Lindsay Corporation Reports 6% Decrease in Operating Revenues to $155.8 Million

Lindsay Corporation reported a decrease in operating revenues for the three months ended November 30, 2025, totaling $155.8 million, down 6% from $166.3 million in the same period last year. The decline was primarily driven by a 9% drop in revenues from the irrigation segment, which accounted for $133.4 million, while the infrastructure segment saw a 17% increase, contributing $22.4 million. Net earnings for the quarter were $16.5 million, or $1.54 per diluted share, compared to $17.2 million, or $1.57 per diluted share, in the prior year. The operating income also fell to $19.6 million from $20.9 million, reflecting the impact of lower revenues despite an increase in other income.

The company's gross profit remained relatively stable at $50.1 million, slightly up from $50.0 million, with a gross margin improvement to 32.2% from 30.0% year-over-year. Operating expenses increased by 5% to $30.5 million, attributed to higher selling and engineering costs, although administrative expenses decreased. The effective income tax rate rose to 24.5% from 22.1%, influenced by a discrete impact from share-based compensation vesting.

In terms of operational developments, Lindsay Corporation's cash and cash equivalents stood at $199.6 million as of November 30, 2025, down from $250.6 million at the end of August 2025, primarily due to share repurchases and increased working capital. The company repurchased 232,000 shares for $30.3 million during the quarter, depleting its previous $250 million share repurchase authorization. A new program for up to $150 million was authorized in November 2025. The backlog of unshipped orders decreased to $119.2 million from $168.2 million a year earlier, reflecting the completion of a large irrigation project in the MENA region.

Looking ahead, Lindsay Corporation anticipates continued challenges in the irrigation segment due to fluctuating agricultural commodity prices and market conditions affecting farmer sentiment. However, the infrastructure segment may benefit from increased government spending on transportation projects, particularly under the Infrastructure Investment and Jobs Act. The company plans to invest between $50 million and $55 million in capital expenditures for fiscal 2026, focusing on modernization and productivity improvements. The management remains optimistic about growth opportunities in international markets, particularly where irrigation use is less developed, despite potential geopolitical and economic challenges.