Lindsay Share Price Decreases 7% as Earnings Miss Estimates in Q4

Core Insights - Lindsay Corporation's shares fell 7% following the release of adjusted earnings per share of 99 cents for Q4 fiscal 2025, which was a 15% decline year over year and missed the Zacks Consensus Estimate of $1.04 [1][9] - The company reported revenues of $154 million, a slight decrease of 0.9% from $155 million in the same quarter last year, but exceeded the Zacks Consensus Estimate of $151 million [1][9] Financial Performance - The backlog as of August 31, 2025, was $111 million, down from $181 million a year earlier [2] - The cost of operating revenues decreased by 0.4% year over year to $109 million, while gross profit fell 2.2% to $45 million, resulting in a gross margin of 29.2%, slightly down from 29.5% a year ago [3] - Operating expenses rose 3.7% year over year to $33.4 million, leading to an operating income of $11.3 million, down from $13.5 million in the prior year [3] Segment Performance - The Irrigation segment's revenues increased by 2.5% year over year to approximately $129 million, with North American irrigation revenues decreasing by 18.8% to $50 million due to lower storm damage replacement [4] - International irrigation revenues grew by 23.1% year over year to $79 million, and the irrigation segment's operating income rose by 4% to $17.7 million [4] - The Infrastructure segment's revenues decreased by 16% year over year to $24.5 million, with operating income down 37% to $3.5 million [5] Annual Performance - For fiscal 2025, the company reported adjusted earnings per share of $6.78, missing the Zacks Consensus Estimate of $6.83, but representing a 13% year-over-year improvement [6] - Total revenues for fiscal 2025 were $676 million, an 11% increase from $607 million in fiscal 2024, surpassing the Zacks Consensus Estimate of $674 million [6] Financial Position - At the end of fiscal 2025, the company had cash and cash equivalents of $251 million, up from $191 million at the end of the previous fiscal year [7] - Long-term debt remained stable at approximately $115 million [7] Future Outlook - The company anticipates that demand for irrigation equipment in North America will remain challenging until commodity prices and farm income improve, while demand in Brazil is expected to remain stable [10] - Stable growth is expected in Road Zipper System leasing and road safety products [10] Stock Performance - Lindsay's shares have declined by 2.2% over the past year, contrasting with the industry's growth of 14.8% [11]