Financial Data and Key Metrics Changes - Total revenues for Q1 FY2026 were $155.8 million, a decrease of 6% from $166.3 million in the same quarter last year [8] - Operating income for the quarter was $19.6 million, down 6% from $20.9 million in the prior year, with an operating margin of 12.6%, consistent with the prior year [9] - Net earnings were $16.5 million, or $1.54 per diluted share, slightly down from $17.2 million, or $1.57 per diluted share in the first quarter of last year [9][10] Business Line Data and Key Metrics Changes - Irrigation segment revenue decreased by 9% to $133.4 million compared to $147.1 million in the prior year, with North America irrigation revenues down 4% to $74.3 million [10][11] - International irrigation revenues were $59.1 million, down from $69.4 million, primarily due to timing of project revenues and lower sales volumes in Brazil [11] - Infrastructure segment revenues increased by 17% to $22.4 million, driven by higher sales of road safety products, while operating income rose 9% to $4.5 million [12] Market Data and Key Metrics Changes - North American irrigation market conditions are expected to remain soft in the near term, with a $12 billion Farmer Bridge assistance package announced to support U.S. farmers [4][5] - Internationally, there is optimism for growth in Latin America, particularly Brazil, despite elevated interest rates and credit access constraints [5][6] Company Strategy and Development Direction - The company announced a supply agreement for Zimmatic irrigation systems in the MENA region, valued at approximately $80 million, reflecting its ability to compete in large-scale projects [3] - The infrastructure segment is expected to gain momentum as infrastructure funding and road project activity advance, with a focus on Road Zipper Solutions [4][7] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing trade uncertainty, low commodity prices, and high input costs affecting customer profitability and sentiment [2] - The company anticipates that while near-term irrigation market conditions will remain soft, it expects resilience in its business [9] Other Important Information - Total available liquidity at the end of Q1 was $249.6 million, including $199.6 million in cash and cash equivalents [13] - The company repurchased $30.3 million in shares during the quarter and announced a new share repurchase program of up to $150 million [14] Q&A Session Summary Question: North America irrigation market outlook - Management agrees that the market is at a trough, with no significant upside expected until profitability improves [18] Question: Opportunities for international projects - There are both repeat and new customers in the MENA region, with a robust project funnel and long-term growth potential [20][21] Question: Impact of elevated CapEx on profitability - Investments in production facilities are expected to improve efficiency and throughput, with incremental benefits anticipated post-completion [23][25] Question: Margin expectations for new projects - The margin profile for the new $80 million project is expected to be slightly below segment average, consistent with similar projects [30][31] Question: Demand related to accelerated depreciation - No significant impact from accelerated depreciation was observed, as negative macro drivers outweighed potential benefits [32] Question: Infrastructure segment outlook - The Road Zipper business is characterized as lumpy, with ongoing engagement in the sales funnel and long-term growth opportunities [47][50]