Lindsay(US:LNN)2025-10-23 20:11Financial Performance - Operating revenues for fiscal 2025 were $676.4 million, an 11% increase from $607.1 million in the prior year[133]. - Net earnings for fiscal 2025 increased 12% to $74.1 million, or $6.78 per diluted share, compared to $66.3 million, or $6.01 per diluted share in the previous fiscal year[133]. - Gross profit for fiscal 2025 was $210.8 million, up 10% or $19.7 million from $191.1 million in fiscal 2024, with a gross margin of 31.2%[147]. - Operating expenses increased by 7% to $122.7 million in fiscal 2025, primarily due to higher sales commissions and incentive compensation[148]. - Other income increased significantly to $6.5 million in fiscal 2025, up from $2.4 million in fiscal 2024, due to higher interest income and reduced interest expense[149]. - The effective income tax rate rose to 21.7% in fiscal 2025 from 16.2% in fiscal 2024, influenced by higher earnings and a change in the mix of earnings across jurisdictions[150]. - Cash and cash equivalents increased to $250.6 million at August 31, 2025, compared to $190.9 million at August 31, 2024, reflecting strong operating cash flow[152]. Revenue Segments - Irrigation segment revenues rose 11% to $568.0 million, while infrastructure segment revenues increased 16% to $108.4 million[133]. - The irrigation segment generated revenues of $568.0 million, an increase of 11% or $54.1 million compared to the prior fiscal year, contributing 84% of total company revenue[143][145]. - International irrigation revenues rose by 39% to $294.2 million, driven by a large project in the MENA region and higher sales in Brazil[145]. Market and Economic Outlook - The USDA projects U.S. net farm income for 2025 to be $179.8 billion, a 41% increase from $127.8 billion in 2024[134]. - Agricultural commodity prices as of August 2025 show corn prices approximately 5% higher and soybean prices approximately 8% higher compared to August 2024[134]. - The enactment of the One Big Beautiful Bill Act is projected to increase agricultural-focused spending by approximately $65.6 billion over the next decade[135]. Strategic Initiatives - The Company continues to pursue strategic acquisitions to enhance growth opportunities and expand its irrigation and infrastructure capabilities[129]. - A multi-year supply agreement for a large irrigation project in the MENA region is valued at over $100 million, with deliveries continuing into fiscal 2026[137]. - The Company expects to benefit from $110 billion in federal funding for transportation projects under the Infrastructure Investment and Jobs Act, scheduled to run through September 2026[138]. Foreign Currency Risk - A majority of the Company's revenue from international operations is denominated in local currencies, reducing significant foreign currency transaction risk[165]. - The most significant foreign currency exposures include the Euro, Brazilian real, South African rand, Turkish lira, and Chinese renminbi against the U.S. dollar[165]. - A 10% adverse change in foreign exchange rates could potentially decrease operating income by approximately $3.5 million[165]. - To mitigate foreign currency exchange rate risks, the Company may use forward exchanges, option contracts, or cross currency swaps[166]. - As of August 31, 2025, the Company had a foreign currency forward contract to sell a notional amount of 143.5 million South African rand[166]. Capital Expenditures - Capital expenditures for fiscal 2026 are expected to range from $50 million to $55 million, focusing on equipment replacement and new product development[157]. Manufacturing Operations - The Company operates manufacturing facilities in the United States, Brazil, France, Italy, China, Türkiye, and South Africa[165].