Lindsay Corporation Reports 3% Revenue Increase and 14% Rise in Net Earnings for Q4 2024

Lindsay Corporation reported a 3% increase in operating revenues for the three months ended November 30, 2024, reaching $166.3 million compared to $161.4 million in the same period last year. The irrigation segment, which accounted for 88% of total revenues, saw a 5% rise to $147.1 million, while the infrastructure segment experienced a 9% decline, generating $19.2 million. Net earnings rose 14% to $17.2 million, or $1.57 per diluted share, up from $15.0 million, or $1.36 per diluted share, in the prior year. The increase in net earnings was attributed to higher other income, primarily from increased interest income and favorable foreign currency translation results, alongside a lower effective income tax rate.

In terms of operational performance, the irrigation segment's North American revenues decreased by 13% to $77.7 million, primarily due to lower unit sales and a less favorable product mix. Conversely, international irrigation revenues surged by 37% to $69.4 million, driven by shipments related to a significant project in the Middle East and North Africa (MENA) region. The infrastructure segment's revenues fell due to timing differences in lease revenues and reduced sales of road safety products. Overall, gross profit remained stable at $50.0 million, with a slight decrease in gross margin from 30.9% to 30.0%.

The company’s total assets increased to $771.0 million as of November 30, 2024, compared to $763.9 million a year earlier. Cash and cash equivalents rose to $194.1 million, reflecting a positive cash flow from operating activities of $21.6 million during the quarter. Lindsay Corporation's backlog of unshipped orders also saw a significant increase, reaching $168.2 million, up from $86.8 million a year prior, indicating strong future demand, particularly in the irrigation segment.

Strategically, Lindsay Corporation completed the acquisition of a 49.9% non-controlling interest in Pessl Instruments GmbH for $7.3 million, enhancing its agricultural technology capabilities. The company continues to focus on organic growth, international market expansion, and opportunistic share repurchases, with a remaining authorization of $41.4 million for future stock buybacks. Looking ahead, Lindsay Corporation anticipates continued demand for its irrigation products driven by global food production needs, although it remains cautious due to fluctuating agricultural commodity prices and net farm income projections.