Core Insights - Lindsay Corporation (LNN) is experiencing growth in its infrastructure business, driven by the Road Zipper System leasing and road safety equipment sales, alongside increased international irrigation market demand due to food security concerns [1][3][6] - The acquisition of Pessl Instruments GmbH enhances Lindsay's position in irrigation management and scheduling solutions, supporting its growth strategy [2][7][8] Infrastructure Business Growth - The infrastructure segment is benefiting from rising infrastructure spending in the U.S., particularly through the Road Zipper System, which addresses key needs such as congestion reduction and improved safety [3][4] - Road Zipper Systems are gaining global popularity due to their cost-effectiveness and faster implementation compared to new lane construction [4] - A $20 million Road Zipper project was completed in the second fiscal quarter, contributing to the segment's performance [5] Pessl Acquisition - Lindsay's acquisition of a 49.9% interest in Pessl is expected to enhance its capabilities in irrigation management [7] - The collaboration with Pessl aims to provide greater value to agricultural producers, leveraging both companies' expertise for improved crop management [8][9] Financial Position - As of February 29, 2024, Lindsay has a strong balance sheet with $236.7 million in available liquidity, including $186.7 million in cash and equivalents [9] - The company plans to continue investing in organic growth and synergistic acquisitions while enhancing shareholder returns [10] Strategic Management - Lindsay is implementing a comprehensive action plan to manage costs related to tariffs, focusing on supplier negotiations and supply chain initiatives [10][11] - The company aims to maintain flexibility in its operations to quickly adapt to changing circumstances [11] Stock Performance - Lindsay's shares have increased by 2% over the past year, contrasting with a 0.6% decline in the industry [12]

Core Viewpoint - Lindsay (LNN) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Recent Performance and Outlook - Lindsay's earnings estimates have been revised upward, with a 6.5% increase in the Zacks Consensus Estimate over the past three months, projecting earnings of $6.01 per share for the fiscal year ending August 2025, indicating no year-over-year change [8]. - The upgrade reflects an improvement in Lindsay's underlying business, which is expected to drive stock appreciation [5][10]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Core Viewpoint - Lindsay Corporation reported strong financial results for the second quarter of fiscal 2025, with earnings per share significantly exceeding expectations and substantial year-over-year growth in both revenue and gross profit [1][2][3]. Financial Performance - Earnings per share for Q2 fiscal 2025 were $2.44, surpassing the Zacks Consensus Estimate of $1.89, marking a 49% increase year over year [1]. - Revenue reached $187 million, up from $152 million in the same quarter last year, exceeding the Zacks Consensus Estimate of $180 million [2]. - Gross profit increased by 27.7% to $62.5 million, with a gross margin of 33.4%, compared to 32.3% in the prior year [3]. Cost and Expenses - Operating revenues' cost rose by 21.5% year over year to $124.6 million, while operating expenses increased by 13.1% to $30 million [3]. - Operating income for the quarter was $32 million, up from $22 million in the previous year [3]. Segment Performance - The Irrigation segment's revenues grew by 11.3% to $148 million, with international revenues increasing by 42% to $71 million, while North American revenues fell by 7% to $77 million [4]. - The Infrastructure segment saw a remarkable 110% increase in revenues to $39 million, driven by the Road Zipper System project, with operating income rising to $13 million from $3.5 million a year ago [5]. Financial Position - As of the end of Q2 fiscal 2025, the company had cash and cash equivalents of approximately $172 million, up from $133 million a year earlier, with long-term debt remaining stable at around $115 million [6]. Future Outlook - The company anticipates that the strong performance of its Infrastructure business will contribute to full-year growth, particularly from the Road Zipper System, despite potential inflationary pressures on construction costs [7]. Stock Performance - Lindsay's shares have appreciated by 14.2% over the past year, outperforming the industry growth of 11.2% [8]. Zacks Rank - The company currently holds a Zacks Rank of 2 (Buy), indicating positive market sentiment [10].

Group 1 - Lindsay is one of 192 companies in the Industrial Products group, which is currently ranked 8 within the Zacks Sector Rank [2] - The Zacks Rank is a stock-picking model that emphasizes earnings estimates and revisions, with Lindsay holding a Zacks Rank of 2 (Buy) [3] - Over the past three months, the Zacks Consensus Estimate for Lindsay's full-year earnings has increased by 6.5%, indicating improved analyst sentiment [3] Group 2 - Year-to-date, Lindsay has returned 9.3%, outperforming the Industrial Products sector, which has returned an average of -10.9% [4] - Lindsay belongs to the Manufacturing - Farm Equipment industry, which includes 7 companies and is currently ranked 49 in the Zacks Industry Rank, with an average gain of 3.9% this year [5] - Another outperforming stock in the Industrial Products sector is UniFirst, which has increased by 0.6% year-to-date [4]

Financial Performance - Operating revenues for the three months ended February 28, 2025, increased to $187,064, representing a 23.4% growth compared to $151,519 for the same period in 2024[7] - Gross profit for the six months ended February 28, 2025, rose to $112,454, up 13.7% from $98,859 in the prior year[7] - Net earnings for the three months ended February 28, 2025, were $26,576, a 46.6% increase from $18,123 in the same quarter of 2024[8] - Earnings per share (EPS) for the six months ended February 28, 2025, increased to $4.03, compared to $3.01 for the same period in 2024, reflecting a 33.9% growth[7] - Operating income for the six months ended February 28, 2025, was $53,006, a 22.7% increase from $43,172 in the prior year[7] - Net earnings for the six months ended February 28, 2025, were $43,739 thousand, an increase from $33,142 thousand for the same period in the previous year, representing a growth of approximately 32.5%[16] - Total comprehensive income for the six months ended February 28, 2025, was $41,246 thousand, compared to $32,527 thousand for the same period in the prior year, indicating an increase of about 27.5%[16] Assets and Liabilities - Total assets as of February 28, 2025, amounted to $814,185, an increase from $765,280 as of February 29, 2024[10] - Total liabilities as of February 28, 2025, were $297,766, up from $282,246 as of February 29, 2024[10] - Cash and cash equivalents increased to $172,044 as of February 28, 2025, compared to $133,415 a year earlier, marking a 29% increase[10] - The total shareholders' equity as of February 28, 2025, was $516,419 thousand, an increase from $483,034 thousand as of February 29, 2024[14] - The company reported contract liabilities of $24.4 million as of February 28, 2025, up from $18.3 million as of February 29, 2024, representing a 33.3% increase[28] Cash Flow and Dividends - The company reported a net cash provided by operating activities of $33,880 thousand for the six months ended February 28, 2025, significantly higher than $12,136 thousand for the same period in the previous year[16] - Cash dividends paid were $7,824 thousand for the six months ended February 28, 2025, reflecting an increase from $7,724 thousand in the same period last year[16] - The Company declared cash dividends of $0.36 per share for the three months ended February 28, 2025, compared to $0.35 for the same period in 2024[7] Segment Performance - Irrigation segment revenues increased 11% to $148.1 million, while infrastructure segment revenues surged 110% to $38.9 million[68] - The irrigation segment accounted for 79% of the Company's revenue for the three months ended February 28, 2025, down from 88% in the prior year[77] - Segment operating income for the infrastructure segment increased 278% to $13.3 million, compared to $3.5 million in the prior year[76] Market and Economic Conditions - The U.S. Department of Agriculture forecasts 2025 U.S. net farm income to be $180.1 billion, a 29% increase from 2024[70] - The infrastructure business is expected to benefit from the $110 billion federal funding introduced by the Infrastructure Investment and Jobs Act, which runs through September 2026[73] Shareholder Actions - The company repurchased common stock worth $1,427 thousand during the six months ended February 28, 2025, compared to no repurchases in the same period last year[16] - The Company repurchased approximately 12,000 shares of its common stock for $1.4 million during the three and six months ended February 28, 2025, with $40.0 million remaining available for future repurchases[57] Tax and Compliance - The estimated annual effective income tax rate decreased to 20.9% for the six months ended February 28, 2025, down from 26.4% for the same period in 2024[35] - The Company was in compliance with all financial loan covenants as of February 28, 2025, and February 29, 2024[108] Environmental and Legal Matters - The Company has accrued an estimated environmental remediation liability of $10.6 million for its Lindsay, Nebraska facility, with $8.0 million calculated on a discounted basis[50] - The Company does not expect the ongoing product liability lawsuits related to its X-Lite® end terminal to have a material adverse effect on its business[49]

Financial Data and Key Metrics Changes - Consolidated revenues for Q2 FY2025 increased by 23% to $187.1 million compared to $151.5 million in the prior year [14] - Net earnings for the quarter increased by 47% to $26.6 million or $2.44 per diluted share, compared to $18.1 million or $1.64 per diluted share in the prior year, marking the highest quarterly net earnings in the company's history [15] Business Segment Data and Key Metrics Changes - Irrigation segment revenues increased by 11% to $148.1 million compared to $133 million in the prior year, with North America Irrigation revenues decreasing by 7% to $77.1 million [16] - International Irrigation revenues increased by 42% to $71 million, driven by large projects in the MENA region [17] - Infrastructure segment revenues more than doubled to $38.9 million from $18.5 million in the prior year, primarily due to the completion of a large Road Zipper project valued at over $20 million [19] Market Data and Key Metrics Changes - In North America, no meaningful improvement in market conditions is expected in the near term, with USDA forecasting a 29% increase in net farm income primarily due to higher government support payments [9] - Internationally, particularly in developing regions, continued growth is expected driven by project activity focused on food security and water resource conservation [10] Company Strategy and Development Direction - The company is focused on growing its Road Zipper system leasing business for a higher and more stable margin profile [7] - A comprehensive action plan has been implemented to address potential cost impacts from tariffs, including supplier negotiation and strategic inventory placement [12] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the Road Zipper project sales pipeline despite challenges in predicting the timing of large projects [6] - The company anticipates stable demand for irrigation equipment in the second half of FY2025, pending significant storm damage activity [9] Other Important Information - Total available liquidity at the end of Q2 was $236.7 million, including $186.7 million in cash and equivalents [20] - The company is evaluating the potential impact of additional or retaliatory tariffs and has a structure in place to react quickly [12] Q&A Session Summary Question: Insights on international revenue recognition timing - The company shipped more of the large project than originally anticipated, but this does not affect expectations for future quarters [26] Question: Details on tariff exposure and actions - The biggest impact is expected on the Irrigation business, with a marginal increase in cost of goods projected [30][32] Question: Margin performance in the Irrigation segment - Margins in North America remained comparable to last year, with volume leverage from international projects helping to offset gross margin dilution [38][40] Question: Impact of tariffs on agricultural economy - Potential disruptions in US agricultural exports could impact pricing and customer sentiment, but government support is expected if needed [45][46] Question: Pricing expectations in the domestic irrigation market - The company has already taken pricing actions based on increased steel costs and believes it can pass these costs along to customers [53][54] Question: Potential benefits of retaliatory tariffs for investment in Brazil - The company is positioned to react quickly to any increase in demand in Brazil, leveraging its global footprint [56][57]

2nd Quarter Fiscal 2025 Earnings Presentation Safe-Harbor Statement This presentation 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, financial results and planned financing. 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 ...

Core Insights - For the quarter ended February 2025, Lindsay (LNN) reported revenue of $187.06 million, reflecting a year-over-year increase of 23.5% and exceeding the Zacks Consensus Estimate of $179.89 million by 3.99% [1] - The company's EPS for the quarter was $2.44, up from $1.64 in the same period last year, representing an EPS surprise of 29.10% against the consensus estimate of $1.89 [1] Financial Performance Metrics - Operating revenues in the Infrastructure segment were reported at $38.93 million, slightly below the average estimate of $39.58 million, but showing a significant year-over-year increase of 110.4% [4] - The Irrigation segment generated operating revenues of $148.14 million, surpassing the average estimate of $140.32 million, with a year-over-year growth of 11.4% [4] - Operating income for the Irrigation segment was $27.38 million, exceeding the average estimate of $22.82 million, while the Infrastructure segment reported an operating income of $13.26 million, above the average estimate of $10.85 million [4] - The Corporate segment reported an operating income of -$8.51 million, which was worse than the average estimate of -$7.83 million [4] Stock Performance - Over the past month, shares of Lindsay have returned +0.5%, contrasting with a -4.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Performance - Total revenues for Q2 FY2025 were $187.1 million, a 23% increase from $151.5 million in Q2 FY2024[4] - Operating income rose to $32.1 million, reflecting a 45% increase compared to $22.1 million in the prior year, with an operating margin of 17.2%[5] - Net earnings for the quarter were $26.6 million, up 47% from $18.1 million in the previous year, with diluted earnings per share increasing by 49% to $2.44[6] - Total operating revenues for the three months ended February 28, 2025, increased to $187.064 million, up 23.5% from $151.519 million for the same period in 2024[23] - Net earnings for the six months ended February 28, 2025, were $43.739 million, a 32.2% increase from $33.142 million for the same period in 2024[28] Segment Performance - International irrigation revenue grew by 42% to $71.0 million, driven by a large project in the MENA region[9] - Infrastructure segment revenues more than doubled to $38.9 million, a 110% increase, primarily due to a significant Road Zipper System project[11] - The irrigation segment's operating income rose to $27.377 million for the three months ended February 28, 2025, compared to $25.649 million in the prior year, reflecting an increase of 6.7%[23] - The infrastructure segment's operating income significantly improved to $13.257 million for the three months ended February 28, 2025, from $3.506 million in the same period last year, an increase of 278.5%[23] Order Backlog and Market Outlook - The backlog of unfilled orders increased to $127.0 million, up from $94.2 million a year earlier, attributed mainly to the MENA irrigation project[13] - The USDA forecasts a 29% increase in U.S. net farm income for 2025, but this is not expected to significantly boost demand for irrigation equipment in North America in the near term[14] - The company remains optimistic about growth in developing markets, particularly in the MENA region, despite challenges in predicting project timing[15] Financial Position - Cash and cash equivalents at the end of the period were $172.044 million, an increase from $133.415 million at the end of the same period in 2024, representing a growth of 28.9%[26] - Total assets increased to $814.185 million as of February 28, 2025, compared to $765.280 million as of February 29, 2024, marking a growth of 6.4%[26] - Total liabilities increased to $297.766 million as of February 28, 2025, compared to $282.246 million as of February 29, 2024, reflecting a rise of 5.5%[26] - The company reported a net cash provided by operating activities of $33.880 million for the six months ended February 28, 2025, compared to $12.136 million for the same period in 2024, indicating a substantial increase[28] - The company’s total current assets reached $526.684 million as of February 28, 2025, up from $500.713 million a year earlier, representing a growth of 5.2%[26] Strategic Initiatives - The company has implemented a comprehensive action plan to mitigate the impact of recently announced tariffs, anticipating a marginal increase in costs[15] - The infrastructure business's strong performance supports full-year growth expectations for FY2025, despite inflationary pressures on construction costs[14] - The company plans to continue investing in innovative technology solutions within its irrigation segment, including advancements in GPS positioning and industrial IoT solutions[23]

Core Insights - Wall Street analysts expect Lindsay (LNN) to report quarterly earnings of $1.89 per share, reflecting a year-over-year increase of 15.2% [1] - Revenues are anticipated to reach $179.89 million, which is an 18.7% increase from the same quarter last year [1] - There has been a downward revision of 3.5% in the consensus EPS estimate over the past 30 days, indicating a reappraisal by analysts [1] Earnings Projections - Changes in earnings projections are crucial for predicting investor reactions to the stock [2] - Empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [2] Analyst Forecasts - Analysts predict 'Operating revenues- Infrastructure Segment' to be $39.58 million, indicating a year-over-year change of +113.9% [4] - The consensus estimate for 'Operating revenues- Irrigation Segment' is $140.32 million, suggesting a +5.5% year-over-year change [4] - 'Operating income- Irrigation Segment' is expected to reach $22.82 million, down from $25.65 million year-over-year [4] - 'Operating income- Infrastructure Segment' is projected at $10.85 million, compared to $3.51 million from the previous year [5] Stock Performance - Over the past month, shares of Lindsay have returned -4.1%, while the Zacks S&P 500 composite has seen a -6.2% change [5] - Lindsay currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near future [5]