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![]() Jan. 7, 2025 Source: Lindsay Corp. news release OMAHA, Neb. - 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," said Randy Wood, President and Chief Executive Officer. "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. "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." 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. 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. To read the entire report click here. Tweet |
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