Lindsay (LNN) investor relations material

Executive summary

• Revenues for Q1 FY2026 declined 6% year-over-year to $155.8 million, with irrigation segment down 9% and infrastructure up 17% due to strong road safety product sales.

• Net earnings were $16.5 million ($1.54 per diluted share), slightly down from $17.2 million ($1.57 per share) in the prior year.

• Operating margin held steady at 12.6% despite lower revenues, supported by improved cost management.

• Secured a major $80 million irrigation and technology project in the MENA region after quarter-end, with $70 million expected to be recognized in FY2026.

• Completed $30.3 million in share repurchases during the quarter and authorized a new $150 million repurchase program.

Financial highlights

• Total revenues were $155.8 million, down 6% year-over-year, with irrigation revenue at $133.4 million (down 9%) and infrastructure at $22.4 million (up 17%).

• Operating income was $19.6 million, down 6% from the prior year, with an operating margin of 12.6%.

• Gross profit was $50.1 million, with gross margin improving to 32.2% from 30.0% year-over-year.

• Net earnings were $16.5 million ($1.54 per diluted share); basic EPS was $1.55.

• Cash and cash equivalents at quarter-end were $199.6 million, down from $250.6 million at the prior quarter-end.

Outlook and guidance

• North American irrigation market expected to remain flat to down for the full year, with trough conditions persisting.

• International project pipeline remains robust, especially in the MENA region, with $70 million in revenue from the new project anticipated in FY2026.

• Infrastructure segment expected to maintain momentum, though no large Road Zipper project is anticipated in FY2026, creating a tough year-over-year comparison.

• Fiscal 2026 capital expenditures are expected to range from $50 million to $55 million, focused on modernization and productivity improvements.

• Brazil irrigation demand faces ongoing credit constraints, but secular growth drivers remain positive.