Lindsay Q1 Earnings Beat Estimates, Revenues Decrease 6% Y/Y

Core Insights - Lindsay Corporation (LNN) reported earnings per share of $1.54 for Q1 fiscal 2026, exceeding the Zacks Consensus Estimate of $1.46, although this represents a 2% decline year over year [1] - The company's revenues were $156 million, down from $166 million in the same quarter last year, missing the Zacks Consensus Estimate of $168 million [1] - LNN's backlog as of Nov. 30, 2025, was approximately $119 million, a decrease from about $168 million a year earlier [1] Financial Performance - The cost of operating revenues decreased by 9.1% year over year to around $106 million, while gross profit remained flat at $50 million, resulting in a gross margin of 32.2%, up from 30% in the previous year [2] - Operating expenses rose by 4.8% year over year to $30.4 million, leading to an operating income of roughly $20 million, down from $21 million in the prior year [2] Segment Performance - The Irrigation segment's revenues fell by 9% year over year to approximately $133 million, with North American irrigation revenues declining by 4% to around $74 million due to lower unit sales volume, and international irrigation revenues dropping by 15% to about $59 million [3] - Operating income for the Irrigation segment decreased by 7% year over year to $23 million [3] - Conversely, the Infrastructure segment's revenues increased by 17% year over year to roughly $22 million, driven by higher sales of road safety products, with operating income rising by 9% to $4.5 million [4] Financial Position - As of the end of Q1 fiscal 2026, LNN had cash and cash equivalents of $199.6 million, up from $194.1 million a year earlier, while long-term debt remained stable at around $115 million [5] Future Outlook - The company anticipates that demand for irrigation equipment in North America will remain challenging until commodity prices and farm income improve, but it expects growth opportunities in Brazil [6] - LNN plans to manage a robust pipeline of Road Zipper System projects in fiscal 2026, although it does not expect to deliver any large projects [6] Stock Performance - Lindsay's shares have decreased by 0.5% over the past year, contrasting with the industry's growth of 11.7% [9]