Lindsay Corporation Reports Fiscal 2026 Third Quarter Results

About this update from Lindsay Corporation

Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its third quarter of fiscal 2026, which ended on May 31, 2026. Key Highlights: International irrigation project in the Middle East North Africa (MENA) region remains on schedule Infrastructure revenues increased 8 percent, driven by another consecutive quarter of growth in road safety products Irrigation revenues decreased 7 percent as challenging market conditions in North America and Brazil persist Net earnings of $15.8 million and $1.53 of diluted earnings per share Completed $25.2 million of share repurchases during the quarter, bringing total repurchases to $80.7 million for the fiscal year “Deliveries for the large irrigation project in the Middle East North Africa (MENA) region remain on schedule despite continued geopolitical challenges," said Randy Wood, President and Chief Executive Officer. "In North America, demand for irrigation equipment remains tempered as margin pressure from high input costs continues to impact customer sentiment. In Brazil, demand continued to be impacted by low profitability and limited credit availability. As we enter road construction season in the northern hemisphere, our road safety products business delivered another consecutive quarter of growth." Wood continued, "I am pleased with the resiliency and performance of our teams around the world, as we demonstrate our ability to deliver on project opportunities despite a volatile macro-economic environment." Third Quarter Summary Consolidated Financial Summary   Third Quarter (dollars in millions, except per share amounts)   FY2026   FY2025   $ Change   % Change                   Total revenues   $160.8   $169.5   ($8.7)   (5%) Operating income   $18.5   $23.8   ($5.3)   (22%) Operating margin   11.5%   14.0%         Net earnings   $15.8   $19.5   ($3.7)   (19%) Diluted earnings per share   $1.53   $1.78   ($0.25)   (14%) Revenues for the third quarter of fiscal 2026 were $160.8 million, a decrease of $8.7 million, or 5 percent, compared to $169.5 million in the prior year. The increase in infrastructure revenues was more than offset by the decrease in irrigation revenues compared to the prior year. Operating income for the third quarter of fiscal 2026 was $18.5 million, a decrease of $5.3 million, or 22 percent, compared to $23.8 million in the prior year. Lower operating income in both the irrigation and infrastructure segments was partially offset by a reduction in corporate expense. Operating margin was 11.5 percent of sales, compared to 14.0 percent of sales in the prior year. Net earnings for the third quarter of 2026 were $15.8 million, or $1.53 per diluted share, compared to $19.5 million, or $1.78 per diluted share, in the prior year. Net earnings were impacted by lower operating income, which was partially offset by a lower effective tax rate and an increase in other income. Third Quarter Segment Results Irrigation Segment   Third Quarter (dollars in millions)   FY2026   FY2025   $ Change   % Change Revenues:                 North America   $61.3   $69.1   ($7.7)   (11%) International   $71.7   $74.7   ($3.0)   (4%) Total revenues   $133.0   $143.7   ($10.7)   (7%) Operating income   $20.3   $27.2   ($6.8)   (25%) Operating margin   15.3%   18.9%         Irrigation segment revenues for the third quarter of fiscal 2026 were $133.0 million, a decrease of $10.7 million, or 7 percent, compared to $143.7 million in the prior year. North America irrigation revenues of $61.3 million decreased $7.7 million, or 11 percent, compared to the prior year. The decrease in revenues resulted primarily from lower unit sales volume and was partially offset by higher average selling prices compared to the prior year. Persistent weakness in commodity markets and tempered farmer sentiment continue to constrain demand for irrigation equipment in North America. International irrigation revenues for the third quarter of fiscal 2026 of $71.7 million decreased $3.0 million, or 4 percent, compared to the prior year. The decrease resulted primarily from lower sales volumes in Brazil, which were partially offset by growth in other regions. Revenues in the current year quarter were favorably impacted by the effects of foreign currency translation of approximately $3.9 million compared to the prior year. Irrigation segment operating income for the third quarter of fiscal 2026 was $20.3 million, a decrease of $6.8 million, or 25 percent, compared to the prior year. Operating margin was 15.3 percent of sales, compared to 18.9 percent of sales in the prior year. The decrease in operating income resulted primarily from lower unit sales volume, increases in input costs, and the impact of fixed cost deleverage compared to the prior year. Infrastructure Segment   Third Quarter (dollars in millions)   FY2026   FY2025   $ Change   % Change                   Total revenues   $27.7   $25.7   $2.0   8% Operating income   $5.4   $5.4   —   — Operating margin   19.5%   21.1%         Infrastructure segment revenues for the third quarter of fiscal 2026 were $27.7 million, an increase of $2.0 million, or 8 percent, compared to $25.7 million in the prior year. The increase was driven by higher road safety product revenues, comparable Road Zipper lease revenues, both of which were partially offset by lower Road Zipper System revenues compared to the prior year. Infrastructure segment operating income for the third quarter of fiscal 2026 was $5.4 million, which was comparable to the prior year. Operating margin was 19.5 percent of sales, compared to 21.1 percent of sales in the prior year. The decrease in operating margin resulted primarily from an unfavorable mix of lower Road Zipper System project revenues compared to the prior year. The backlog of unfulfilled orders at May 31, 2026 was $136.1 million compared with $117.1 million at May 31, 2025. Included in these backlogs are amounts of $20.1 million and $12.3 million, respectively, for orders that are not expected to be fulfilled within the subsequent 12 months. The backlog in irrigation increased as a result of the large irrigation project in the MENA region, while the backlog in infrastructure decreased compared to the prior year. Outlook Mr. Wood concluded, “In the U.S., irrigation market conditions remain soft as growers await further trade certainty and an improvement in commodity prices. We expect Brazil to return to growth due to the solid drivers of secular demand that support investments in irrigation, although credit constraints and high interest rates could remain a headwind. We will continue delivery of the irrigation project in the MENA region and we expect to recognize approximately $70 million of revenue for the project in our current fiscal year. We will take further actions to align our cost structure with current demand levels to protect margins and support future earnings as demand rebounds." “In infrastructure, we anticipate continued growth in road safety products and while we continue to actively manage a robust pipeline of Road Zipper System projects, we do not expect to deliver a large project in fiscal 2026.” Third Quarter Conference Call Lindsay’s fiscal 2026 third quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. Interested investors may participate in the call by dialing (833) 535-2202 in the U.S., or (412) 902-6745 internationally, and requesting the Lindsay Corporation call. Additionally, the conference call will be simulcast live on the internet and can be accessed via the investor relations section of the Company's website, www.lindsay.com . Replays of the conference call will remain on our website through the next quarterly earnings release. The Company will have a slide presentation available to augment management's formal presentation, which will also be accessible via the Company's website. About the Company Lindsay Corporation (NYSE: LNN) is a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology. Established in 1955, the company has been at the forefront of research and development of innovative solutions to meet the food, fuel, fiber and transportation needs of the world’s rapidly growing population. The Lindsay family of irrigation brands includes Zimmatic™ center pivot and lateral move agricultural irrigation systems, FieldNET™ and FieldWise™ remote irrigation management technology, FieldNET Advisor™ irrigation scheduling technology, and industrial IoT solutions. Also a global leader in the transportation industry, Lindsay Transportation Solutions manufactures equipment to improve road safety and keep traffic moving on the world’s roads, bridges and tunnels, through the Barrier Systems™, Road Zipper™ and Snoline™ brands. For more information about Lindsay Corporation, visit www.lindsay.com . Concerning Forward-looking Statements This release contains forward-looking statements that are subject to risks and uncertainties, and which reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results. You can find a discussion of many of these risks and uncertainties in the annual, quarterly and current reports that the Company files with the Securities and Exchange Commission. Forward-looking statements include information concerning possible or assumed future results of operations and planned financing of the Company and those statements preceded by, followed by or including the words “anticipate,” “estimate,” “believe,” “intend,” "expect," "outlook," "could," "may," "should," “will,” or similar expressions. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking information contained in this press release. LINDSAY CORPORATION AND SUBSIDIARIES   CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS   (Unaudited)                                 Three months ended     Nine months ended   (in thousands, except per share amounts)     May 31, 2026       May 31, 2025       May 31, 2026       May 31, 2025                                     Operating revenues   $   160,764     $   169,464     $   474,297     $   522,809   Cost of operating revenues       112,932         115,842         334,014         356,734   Gross profit       47,832         53,622         140,283         166,075                                     Operating expenses:                                 Selling expense       10,320         10,217         31,856         31,278   General and administrative expense       14,349         14,903         43,929         45,263   Engineering and research expense       4,650         4,709         13,366         12,735   Total operating expenses       29,319         29,829         89,151         89,276                                     Operating income       18,513         23,793         51,132         76,799                                     Other income:                                 Interest income, net       2,315         1,897         7,618         3,832   Other (expense) income, net       (250 )       24         (719 )       330   Total other income       2,065         1,921         6,899         4,162                                     Earnings before income taxes       20,578         25,714         58,031         80,961                                     Income tax expense       4,758         6,214         13,642         17,722                                     Net earnings   $   15,820     $   19,500     $   44,389     $   63,239                                     Earnings per share:                                 Basic   $   1.54     $   1.80     $   4.24     $   5.82   Diluted   $   1.53     $   1.78     $   4.22     $   5.79                                     Shares used in computing earnings per share:                                 Basic       10,299         10,862         10,474         10,860   Diluted       10,341         10,931         10,509         10,915                                     Cash dividends declared per share   $   0.37     $   0.36     $   1.11     $   1.08   LINDSAY CORPORATION AND SUBSIDIARIES   SUMMARY OPERATING RESULTS   (Unaudited)                                         Three months ended       Nine months ended   (in thousands)     May 31, 2026       May 31, 2025       May 31, 2026       May 31, 2025   Operating revenues:                                 Irrigation:                                 North America   $   61,349     $   69,082     $   206,704     $   223,793   International       71,684         74,663         201,003         215,178   Irrigation total       133,033         143,745         407,707         438,971   Infrastructure       27,731         25,719         66,590         83,838   Total operating revenues   $   160,764     $   169,464     $   474,297     $   522,809                                     Operating income:                                 Irrigation   $   20,336     $   27,154     $   62,768     $   79,266   Infrastructure       5,401         5,426         11,061         22,806   Corporate       (7,224 )       (8,787 )       (22,697 )       (25,273 ) Total operating income   $   18,513     $   23,793     $   51,132     $   76,799   The Company manages its business activities in two reportable segments as follows: Irrigation – This reporting segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems, as well as various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, remote irrigation management and scheduling technology, irrigation consulting and design and industrial IoT solutions. Infrastructure – This reporting segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment. LINDSAY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)                                     (in thousands)   May 31, 2026   May 31, 2025   August 31, 2025                     ASSETS                   Current assets:                   Cash and cash equivalents   $ 154,760   $ 196,117   $ 250,575 Marketable securities     —     14,676     — Receivables, net     137,449     147,848     113,027 Inventories, net     145,945     150,462     136,859 Other current assets     42,198     38,143     32,303 Total current assets     480,352     547,246     532,764                     Property, plant, and equipment, net     166,394     130,611     142,307 Intangibles, net     22,576     23,703     23,331 Goodwill     84,473     84,304     84,459 Operating lease right-of-use assets     19,887     16,899     18,096 Deferred income tax assets     23,173     18,945     19,525 Equity method investment     8,423     8,337     8,763 Other noncurrent assets     16,365     10,818     11,591 Total assets   $ 821,643   $ 840,863   $ 840,836                     LIABILITIES AND SHAREHOLDERS' EQUITY                   Current liabilities:                   Accounts payable   $ 58,712   $ 47,000   $ 48,670 Current portion of long-term debt     89     232     233 Other current liabilities     104,872     103,012     94,689 Total current liabilities     163,673     150,244     143,592                     Pension benefits liabilities     3,215     3,979     3,418 Long-term debt     114,816     114,856     114,810 Operating lease liabilities     18,796     16,572     17,354 Deferred income tax liabilities     1,163     693     1,024 Other noncurrent liabilities     20,884     25,743     27,788 Total liabilities     322,547     312,087     307,986                     Shareholders' equity:                   Preferred stock     —     —     — Common stock     19,199     19,162     19,167 Capital in excess of stated value     117,974     110,523     113,042 Retained earnings     778,258     738,598     745,397 Less treasury stock - at cost     (391,962)     (302,367)     (311,224) Accumulated other comprehensive loss, net     (24,373)     (37,140)     (33,532) Total shareholders' equity     499,096     528,776     532,850 Total liabilities and shareholders' equity   $ 821,643   $ 840,863   $ 840,836 LINDSAY CORPORATION AND SUBSIDIARIES   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS   (Unaudited)                       Nine months ended   (in thousands)   May 31, 2026       May 31, 2025   CASH FLOWS FROM OPERATING ACTIVITIES:               Net earnings $   44,389     $   63,239   Adjustments to reconcile net earnings to net cash provided by operating activities:               Depreciation and amortization     17,047         15,707   Provision for uncollectible accounts receivable     201         1,238   Deferred income taxes     5,548         (2,386 ) Share-based compensation expense     4,890         5,971   Unrealized foreign currency transaction gain     (288 )       (629 ) Other, net     29         (2,493 ) Changes in assets and liabilities:               Receivables     (21,694 )       (32,512 ) Inventories     (6,107 )       3,857   Other current assets     (7,985 )       (3,390 ) Accounts payable     7,831         10,010   Other current liabilities     (7,516 )       6,006   Other noncurrent assets and liabilities     (5,719 )       4,256   Net cash provided by operating activities     30,626         68,874                   CASH FLOWS FROM INVESTING ACTIVITIES:               Purchases of property, plant, and equipment     (35,514 )       (28,251 ) Purchases of marketable securities     —         (14,676 ) Purchase of equity method investment     —         (5,815 ) Proceeds from settlement of net investment hedge     —         835   Payments for settlement of net investment hedge     (1,746 )       (98 ) Other investing activities, net     (1,106 )       (438 ) Net cash used in investing activities     (38,366 )       (48,443 )                 CASH FLOWS FROM FINANCING ACTIVITIES:               Repurchase of common shares     (80,738 )       (2,675 ) Dividends paid     (11,528 )       (11,734 ) Common stock withheld for payroll tax obligations     (1,253 )       (1,450 ) Proceeds from exercise of stock options     805         1,194   Other financing activities, net     346         306   Net cash used in financing activities     (92,368 )       (14,359 )                 Effect of exchange rate changes on cash and cash equivalents     4,293         (834 ) Net change in cash and cash equivalents     (95,815 )       5,238   Cash and cash equivalents, beginning of period     250,575         190,879   Cash and cash equivalents, end of period $   154,760     $   196,117     View source version on businesswire.com: https://www.businesswire.com/news/home/20260702768613/en/

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