Lindsay (LNN) Q1 2025 earnings summary

Executive summary

• Fiscal Q1 2025 revenue rose 3% year-over-year to $166.3M, driven by strong international irrigation growth, especially in the MENA region, while North America and infrastructure revenues declined.

• Net earnings increased 14% to $17.2M ($1.57 per diluted share), aided by higher other income and a lower effective tax rate.

• Infrastructure segment operating margin improved to 21.5% despite a 9% revenue decline, reflecting cost management and efficiency gains.

• Backlog at quarter-end more than doubled year-over-year to $168.2M, mainly due to the MENA irrigation project.

• A $20M+ Road Zipper System contract was secured for Q2 delivery, and a minority stake in Pessl Instruments was acquired.

Financial highlights

• Consolidated revenues rose to $166.3M (+3% YoY); irrigation up 5% to $147.1M, infrastructure down 9% to $19.2M.

• Net earnings: $17.2M (+14% YoY); diluted EPS: $1.57 (+15% YoY); operating income: $20.9M (-1% YoY).

• Gross profit: $50.0M (flat YoY); gross margin: 30.0% (vs. 30.9% YoY); cash and equivalents: $194.1M at quarter-end.

• Operating cash flow: $16.7M for the quarter, up from $7.1M a year ago.

• Dividend paid: $0.36 per share; $4.3M in the quarter.

Outlook and guidance

• Continued strong performance expected in international markets, especially MENA, with robust project pipeline.

• North America and Brazil irrigation markets expected to remain soft near-term due to low commodity prices and farm income, but stabilization is emerging.

• Infrastructure demand supported by U.S. federal funding, though inflation tempers benefits.

• Capital expenditures for fiscal 2025 projected at $35–40M, focused on modernization and productivity.

• Lower effective tax rate expected due to earnings shift to lower-tax jurisdictions.