Key Takeaways:
- Lindsay Corporation Q1 revenues declined 6 percent year over year, driven by lower irrigation segment revenues.
- Irrigation operating margin improved despite softer demand in North America and select international markets.
- Infrastructure segment revenues increased 17 percent on higher road safety product sales.
- An $80 million irrigation and technology project was secured in the MENA region after quarter-end.
- The company completed $30 million in share repurchases during the quarter.
Lindsay Corporation Reports First Quarter Fiscal 2026 Performance
Lindsay Corporation (NYSE: LNN) reported financial results for the first quarter of fiscal 2026, which ended on November 30, 2025. Total revenues for the quarter were $155.8 million, down 6 percent compared to the prior year period, primarily reflecting lower irrigation revenues that were partially offset by growth in the infrastructure segment.
Operating income totaled $19.6 million, compared to $20.9 million in the first quarter of fiscal 2025, while operating margin remained flat at 12.6 percent. Net earnings 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.
Lindsay Corporation Highlights Segment-Level Trends
Irrigation Segment Performance
Irrigation segment revenues totaled $133.4 million, a 9 percent decline year over year. North America irrigation revenues decreased 4 percent to $74.3 million, primarily due to lower unit volumes, partially offset by higher average selling prices. International irrigation revenues declined 15 percent to $59.1 million, driven mainly by lower sales volumes in Brazil and the timing of project activity in the Middle East and North Africa (MENA) region.
Irrigation operating income was $23.0 million, down 7 percent from the prior year, while operating margin improved to 17.2 percent from 16.8 percent, reflecting pricing discipline and cost management.
Infrastructure Segment Performance
Infrastructure segment revenues increased 17 percent year over year to $22.4 million, primarily due to higher sales of road safety products. Operating income for the segment rose 9 percent to $4.5 million, while operating margin declined to 20.1 percent from 21.5 percent in the prior year, reflecting higher operating expenses.
Management Commentary And Capital Allocation
“In the U.S., farmer sentiment continues to reflect trade uncertainty, lower commodity prices, and higher input costs, however, our team's diligent focus on price management, operational efficiencies, and cost management led to improved gross margin in our irrigation segment that muted the impact of softer demand,” said Randy Wood.
Wood also noted that international irrigation performance was affected by project timing in the MENA region and credit constraints in Brazil, while infrastructure benefited from increased road construction activity.
Subsequent to quarter-end, the company announced a supply agreement valued at approximately $80 million to provide Zimmatic™ irrigation systems and FieldNET™ technology to a customer in the MENA region. During the quarter, Lindsay Corporation completed $30.3 million in share repurchases and received board authorization for a new share repurchase program of up to $150 million.
Lindsay Corporation Outlook For Fiscal 2026
The company expects near-term softness in the North America irrigation market to continue until trade conditions and commodity prices improve. In Brazil, management expects long-term demand drivers to support growth, although credit constraints remain a headwind. Delivery of the newly announced MENA irrigation project began in the second quarter, with approximately $70 million in revenue expected to be recognized during fiscal 2026.
Read the complete financial results.
