$10 Million Exit From Lindsay Comes as Margins Hold at 12.6% Despite Revenue Pressure

Company Overview - Lindsay is a leading provider of water management and road infrastructure solutions, focusing on agricultural productivity and highway safety through technology and engineering expertise [6] - The company operates with a diversified product portfolio and has a strong presence in both irrigation and infrastructure markets [6] - Key brands include Zimmatic, Perrot, Greenfield, and GrowSmart, serving agricultural producers, transportation departments, municipal agencies, and roadway contractors [9] Financial Performance - For the fiscal first quarter ended November 30, Lindsay reported revenue of $155.8 million, a decrease of 6% year over year [11] - Operating margin was maintained at 12.6%, with irrigation revenue declining by 9% due to weaker North American demand, while infrastructure revenue increased by 17% [11] - The infrastructure segment achieved a 20.1% operating margin, which helped offset the decline in irrigation revenue [11] Recent Developments - Pier Capital fully exited its position in Lindsay by selling 71,799 shares for an estimated value of $10.09 million [2][3] - The Lindsay stake previously represented approximately 1.58% of Pier Capital's assets under management (AUM) [3] - As of February 2, Lindsay shares were priced at $127.27, reflecting a 1.86% decline over the past year, underperforming the S&P 500's 14% gain during the same period [3] Strategic Actions - The company has been proactive in capital returns, repurchasing approximately $30 million of stock during the quarter and authorizing a new $150 million buyback program [12] - Despite strong margins and a clean balance sheet, the backlog fell sharply to $119.2 million from $168.2 million a year earlier, indicating challenges in irrigation demand [12]