Lindsay Corporation Reports Fiscal 2025 First Quarter Results

Growth in international irrigation projects support consolidated revenue expansion

Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its first quarter of fiscal 2025 which ended on November 30, 2024.

Key Highlights:

• Irrigation revenue growth driven by international project volume in the Middle East and North Africa (MENA) region
• Infrastructure operating margin expansion leads to improved operating income on lower revenues
• Net earnings and diluted earnings per share increase by 14 percent and 15 percent, respectively, versus prior year quarter

“Our first quarter results demonstrate the resilience of our business, as we were able to deliver revenue growth and expansion to net earnings, despite the ongoing cyclical challenges of the mature irrigation markets. While agricultural market conditions in North America and Brazil remain challenged as lower commodity prices negatively impact grower profitability, our international irrigation business drove revenue growth in the segment, supported by additional volumes from our large project in the MENA region,” said Randy Wood, President and Chief Executive Officer. "Revenues in the quarter for our infrastructure business were slightly lower than the prior year due to the timing of projects, however our diligent focus on cost management and manufacturing efficiency helped expand margins and drive higher operating income."

Wood continued, "Subsequent to quarter end, we finalized a Road Zipper System™ contract valued at more than $20 million which we expect to fully deliver in our fiscal second quarter. In addition, I'm pleased to announce that we also closed our acquisition of a minority interest in Pessl Instruments GmbH, with an option to acquire the remainder of the company at a later date. This investment broadens and strengthens our partnership with Pessl, accelerating innovations in water management, increasing our global reach, and providing new solutions needed to conserve natural resources and expand our world's potential."

First Quarter Summary

Revenues for the first quarter of fiscal 2025 were $166.3 million, an increase of $4.9 million, or 3 percent, compared to revenues of $161.4 million in the prior year. Revenue growth was driven by an increase in international irrigation revenues, which was partially offset by decreases in North America irrigation and infrastructure revenues compared to the prior year.

Operating income for the first quarter of fiscal 2025 was $20.9 million, a decrease of $0.2 million, or 1 percent, compared to operating income of $21.1 million in the prior year. Operating margin was 12.6 percent of sales, compared to operating margin of 13.1 percent of sales in the prior year first quarter. Lower operating income and operating margin in the irrigation segment was partially offset by improved operating income and operating margin in the infrastructure segment.

Net earnings for the first quarter of 2025 were $17.2 million, or $1.57 per diluted share, compared with net earnings of $15.0 million, or $1.36 per diluted share, in the prior year. The current year first quarter results benefited from an increase in other income and a lower effective income tax rate compared to the prior year.

First Quarter Segment Results

Irrigation segment revenues for the first quarter of fiscal 2025 were $147.1 million, an increase of $6.9 million, or 5 percent, compared to $140.2 million in the prior year. North America irrigation revenues of $77.7 million decreased $11.7 million, or 13 percent, compared to the prior year. The decrease in revenues resulted primarily from lower unit sales volume, as well as a less favorable mix of shorter machines and slightly lower average selling prices compared to the prior year. A projected reduction in net farm income for calendar 2024 has led to lower demand for irrigation equipment in the near term.

International irrigation revenues for the first quarter of fiscal 2025 of $69.4 million increased $18.6 million, or 37 percent, compared to the prior year. The increase resulted primarily from revenues related to the large project in the MENA region, along with higher sales in Europe and certain regions of Latin America compared to the prior year. This increase was partially offset by lower sales in Brazil. Revenues in the current year quarter were also impacted by the unfavorable effects of foreign currency translation of approximately $2.1 million compared to the prior year.

Irrigation segment operating income for the first quarter of fiscal 2025 was $24.7 million, a decrease of $0.6 million, or 2 percent, compared to the prior year. Operating margin was 16.8 percent of sales, compared to 18.1 percent of sales in the prior year. The decrease in operating income and operating margin resulted primarily from a higher proportion of international project revenues compared to the prior year, which were dilutive to overall margin.

Infrastructure segment revenues for the first quarter of fiscal 2025 were $19.2 million, a decrease of $2.0 million, or 9 percent, compared to $21.2 million in the prior year. The decrease resulted primarily from a difference in the timing of Road Zipper System lease revenues and lower sales of road safety products compared to the prior year.

Infrastructure segment operating income for the first quarter of fiscal 2025 was $4.1 million, an increase of $0.5 million, or 14 percent, compared to the prior year. Operating margin was 21.5 percent of sales, compared to 17.1 percent of sales in the prior year first quarter. Increased operating income and operating margin resulted primarily from improved manufacturing efficiency and lower operating expenses compared to the prior year.

The backlog of unfulfilled orders at November 30, 2024 was $168.2 million compared with $86.8 million at November 30, 2023. Included in these backlogs are amounts of $17.4 million and $2.8 million, respectively, for orders that are not expected to be fulfilled within the subsequent 12 months. The backlog in both segments was higher compared to the prior year, with the increase in irrigation backlog resulting primarily from the addition of the large project in the MENA region.

Outlook

Mr. Wood concluded, “We expect softer market conditions in the North America and Brazil irrigation markets to continue in the near term, although there are indications we are nearing the trough of the cycle with some stabilization and improvement in commodity prices. In addition, new state-level financing programs recently announced in Brazil should provide additional clarity and support for investments in irrigation. We expect continued growth in developing international markets, highlighted by project activity in the MENA region."

“We expect to see growth in our infrastructure business in fiscal 2025 supported by the large Road Zipper System project we secured shortly after the end of our first quarter. The impact of additional U.S. federal infrastructure funding has been tempered by construction cost inflation, however it remains supportive of growth in Road Zipper System leasing and sales of road safety products.”

First Quarter Conference Call

Lindsay’s fiscal 2025 first 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, 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.

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