Lindsay Delivers Record Annual Earnings Driven by International Irrigation Strength

International Irrigation Sales Outperform, Offset North American Weakness

Lindsay Corporation ended fiscal year 2025 with robust growth, fueled by double-digit international irrigation gains even as North America faced softness. International irrigation revenues jumped 23% in the fourth quarter and 39% year-over-year, with notable traction in South America and the Middle East/North Africa (MENA) region. North America, however, experienced a 19% quarterly drop, reflecting subdued market conditions and less demand for storm damage replacements. Infrastructure also cooled this quarter as large Road Zipper™ sales from last year did not repeat.

Record Full-Year Earnings and Improved Operating Margin Highlight Resiliency

Lindsay’s full-year financials show the payoff from global diversification and execution: total revenues rose 11% to $676.4 million, and diluted EPS set a record at $6.78 (up 13%). Net earnings also hit a new high at $74.1 million, with free cash flow generation outpacing net income—122% of net earnings for the year—underscoring strong capital discipline and working capital management. Notably, operating income rose 15%, with a margin improvement from 12.6% to 13.0% year-over-year.

Segment Review: Global Growth Offsets Domestic Slowdown

Irrigation: Lindsay’s irrigation segment posted full-year revenue of $568 million, with a 3% fourth quarter lift thanks to international growth. Operating margin in this segment held steady at 13.7%. North America softness remains a headwind, yet ongoing international demand, especially for large-scale projects, drove results.

Infrastructure: After a 16% quarterly decline due to tough project comparables, infrastructure ended the year up 16% thanks to Road Zipper project deliveries earlier in the fiscal year. Segment operating margins contracted this quarter, but the full-year mix remained favorable on increased project scale and efficiency.

Outlook: Watching Global Demand as U.S. Softness Continues

Management projects that demand for North American irrigation will stay muted amid weak commodity prices and farm income pressure. Brazil remains stable, though interest rates and credit remain challenging. The company is optimistic for additional international irrigation growth, pointing to projects under development in MENA and elsewhere. Infrastructure, meanwhile, should see steady leasing and product sales, though a major Road Zipper project is not anticipated for fiscal 2026.

Bottom Line: Lindsay Leans on International Strength and Cash Flow to Navigate Uncertainty

Lindsay Corporation exits 2025 as a story of international growth balancing out North American headwinds. A record year for earnings and strong cash flow signal operational resiliency. However, a shrinking order backlog (now $110.7 million from $180.9 million) could test growth as fiscal 2026 unfolds, particularly if North American and project pipeline headwinds persist. Investors may want to monitor emerging international projects and commodity market developments for early clues on the next phase for LNN.

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