Lindsay Corporation Reports Fiscal 2026 Second Quarter Results
OMAHA, Neb.--( BUSINESS WIRE)--Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its second quarter of fiscal 2026, which ended on February 28, 2026.
Key Highlights:
“During the quarter we began shipping the large project in the Middle East North Africa (MENA) region. While this project remains on schedule, we are exercising caution and prioritizing the safety of our teams in the region," said Randy Wood, President and Chief Executive Officer. "Solid execution of this project is helping to support revenue performance as U.S. market conditions continue to put pressure on commodity prices and constrain demand for irrigation equipment. Credit availability constraints and persistently high interest rates continue to suppress demand in Brazil, resulting in lower order levels this quarter. Excluding the $20 million Road Zipper System project in the prior year, which was not expected to repeat, our infrastructure business increased 6 percent. This growth was driven by a sustained increase in road construction activity supporting increased sales of road safety products. We continued executing against our capital allocation priorities and completed $25.2 million of share repurchases leaving $125 million available under the recent $150 million authorization."
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 very volatile macro-economic environment. During the quarter, our Infrastructure team introduced two new road safety products. The Road Runner™ truck-mounted attenuator and the AlphaGuard™ barrier system. These new products highlight our continued investment in innovation and the growing demand for high-performance roadway safety solutions."
Second Quarter Summary
Consolidated Financial Summary
Second Quarter
(dollars in millions, except per share amounts)
FY2026
FY2025
$ Change
% Change
Total revenues
$157.7
$187.1
($29.3)
(16%)
Operating income
$13.0
$32.1
($19.1)
(59%)
Operating margin
8.3%
17.2%
Net earnings
$12.0
$26.6
($14.5)
(55%)
Diluted earnings per share
$1.15
$2.44
($1.29)
(53%)
Revenues for the second quarter of fiscal 2026 were $157.7 million, a decrease of $29.3 million, or 16 percent, compared to $187.1 million in the prior year. The decrease was primarily driven by lower revenues in both the irrigation and infrastructure segments compared to the prior year.
Operating income for the second quarter of fiscal 2026 was $13.0 million, a decrease of $19.1 million, or 59 percent, compared to $32.1 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 8.3 percent of sales, compared to 17.2 percent of sales in the prior year.
Net earnings for the second quarter of 2026 were $12.0 million, or $1.15 per diluted share, compared to $26.6 million, or $2.44 per diluted share, in the prior year. Net earnings were impacted by lower operating income and a higher effective tax rate, both of which were partially offset by an increase in other income.
Second Quarter Segment Results
Irrigation Segment
Second Quarter
(dollars in millions)
FY2026
FY2025
$ Change
% Change
Revenues:
North America
$71.0
$77.1
($6.1)
(8%)
International
$70.2
$71.0
($0.8)
(1%)
Total revenues
$141.2
$148.1
($6.9)
(5%)
Operating income
$19.5
$27.4
($7.9)
(29%)
Operating margin
13.8%
18.5%
Irrigation segment revenues for the second quarter of fiscal 2026 were $141.2 million, a decrease of $6.9 million, or 5 percent, compared to $148.1 million in the prior year. North America irrigation revenues of $71.0 million decreased $6.1 million, or 8 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 second quarter of fiscal 2026 of $70.2 million decreased $0.8 million, or 1 percent, compared to the prior year. The decrease resulted primarily from lower sales volumes in Brazil and timing of project volume in the MENA region, which were partially offset by growth in various other regions. In Brazil, available credit and elevated interest rates continue to limit farmers' ability to invest in capital equipment. Revenues in the current year quarter were favorably impacted by the effects of foreign currency translation of approximately $4.0 million compared to the prior year.
Irrigation segment operating income for the second quarter of fiscal 2026 was $19.5 million, a decrease of $7.9 million, or 29 percent, compared to the prior year. Operating margin was 13.8 percent of sales, compared to 18.5 percent of sales in the prior year. The decrease in operating income resulted primarily from lower unit sales volume, a higher proportion of international project sales volume and the impact of fixed cost deleverage compared to the prior year.
Infrastructure Segment
Second Quarter
(dollars in millions)
FY2026
FY2025
$ Change
% Change
Total revenues
$16.5
$38.9
($22.4)
(58%)
Operating income
$1.2
$13.3
($12.1)
(91%)
Operating margin
7.1%
34.1%
Infrastructure segment revenues for the second quarter of fiscal 2026 were $16.5 million, a decrease of $22.4 million, or 58 percent, compared to $38.9 million in the prior year. The decrease was primarily attributable to lower Road Zipper System revenues as the prior year included a $20 million project that did not repeat. Sales of road safety products increased compared to the prior year.
Infrastructure segment operating income for the second quarter of fiscal 2026 was $1.2 million, a decrease of $12.1 million, or 91 percent, compared to the prior year. Operating margin was 7.1 percent of sales, compared to 34.1 percent of sales in the prior year. The decrease in operating income resulted primarily from lower Road Zipper System project revenues compared to the prior year.
The backlog of unfulfilled orders at February 28, 2026 was $151.8 million compared with $127.0 million at February 28, 2025. Included in these backlogs are amounts of $19.2 million and $11.9 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 hope to see 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 will 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."
“In infrastructure, we anticipate growth in road safety products and are encouraged by the positive feedback we have received on the new products we just introduced at the American Traffic Safety Services Association trade show. We continue to actively manage a robust pipeline of Road Zipper System projects, but we do not expect to deliver a large project in fiscal 2026.”
Second Quarter Conference Call
Lindsay’s fiscal 2026 second 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
Six months ended
(in thousands, except per share amounts)
February 28,
2026
February 28,
2025
February 28,
2026
February 28,
2025
Operating revenues
$
157,715
$
187,064
$
313,533
$
353,345
Cost of operating revenues
115,366
124,576
221,082
240,891
Gross profit
42,349
62,488
92,451
112,454
Operating expenses:
Selling expense
10,517
10,850
21,536
21,062
General and administrative expense
14,742
15,352
29,580
30,360
Engineering and research expense
4,076
4,162
8,716
8,026
Total operating expenses
29,335
30,364
59,832
59,448
Operating income
13,014
32,124
32,619
53,006
Other income:
Interest income, net
1,984
1,441
5,303
1,934
Other income (expense), net
569
(351
)
(469
)
307
Total other income
2,553
1,090
4,834
2,241
Earnings before income taxes
15,567
33,214
37,453
55,247
Income tax expense
3,522
6,638
8,884
11,508
Net earnings
$
12,045
$
26,576
$
28,569
$
43,739
Earnings per share:
Basic
$
1.15
$
2.45
$
2.71
$
4.03
Diluted
$
1.15
$
2.44
$
2.70
$
4.01
Shares used in computing earnings per share:
Basic
10,449
10,863
10,561
10,858
Diluted
10,486
10,909
10,593
10,906
Cash dividends declared per share
$
0.37
$
0.36
$
0.74
$
0.72
LINDSAY CORPORATION AND SUBSIDIARIES
SUMMARY OPERATING RESULTS
(Unaudited)
Three months ended
Six months ended
(in thousands)
February 28,
2026
February 28,
2025
February 28,
2026
February 28,
2025
Operating revenues:
Irrigation:
North America
$
71,042
$
77,145
$
145,354
$
154,884
International
70,196
70,994
129,321
140,342
Irrigation total
141,238
148,139
274,675
295,226
Infrastructure
16,477
38,925
38,858
58,119
Total operating revenues
$
157,715
$
187,064
$
313,533
$
353,345
Operating income:
Irrigation
$
19,479
$
27,377
$
42,433
$
52,111
Infrastructure
1,165
13,257
5,659
17,381
Corporate
(7,630
)
(8,510
)
(15,473
)
(16,486
)
Total operating income
$
13,014
$
32,124
$
32,619
$
53,006
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)
February 28,
2026
February 28,
2025
August 31,
2025
ASSETS
Current assets:
Cash and cash equivalents
$
186,111
$
172,044
$
250,575
Marketable securities
—
14,676
—
Receivables, net
134,056
155,440
113,027
Inventories, net
144,581
154,605
136,859
Other current assets
34,463
29,919
32,303
Total current assets
499,211
526,684
532,764
Property, plant, and equipment, net
162,616
124,757
142,307
Intangibles, net
23,008
24,097
23,331
Goodwill
84,542
83,877
84,459
Operating lease right-of-use assets
20,317
17,583
18,096
Deferred income tax assets
22,873
11,930
19,525
Equity method investment
8,400
7,452
8,763
Other noncurrent assets
16,714
17,805
11,591
Total assets
$
837,681
$
814,185
$
840,836
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
55,231
$
57,612
$
48,670
Current portion of long-term debt
148
231
233
Other current liabilities
109,908
87,044
94,689
Total current liabilities
165,287
144,887
143,592
Pension benefits liabilities
3,283
4,040
3,418
Long-term debt
114,804
114,903
114,810
Operating lease liabilities
19,528
17,063
17,354
Deferred income tax liabilities
2,177
637
1,024
Other noncurrent liabilities
24,839
16,236
27,788
Total liabilities
329,918
297,766
307,986
Shareholders' equity:
Preferred stock
—
—
—
Common stock
19,198
19,155
19,167
Capital in excess of stated value
116,002
107,869
113,042
Retained earnings
766,201
723,008
745,397
Less treasury stock - at cost
(366,713)
(301,119)
(311,224)
Accumulated other comprehensive loss, net
(26,925)
(32,494)
(33,532)
Total shareholders' equity
507,763
516,419
532,850
Total liabilities and shareholders' equity
$
837,681
$
814,185
$
840,836
LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
(in thousands)
February 28, 2026
February 28, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings
$
28,569
$
43,739
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
11,162
10,608
Provision for uncollectible accounts receivable
(56
)
97
Deferred income taxes
7,140
785
Share-based compensation expense
3,023
3,954
Unrealized foreign currency transaction gain
(657
)
(564
)
Other, net
(828
)
(122
)
Changes in assets and liabilities:
Receivables
(20,820
)
(40,206
)
Inventories
(4,823
)
(2,419
)
Other current assets
(1,125
)
2,874
Accounts payable
5,063
20,685
Other current liabilities
(4,008
)
(5,479
)
Other noncurrent assets and liabilities
1,326
(72
)
Net cash provided by operating activities
23,966
33,880
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment
(27,461
)
(18,918
)
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
—
(98
)
Other investing activities, net
(1,238
)
(559
)
Net cash used in investing activities
(28,699
)
(39,231
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of common shares
(55,489
)
(1,427
)
Dividends paid
(7,765
)
(7,824
)
Common stock withheld for payroll tax obligations
(1,253
)
(1,450
)
Proceeds from exercise of stock options
805
668
Other financing activities, net
299
248
Net cash used in financing activities
(63,403
)
(9,785
)
Effect of exchange rate changes on cash and cash equivalents
3,672
(3,699
)
Net change in cash and cash equivalents
(64,464
)
(18,835
)
Cash and cash equivalents, beginning of period
250,575
190,879
Cash and cash equivalents, end of period
$
186,111
$
172,044