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Apr. 3, 2025 Source: Lindsay Corporation 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 second quarter ended February 28, 2025. Key Highlights *Quarterly net earnings increase 47 percent and diluted EPS increase 49 percent *International project volume in the Middle East and North Africa (MENA) region contributes to 11 percent revenue growth in irrigation *Infrastructure revenues more than double on the completion of a large Road Zipper System- project *Plans are in place to mitigate the potential impact of tariffs and retaliatory actions "Strength in international irrigation more than offset expected softness in the North America irrigation market, driving overall irrigation revenue growth in our fiscal second quarter," said Randy Wood, President and Chief Executive Officer. "During the quarter, we continued delivery of our large irrigation project in the MENA region in addition to realizing increased sales in other parts of this developing region. In Brazil, our unit sales volume was comparable to the prior year as market conditions improved during the quarter. Our infrastructure business delivered outstanding results in the quarter, evidenced by strong revenue growth and significant margin expansion, which was driven by the execution of a large Road Zipper System project that we delivered in the period." Wood continued, "I am pleased with the resiliency and performance of our teams around the world, as we demonstrate our ability to capture and deliver on project opportunities in both of our businesses. Our strong execution on these projects allowed us to deliver margin expansion and net earnings growth despite a tempered demand environment in core irrigation markets." Outlook Mr. Wood concluded, "In February, the USDA released its initial forecast for 2025 U.S. net farm income, which estimated a 29 percent increase compared to 2024. The forecast anticipates higher government support payments while crop receipts are forecasted to be slightly lower than the prior year. Accordingly, we don't expect this forecast of 2025 U.S. net farm income to result in a meaningful improvement in demand for irrigation equipment in North America in the near term. In Brazil, commodity prices are improving, however the rising interest rate environment continues to be a headwind to investment. Elsewhere in international irrigation we remain encouraged by the growth in developing markets, highlighted by project activity in the MENA region." "Second quarter performance in our infrastructure business supports full year growth for fiscal 2025. Anticipated increased U.S. infrastructure funding, although partially offset by the impact of inflation on construction costs, remains supportive of opportunities for Road Zipper System lease revenues and sales of road safety products. We also remain optimistic regarding our Road Zipper System project sales pipeline; however the timing of individual projects remains challenging to predict." "In regard to the U.S.'s recently announced tariffs on imports from Canada, Mexico, China and other countries, we have implemented a comprehensive action plan that includes supplier negotiation, strategic inventory placement, and other supply chain initiatives to manage potential cost impacts to our business. We anticipate the impact of the proposed tariffs to result in a marginal increase to our cost of goods, which we would expect to pass through to the market through increased pricing of our products. We are also evaluating the potential impact of additional tariffs or retaliatory actions. While the situation remains fluid, we plan to utilize our global footprint and supply chain to minimize the potential impact of these actions on our business and our customers." To read the entire report click here. Tweet |
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