Lindsay Q2 Earnings Beat Estimates, Revenues Increase 23% Y/Y

Core Viewpoint - Lindsay Corporation reported strong financial results for the second quarter of fiscal 2025, with earnings per share significantly exceeding expectations and substantial year-over-year growth in both revenue and gross profit [1][2][3]. Financial Performance - Earnings per share for Q2 fiscal 2025 were $2.44, surpassing the Zacks Consensus Estimate of $1.89, marking a 49% increase year over year [1]. - Revenue reached $187 million, up from $152 million in the same quarter last year, exceeding the Zacks Consensus Estimate of $180 million [2]. - Gross profit increased by 27.7% to $62.5 million, with a gross margin of 33.4%, compared to 32.3% in the prior year [3]. Cost and Expenses - Operating revenues' cost rose by 21.5% year over year to $124.6 million, while operating expenses increased by 13.1% to $30 million [3]. - Operating income for the quarter was $32 million, up from $22 million in the previous year [3]. Segment Performance - The Irrigation segment's revenues grew by 11.3% to $148 million, with international revenues increasing by 42% to $71 million, while North American revenues fell by 7% to $77 million [4]. - The Infrastructure segment saw a remarkable 110% increase in revenues to $39 million, driven by the Road Zipper System project, with operating income rising to $13 million from $3.5 million a year ago [5]. Financial Position - As of the end of Q2 fiscal 2025, the company had cash and cash equivalents of approximately $172 million, up from $133 million a year earlier, with long-term debt remaining stable at around $115 million [6]. Future Outlook - The company anticipates that the strong performance of its Infrastructure business will contribute to full-year growth, particularly from the Road Zipper System, despite potential inflationary pressures on construction costs [7]. Stock Performance - Lindsay's shares have appreciated by 14.2% over the past year, outperforming the industry growth of 11.2% [8]. Zacks Rank - The company currently holds a Zacks Rank of 2 (Buy), indicating positive market sentiment [10].