On February 3, Pier Capital reported in an SEC filing that it sold out of Lindsay (NYSE:LNN), liquidating 71,799 shares in a transaction estimated at $10.09 million. What happened According to a Securities and Exchange Commission (SEC) filing dated February 3, Pier Capital fully exited its position in Lindsay (NYSE:LNN) by selling 71,799 shares. The estimated transaction value was $10.09 million. What else to know The Lindsay stake represented approximately 1.58% of AUM in the previous quarter and is n ...

Core Insights - Lindsay Corporation (LNN) reported earnings per share of $1.54 for Q1 fiscal 2026, exceeding the Zacks Consensus Estimate of $1.46, although this represents a 2% decline year over year [1] - The company's revenues were $156 million, down from $166 million in the same quarter last year, missing the Zacks Consensus Estimate of $168 million [1] - LNN's backlog as of Nov. 30, 2025, was approximately $119 million, a decrease from about $168 million a year earlier [1] Financial Performance - The cost of operating revenues decreased by 9.1% year over year to around $106 million, while gross profit remained flat at $50 million, resulting in a gross margin of 32.2%, up from 30% in the previous year [2] - Operating expenses rose by 4.8% year over year to $30.4 million, leading to an operating income of roughly $20 million, down from $21 million in the prior year [2] Segment Performance - The Irrigation segment's revenues fell by 9% year over year to approximately $133 million, with North American irrigation revenues declining by 4% to around $74 million due to lower unit sales volume, and international irrigation revenues dropping by 15% to about $59 million [3] - Operating income for the Irrigation segment decreased by 7% year over year to $23 million [3] - Conversely, the Infrastructure segment's revenues increased by 17% year over year to roughly $22 million, driven by higher sales of road safety products, with operating income rising by 9% to $4.5 million [4] Financial Position - As of the end of Q1 fiscal 2026, LNN had cash and cash equivalents of $199.6 million, up from $194.1 million a year earlier, while long-term debt remained stable at around $115 million [5] Future Outlook - The company anticipates that demand for irrigation equipment in North America will remain challenging until commodity prices and farm income improve, but it expects growth opportunities in Brazil [6] - LNN plans to manage a robust pipeline of Road Zipper System projects in fiscal 2026, although it does not expect to deliver any large projects [6] Stock Performance - Lindsay's shares have decreased by 0.5% over the past year, contrasting with the industry's growth of 11.7% [9]

Core Insights - Lindsay Corporation reported earnings per share (EPS) of $1.54, exceeding the estimated $1.46, while revenue was approximately $155.8 million, slightly below the estimated $163 million [1][6] Financial Performance - During Q1 2026 earnings call, the company noted a decline in revenues in both North American and international markets, but improved its irrigation operating margin, indicating efficient cost management [2] - The infrastructure segment experienced a 17% increase in revenues, driven by higher sales of road safety products, showcasing the company's ability to meet market demand [3] Strategic Initiatives - Lindsay Corporation secured an $80 million irrigation contract, which further strengthens its financial performance and market position [3] Valuation Metrics - The company has a price-to-earnings (P/E) ratio of approximately 18.41, a price-to-sales ratio of about 2.06, and an enterprise value to sales ratio of around 1.95, reflecting favorable market valuation [4] Financial Health - Lindsay Corporation maintains a strong liquidity position with a current ratio of 3.42, indicating its ability to cover short-term liabilities with short-term assets [5] - The debt-to-equity ratio stands at 0.25, suggesting a relatively low level of debt compared to equity, indicating financial stability [5] - The company's earnings yield is 5.43%, providing insight into the return on investment for shareholders [5]

Financial Performance - Operating revenues for the three months ended November 30, 2025, were $155.818 million, a decrease of 6.8% compared to $166.281 million for the same period in 2024[7] - Net earnings for the three months ended November 30, 2025, were $16.524 million, down 3.7% from $17.164 million in the same period last year[7] - Earnings per share (EPS) for the three months ended November 30, 2025, were $1.55 (basic) and $1.54 (diluted), compared to $1.58 (basic) and $1.57 (diluted) in 2024[7] - Total comprehensive income for the three months ended November 30, 2025, was $19.235 million, significantly higher than $10.842 million in the prior year, driven by foreign currency translation adjustments[8] - Gross profit increased slightly to $50.102 million, compared to $49.966 million in the prior year, reflecting a gross margin improvement[7] Cash and Liquidity - Cash and cash equivalents as of November 30, 2025, were $199.622 million, an increase from $194.066 million a year earlier[11] - The company reported a net cash used in operating activities of $(597,000) for the three months ended November 30, 2025, compared to $21,603,000 provided in the same period of 2024[14] - Cash and cash equivalents at the end of the period were $199,622,000, a decrease from $194,066,000 at the end of November 30, 2024[14] - The Company’s cash and cash equivalents totaled $199.6 million at November 30, 2025, a decrease from $250.6 million at August 31, 2025[80] Assets and Liabilities - Total assets as of November 30, 2025, were $828.400 million, up from $771.001 million in the previous year[11] - Total liabilities increased to $310.238 million as of November 30, 2025, compared to $282.542 million in the same period last year[11] - Shareholders' equity rose to $518.162 million as of November 30, 2025, from $488.459 million a year earlier, reflecting retained earnings growth[11] - Total current liabilities rose to $148.4 million, up from $129.8 million, marking an increase of 14.2%[11] Revenue Segmentation - Revenue from contracts with customers in the Irrigation segment was $133,437,000, while the Infrastructure segment generated $22,381,000 for the same period[19] - Irrigation segment revenues decreased 9% to $133.4 million, while infrastructure segment revenues increased 17% to $22.4 million[63] - International irrigation revenues fell by 15% to $59.1 million, primarily due to lower sales in Brazil and Western Europe, along with reduced project revenues in the MENA region[74] Shareholder Actions - Cash dividends declared per share increased to $0.37 for the three months ended November 30, 2025, compared to $0.36 in the same period of 2024[7] - The company repurchased 232 thousand shares of its common stock for $30.3 million during the three months ended November 30, 2025[52] - A new share repurchase program of up to $150.0 million was authorized in November 2025, with $150.0 million remaining available as of November 30, 2025[53] Taxation - The estimated annual effective income tax rate increased to 22.4% for the three months ended November 30, 2025, from 22.0% in 2024[25] - The effective income tax rate for the three months ended November 30, 2025 was slightly higher than the prior year[63] Operational Metrics - The backlog of unshipped orders as of November 30, 2025, was $119.2 million, down from $168.2 million a year earlier[69] - Operating expenses increased by 5% to $30.5 million, driven by higher selling and engineering costs[77] - The Company’s operating income for the three months ended November 30, 2025 was $19.61 million, down from $20.88 million in the same period of 2024[63] Environmental and Legal Matters - The company has accrued an estimated aggregate cost of $10.6 million for environmental remediation at its Lindsay, Nebraska facility, with $8.0 million calculated on a discounted basis[40][41] - The Company believes it has strong defenses against ongoing lawsuits related to the X-Lite end terminal and does not expect a material adverse effect on its financial statements[39] Future Outlook - The Company anticipates a significant increase in agricultural-focused spending of approximately $65.6 billion over the next decade due to the OBBBA[67] - A new supply agreement for irrigation systems in the MENA region is expected to generate over $80 million in revenue, with approximately $70 million recognized in the current fiscal year[67]

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Financial Data and Key Metrics Changes - Total revenues for Q1 FY2026 were $155.8 million, a decrease of 6% from $166.3 million in the same quarter last year [8] - Operating income for the quarter was $19.6 million, down 6% from $20.9 million in the prior year, with an operating margin of 12.6%, consistent with the prior year [9] - Net earnings were $16.5 million, or $1.54 per diluted share, slightly down from $17.2 million, or $1.57 per diluted share in the first quarter of last year [9][10] Business Line Data and Key Metrics Changes - Irrigation segment revenue decreased by 9% to $133.4 million compared to $147.1 million in the prior year, with North America irrigation revenues down 4% to $74.3 million [10][11] - International irrigation revenues were $59.1 million, down from $69.4 million, primarily due to timing of project revenues and lower sales volumes in Brazil [11] - Infrastructure segment revenues increased by 17% to $22.4 million, driven by higher sales of road safety products, while operating income rose 9% to $4.5 million [12] Market Data and Key Metrics Changes - North American irrigation market conditions are expected to remain soft in the near term, with a $12 billion Farmer Bridge assistance package announced to support U.S. farmers [4][5] - Internationally, there is optimism for growth in Latin America, particularly Brazil, despite elevated interest rates and credit access constraints [5][6] Company Strategy and Development Direction - The company announced a supply agreement for Zimmatic irrigation systems in the MENA region, valued at approximately $80 million, reflecting its ability to compete in large-scale projects [3] - The infrastructure segment is expected to gain momentum as infrastructure funding and road project activity advance, with a focus on Road Zipper Solutions [4][7] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing trade uncertainty, low commodity prices, and high input costs affecting customer profitability and sentiment [2] - The company anticipates that while near-term irrigation market conditions will remain soft, it expects resilience in its business [9] Other Important Information - Total available liquidity at the end of Q1 was $249.6 million, including $199.6 million in cash and cash equivalents [13] - The company repurchased $30.3 million in shares during the quarter and announced a new share repurchase program of up to $150 million [14] Q&A Session Summary Question: North America irrigation market outlook - Management agrees that the market is at a trough, with no significant upside expected until profitability improves [18] Question: Opportunities for international projects - There are both repeat and new customers in the MENA region, with a robust project funnel and long-term growth potential [20][21] Question: Impact of elevated CapEx on profitability - Investments in production facilities are expected to improve efficiency and throughput, with incremental benefits anticipated post-completion [23][25] Question: Margin expectations for new projects - The margin profile for the new $80 million project is expected to be slightly below segment average, consistent with similar projects [30][31] Question: Demand related to accelerated depreciation - No significant impact from accelerated depreciation was observed, as negative macro drivers outweighed potential benefits [32] Question: Infrastructure segment outlook - The Road Zipper business is characterized as lumpy, with ongoing engagement in the sales funnel and long-term growth opportunities [47][50]

Financial Data and Key Metrics Changes - Total revenues for Q1 FY2026 were $155.8 million, a decrease of 6% from $166.3 million in the same quarter last year [8] - Operating income for the quarter was $19.6 million, down 6% from $20.9 million in the prior year, with an operating margin of 12.6%, consistent with the prior year [9] - Net earnings were $16.5 million, or $1.54 per diluted share, slightly down from $17.2 million, or $1.57 per diluted share in the first quarter of last year [9][10] Business Line Data and Key Metrics Changes - Irrigation segment revenue decreased by 9% to $133.4 million compared to $147.1 million in the prior year, with North America irrigation revenues down 4% to $74.3 million [10][11] - International irrigation revenues were $59.1 million, down from $69.4 million, primarily due to timing of project revenues and lower sales volumes in Brazil [11] - Infrastructure segment revenues increased by 17% to $22.4 million, driven by higher sales of road safety products, while operating income rose 9% to $4.5 million [12] Market Data and Key Metrics Changes - North American irrigation market conditions are expected to remain soft, with a forecast of flat to down performance for the full year [43] - International markets, particularly in Latin America, show potential for long-term growth despite current constraints due to elevated interest rates [5][6] - The U.S. administration's $12 billion Farmer Bridge assistance package is not expected to significantly drive demand in the short term [4] Company Strategy and Development Direction - The company announced a supply agreement for Zimmatic irrigation systems in the MENA region, valued at approximately $80 million, reflecting its ability to compete in large-scale projects [3] - The infrastructure segment is expected to gain momentum as infrastructure funding and road project activity advance [4] - The company is focused on operational efficiencies and cost management to maintain profitability amid external headwinds [2] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing trade uncertainty, low commodity prices, and high input costs affecting customer profitability and sentiment [2] - There is cautious optimism regarding the international project market, particularly in the MENA region, with a robust project funnel [20][21] - Management does not foresee significant improvements in the domestic irrigation market in the near term but believes it is at the trough [18] Other Important Information - Total available liquidity at the end of Q1 was $249.6 million, including $199.6 million in cash and cash equivalents [13] - The company repurchased $30.3 million in shares during the quarter and announced a new share repurchase program of up to $150 million [14] Q&A Session Summary Question: North America irrigation market outlook - Management agrees that the market is at a trough, with no significant upside expected until profitability improves [18] Question: Opportunities for international projects - Management sees a robust funnel of opportunities in the MENA region, with both repeat and new customers [20][21] Question: Impact of elevated CapEx on profitability - Management is investing in upgrades to improve efficiency and productivity, with expectations for improved margins once demand picks up [22][23] Question: Margin expectations for the new $80 million project - Project margins are expected to be slightly below segment averages, consistent with similar projects [31][32] Question: Demand related to accelerated depreciation - Management did not see significant demand impact from accelerated depreciation due to negative macro market drivers [33] Question: Insights on infrastructure segment and Road Zipper projects - Management indicates that the Road Zipper business is lumpy, with ongoing engagement in the sales funnel and long-term growth opportunities [48][50]

Financial Data and Key Metrics Changes - Total revenues for Q1 FY2026 were $155.8 million, a decrease of 6% from $166.3 million in the same quarter last year [7] - Operating income for the quarter was $19.6 million, down 6% from $20.9 million in the prior year, with an operating margin of 12.6%, consistent with the prior year [8] - Net earnings were $16.5 million, or $1.54 per diluted share, slightly down from $17.2 million, or $1.57 per diluted share in the first quarter of last year [8] Business Line Data and Key Metrics Changes - Irrigation segment revenue decreased by 9% to $133.4 million compared to $147.1 million in the prior year, with North America irrigation revenues down 4% to $74.3 million [9] - International irrigation revenues were $59.1 million, down from $69.4 million, primarily due to project timing and lower sales volumes in Brazil [10] - Infrastructure segment revenues increased by 17% to $22.4 million, driven by higher sales of road safety products, while operating income rose 9% to $4.5 million [11] Market Data and Key Metrics Changes - North American irrigation market conditions are expected to remain soft, with a flat to down outlook for the full year [39] - International markets, particularly in Latin America, show potential for long-term growth despite current constraints on credit access for growers [5] - The U.S. administration announced a $12 billion Farmer Bridge assistance package to support farmers, but it is not expected to drive significant demand in the short term [4] Company Strategy and Development Direction - The company announced a supply agreement for Zimmatic irrigation systems in the MENA region, valued at approximately $80 million, reflecting its ability to compete in large-scale projects [3] - The infrastructure segment is expected to gain momentum as infrastructure funding and road project activity advance [4] - The company is focused on operational efficiencies and cost management to maintain profitability amid external headwinds [2] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing trade uncertainty, low commodity prices, and high input costs affecting customer profitability and sentiment [2] - There is cautious optimism regarding the international project market, particularly in the MENA region, with a robust project funnel [20] - Management does not foresee significant improvements in the domestic irrigation market in the near term but believes conditions will not worsen [17] Other Important Information - The company has a total available liquidity of $249.6 million, including $199.6 million in cash and cash equivalents [12] - Free cash flow was impacted by increased working capital and capital expenditures, but the company repurchased $30.3 million in shares during the quarter [12] Q&A Session Summary Question: Is the North American irrigation market at the trough? - Management agrees that the market is at the trough, with no significant upside expected until profitability improves [17] Question: What are the opportunities for international projects? - Management sees a robust funnel of opportunities in the MENA region, with both repeat and new customers [20] Question: What is the impact of elevated CapEx on profitability? - Management is investing in upgrades that will improve efficiency and productivity, with expected benefits in the future [22][24] Question: Is the new $80 million MENA project with the same customer as a previous project? - Yes, it is a repeat customer in the same region [27] Question: What margins are expected for the new project? - Margins for the new project are expected to be slightly below segment average, consistent with similar projects [29] Question: What drove the increase in interest income? - The increase is attributed to the regional mix of funds and interest rates, but future expectations are uncertain [43] Question: What is the outlook for Road Zipper projects? - Management indicates that the business remains lumpy, with ongoing discussions for future projects, but no immediate large projects expected [45][46]

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Financial Performance - Revenue decreased by $10.5 million, a 6 percent decrease compared to the prior year[10] - Operating income decreased by $1.3 million, a 6 percent decrease compared to the prior year[10] - Diluted earnings per share decreased by $0.03 per share, a 2 percent decrease compared to the prior year[10] - Irrigation revenue decreased by $13.7 million[10] - Infrastructure revenue increased by $3.2 million[10] Irrigation Segment - Irrigation North America revenue decreased 4 percent to $74.3 million[15] - Irrigation international revenue decreased 15 percent to $59.1 million, but included a favorable foreign currency translation effect of $1.5 million[17] Infrastructure Segment - Infrastructure revenue increased 17 percent to $22.4 million[25] - Infrastructure operating income increased 9 percent to $4.5 million[25] Market Factors & Highlights - USDA estimated 2025 U S net farm income to be $179.8 billion, a 41 percent increase from 2024 U S net farm income of $127.8 billion[12] - The company completed share repurchases of $30 million during the quarter[7] - The company secured an $80 million irrigation and technology project in the MENA region subsequent to quarter-end[7]