Core Insights - Lindsay Corporation has introduced TowerWatch™, a tower alignment monitor that significantly reduces troubleshooting time for growers by 75% through faster identification of tower faults [1][3]. Product Overview - TowerWatch is designed to help growers by monitoring the alignment circuit and sending alerts to identify which specific span is causing a problem [3]. - The technology is available on new Zimmatic pivots and as an add-on for existing pivots, enhancing both time efficiency and resource management [3]. Benefits to Growers - By using TowerWatch, growers can save time, water, and energy costs, leading to improved crop health and reduced pivot downtime [3]. - The feature of alignment alerts was a top request from customers, allowing for prompt identification of issues and ensuring healthier crops, which protects yields and profitability [3]. Company Background - Lindsay Corporation, founded in 1955, is a leading global manufacturer and distributor of irrigation and infrastructure equipment, including Zimmatic™ pivot irrigation systems and FieldNET™ remote irrigation management technology [4].

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks using financial ratios [3] - Growth Score assesses a company's future earnings and financial health [4] - Momentum Score tracks price trends to identify favorable investment opportunities [5] - VGM Score combines the three styles to highlight stocks with attractive value, growth, and momentum characteristics [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically delivered an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [9] Company Spotlight: Lindsay Corporation - Lindsay Corporation specializes in water management and road infrastructure products, with a history dating back to 1955 [11] - The company currently holds a Zacks Rank of 3 (Hold) and a VGM Score of B [11] - Lindsay has a Momentum Style Score of A, with a recent share price increase of 0.6% over the past month [12] - Analysts have raised earnings estimates for fiscal 2025, with the consensus estimate now at $6.83 per share, reflecting an increase of $0.26 [12] - The company has an average earnings surprise of +22.4%, making it a noteworthy option for investors [12]

Market Overview - Wall Street is experiencing a rally due to easing tariff fears and optimism regarding a potential rate cut by the Federal Reserve in the near future [1][2] - The S&P 500 and Nasdaq reached new closing highs, with investors hopeful that a rate cut will further enhance stock performance [1] Trade Agreements - Recent trade deals between the United States and Vietnam, as well as with China and the United Kingdom, have positively influenced market sentiment [4][5] - Despite the positive news, uncertainties remain regarding the impact of new tariffs on the economy, as the White House has not provided clarity [6] Federal Reserve Outlook - Optimism surrounding an anticipated rate cut in July is contributing to the market rally, although Federal Reserve Chairman Jerome Powell has maintained a hawkish stance [7] - Market participants are expecting two 25-basis-point rate cuts by the end of the year, but the lack of a clear timeline from the Federal Reserve may affect investor sentiment [7] Dividend-Paying Stocks - In light of market volatility, cautious investors may consider dividend-paying stocks for stable income and capital protection [3] - Three notable dividend-paying stocks include: - **Bank OZK**: Announced a dividend of $0.44 per share with a yield of 3.38%, having increased its dividend 21 times over the past five years [9][11] - **Lindsay Corporation**: Declared a dividend of $0.37 per share with a yield of 0.98%, having increased its dividend five times in five years [13][11] - **Sandstorm Gold Ltd.**: Announced a dividend of $0.02 per share with a yield of 0.59%, having raised its dividend seven times in five years [15][11]

Group 1 - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe [2][3] Group 2 - Stocks are rated using an alphabetic system (A to F) based on value, growth, and momentum, with higher scores indicating a better chance of outperforming the market [3] - The Value Score identifies attractive stocks using financial ratios like P/E and Price/Sales, appealing to value investors [3][4] - The Growth Score focuses on a company's financial health and future outlook, assessing projected earnings and sales for sustainable growth [4] - The Momentum Score capitalizes on price trends, using factors like weekly price changes to identify favorable investment opportunities [5] Group 3 - The VGM Score combines the three Style Scores to highlight stocks with the best value, growth, and momentum characteristics, serving as a strong indicator alongside the Zacks Rank [6] - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [7][8] Group 4 - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential returns [9][10] - A stock with a lower Zacks Rank, even with good Style Scores, may still face downward price pressure due to negative earnings forecasts [10] Group 5 - Lindsay Corporation, a company specializing in water management and road infrastructure, holds a Zacks Rank of 3 (Hold) and a VGM Score of B [11] - The company has a Momentum Style Score of A, with shares increasing by 3.2% over the past four weeks, and has seen upward revisions in earnings estimates for fiscal 2025 [12]

Core Viewpoint - Lindsay (LNN) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Company Performance and Outlook - The upgrade for Lindsay reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [4]. - For the fiscal year ending August 2025, Lindsay is expected to earn $6.63 per share, with a 10.3% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [6]. - Lindsay's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines high-quality dividend stocks with other asset classes such as Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The company advocates for a balanced approach to investing, focusing on both growth and income to optimize returns [1]. - It highlights that a solid base of classic dividend growth stocks can serve as a foundation for a successful investment portfolio [1]. Performance Comparison - The total return achieved through this hybrid investment strategy is reported to be on par with the S&P 500 index, indicating its effectiveness [1].

Core Insights - Lindsay Corporation (LNN) reported adjusted earnings per share of $1.78 for Q3 fiscal 2025, exceeding the Zacks Consensus Estimate of $1.36 and down from $1.85 in the same quarter last year [1][9] - The company generated revenues of $169.5 million, a 22% increase from $139 million in the prior year, and also surpassed the Zacks Consensus Estimate of $162 million [2][9] Financial Performance - Gross profit rose 15.5% to $54 million, while gross margin decreased to 31.7% from 33.4% year over year [3] - Operating income increased to $23.8 million from $19.9 million in the prior year, with operating expenses rising 12.5% to $29.8 million [3] Segment Analysis - The Irrigation segment's revenues grew 25% year over year to approximately $144 million, with international revenues surging 60% to $75 million due to a significant project in the MENA region [4][9] - The Infrastructure segment saw a 6% revenue increase to $26 million, but operating income fell 14% to $5.4 million despite higher Road Zipper System sales [5] Financial Position - At the end of Q3 fiscal 2025, Lindsay had cash and cash equivalents of $196 million, up from $191 million at the end of fiscal 2024, with long-term debt remaining stable at around $115 million [6] Market Outlook - The company anticipates a tempered North America irrigation business due to low farm income, but remains optimistic about international irrigation opportunities, especially in developing regions [7] Stock Performance - Lindsay's shares have increased by 11.8% over the past year, compared to the industry's growth of 32.4% [8]

Part I – FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=ITEM%201%20%E2%80%93%20Financial%20Statements) Unaudited condensed consolidated financial statements for Q3 and YTD May 31, 2025 and 2024, covering earnings, balance sheets, cash flows, and key notes Condensed Consolidated Statements of Earnings (Unaudited) | ($ in thousands) | Three months ended May 31, 2025 | Three months ended May 31, 2024 | Nine months ended May 31, 2025 | Nine months ended May 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Operating revenues** | $169,464 | $139,199 | $522,809 | $452,076 | | **Gross profit** | $53,622 | $46,497 | $166,075 | $145,356 | | **Operating income** | $23,793 | $19,936 | $76,799 | $63,108 | | **Net earnings** | $19,500 | $20,379 | $63,239 | $53,521 | | **Diluted EPS** | $1.78 | $1.85 | $5.79 | $4.84 | Condensed Consolidated Balance Sheet Highlights (Unaudited) | ($ in thousands) | May 31, 2025 | May 31, 2024 | August 31, 2024 | | :--- | :--- | :--- | :--- | | **Total current assets** | $547,246 | $488,718 | $493,212 | | **Total assets** | $840,863 | $758,101 | $760,232 | | **Total current liabilities** | $150,244 | $123,737 | $125,816 | | **Total liabilities** | $312,087 | $278,105 | $279,339 | | **Total shareholders' equity** | $528,776 | $479,996 | $480,893 | Condensed Consolidated Statements of Cash Flows (Unaudited) | ($ in thousands) | Nine months ended May 31, 2025 | Nine months ended May 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $68,874 | $42,650 | | **Net cash used in investing activities** | $(48,443) | $(32,389) | | **Net cash used in financing activities** | $(14,359) | $(30,240) | | **Net change in cash and cash equivalents** | $5,238 | $(20,534) | [Note 2 – Revenue Recognition](index=11&type=section&id=Note%202%20%E2%80%93%20Revenue%20Recognition) Revenue disaggregation by segment and timing, showing **$522.8 million** in YTD May 31, 2025 operating revenues and **$20.4 million** in unsatisfied performance obligations Disaggregation of Revenue - Nine Months Ended May 31, 2025 | ($ in thousands) | Irrigation | Infrastructure | Total | | :--- | :--- | :--- | :--- | | **Point in time** | $414,958 | $66,192 | $481,150 | | **Over time** | $24,013 | $4,891 | $28,904 | | **Revenue from contracts** | $438,971 | $71,083 | $510,054 | | **Lease revenue** | — | $12,755 | $12,755 | | **Total operating revenues** | $438,971 | $83,838 | $522,809 | - As of May 31, 2025, unsatisfied performance obligations for contracts longer than 12 months were **$20.4 million**, with almost all expected to be satisfied in the next 12 months[27](index=27&type=chunk) [Note 9 – Commitments and Contingencies](index=15&type=section&id=Note%209%20%E2%80%93%20Commitments%20and%20Contingencies) Defends product liability lawsuits for X-Lite® end terminal, with no probable loss accrual, and holds a **$10.6 million** environmental remediation liability - The company is defending product liability lawsuits related to its X-Lite® end terminal, with subsequent qui tam lawsuits filed in Tennessee and California in late 2023 following the dismissal of a federal FCA Lawsuit[47](index=47&type=chunk)[49](index=49&type=chunk) - Management believes it has meritorious defenses and does not believe a loss is probable in these lawsuits, therefore, no accrual has been recorded, and the company maintains insurance to mitigate potential impacts[51](index=51&type=chunk)[52](index=52&type=chunk) - The company has an estimated aggregate accrued cost of **$10.6 million** for environmental remediation at its Lindsay, Nebraska facility, with a pilot study completed and ongoing work with the EPA and NDEE on finalizing remediation plans[53](index=53&type=chunk)[55](index=55&type=chunk) [Note 14 – Business Segments](index=19&type=section&id=Note%2014%20%E2%80%93%20Business%20Segments) Operates in Irrigation and Infrastructure segments; for YTD May 31, 2025, Irrigation revenue was **$439.0 million** and Infrastructure revenue was **$83.8 million** Segment Performance - Nine Months Ended May 31 | ($ in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Operating Revenues** | | | | Irrigation | $438,971 | $388,026 | | Infrastructure | $83,838 | $64,050 | | **Total** | **$522,809** | **$452,076** | | **Operating Income** | | | | Irrigation | $79,266 | $70,480 | | Infrastructure | $22,806 | $13,401 | | Corporate | $(25,273) | $(20,773) | | **Total** | **$76,799** | **$63,108** | Irrigation Revenue by Geography - Nine Months Ended May 31 | ($ in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | North America | $223,793 | $240,457 | | International | $215,178 | $147,569 | | **Irrigation Total** | **$438,971** | **$388,026** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=ITEM%202%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses financial performance, highlighting **22%** Q3 2025 revenue growth driven by Irrigation, positive Infrastructure outlook from IIJA, strong liquidity, and capital allocation [Executive Overview and Outlook](index=21&type=section&id=Executive%20Overview%20and%20Outlook) Q3 2025 revenues increased **22%** to **$169.5 million**, net earnings decreased to **$19.5 million**; international irrigation and IIJA-driven infrastructure show positive outlook, backlog decreased to **$117.1 million** - Q3 2025 revenues rose **22%** to **$169.5 million**, while net earnings fell to **$19.5 million** from **$20.4 million**, primarily due to a **$4.8 million** one-time tax credit in the prior-year period[72](index=72&type=chunk) - International irrigation markets are key growth drivers, highlighted by a multi-year supply agreement for a project in the MENA region valued at over **$100 million**, with deliveries expected through Q1 fiscal 2026[77](index=77&type=chunk) - The infrastructure business is supported by the Infrastructure Investment and Jobs Act (IIJA), which provides **$110 billion** in incremental federal funding for transportation projects through September 2026[78](index=78&type=chunk) - The order backlog at May 31, 2025, was **$117.1 million**, a decrease from **$205.9 million** at May 31, 2024, mainly due to the ongoing fulfillment of the large irrigation project in the MENA region[79](index=79&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q3 2025 revenues increased **22%** to **$169.5 million**, driven by international irrigation; YTD revenues grew **16%** to **$522.8 million**, with infrastructure up **31%**, and operating income rose **22%** to **$76.8 million** Q3 Performance Summary (Three months ended May 31) | ($ in thousands) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | **Operating revenues** | $169,464 | $139,199 | 22% | | **Gross profit** | $53,622 | $46,497 | 15% | | **Operating income** | $23,793 | $19,936 | 19% | | **Net earnings** | $19,500 | $20,379 | (4%) | - Q3 international irrigation revenues increased **60%** to **$74.7 million**, primarily from the large MENA project and higher sales in South America, partially offset by **$2.5 million** in unfavorable currency effects[84](index=84&type=chunk) YTD Performance Summary (Nine months ended May 31) | ($ in thousands) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | **Operating revenues** | $522,809 | $452,076 | 16% | | **Gross profit** | $166,075 | $145,356 | 14% | | **Operating income** | $76,799 | $63,108 | 22% | | **Net earnings** | $63,239 | $53,521 | 18% | - For the nine-month period, infrastructure revenues grew **31%** to **$83.8 million**, driven by a large Road Zipper System project valued at over **$20 million**[95](index=95&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) Strong liquidity with **$210.8 million** in cash and equivalents; net working capital increased to **$397.0 million**, and cash from operations was **$68.9 million**; capital allocation prioritizes growth, dividends, and repurchases, with a **$50.0 million** undrawn credit facility - Cash, cash equivalents, and marketable securities totaled **$210.8 million** at May 31, 2025, up from **$152.7 million** a year prior, with approximately **$108.5 million** held by foreign subsidiaries[101](index=101&type=chunk)[102](index=102&type=chunk) - The capital allocation plan prioritizes organic growth, dividends, synergistic acquisitions, and opportunistic share repurchases, with fiscal 2025 capital expenditures projected to be between **$35.0 million** and **$40.0 million**[106](index=106&type=chunk)[107](index=107&type=chunk) - In Q3 2025, the company paid a quarterly dividend of **$0.36 per share**, and during the nine months ended May 31, 2025, repurchased **$2.7 million** of its common stock, with **$38.8 million** remaining under the authorization[108](index=108&type=chunk)[110](index=110&type=chunk) - The company has a **$50.0 million** unsecured Revolving Credit Facility expiring in August 2026, with no outstanding borrowings as of May 31, 2025, and was in compliance with all financial loan covenants[112](index=112&type=chunk)[113](index=113&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=ITEM%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to quantitative and qualitative disclosures about market risk since the last Annual Report on Form 10-K - There have been no material changes from the Company's quantitative and qualitative disclosures about market risk previously disclosed in the Company's most recent Annual Report on Form 10-K[115](index=115&type=chunk) [Controls and Procedures](index=32&type=section&id=ITEM%204%20%E2%80%93%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of May 31, 2025, with no significant changes to internal control over financial reporting - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of May 31, 2025[116](index=116&type=chunk) - There were no significant changes to the Company's internal control over financial reporting during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, these controls[117](index=117&type=chunk) Part II – OTHER INFORMATION [Legal Proceedings](index=33&type=section&id=ITEM%201%20%E2%80%93%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 9 – Commitments and Contingencies - Information regarding legal proceedings is incorporated by reference from Note 9 – Commitments and Contingencies in Part I, Item 1 of this report[118](index=118&type=chunk) [Risk Factors](index=33&type=section&id=ITEM%201A%20%E2%80%93%20Risk%20Factors) No material changes from risk factors previously disclosed in the Company's most recent Annual Report on Form 10-K - There have been no material changes from risk factors previously disclosed in the Company's most recent Annual Report on Form 10-K[119](index=119&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=ITEM%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2025, the company repurchased **10,616 shares** at **$116.42 per share**, with **$38.8 million** remaining for future repurchases Issuer Purchases of Equity Securities (Q3 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares That May Yet Be Purchased ($ in thousands) | | :--- | :--- | :--- | :--- | | March 2025 | — | $— | $40,018 | | April 2025 | 10,616 | $116.42 | $38,782 | | May 2025 | — | $— | $38,782 | | **Total** | **10,616** | **$116.42** | **$38,782** | [Defaults Upon Senior Securities](index=33&type=section&id=ITEM%203%20%E2%80%93%20Defaults%20Upon%20Senior%20Securities) None reported - None[121](index=121&type=chunk) [Mine Safety Disclosures](index=33&type=section&id=ITEM%204%20%E2%80%93%20Mine%20Safety%20Disclosures) Not applicable - Not applicable[122](index=122&type=chunk) [Other Information](index=33&type=section&id=ITEM%205%20%E2%80%93%20Other%20Information) None reported - None[123](index=123&type=chunk) [Exhibits](index=34&type=section&id=ITEM%206%20%E2%80%93%20Exhibits) Lists exhibits filed with Form 10-Q, including CEO and CFO certifications and Interactive Data Files (Inline XBRL) - Exhibits filed include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act[124](index=124&type=chunk)

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 FY2025 increased by 22% to $169.5 million compared to $139.2 million in the prior year [9] - Net earnings for the quarter were $19.5 million or $1.78 per diluted share, down from $20.4 million or $1.85 per diluted share in the prior year, primarily due to a one-time income tax credit in the previous year [9][10] - Excluding the tax credit impact, current year earnings per share represent a 26% increase over the prior year [10] Business Line Data and Key Metrics Changes - Irrigation segment revenues increased by 25% to $143.7 million compared to $114.8 million in the prior year [10] - North America irrigation revenues increased by 1% to $69.1 million, with unit sales volume comparable to the prior year [10][11] - International irrigation revenues surged by 60% to $74.7 million, driven by a large project in the MENA region and higher sales in Brazil [11] - Infrastructure segment revenues increased by 6% to $25.7 million, primarily due to higher sales of road safety products [12] Market Data and Key Metrics Changes - In North America, the irrigation market is influenced by weather conditions affecting crop yields and net farm income, with a projected decline in crop revenue [4][5] - The federal government in Brazil raised the benchmark interest rate to 15%, impacting market conditions and credit availability [5] - The project funnel in the MENA region remains strong, with countries prioritizing food security and water resource conservation [6] Company Strategy and Development Direction - The company focuses on growing road safety products and the Road Zipper system, particularly leasing for stable revenue [4] - Continued investment in technology partnerships, such as with Pessil Instruments, enhances precision irrigation capabilities [8] - The company aims to leverage its global footprint to navigate tariff uncertainties and maintain operational efficiency [7] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the international markets, particularly Brazil, despite short-term challenges due to high interest rates [46][47] - The company anticipates continued growth in the MENA region and is optimistic about the upcoming crop plan in Brazil [46][47] - Management is confident in the ability to manage through domestic market headwinds while capitalizing on international opportunities [74] Other Important Information - Total available liquidity at the end of Q3 was $261 million, including $211 million in cash and equivalents [13] - The company is experiencing operational efficiencies from the modernization of its manufacturing facility, contributing to margin expansion [68][70] Q&A Session Summary Question: Impact of Middle East situation on large project activity and long-term growth in Brazil - Management does not foresee significant short-term impacts from the Middle East situation and remains optimistic about long-term growth opportunities in Brazil, citing low irrigation adoption rates and improving credit conditions [19][21] Question: Impact of tax credits and bonus depreciation on demand outlook - Tax credits and bonus depreciation are expected to have a more significant impact on the irrigation business, potentially shifting demand timing rather than increasing overall demand [23][24] Question: Pricing trends and regional demand variations - Pricing actions have been proactive in response to tariff impacts, with slight revenue support noted, particularly in the U.S. market [30][31] Question: Drought impact on machine demand - Management does not expect a significant increase in machine demand due to drought conditions, although there may be increased service and parts business [35] Question: Details on the $20 million MENA project and future project visibility - The $20 million project is part of a broader trend towards smaller projects in the region, with a robust project pipeline to fill gaps left by larger projects [41][44] Question: North American pivot sales correlation with major equipment manufacturers - Differences in go-to-market models and regional demand variations explain the disconnect between pivot sales and major equipment manufacturers' volumes [58][59] Question: Impact of steel and aluminum tariffs on costs - Limited impact from steel costs has been observed, with no significant price increases sticking due to lack of demand [64] Question: Progress on manufacturing facility modernization and margin improvements - The modernization is on track, contributing to operational efficiencies and margin expansion across various facilities [68][70]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 increased by 22% to $169.5 million compared to $139.2 million in the prior year [9] - Net earnings for the quarter were $19.5 million or $1.78 per diluted share, down from $20.4 million or $1.85 per diluted share in the prior year, primarily due to a one-time income tax credit in the prior year [9][10] - Excluding the tax credit impact, current year earnings per share represent a 26% increase over the prior year [10] Business Line Data and Key Metrics Changes - Irrigation segment revenues increased by 25% to $143.7 million compared to $114.8 million in the prior year [10] - North America irrigation revenues increased by 1% to $69.1 million, with unit sales volume comparable to the prior year [10] - International irrigation revenues surged by 60% to $74.7 million, driven by a large project in the MENA region and higher sales in Brazil [11] - Infrastructure segment revenues increased by 6% to $25.7 million, primarily from higher sales of road safety products [12] Market Data and Key Metrics Changes - In North America, the irrigation market is influenced by weather conditions affecting crop yields and net farm income, with a projected decline in crop revenue [4][5] - The federal government in Brazil raised the benchmark interest rate to 15%, impacting market conditions and credit availability [5] - The project funnel in the MENA region remains strong, with a focus on food security and water resource conservation [6] Company Strategy and Development Direction - The company aims to grow its road safety products and Road Zipper system businesses, particularly through leasing to stabilize revenue [4] - Continued investment in technology partnerships, such as with Pessil Instruments, enhances precision irrigation capabilities and cross-selling opportunities [8] - The company is navigating an evolving tariff environment while leveraging its global footprint to mitigate impacts [7] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the international business, particularly in Brazil, despite current economic challenges [20][47] - The company anticipates that the upcoming crop plan in Brazil will significantly influence funding availability and market conditions [47] - Management remains confident in the long-term growth opportunities in Brazil, despite short-term caution due to high interest rates [47] Other Important Information - Total available liquidity at the end of Q3 was $261 million, including $211 million in cash and equivalents [13] - The company delivered $24 million in large projects during Q3, slightly ahead of schedule [56] Q&A Session Summary Question: Impact of Middle East tensions on large project activity - Management does not foresee significant short-term impacts on large project activity due to ongoing tensions, with long-term drivers related to food security remaining intact [19] Question: Long-term growth opportunity in Brazil - Management remains optimistic about Brazil's growth potential, citing low irrigation adoption rates and improving credit conditions [20] Question: Impact of tax credits on demand outlook - Tax credits and accelerated depreciation are expected to shift demand timing rather than increase overall demand, particularly benefiting the irrigation business [22] Question: Pricing trends and regional impacts - Pricing actions have been proactive, with slight impacts on revenues, particularly in the U.S. market [30] Question: Drought impact on machine demand - Management does not expect significant increases in machine demand due to drought conditions, although there may be increased service business [35] Question: Margins on new MENA project - Comparable margins are expected for the new $20 million project as with previous larger projects in the region [38] Question: North American pivot sales correlation with major equipment manufacturers - Different go-to-market models and regional demand variations explain the disconnect between pivot sales and major equipment manufacturers' volumes [61]