Financial Data and Key Metrics Changes - Total revenues for Q4 2025 were $153.6 million, a decrease of 1% compared to Q4 2024. Net earnings for the quarter were $10.8 million or $0.99 per diluted share, down from $12.7 million or $1.17 per diluted share in the prior year [11] - For the full fiscal year, total revenues increased 11% to $676.4 million, net earnings increased 12% to $74.1 million, and earnings per share increased 13% to $6.78 [11] Business Line Data and Key Metrics Changes - Irrigation segment revenues for Q4 increased 3% to $129 million, while North America irrigation revenues decreased 19% to $50 million due to lower unit sales volume [11][12] - International irrigation revenues for Q4 increased 23% to $79 million, driven by higher sales volume in South America and project sales in the MENA region [12] - Infrastructure segment revenues for Q4 decreased 16% to $24.5 million, primarily due to lower Road Zipper System project sales [14] Market Data and Key Metrics Changes - North American irrigation revenues are expected to remain suppressed due to low commodity prices and weak crop returns, with a forecast of low to mid-single-digit volume declines in 2026 [20][28] - Internationally, Brazil shows stable demand for irrigation equipment, although high interest rates and credit constraints present challenges [4][49] Company Strategy and Development Direction - The company continues to focus on international irrigation projects, with a $100 million project in the MENA region and a $20 million project expected to be completed in Q1 2026 [4][5] - Innovation leadership is a strategic priority, with the introduction of new products like TowerWatch aimed at enhancing customer experience and operational efficiency [8][7] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for fiscal 2026, highlighting the importance of geographic diversification and the potential for growth in international markets despite challenges in North America [22][39] - The company anticipates that government support may provide a safety net but does not expect it to drive significant market activity [4][52] Other Important Information - The company reported total available liquidity of over $300 million at the end of Q4, including $250 million in cash and cash equivalents [16] - Share repurchases totaled $11.5 million for the year, reflecting the company's commitment to returning capital to shareholders [16] Q&A Session Summary Question: What catalysts are shaping the outlook for fiscal 2026? - Management noted that North American market conditions are challenging, with low farm income and weak customer sentiment indicators. However, international markets, particularly Brazil, show stability and potential for growth [20][22] Question: What margin levers are available for next year? - Management highlighted the importance of maintaining pricing discipline and the growth of recurring subscription revenue as key factors supporting margins [24][25] Question: Expectations for North America irrigation in 2026? - Management expects volume to be down low to mid-single digits in North America, with price increases partially offsetting this decline [28][29] Question: Outlook for international revenue and project business? - Management indicated potential for replacing lost project revenue with new projects, although timing remains uncertain [31][32] Question: Credit constraints in Brazil? - Management clarified that credit constraints relate to customers' access to financing rather than credit loss, impacting their willingness to invest [48][49] Question: Capital expenditures for 2026? - Management expects capital expenditures to increase to around $50 million due to expanded project scope [50] Question: Overall market conditions in Brazil? - Management described the Brazilian market as stable, with no significant downside risks anticipated, despite some credit challenges [60][61]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 increased by 22% to $169.5 million compared to $139.2 million in the prior year [9] - Net earnings for the quarter were $19.5 million or $1.78 per diluted share, down from $20.4 million or $1.85 per diluted share in the prior year, primarily due to a one-time income tax credit in the prior year [9][10] - Excluding the tax credit impact, current year earnings per share represent a 26% increase over the prior year [10] Business Line Data and Key Metrics Changes - Irrigation segment revenues increased by 25% to $143.7 million compared to $114.8 million in the prior year [10] - North America irrigation revenues increased by 1% to $69.1 million, with unit sales volume comparable to the prior year [10] - International irrigation revenues surged by 60% to $74.7 million, driven by a large project in the MENA region and higher sales in Brazil [11] - Infrastructure segment revenues increased by 6% to $25.7 million, primarily from higher sales of road safety products [12] Market Data and Key Metrics Changes - In North America, the irrigation market is influenced by weather conditions affecting crop yields and net farm income, with a projected decline in crop revenue [4][5] - The federal government in Brazil raised the benchmark interest rate to 15%, impacting market conditions and credit availability [5] - The project funnel in the MENA region remains strong, with a focus on food security and water resource conservation [6] Company Strategy and Development Direction - The company aims to grow its road safety products and Road Zipper system businesses, particularly through leasing to stabilize revenue [4] - Continued investment in technology partnerships, such as with Pessil Instruments, enhances precision irrigation capabilities and cross-selling opportunities [8] - The company is navigating an evolving tariff environment while leveraging its global footprint to mitigate impacts [7] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the international business, particularly in Brazil, despite current economic challenges [20][47] - The company anticipates that the upcoming crop plan in Brazil will significantly influence funding availability and market conditions [47] - Management remains confident in the long-term growth opportunities in Brazil, despite short-term caution due to high interest rates [47] Other Important Information - Total available liquidity at the end of Q3 was $261 million, including $211 million in cash and equivalents [13] - The company delivered $24 million in large projects during Q3, slightly ahead of schedule [56] Q&A Session Summary Question: Impact of Middle East tensions on large project activity - Management does not foresee significant short-term impacts on large project activity due to ongoing tensions, with long-term drivers related to food security remaining intact [19] Question: Long-term growth opportunity in Brazil - Management remains optimistic about Brazil's growth potential, citing low irrigation adoption rates and improving credit conditions [20] Question: Impact of tax credits on demand outlook - Tax credits and accelerated depreciation are expected to shift demand timing rather than increase overall demand, particularly benefiting the irrigation business [22] Question: Pricing trends and regional impacts - Pricing actions have been proactive, with slight impacts on revenues, particularly in the U.S. market [30] Question: Drought impact on machine demand - Management does not expect significant increases in machine demand due to drought conditions, although there may be increased service business [35] Question: Margins on new MENA project - Comparable margins are expected for the new $20 million project as with previous larger projects in the region [38] Question: North American pivot sales correlation with major equipment manufacturers - Different go-to-market models and regional demand variations explain the disconnect between pivot sales and major equipment manufacturers' volumes [61]