Lindsay(US:LNN)2025-10-23 16:00Financial 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]