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
Consolidated Financial Summary
First Quarter
(dollars in millions, except per share
amounts)
FY2025
FY2024
$ Change
% Change
Total revenues
$166.3
$161.4
$4.9
3%
Operating income
$20.9
$21.1
($0.2)
(1%)
Operating margin
12.6%
13.1%
Net earnings
$17.2
$15.0
$2.1
14%
Diluted earnings per share
$1.57
$1.36
$0.21
15%
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
First Quarter
(dollars in millions)
FY2025
FY2024
$ Change
% Change
Revenues:
North America
$77.7
$89.4
($11.7)
(13%)
International
$69.4
$50.8
$18.6
37%
Total revenues
$147.1
$140.2
$6.9
5%
Operating income
$24.7
$25.3
($0.6)
(2%)
Operating margin
16.8%
18.1%
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
First Quarter
(dollars in millions)
FY2025
FY2024
$ Change
% Change
Total revenues
$19.2
$21.2
($2.0)
(9%)
Operating income
$4.1
$3.6
$0.5
14%
Operating margin
21.5%
17.1%
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.
LINDSAY CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS
(Unaudited)
Three months ended
(in thousands, except per share
amounts)
November 30,
2024
November 30,
2023
Operating revenues
$
166,281
$
161,358
Cost of operating revenues
116,315
111,453
Gross profit
49,966
49,905
Operating expenses:
Selling expense
10,211
9,817
General and administrative expense
15,008
14,662
Engineering and research expense
3,864
4,352
Total operating expenses
29,083
28,831
Operating income
20,883
21,074
Other income (expense):
Interest expense
(752
)
(877
)
Interest income
1,245
1,068
Other income (expense), net
658
(270
)
Total other income (expense)
1,151
(79
)
Earnings before income taxes
22,034
20,995
Income tax expense
4,870
5,976
Net earnings
$
17,164
$
15,019
Earnings per share:
Basic
$
1.58
$
1.36
Diluted
$
1.57
$
1.36
Shares used in computing earnings per
share:
Basic
10,853
11,017
Diluted
10,903
11,059
Cash dividends declared per share
$
0.36
$
0.35
LINDSAY CORPORATION AND
SUBSIDIARIES
SUMMARY OPERATING
RESULTS
(Unaudited)
Three months ended
(in thousands)
November 30,
2024
November 30,
2023
Operating revenues:
Irrigation:
North America
$
77,669
$
89,377
International
69,418
50,791
Irrigation segment
147,087
140,168
Infrastructure segment
19,194
21,190
Total operating revenues
$
166,281
$
161,358
Operating income:
Irrigation segment
$
24,736
$
25,307
Infrastructure segment
4,124
3,619
Corporate
(7,977
)
(7,852
)
Total operating income
$
20,883
$
21,074
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)
November 30,
2024
November 30,
2023
August 31,
2024
ASSETS
Current assets:
Cash and cash equivalents
$
194,066
$
159,381
$
190,879
Marketable securities
—
16,278
—
Receivables, net
120,875
143,049
116,601
Inventories, net
158,255
164,144
154,453
Other current assets
28,948
18,450
31,279
Total current assets
502,144
501,302
493,212
Property, plant, and equipment, net
117,982
103,818
112,815
Intangibles, net
24,591
27,005
25,366
Goodwill
83,941
84,029
84,194
Operating lease right-of-use assets
15,009
17,544
15,693
Deferred income tax assets
12,375
12,712
14,431
Other noncurrent assets
14,959
17,508
14,521
Total assets
$
771,001
$
763,918
$
760,232
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
53,185
$
52,242
$
37,417
Current portion of long-term debt
229
227
228
Other current liabilities
76,435
89,502
88,171
Total current liabilities
129,849
141,971
125,816
Pension benefits liabilities
4,101
4,308
4,167
Long-term debt
114,948
115,120
114,994
Operating lease liabilities
14,824
17,746
15,541
Deferred income tax liabilities
646
695
678
Other noncurrent liabilities
18,174
17,218
18,143
Total liabilities
282,542
297,058
279,339
Shareholders' equity:
Preferred stock
—
—
—
Common stock
19,145
19,115
19,124
Capital in excess of stated value
104,995
98,628
104,369
Retained earnings
700,345
647,455
687,093
Less treasury stock - at cost
(299,703)
(277,238)
(299,692)
Accumulated other comprehensive loss,
net
(36,323)
(21,100)
(30,001)
Total shareholders' equity
488,459
466,860
480,893
Total liabilities and shareholders'
equity
$
771,001
$
763,918
$
760,232
LINDSAY CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
(in thousands)
November 30, 2024
November 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings
$
17,164
$
15,019
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization
5,412
5,307
Provision for uncollectible accounts
receivable
62
71
Deferred income taxes
1,589
(1,666
)
Share-based compensation expense
1,977
1,603
Unrealized foreign currency transaction
(gain) loss
(511
)
79
Other, net
(217
)
73
Changes in assets and liabilities:
Receivables
(6,442
)
1,689
Inventories
(5,968
)
(7,970
)
Other current assets
1,251
2,762
Accounts payable
16,656
7,087
Other current liabilities
(9,978
)
(4,263
)
Other noncurrent assets and
liabilities
608
2,081
Net cash provided by operating
activities
21,603
21,872
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and
equipment
(9,142
)
(6,941
)
Purchases of marketable securities
—
(12,992
)
Proceeds from maturities of marketable
securities
—
2,325
Proceeds from settlement of net investment
hedge
835
—
Payments for settlement of net investment
hedge
(98
)
—
Other investing activities, net
(401
)
(593
)
Net cash used in investing activities
(8,806
)
(18,201
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid
(3,912
)
(3,861
)
Common stock withheld for payroll tax
obligations
(1,450
)
(1,575
)
Other financing activities, net
52
56
Net cash used in financing activities
(5,310
)
(5,380
)
Effect of exchange rate changes on cash
and cash equivalents
(4,300
)
335
Net change in cash and cash
equivalents
3,187
(1,374
)
Cash and cash equivalents, beginning of
period
190,879
160,755
Cash and cash equivalents, end of
period
$
194,066
$
159,381
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250107375724/en/
LINDSAY CORPORATION: Alicia Pfeifer Vice President,
Investor Relations & Treasury 402-933-6429
Alicia.Pfeifer@lindsay.com
Alpha IR: Joe Caminiti or Stephen Poe 312-445-2870
LNN@alpha-ir.com
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