Lindsay(LNN) - 2026 Q1 - Quarterly Report

Financial Performance - Operating revenues for the three months ended November 30, 2025, were $155.818 million, a decrease of 6.8% compared to $166.281 million for the same period in 2024[7] - Net earnings for the three months ended November 30, 2025, were $16.524 million, down 3.7% from $17.164 million in the same period last year[7] - Earnings per share (EPS) for the three months ended November 30, 2025, were $1.55 (basic) and $1.54 (diluted), compared to $1.58 (basic) and $1.57 (diluted) in 2024[7] - Total comprehensive income for the three months ended November 30, 2025, was $19.235 million, significantly higher than $10.842 million in the prior year, driven by foreign currency translation adjustments[8] - Gross profit increased slightly to $50.102 million, compared to $49.966 million in the prior year, reflecting a gross margin improvement[7] Cash and Liquidity - Cash and cash equivalents as of November 30, 2025, were $199.622 million, an increase from $194.066 million a year earlier[11] - The company reported a net cash used in operating activities of $(597,000) for the three months ended November 30, 2025, compared to $21,603,000 provided in the same period of 2024[14] - Cash and cash equivalents at the end of the period were $199,622,000, a decrease from $194,066,000 at the end of November 30, 2024[14] - The Company’s cash and cash equivalents totaled $199.6 million at November 30, 2025, a decrease from $250.6 million at August 31, 2025[80] Assets and Liabilities - Total assets as of November 30, 2025, were $828.400 million, up from $771.001 million in the previous year[11] - Total liabilities increased to $310.238 million as of November 30, 2025, compared to $282.542 million in the same period last year[11] - Shareholders' equity rose to $518.162 million as of November 30, 2025, from $488.459 million a year earlier, reflecting retained earnings growth[11] - Total current liabilities rose to $148.4 million, up from $129.8 million, marking an increase of 14.2%[11] Revenue Segmentation - Revenue from contracts with customers in the Irrigation segment was $133,437,000, while the Infrastructure segment generated $22,381,000 for the same period[19] - Irrigation segment revenues decreased 9% to $133.4 million, while infrastructure segment revenues increased 17% to $22.4 million[63] - International irrigation revenues fell by 15% to $59.1 million, primarily due to lower sales in Brazil and Western Europe, along with reduced project revenues in the MENA region[74] Shareholder Actions - Cash dividends declared per share increased to $0.37 for the three months ended November 30, 2025, compared to $0.36 in the same period of 2024[7] - The company repurchased 232 thousand shares of its common stock for $30.3 million during the three months ended November 30, 2025[52] - A new share repurchase program of up to $150.0 million was authorized in November 2025, with $150.0 million remaining available as of November 30, 2025[53] Taxation - The estimated annual effective income tax rate increased to 22.4% for the three months ended November 30, 2025, from 22.0% in 2024[25] - The effective income tax rate for the three months ended November 30, 2025 was slightly higher than the prior year[63] Operational Metrics - The backlog of unshipped orders as of November 30, 2025, was $119.2 million, down from $168.2 million a year earlier[69] - Operating expenses increased by 5% to $30.5 million, driven by higher selling and engineering costs[77] - The Company’s operating income for the three months ended November 30, 2025 was $19.61 million, down from $20.88 million in the same period of 2024[63] Environmental and Legal Matters - The company has accrued an estimated aggregate cost of $10.6 million for environmental remediation at its Lindsay, Nebraska facility, with $8.0 million calculated on a discounted basis[40][41] - The Company believes it has strong defenses against ongoing lawsuits related to the X-Lite end terminal and does not expect a material adverse effect on its financial statements[39] Future Outlook - The Company anticipates a significant increase in agricultural-focused spending of approximately $65.6 billion over the next decade due to the OBBBA[67] - A new supply agreement for irrigation systems in the MENA region is expected to generate over $80 million in revenue, with approximately $70 million recognized in the current fiscal year[67]