Lindsay(LNN) - 2025 Q3 - Quarterly Results

Third Quarter Fiscal 2025 Results Overview An overview of Lindsay Corporation's financial and operational performance for the third quarter of fiscal year 2025 Key Highlights from Management 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] - North America irrigation revenues showed resilience with a slight increase despite market uncertainty related to tariffs and potential U.S. grain export disruptions[3] - Infrastructure revenues were higher, aligning with the start of the North America road construction season[3] - The company is mitigating potential tariff impacts on material costs and expects to pass through unmitigated cost increases via pricing actions[3] Consolidated Financial Performance (Q3 FY2025) 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] - Operating margin slightly decreased from 14.3% to 14.0% due to a less favorable margin mix of revenues, despite higher operating income[5] Segment Performance Analysis This section analyzes the performance of Lindsay Corporation's Irrigation and Infrastructure segments for the third quarter of fiscal year 2025 Irrigation Segment 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] North America Irrigation 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] International Irrigation 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] - These increases were partially offset by the unfavorable effects of foreign currency translation of approximately $2.5 million[9] Infrastructure Segment 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] - Lower operating income and operating margin resulted primarily from a less favorable margin mix of Road Zipper System™ revenues[12] Order 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] Business 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 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] - 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] - The company remains confident and encouraged regarding project opportunities in international irrigation markets to address food security needs of developing markets[14] Corporate Information This section provides details on the company's investor conference call, corporate profile, forward-looking statements, and contact information Third Quarter Conference Call 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] About the Company 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] - The company's irrigation brands include Zimmatic™ systems, FieldNET™ and FieldWise™ remote irrigation management technology, and FieldNET Advisor™ irrigation scheduling technology[16] - Lindsay Transportation Solutions manufactures equipment for road safety and traffic management through the Barrier Systems™, Road Zipper™, and Snoline™ brands[16] Forward-Looking Statements 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] - The Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995[17] Contact Information 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] - Alternatively, contact Joe Caminiti or Stephen Poe at Alpha IR (312-445-2870)[18] Financial Statements 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 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 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] - 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] Condensed Consolidated Balance Sheets 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] - Total assets grew to $840.9 million as of May 31, 2025, from $758.1 million in the prior year period[25] Condensed Consolidated Statements of Cash Flows 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] - 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]