Key Takeaways
- Lindsay Corporation’s total revenues rose to $169.5 million in Q3 FY2025, up 22% year-over-year
- International irrigation revenues increased 60%, led by project activity in the MENA region
- North America irrigation revenues showed modest growth amid market uncertainty
- Infrastructure revenues rose 6%, but segment margin declined due to product mix
- Net earnings declined 4% due to a prior-year tax credit impact, despite higher operating income
International Irrigation Drives Quarterly Revenue Growth For Lindsay Corporation
Lindsay Corporation (NYSE: LNN), a global supplier of irrigation and infrastructure equipment, announced its financial results for the third quarter ended May 31, 2025. The company posted total revenues of $169.5 million, a 22% increase compared to $139.2 million in the same quarter last year. The revenue growth was led primarily by strong performance in international irrigation markets, particularly a large project in the Middle East and North Africa (MENA) region.
According to CEO Randy Wood, “Continued strength in our international irrigation business, supported by ongoing project revenues in the MENA region, led to strong irrigation revenue growth for the quarter.”
Lindsay’s Irrigation Segment Posts 25% Revenue Increase
Lindsay’s irrigation segment reported third-quarter revenues of $143.7 million, up 25% from the prior year. Within this segment:
- North America irrigation revenues rose slightly by 1%, totaling $69.1 million.
- International irrigation revenues grew significantly to $74.7 million, a 60% increase from the prior year, driven largely by project volumes in the MENA region and improved sales in Brazil and South America.
- Operating income in the irrigation segment rose to $27.2 million, up 39%, with margins improving from 17.0% to 18.9%.
The growth in operating income was attributed to higher revenues and the benefits of fixed cost leverage, although some margin dilution occurred due to a higher share of large-scale project revenues.
Infrastructure Segment Sees Higher Revenue but Lower Margin
The infrastructure segment recorded revenues of $25.7 million, a 6% increase, due to higher sales of road safety products. However, operating income decreased 14% to $5.4 million, and the segment’s margin declined from 25.8% to 21.1%. This was largely due to a less favorable mix of Road Zipper System™ revenue compared to the prior year.
Earnings Decline Due to Prior-Year Tax Benefit
Despite the revenue and operating income gains, net earnings for the quarter declined 4% to $19.5 million, compared to $20.4 million in Q3 FY2024. The decrease was primarily the result of a one-time income tax credit of $4.8 million recognized in the prior year. Diluted earnings per share were $1.78, compared to $1.85 a year ago.
Backlog Declines Following Project Deliveries
As of May 31, 2025, Lindsay reported a backlog of $117.1 million, compared to $205.9 million a year ago. The decline was mainly due to the completion of deliveries related to the MENA irrigation project over the past four quarters.
Market Outlook and Near-Term Factors For Lindsay Corporation
Looking ahead, Lindsay expects tempered demand in North America until the outlook for net farm income improves. The company noted that developing drought conditions in parts of the Midwest could support sales of replacement parts. In Brazil, market conditions are improving, though credit constraints and high interest rates remain concerns. Globally, Lindsay continues to see opportunities in food security-related irrigation projects.
Wood concluded, “We remain confident and encouraged regarding project opportunities to address the food security needs of developing markets.”
Read the entire financial statements for the quarter here.
