LNN's North America irrigation segment perform in Q1 2025?

North America irrigation revenues declined 13% to $77.7 million due to lower unit sales volume and reduced demand amid projected lower farm income.

What was Lindsay 's earnings per share in Q1 2025?

Lindsay reported diluted earnings per share of $1.57 in Q1 2025, a 15% increase from $1.36 in the prior year.