Lindsay(LNN) - 2025 Q2 - Quarterly Results

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]