Lindsay Corporation Reports Second Quarter Fiscal 2025 Results

Rhea-AI Summary

Lindsay (NYSE: LNN) reported strong second quarter fiscal 2025 results with record quarterly net earnings. Total revenues increased 23% to $187.1 million, driven by international project volume and infrastructure growth.

Key financial highlights include:

• Net earnings up 47% to $26.6 million
• Diluted EPS increased 49% to $2.44
• Operating income rose 45% to $32.1 million
• Operating margin improved to 17.2%

The irrigation segment saw 11% revenue growth to $148.1 million, with international irrigation revenues up 42% to $71.0 million, offsetting a 7% decline in North America. The infrastructure segment showed remarkable growth with revenues more than doubling to $38.9 million, primarily due to a large Road Zipper System project. The company's backlog stands at $127.0 million, up from $94.2 million year-over-year.

Positive

• Record quarterly net earnings with 47% increase to $26.6 million
• Total revenue growth of 23% to $187.1 million
• Infrastructure segment revenue more than doubled with 110% growth
• International irrigation revenues up 42% to $71.0 million
• Operating margin improved to 17.2% from 14.6%
• Backlog increased to $127.0 million from $94.2 million

Negative

• North America irrigation revenues declined 7% to $77.1 million
• Unfavorable foreign currency translation impact of $4.7 million
• Expected marginal increase in cost of goods due to new tariffs
• Lower sales of replacement parts in North America
• Irrigation segment operating margin decreased to 18.5% from 19.3%

Insights

Financial Analyst

Lindsay delivered exceptional Q2 2025 financial results, with $187.1 million in revenue representing 23% year-over-year growth. The company's net earnings surged 47% to $26.6 million, with diluted EPS increasing 49% to $2.44. Most impressive was the expansion in operating margin to 17.2% from 14.6% in the prior year.

The results highlight Lindsay's effective geographic diversification strategy. While North America irrigation revenue declined 7% due to lower unit volume and pricing, international irrigation grew 42%, driven by a major project in the Middle East and North Africa region. This international strength more than compensated for domestic weakness.

The infrastructure segment delivered standout performance with revenue more than doubling (110% increase) to $38.9 million, primarily from a $20+ million Road Zipper System project. Infrastructure operating income surged 278% with margins expanding dramatically to 34.1% from 19.0%.

The company's backlog stands at $127.0 million, up from $94.2 million year-over-year, signaling strong future project potential. Management has implemented strategies to mitigate potential tariff impacts, indicating proactive risk management across their global supply chain.

Agricultural Market Specialist

Lindsay's Q2 results demonstrate remarkable resilience in a challenging agricultural environment. The company has effectively pivoted toward international markets, particularly the MENA region, where irrigation infrastructure development is accelerating. This geographic diversification has proven crucial as North American irrigation demand remains soft.

The USDA's forecast of a 29% increase in 2025 U.S. net farm income appears misleading for equipment manufacturers like Lindsay. Management correctly notes this increase is primarily driven by government support payments rather than improved crop receipts, explaining why they don't anticipate this translating to increased North American irrigation equipment demand.

In Brazil, a key international market, Lindsay reports improving commodity prices but continues facing headwinds from rising interest rates that constrain capital investment in irrigation equipment. However, unit volumes have stabilized compared to last year, suggesting the market may be finding its floor.

The company's order backlog growth to $127.0 million (up from $94.2 million) reflects strong international project activity. The continued development of irrigation infrastructure in emerging markets, particularly in the MENA region, provides Lindsay a growth avenue largely independent of traditional agricultural cycles in established markets, positioning the company for continued resilience despite sector-specific challenges.

Record quarterly net earnings supported by 23 percent revenue growth

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 second quarter ended February 28, 2025.

Key Highlights

• Quarterly net earnings increase 47 percent and diluted EPS increase 49 percent
• International project volume in the Middle East and North Africa (MENA) region contributes to 11 percent revenue growth in irrigation
• Infrastructure revenues more than double on the completion of a large Road Zipper System™ project
• Plans are in place to mitigate the potential impact of tariffs and retaliatory actions

“Strength in international irrigation more than offset expected softness in the North America irrigation market, driving overall irrigation revenue growth in our fiscal second quarter," said Randy Wood, President and Chief Executive Officer. "During the quarter, we continued delivery of our large irrigation project in the MENA region in addition to realizing increased sales in other parts of this developing region. In Brazil, our unit sales volume was comparable to the prior year as market conditions improved during the quarter. Our infrastructure business delivered outstanding results in the quarter, evidenced by strong revenue growth and significant margin expansion, which was driven by the execution of a large Road Zipper System project that we delivered in the period."

Wood continued, "I am pleased with the resiliency and performance of our teams around the world, as we demonstrate our ability to capture and deliver on project opportunities in both of our businesses. Our strong execution on these projects allowed us to deliver margin expansion and net earnings growth despite a tempered demand environment in core irrigation markets."

Second Quarter Summary

Consolidated Financial Summary		Second Quarter
(dollars in millions, except per share amounts)		FY2025		FY2024		$ Change		% Change
Total revenues		$187.1		$151.5		$35.5		23%
Operating income		$32.1		$22.1		$10.0		45%
Operating margin		17.2%		14.6%
Net earnings		$26.6		$18.1		$8.5		47%
Diluted earnings per share		$2.44		$1.64		$0.80		49%

Revenues for the second quarter of fiscal 2025 were $187.1 million, an increase of $35.5 million, or 23 percent, compared to revenues of $151.5 million in the prior year. Revenue growth in international irrigation and infrastructure was partially offset by lower revenue in North America irrigation.

Operating income for the second quarter of fiscal 2025 was $32.1 million, an increase of $10.0 million, or 45 percent, compared to operating income of $22.1 million in the prior year. Operating margin was 17.2 percent of sales, compared to 14.6 percent of sales in the prior year. The increase in operating income and margin resulted from higher revenues, a more favorable margin mix of revenues, and positive leverage of fixed operating expenses.

Net earnings for the second quarter of fiscal 2025 were $26.6 million, an increase of $8.5 million, or 47 percent, compared with net earnings of $18.1 million in the prior year. Diluted earnings per share for the quarter of $2.44 reflected an increase of 49 percent compared with $1.64 for the prior year.

Second Quarter Segment Results

Irrigation Segment		Second Quarter
(dollars in millions)		FY2025		FY2024		$ Change		% Change
Revenues:
North America		$77.1		$82.8		($5.7)		(7%)
International		$71.0		$50.2		$20.8		42%
Total revenues		$148.1		$133.0		$15.1		11%
Operating income		$27.4		$25.6		$1.7		7%
Operating margin		18.5%		19.3%

Irrigation segment revenues for the second quarter of fiscal 2025 were $148.1 million, an increase of $15.1 million, or 11 percent, compared to $133.0 million in the prior year. North America irrigation revenues of $77.1 million decreased $5.7 million, or 7 percent, compared to the prior year. The decrease resulted primarily from lower unit sales volume of irrigation equipment, along with slightly lower average selling prices and lower sales of replacement parts.

International irrigation revenues for the second quarter of fiscal 2025 of $71.0 million increased $20.8 million, or 42 percent, compared to the prior year. The increase resulted from revenues related to the large project in the MENA region and higher sales in other parts of the region. This increase was partially offset by lower sales in other international markets and the unfavorable effects of foreign currency translation of approximately $4.7 million compared to the prior year. Unit sales volume in Brazil for the quarter was comparable to the prior year.

Irrigation segment operating income for the second quarter of fiscal 2025 was $27.4 million, an increase of $1.7 million, or 7 percent, compared to the prior year. Operating margin was 18.5 percent of sales, compared to 19.3 percent of sales in the prior year. Increased revenues led to higher operating income while a larger percentage of project revenues resulted in some dilution to operating margin compared to the prior year.

Infrastructure Segment		Second Quarter
(dollars in millions)		FY2025		FY2024		$ Change		% Change
Total revenues		$38.9		$18.5		$20.4		110%
Operating income		$13.3		$3.5		$9.8		278%
Operating margin		34.1%		19.0%

Infrastructure segment revenues for the second quarter of fiscal 2025 were $38.9 million, an increase of $20.4 million, or 110 percent, compared to $18.5 million in the prior year. The increase was primarily driven by a large Road Zipper System project, valued at over $20 million, that was delivered during the quarter while leasing revenues and sales of road safety products were slightly lower compared to the prior year.

Infrastructure segment operating income for the second quarter of fiscal 2025 was $13.3 million, an increase of $9.8 million, or 278 percent, compared to $3.5 million in the prior year. Operating margin was 34.1 percent of sales, compared to 19.0 percent of sales in the prior year. Increased operating income and operating margin resulted primarily from higher revenues and a more favorable margin mix of revenues, as Road Zipper System sales represented a higher percentage of revenues compared to the prior year.

The backlog of unfilled orders as of February 28, 2025, was $127.0 million compared with $94.2 million as of February 29, 2024. Included in these backlogs are amounts of $11.9 million and $20.3 million, respectively, for orders that are not expected to be fulfilled within the subsequent 12 months. The increase in backlog is primarily attributed to the large irrigation project in the MENA region.

Outlook

Mr. Wood concluded, “In February, the USDA released its initial forecast for 2025 U.S. net farm income, which estimated a 29 percent increase compared to 2024. The forecast anticipates higher government support payments while crop receipts are forecasted to be slightly lower than the prior year. Accordingly, we don't expect this forecast of 2025 U.S. net farm income to result in a meaningful improvement in demand for irrigation equipment in North America in the near term. In Brazil, commodity prices are improving, however the rising interest rate environment continues to be a headwind to investment. Elsewhere in international irrigation we remain encouraged by the growth in developing markets, highlighted by project activity in the MENA region."

“Second quarter performance in our infrastructure business supports full year growth for fiscal 2025. Anticipated increased U.S. infrastructure funding, although partially offset by the impact of inflation on construction costs, remains supportive of opportunities for Road Zipper System lease revenues and sales of road safety products. We also remain optimistic regarding our Road Zipper System project sales pipeline; however the timing of individual projects remains challenging to predict.”

"In regard to the U.S.'s recently announced tariffs on imports from Canada, Mexico, China and other countries, we have implemented a comprehensive action plan that includes supplier negotiation, strategic inventory placement, and other supply chain initiatives to manage potential cost impacts to our business. We anticipate the impact of the proposed tariffs to result in a marginal increase to our cost of goods, which we would expect to pass through to the market through increased pricing of our products. We are also evaluating the potential impact of additional tariffs or retaliatory actions. While the situation remains fluid, we plan to utilize our global footprint and supply chain to minimize the potential impact of these actions on our business and our customers."

Second Quarter Conference Call

Lindsay’s fiscal 2025 second 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								Six months ended
(in thousands, except per share amounts)		February 28, 2025				February 29, 2024				February 28, 2025				February 29, 2024
Operating revenues		$	187,064			$	151,519			$	353,345			$	312,877
Cost of operating revenues			124,576				102,565				240,891				214,018
Gross profit			62,488				48,954				112,454				98,859
Operating expenses:
Selling expense			10,850				9,498				21,062				19,315
General and administrative expense			15,352				13,466				30,360				28,128
Engineering and research expense			4,162				3,892				8,026				8,244
Total operating expenses			30,364				26,856				59,448				55,687
Operating income			32,124				22,098				53,006				43,172
Other income (expense):
Interest expense			(402	)			(830	)			(1,154	)			(1,707	)
Interest income			1,843				1,295				3,088				2,363
Other income (expense), net			(351	)			134				307				(136	)
Total other income (expense)			1,090				599				2,241				520
Earnings before income taxes			33,214				22,697				55,247				43,692
Income tax expense			6,638				4,574				11,508				10,550
Net earnings		$	26,576			$	18,123			$	43,739			$	33,142
Earnings per share:
Basic		$	2.45			$	1.64			$	4.03			$	3.01
Diluted		$	2.44			$	1.64			$	4.01			$	2.99
Shares used in computing earnings per share:
Basic			10,863				11,033				10,858				11,025
Diluted			10,909				11,074				10,906				11,067
Cash dividends declared per share		$	0.36			$	0.35			$	0.72			$	0.70

LINDSAY CORPORATION AND SUBSIDIARIES
SUMMARY OPERATING RESULTS
(Unaudited)
		Three months ended								Six months ended
(in thousands)		February 28, 2025				February 29, 2024				February 28, 2025				February 29, 2024
Operating revenues:
Irrigation:
North America		$	77,145			$	82,845			$	154,884			$	172,222
International			70,994				50,173				140,342				100,964
Irrigation segment			148,139				133,018				295,226				273,186
Infrastructure segment			38,925				18,501				58,119				39,691
Total operating revenues		$	187,064			$	151,519			$	353,345			$	312,877
Operating income:
Irrigation segment		$	27,377			$	25,649			$	52,111			$	50,956
Infrastructure segment			13,257				3,506				17,381				7,125
Corporate			(8,510	)			(7,057	)			(16,486	)			(14,909	)
Total operating income		$	32,124			$	22,098			$	53,006			$	43,172

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 and large diameter steel tubing, 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 movable 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)		February 28, 2025				February 29, 2024				August 31, 2024
ASSETS
Current assets:
Cash and cash equivalents		$	172,044			$	133,415			$	190,879
Marketable securities			14,676				17,219				—
Receivables, net			155,440				153,624				116,601
Inventories, net			154,605				167,334				154,453
Other current assets			29,919				29,121				31,279
Total current assets			526,684				500,713				493,212
Property, plant, and equipment, net			124,757				110,691				112,815
Intangibles, net			24,097				26,277				25,366
Goodwill			83,877				84,099				84,194
Operating lease right-of-use assets			17,583				16,755				15,693
Deferred income tax assets			11,930				9,203				14,431
Equity method investments			7,452				—				—
Other noncurrent assets			17,805				17,542				14,521
Total assets		$	814,185			$	765,280			$	760,232
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	57,612			$	47,903			$	37,417
Current portion of long-term debt			231				228				228
Other current liabilities			87,044				81,147				88,171
Total current liabilities			144,887				129,278				125,816
Pension benefits liabilities			4,040				4,234				4,167
Long-term debt			114,903				115,075				114,994
Operating lease liabilities			17,063				16,936				15,541
Deferred income tax liabilities			637				677				678
Other noncurrent liabilities			16,236				16,046				18,143
Total liabilities			297,766				282,246				279,339
Shareholders' equity:
Preferred stock			19,155				19,122				19,124
Common stock			107,869				101,060				104,369
Retained earnings			723,008				661,715				687,093
Less treasury stock - at cost			(301,119	)			(277,238	)			(299,692	)
Accumulated other comprehensive loss, net			(32,494	)			(21,625	)			(30,001	)
Total shareholders' equity			516,419				483,034				480,893
Total liabilities and shareholders' equity		$	814,185			$	765,280			$	760,232

LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Six months ended
(in thousands)	February 28, 2025				February 29, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	43,739			$	33,142
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		10,608				10,574
Provision for uncollectible accounts receivable		97				249
Deferred income taxes		785				1,488
Share-based compensation expense		3,954				3,335
Unrealized foreign currency transaction (gain)		(564	)			(94	)
Other, net		(122	)			150
Changes in assets and liabilities:
Receivables		(40,206	)			(9,349	)
Inventories		(2,419	)			(12,003	)
Other current assets		2,874				(7,009	)
Accounts payable		20,685				3,792
Other current liabilities		(5,479	)			(15,186	)
Other noncurrent assets and liabilities		(72	)			3,047
Net cash provided by operating activities		33,880				12,136
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(18,918	)			(18,773	)
Purchases of marketable securities		(14,676	)			(15,042	)
Proceeds from maturities of marketable securities		—				3,525
Purchase of equity method investment		(5,815	)			—
Proceeds from settlement of net investment hedge		835				—
Payments for settlement of net investment hedge		(98	)			—
Other investing activities, net		(559	)			(540	)
Net cash used in investing activities		(39,231	)			(30,830	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid		(7,824	)			(7,724	)
Common stock withheld for payroll tax obligations		(1,450	)			(1,575	)
Repurchase of common shares		(1,427	)			—
Proceeds from exercise of stock options		668				479
Other financing activities, net		248				229
Net cash used in financing activities		(9,785	)			(8,591	)
Effect of exchange rate changes on cash and cash equivalents		(3,699	)			(55	)
Net change in cash and cash equivalents		(18,835	)			(27,340	)
Cash and cash equivalents, beginning of period		190,879				160,755
Cash and cash equivalents, end of period	$	172,044			$	133,415

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250403513570/en/

For further information:

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 drove Lindsay 's (LNN) 23% revenue growth in Q2 2025?

Growth was driven by international irrigation projects in the MENA region and a large Road Zipper System infrastructure project, offsetting lower North American irrigation sales.

How much did Lindsay's (LNN) earnings per share increase in Q2 2025?

Diluted earnings per share increased 49% to $2.44 compared to $1.64 in the prior year.

What is the current backlog value for Lindsay (LNN) as of Q2 2025?

The backlog of unfilled orders as of February 28, 2025, was $127.0 million, up from $94.2 million the previous year.

How did Lindsay's (LNN) infrastructure segment perform in Q2 2025?

Infrastructure segment revenues increased 110% to $38.9 million, with operating income up 278% to $13.3 million.

What is Lindsay 's (LNN) strategy for managing potential tariff impacts?

Lindsay plans to implement supplier negotiation, strategic inventory placement, and supply chain initiatives, with expectations to pass increased costs through to product pricing.