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Lindsay(LNN) - 2025 Q3 - Quarterly Report
2025-06-26 20:10
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)
Lindsay(LNN) - 2025 Q3 - Earnings Call Transcript
2025-06-26 16:02
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]
Lindsay(LNN) - 2025 Q3 - Earnings Call Transcript
2025-06-26 16:00
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]
Lindsay (LNN) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
ZACKS· 2025-06-26 14:31
Core Insights - Lindsay (LNN) reported revenue of $169.46 million for the quarter ended May 2025, reflecting a year-over-year increase of 21.7% [1] - The earnings per share (EPS) for the quarter was $1.78, up from $1.41 in the same quarter last year, indicating a strong performance [1] - The reported revenue exceeded the Zacks Consensus Estimate of $162.01 million by 4.60%, while the EPS surpassed the consensus estimate of $1.36 by 30.88% [1] Financial Performance Metrics - Operating revenues for the Infrastructure segment were $25.72 million, slightly below the average estimate of $25.75 million, representing a year-over-year change of +5.6% [4] - The Irrigation segment reported operating revenues of $143.75 million, exceeding the average estimate of $136.26 million, with a year-over-year increase of +25.2% [4] - Operating income for the Irrigation segment was $27.15 million, surpassing the average estimate of $21.41 million [4] - The Corporate segment reported an operating income of -$8.79 million, which was worse than the estimated -$8.20 million [4] - Operating income for the Infrastructure segment was $5.43 million, exceeding the average estimate of $4.74 million [4] Stock Performance - Over the past month, shares of Lindsay have returned -1.7%, contrasting with the Zacks S&P 500 composite's increase of +5.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]
Lindsay (LNN) Surpasses Q3 Earnings and Revenue Estimates
ZACKS· 2025-06-26 12:56
Company Performance - Lindsay (LNN) reported quarterly earnings of $1.78 per share, exceeding the Zacks Consensus Estimate of $1.36 per share, and up from $1.41 per share a year ago, representing an earnings surprise of +30.88% [1] - The company posted revenues of $169.46 million for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 4.60%, and an increase from year-ago revenues of $139.2 million [2] - Over the last four quarters, Lindsay has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance - Lindsay shares have increased approximately 16% since the beginning of the year, outperforming the S&P 500's gain of 3.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.20 on revenues of $161.38 million, and for the current fiscal year, it is $6.57 on revenues of $676.71 million [7] Industry Outlook - The Manufacturing - Farm Equipment industry, to which Lindsay belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Lindsay's stock performance [5]
Lindsay(LNN) - 2025 Q3 - Earnings Call Presentation
2025-06-26 11:11
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 Commission. Investors should understand that ...
Lindsay(LNN) - 2025 Q3 - Quarterly Results
2025-06-26 10:45
[Third Quarter Fiscal 2025 Results Overview](index=1&type=section&id=Third%20Quarter%20Fiscal%202025%20Results%20Overview) An overview of Lindsay Corporation's financial and operational performance for the third quarter of fiscal year 2025 [Key Highlights from Management](index=1&type=section&id=Key%20Highlights) Management highlights strong Q3 FY2025 results with double-digit revenue and operating income growth, driven by international irrigation and infrastructure - Overall revenues increased **22% year-over-year**, supported by strong international irrigation business, particularly in the MENA region[3](index=3&type=chunk) - North America irrigation revenues showed resilience with a **slight increase** despite market uncertainty related to tariffs and potential U.S. grain export disruptions[3](index=3&type=chunk) - Infrastructure revenues were **higher**, aligning with the start of the North America road construction season[3](index=3&type=chunk) - The company is **mitigating potential tariff impacts** on material costs and expects to pass through unmitigated cost increases via pricing actions[3](index=3&type=chunk) [Consolidated Financial Performance (Q3 FY2025)](index=1&type=section&id=Consolidated%20Financial%20Summary) Consolidated Q3 FY2025 results show **22% revenue growth** and **19% operating income increase**, with net earnings down 4% due to a prior-year tax credit Consolidated Financial Summary | Metric | FY2025 (Millions) | FY2024 (Millions) | $ Change (Millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $169.5 | $139.2 | $30.3 | 22% | | Operating income | $23.8 | $19.9 | $3.9 | 19% | | Operating margin | 14.0% | 14.3% | | | | Net earnings | $19.5 | $20.4 | ($0.9) | (4%) | | Diluted earnings per share | $1.78 | $1.85 | ($0.07) | (4%) | - The decrease in net earnings and diluted EPS was primarily due to a **one-time income tax credit of $4.8 million**, or **$0.44 per diluted share**, recognized in the prior year[6](index=6&type=chunk) - Operating margin slightly decreased from **14.3% to 14.0%** due to a less favorable margin mix of revenues, despite higher operating income[5](index=5&type=chunk) [Segment Performance Analysis](index=3&type=section&id=Third%20Quarter%20Segment%20Results) This section analyzes the performance of Lindsay Corporation's Irrigation and Infrastructure segments for the third quarter of fiscal year 2025 [Irrigation Segment](index=3&type=section&id=Irrigation%20Segment) The Irrigation segment experienced significant revenue and operating income growth, driven by strong international project volumes and improved operating leverage Irrigation Segment Financials | Metric | FY2025 (Millions) | FY2024 (Millions) | $ Change (Millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $143.7 | $114.8 | $28.9 | 25% | | Operating income | $27.2 | $19.5 | $7.6 | 39% | | Operating margin | 18.9% | 17.0% | | | - Operating margin improved from **17.0% to 18.9%** due to higher revenues and positive leverage of fixed operating expenses, partially offset by some operating margin dilution from a larger percentage of project revenues[10](index=10&type=chunk) [North America Irrigation](index=3&type=section&id=North%20America) North America irrigation revenues saw a slight increase of **1% to $69.1 million**, with comparable unit sales volumes and slightly higher average selling prices North America Irrigation Revenues | Metric | FY2025 (Millions) | FY2024 (Millions) | $ Change (Millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | North America Revenues | $69.1 | $68.2 | $0.8 | 1% | - Unit sales volume of irrigation equipment was **comparable** to the prior year, while average selling prices were **up slightly**, partially offset by the impact of slightly shorter machines, on average[8](index=8&type=chunk) [International Irrigation](index=3&type=section&id=International) International irrigation revenues surged by **60% to $74.7 million**, primarily driven by a large project in the MENA region and higher sales volumes in Brazil International Irrigation Revenues | Metric | FY2025 (Millions) | FY2024 (Millions) | $ Change (Millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | International Revenues | $74.7 | $46.6 | $28.1 | 60% | - The majority of the increase resulted from revenues related to the **large project in the MENA region**, further supported by **higher sales volumes** in Brazil and other parts of South America[9](index=9&type=chunk) - These increases were partially offset by the unfavorable effects of foreign currency translation of approximately **$2.5 million**[9](index=9&type=chunk) [Infrastructure Segment](index=3&type=section&id=Infrastructure%20Segment) Infrastructure segment revenues increased **6%** from higher road safety product sales, but operating income decreased **14%** due to an unfavorable margin mix Infrastructure Segment Financials | Metric | FY2025 (Millions) | FY2024 (Millions) | $ Change (Millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $25.7 | $24.4 | $1.4 | 6% | | Operating income | $5.4 | $6.3 | ($0.9) | (14%) | | Operating margin | 21.1% | 25.8% | | | - The revenue increase was primarily driven by **higher sales volumes** of road safety products, while Road Zipper System™ sales and lease revenues were **comparable** to the prior year[11](index=11&type=chunk) - Lower operating income and operating margin resulted primarily from a **less favorable margin mix** of Road Zipper System™ revenues[12](index=12&type=chunk) [Order Backlog](index=3&type=section&id=Backlog) Order backlog decreased significantly to **$117.1 million** from **$205.9 million** year-over-year, primarily due to the completion of a large MENA irrigation project Order Backlog Summary | Metric | May 31, 2025 (Millions) | May 31, 2024 (Millions) | $ Change (Millions) | | :--- | :--- | :--- | :--- | | Total Backlog | $117.1 | $205.9 | ($88.8) | | Backlog not fulfilled within 12 months | $12.3 | $62.0 | ($49.7) | - The decrease in backlog is primarily attributed to the **completion of deliveries relating to the large irrigation project in the MENA region** over the Company's past four fiscal quarters[13](index=13&type=chunk) [Business Outlook](index=3&type=section&id=Outlook) Lindsay Corporation anticipates tempered demand in North America irrigation, improving conditions in Brazil, and promising project opportunities in international markets for food security [Outlook](index=3&type=section&id=Outlook) Lindsay Corporation anticipates tempered demand in North America irrigation, improving conditions in Brazil, and promising project opportunities in international markets for food security - Demand in North America irrigation business is expected to remain **tempered** until the outlook for net farm income improves, though severe drought conditions in the Midwest may provide a **catalyst for incremental sales of replacement parts**[14](index=14&type=chunk) - In Brazil, market conditions are **improving**; however, **elevated interest rates and credit constraints** continue to weigh on customers' ability to invest in capital purchases[14](index=14&type=chunk) - The company remains **confident and encouraged regarding project opportunities** in international irrigation markets to address food security needs of developing markets[14](index=14&type=chunk) [Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides details on the company's investor conference call, corporate profile, forward-looking statements, and contact information [Third Quarter Conference Call](index=4&type=section&id=Third%20Quarter%20Conference%20Call) Lindsay Corporation scheduled its fiscal 2025 third quarter investor conference call for June 26, 2025, at 11:00 a.m. Eastern Time, accessible via phone and webcast - Lindsay's fiscal 2025 third quarter investor conference call is scheduled for **11:00 a.m. Eastern Time on June 26, 2025**, accessible via phone and live webcast[15](index=15&type=chunk) [About the Company](index=4&type=section&id=About%20the%20Company) Lindsay Corporation, established in 1955, is a global leader in manufacturing and distributing irrigation and infrastructure equipment and technology for various essential needs - Lindsay Corporation (NYSE: LNN) is a **leading global manufacturer and distributor** of irrigation and infrastructure equipment and technology, **established in 1955**[16](index=16&type=chunk) - The company's irrigation brands include Zimmatic™ systems, FieldNET™ and FieldWise™ remote irrigation management technology, and FieldNET Advisor™ irrigation scheduling technology[16](index=16&type=chunk) - Lindsay Transportation Solutions manufactures equipment for road safety and traffic management through the Barrier Systems™, Road Zipper™, and Snoline™ brands[16](index=16&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Concerning%20Forward-looking%20Statements) This section clarifies that the release contains forward-looking statements subject to risks and uncertainties, protected by the Private Securities Litigation Reform Act of 1995 - This release contains forward-looking statements that are **subject to risks and uncertainties**, reflecting management's current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results[17](index=17&type=chunk) - The Company claims the **protection of the safe harbor for forward-looking statements** contained in the Private Securities Litigation Reform Act of 1995[17](index=17&type=chunk) [Contact Information](index=4&type=section&id=For%20further%20information,%20contact) Contact details for investor relations are provided, including Alicia Pfeifer from Lindsay Corporation and Joe Caminiti or Stephen Poe from Alpha IR - For further information, contact **Alicia Pfeifer, Vice President, Investor Relations & Treasury** at Lindsay Corporation (402-933-6429)[18](index=18&type=chunk) - Alternatively, contact **Joe Caminiti or Stephen Poe at Alpha IR (312-445-2870)**[18](index=18&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the condensed consolidated financial statements, including statements of earnings, balance sheets, and cash flows, for the specified periods [Condensed Consolidated Statements of Earnings](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20EARNINGS) The condensed consolidated statements of earnings provide detailed financial performance for the three and nine months ended May 31, 2025, compared to the prior year Condensed Consolidated Statements of Earnings | Metric (in thousands) | 3 Months Ended May 31, 2025 | 3 Months Ended May 31, 2024 | 9 Months Ended May 31, 2025 | 9 Months Ended May 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating revenues | $169,464 | $139,199 | $522,809 | $452,076 | | Cost of operating revenues | 115,842 | 92,702 | 356,734 | 306,720 | | 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 earnings per share | $1.78 | $1.85 | $5.79 | $4.84 | | Cash dividends declared per share | $0.36 | $0.35 | $1.08 | $1.05 | [Summary Operating Results by Segment](index=6&type=section&id=SUMMARY%20OPERATING%20RESULTS) This section details operating revenues and income for the Irrigation and Infrastructure segments for both the three and nine months ended May 31, 2025 Summary Operating Results by Segment | Segment (in thousands) | 3 Months Ended May 31, 2025 | 3 Months Ended May 31, 2024 | 9 Months Ended May 31, 2025 | 9 Months Ended May 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenues:** | | | | | | Irrigation: North America | $69,082 | $68,235 | $223,793 | $240,457 | | Irrigation: International | $74,663 | $46,605 | $215,178 | $147,569 | | Irrigation total | $143,745 | $114,840 | $438,971 | $388,026 | | Infrastructure | $25,719 | $24,359 | $83,838 | $64,050 | | Total operating revenues | $169,464 | $139,199 | $522,809 | $452,076 | | **Operating Income:** | | | | | | Irrigation | $27,154 | $19,524 | $79,266 | $70,480 | | Infrastructure | $5,426 | $6,276 | $22,806 | $13,401 | | Corporate | ($8,787) | ($5,864) | ($25,273) | ($20,773) | | Total operating income | $23,793 | $19,936 | $76,799 | $63,108 | - The Irrigation segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems, large diameter steel tubing, and various innovative technology solutions such as GPS positioning and remote irrigation management[22](index=22&type=chunk) - The Infrastructure segment includes the manufacture and marketing of movable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment[23](index=23&type=chunk) [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The condensed consolidated balance sheets present the company's financial position as of May 31, 2025, May 31, 2024, and August 31, 2024, detailing assets, liabilities, and shareholders' equity Condensed Consolidated Balance Sheets | Metric (in thousands) | May 31, 2025 | May 31, 2024 | August 31, 2024 | | :--- | :--- | :--- | :--- | | **ASSETS:** | | | | | Total current assets | $547,246 | $488,718 | $493,212 | | Total assets | $840,863 | $758,101 | $760,232 | | **LIABILITIES AND SHAREHOLDERS' EQUITY:** | | | | | 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 | | Total liabilities and shareholders' equity | $840,863 | $758,101 | $760,232 | - Cash and cash equivalents increased to **$196.1 million** as of May 31, 2025, from **$140.2 million** as of May 31, 2024[25](index=25&type=chunk) - Total assets grew to **$840.9 million** as of May 31, 2025, from **$758.1 million** in the prior year period[25](index=25&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The condensed consolidated statements of cash flows summarize cash generated from or used in operating, investing, and financing activities for the nine months ended May 31, 2025, and 2024 Condensed Consolidated Statements of Cash Flows | Cash Flow Activity (in thousands) | 9 Months Ended May 31, 2025 | 9 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) | | Cash and cash equivalents, end of period | $196,117 | $140,221 | - Net cash provided by operating activities significantly increased to **$68.9 million** for the nine months ended May 31, 2025, from **$42.7 million** in the prior year[27](index=27&type=chunk) - Net cash used in investing activities increased to **$48.4 million**, primarily due to higher purchases of property, plant, and equipment and a new equity method investment[27](index=27&type=chunk)
Insights Into Lindsay (LNN) Q3: Wall Street Projections for Key Metrics
ZACKS· 2025-06-23 14:15
Core Insights - Lindsay (LNN) is expected to report quarterly earnings of $1.36 per share, a decline of 3.6% year-over-year, with revenues projected at $162.01 million, reflecting a 16.4% increase compared to the same period last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating analysts have reassessed their initial estimates [1] Revenue Estimates - Analysts estimate 'Operating revenues- Infrastructure segment' at $25.75 million, representing a 5.7% increase from the prior-year quarter [4] - The 'Operating revenues- Irrigation segment' is projected to reach $136.26 million, indicating an 18.7% increase from the prior-year quarter [4] Income Estimates - The estimated 'Operating income- Irrigation segment' is $21.41 million, up from $19.52 million reported in the same quarter last year [5] - Analysts forecast 'Operating income- Infrastructure segment' to be $4.74 million, down from $6.28 million in the previous year [5] Stock Performance - Lindsay shares have decreased by 1.6% over the past month, contrasting with a 0.5% increase in the Zacks S&P 500 composite [6] - With a Zacks Rank 3 (Hold), Lindsay is expected to perform in line with the overall market in the near future [6]
Lindsay Corporation: Still Not Ready For An Upgrade
Seeking Alpha· 2025-06-18 06:22
Group 1 - The article emphasizes the value of investing in unconventional companies, particularly those in the oil and natural gas sector, which are often overlooked by mainstream investors [1] - Crude Value Insights provides an investment service that focuses on cash flow and the growth prospects of companies in the oil and gas industry [1] - Subscribers have access to a comprehensive stock model account, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the sector [2] Group 2 - The service offers a two-week free trial for new subscribers, encouraging them to explore investment opportunities in the oil and gas market [3]
Lindsay Gains on Solid Infrastructure Segment Demand & Acquisition
ZACKS· 2025-04-08 16:50
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]