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 ended February 28, 2025.

Key Highlights

• Quarterly net earnings increase 47 percent and diluted EPS increase 49 percent
• International project volume in the Middle East and North Africa (MENA) region contributes to 11 percent revenue growth in irrigation
• Infrastructure revenues more than double on the completion of a large Road Zipper System™ project
• Plans are in place to mitigate the potential impact of tariffs and retaliatory actions

“Strength in international irrigation more than offset expected softness in the North America irrigation market, driving overall irrigation revenue growth in our fiscal second quarter," said Randy Wood, President and Chief Executive Officer. "During the quarter, we continued delivery of our large irrigation project in the MENA region in addition to realizing increased sales in other parts of this developing region. In Brazil, our unit sales volume was comparable to the prior year as market conditions improved during the quarter. Our infrastructure business delivered outstanding results in the quarter, evidenced by strong revenue growth and significant margin expansion, which was driven by the execution of a large Road Zipper System project that we delivered in the period."

Wood continued, "I am pleased with the resiliency and performance of our teams around the world, as we demonstrate our ability to capture and deliver on project opportunities in both of our businesses. Our strong execution on these projects allowed us to deliver margin expansion and net earnings growth despite a tempered demand environment in core irrigation markets."

Second Quarter Summary

Revenues for the second quarter of fiscal 2025 were $187.1 million, an increase of $35.5 million, or 23 percent, compared to revenues of $151.5 million in the prior year. Revenue growth in international irrigation and infrastructure was partially offset by lower revenue in North America irrigation.

Operating income for the second quarter of fiscal 2025 was $32.1 million, an increase of $10.0 million, or 45 percent, compared to operating income of $22.1 million in the prior year. Operating margin was 17.2 percent of sales, compared to 14.6 percent of sales in the prior year. The increase in operating income and margin resulted from higher revenues, a more favorable margin mix of revenues, and positive leverage of fixed operating expenses.

Net earnings for the second quarter of fiscal 2025 were $26.6 million, an increase of $8.5 million, or 47 percent, compared with net earnings of $18.1 million in the prior year. Diluted earnings per share for the quarter of $2.44 reflected an increase of 49 percent compared with $1.64 for the prior year.

Second Quarter Segment Results

Irrigation segment revenues for the second quarter of fiscal 2025 were $148.1 million, an increase of $15.1 million, or 11 percent, compared to $133.0 million in the prior year. North America irrigation revenues of $77.1 million decreased $5.7 million, or 7 percent, compared to the prior year. The decrease resulted primarily from lower unit sales volume of irrigation equipment, along with slightly lower average selling prices and lower sales of replacement parts.

International irrigation revenues for the second quarter of fiscal 2025 of $71.0 million increased $20.8 million, or 42 percent, compared to the prior year. The increase resulted from revenues related to the large project in the MENA region and higher sales in other parts of the region. This increase was partially offset by lower sales in other international markets and the unfavorable effects of foreign currency translation of approximately $4.7 million compared to the prior year. Unit sales volume in Brazil for the quarter was comparable to the prior year.

Irrigation segment operating income for the second quarter of fiscal 2025 was $27.4 million, an increase of $1.7 million, or 7 percent, compared to the prior year. Operating margin was 18.5 percent of sales, compared to 19.3 percent of sales in the prior year. Increased revenues led to higher operating income while a larger percentage of project revenues resulted in some dilution to operating margin compared to the prior year.

Infrastructure segment revenues for the second quarter of fiscal 2025 were $38.9 million, an increase of $20.4 million, or 110 percent, compared to $18.5 million in the prior year. The increase was primarily driven by a large Road Zipper System project, valued at over $20 million, that was delivered during the quarter while leasing revenues and sales of road safety products were slightly lower compared to the prior year.

Infrastructure segment operating income for the second quarter of fiscal 2025 was $13.3 million, an increase of $9.8 million, or 278 percent, compared to $3.5 million in the prior year. Operating margin was 34.1 percent of sales, compared to 19.0 percent of sales in the prior year. Increased operating income and operating margin resulted primarily from higher revenues and a more favorable margin mix of revenues, as Road Zipper System sales represented a higher percentage of revenues compared to the prior year.

The backlog of unfilled orders as of February 28, 2025, was $127.0 million compared with $94.2 million as of February 29, 2024. Included in these backlogs are amounts of $11.9 million and $20.3 million, respectively, for orders that are not expected to be fulfilled within the subsequent 12 months. The increase in backlog is primarily attributed to the large irrigation project in the MENA region.

Outlook

Mr. Wood concluded, “In February, the USDA released its initial forecast for 2025 U.S. net farm income, which estimated a 29 percent increase compared to 2024. The forecast anticipates higher government support payments while crop receipts are forecasted to be slightly lower than the prior year. Accordingly, we don't expect this forecast of 2025 U.S. net farm income to result in a meaningful improvement in demand for irrigation equipment in North America in the near term. In Brazil, commodity prices are improving, however the rising interest rate environment continues to be a headwind to investment. Elsewhere in international irrigation we remain encouraged by the growth in developing markets, highlighted by project activity in the MENA region."

“Second quarter performance in our infrastructure business supports full year growth for fiscal 2025. Anticipated increased U.S. infrastructure funding, although partially offset by the impact of inflation on construction costs, remains supportive of opportunities for Road Zipper System lease revenues and sales of road safety products. We also remain optimistic regarding our Road Zipper System project sales pipeline; however the timing of individual projects remains challenging to predict.”

"In regard to the U.S.'s recently announced tariffs on imports from Canada, Mexico, China and other countries, we have implemented a comprehensive action plan that includes supplier negotiation, strategic inventory placement, and other supply chain initiatives to manage potential cost impacts to our business. We anticipate the impact of the proposed tariffs to result in a marginal increase to our cost of goods, which we would expect to pass through to the market through increased pricing of our products. We are also evaluating the potential impact of additional tariffs or retaliatory actions. While the situation remains fluid, we plan to utilize our global footprint and supply chain to minimize the potential impact of these actions on our business and our customers."

Second Quarter Conference Call

Lindsay’s fiscal 2025 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.

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 and large diameter steel tubing, 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 movable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment.

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