Key Takeaways
- Lindsay Corporation reported a 47% increase in quarterly net earnings, with revenues rising to $187.1 million.
- International irrigation sales, particularly in the MENA region, drove 11% revenue growth in the segment.
- Infrastructure revenues more than doubled, aided by the completion of a large Road Zipper System™ project.
- Operating income rose 45%, supported by a favorable mix and higher project execution.
- The company is implementing mitigation plans in response to potential tariff impacts.
Lindsay Corporation Sees Margin Expansion in Irrigation and Infrastructure Segments
Lindsay Corporation (NYSE: LNN), a global manufacturer of irrigation and infrastructure equipment, announced financial results for its second quarter ending February 28, 2025. The company reported total revenues of $187.1 million, an increase of 23% compared to the prior year, and net earnings of $26.6 million, up 47% year-over-year.
Randy Wood, President and CEO of Lindsay Corporation, stated: “Strength in international irrigation more than offset expected softness in the North America irrigation market. We continued delivery of a major irrigation project in the MENA region and observed improved sales activity across other parts of the region.”
Operating income increased by 45% to $32.1 million, with operating margin rising to 17.2%, up from 14.6% in the same period last year. Diluted earnings per share increased to $2.44 from $1.64, reflecting 49% growth.
Lindsay Segment Performance: Irrigation and Infrastructure
Irrigation
The irrigation segment posted revenues of $148.1 million, up 11% from the prior year. International irrigation sales rose 42% to $71.0 million, driven by the large project in the MENA region, while North American sales declined 7%, primarily due to lower unit volumes and parts sales. Operating income for the segment grew to $27.4 million, although the margin slightly decreased due to a higher proportion of project-based revenues.
Infrastructure
The infrastructure segment generated revenues of $38.9 million, a 110% increase year-over-year, largely due to the execution of a Road Zipper System project. Operating income rose significantly to $13.3 million, with margins reaching 34.1%.
Lindsay Corporation reported a total backlog of $127.0 million as of February 28, 2025, compared with $94.2 million a year earlier. The increase is attributed to ongoing project demand in international irrigation.
Outlook and Strategic Positioning of Lindsay Corporation
Looking ahead, Wood commented on various market dynamics: “The USDA’s forecast of higher net farm income may not immediately translate into increased demand in North America, while international markets, including Brazil and the MENA region, continue to show growth potential. Our infrastructure segment is well-positioned to benefit from U.S. funding initiatives, although project timing remains a variable.”
In response to proposed U.S. tariffs on imports from multiple countries, Lindsay Corporation has developed a supply chain strategy to manage cost pressures. This includes supplier negotiations and strategic inventory placement. The company anticipates a marginal cost increase, with a potential pass-through in product pricing.
Read the complete financial results here.
