Financial Performance - Revenue decreased by $10.5 million, a 6 percent decrease compared to the prior year[10] - Operating income decreased by $1.3 million, a 6 percent decrease compared to the prior year[10] - Diluted earnings per share decreased by $0.03 per share, a 2 percent decrease compared to the prior year[10] - Irrigation revenue decreased by $13.7 million[10] - Infrastructure revenue increased by $3.2 million[10] Irrigation Segment - Irrigation North America revenue decreased 4 percent to $74.3 million[15] - Irrigation international revenue decreased 15 percent to $59.1 million, but included a favorable foreign currency translation effect of $1.5 million[17] Infrastructure Segment - Infrastructure revenue increased 17 percent to $22.4 million[25] - Infrastructure operating income increased 9 percent to $4.5 million[25] Market Factors & Highlights - USDA estimated 2025 U S net farm income to be $179.8 billion, a 41 percent increase from 2024 U S net farm income of $127.8 billion[12] - The company completed share repurchases of $30 million during the quarter[7] - The company secured an $80 million irrigation and technology project in the MENA region subsequent to quarter-end[7]

Sustainable Food Production & Innovation - The food industry is exploring sustainable practices like lab-grown meats and bioengineering to address the future of food production [2] - Yeast, specifically Metschnikowia Pulcherrima, is being cultivated on food waste to create an oil equivalent to palm oil, cocoa butter, or rapeseed oil [5] - This oil production process involves growing yeast on waste feedstock, extracting oil droplets from the cells, and using the oil in various food products [6] - The agriculture sector contributes an estimated 297% of all carbon emissions [12] - Genetic engineering, including GMOs, is being explored as a technology to engineer plants that don't need fertilizers [8][9][10] Challenges & Consumer Perception - Palm oil production leads to deforestation, loss of animal habitats, and labor exploitation [2] - The agriculture and food industry faces challenges including climate change, extreme weather events, and food insecurity [11] - Consumer acceptance of food made from waste may be hindered by concerns about taste and disgust [7] - Industrial factory farming is considered cruel and environmentally problematic, prompting a reevaluation of what is considered 'natural' [8]