Financial Results Lindsay Corporation Announces Q2 Fiscal 2025 Financial Results
Lindsay Corporation (NYSE: LNN), a leading global provider of irrigation and infrastructure equipment and technology, has announced its financial results for the second quarter of fiscal 2025, which ended on February 28, 2025. The company reported significant earnings growth, driven by strong performance in international irrigation markets and robust infrastructure segment revenues.
Key Highlights
- Net earnings increased by 47% compared to the prior year.
- Diluted earnings per share (EPS) rose by 49%.
- Revenue from international irrigation grew by 11%, supported by project volume in the Middle East and North Africa (MENA) region.
- Infrastructure revenues more than doubled, fueled by the successful completion of a large Road Zipper System™ project.
- The company has outlined strategic plans to mitigate potential impacts from tariffs and retaliatory actions.
Management Commentary
Randy Wood, President and Chief Executive Officer, commented on the company’s performance, stating: “Strength in international irrigation more Financial Results than offset expected softness in the North America irrigation market, driving overall irrigation revenue growth in our fiscal second quarter. We successfully executed a large irrigation project in the MENA region while also experiencing increased sales in other parts of this developing market. Financial Results In Brazil, sales volumes remained steady compared to the prior year, reflecting improved market conditions. Additionally, our infrastructure segment delivered remarkable results, with strong revenue growth and significant margin expansion, driven by the completion of a major Road Zipper System project.”
Wood further expressed confidence in the company’s ability to capitalize on opportunities across both business segments, stating, “I am pleased with the resiliency and performance of our teams worldwide. Financial Results We continue to execute on large-scale projects, demonstrating our ability to drive margin expansion and earnings growth despite a tempered demand environment in core irrigation markets.”
Financial Performance
Total revenues for the second quarter of fiscal 2025 reached $187.1 million, marking a 23% increase compared to $151.5 million in the prior year. Financial Results This growth was primarily driven by international irrigation sales and a significant expansion in infrastructure revenues.
Operating income for the quarter stood at $32.1 million, a 45% increase from $22.1 million in the prior year. Operating margin improved to 17.2% of sales, up from 14.6% in the previous year, driven by higher revenues, an improved revenue mix, and better leverage of fixed operating expenses.
Net earnings for the quarter were $26.6 million, a 47% increase from $18.1 million in the prior year. Diluted earnings per share (EPS) for the quarter rose to $2.44, representing a 49% increase from $1.64 in the previous year.
Segment Performance
Irrigation Segment
Revenues in the irrigation segment increased by 11% to $148.1 million from $133.0 million in the prior year. This growth was fueled by international sales, particularly in the MENA region.
- North America irrigation revenues totaled $77.1 million, a 7% decline from the prior year. This decrease resulted from lower unit sales of irrigation equipment, slightly lower average selling prices, and a decline in replacement part sales.
- International irrigation revenues reached $71.0 million, a 42% increase compared to the previous year. This growth was primarily attributed to the large-scale project in the MENA region, with additional support from increased sales in other parts of the region. However, these gains were partially offset by lower sales in other international markets and an unfavorable foreign currency translation impact of approximately $4.7 million. Sales volume in Brazil remained stable compared to the prior year.
Irrigation segment operating income for the quarter was $27.4 million, a 7% increase from the previous year. The operating margin stood at 18.5% of sales, down slightly from 19.3% in the prior year, as a larger proportion of project revenues diluted the overall margin.
Infrastructure Segment
The infrastructure segment reported exceptional growth, with revenues more than doubling to $38.9 million from $18.5 million in the prior year. This increase was primarily driven by the completion of a major Road Zipper System project worth over $20 million.
Infrastructure segment operating income surged by 278% to $13.3 million from $3.5 million in the prior year. The operating margin increased significantly to 34.1% of sales, compared to 19.0% in the prior year. This expansion was driven by higher revenues and a more favorable revenue mix, with Road Zipper System sales accounting for a larger proportion of overall revenues.
Order Backlog and Future Outlook
As of February 28, 2025, Lindsay Corporation reported a backlog of unfilled orders totaling $127.0 million, up from $94.2 million in the previous year. Notably, $11.9 million of this backlog represents orders not expected to be fulfilled within the next 12 months, compared to $20.3 million in the prior year. The increase in backlog is largely attributed to the ongoing large-scale irrigation project in the MENA region.
Strategic Initiatives and Market Conditions
Lindsay Corporation remains focused on navigating challenges posed by potential tariffs and retaliatory actions. The company has outlined strategic plans to mitigate these risks, including supply chain adjustments and diversification of market penetration strategies. Additionally, management continues to monitor developments in core irrigation markets, particularly in North America, where demand remains tempered.
With strong execution in international irrigation markets and infrastructure projects, Lindsay Corporation is well-positioned to sustain revenue growth and profitability. The company remains committed to leveraging innovation, operational efficiency, and strategic expansion to drive long-term shareholder value.
