Lindsay (LNN) Q2 2025 earnings summary

Executive summary

• Achieved record quarterly net earnings, up 47% to $26.6 million ($2.44 per diluted share), driven by 23% revenue growth to $187.1 million, led by international irrigation (notably MENA) and a major Road Zipper System project.

• Infrastructure segment revenues surged 110% to $38.9 million, with operating income up 278% to $13.3 million, reflecting completion of a large project.

• Operating income increased 45% to $32.1 million, with margin expanding to 17.2% from 14.6% year-over-year.

• International irrigation revenue rose 42% to $71 million, offsetting a 7% decline in North America irrigation revenue.

• Backlog increased to $127.0 million, primarily from a multi-year MENA irrigation project.

Financial highlights

• Q2 revenue rose 23% year-over-year to $187.1 million; net earnings up 47% to $26.6 million; diluted EPS up 49% to $2.44.

• Irrigation segment revenue up 11% to $148.1 million; infrastructure segment revenue up 110% to $38.9 million.

• Operating income for Q2 was $32.1 million (+45% YoY); operating margin improved to 17.2% from 14.6%.

• Gross margin for the quarter was 33.4%, up from 32.3% year-over-year.

• Cash and equivalents at quarter-end were $186.7 million; net working capital was $381.8 million.

Outlook and guidance

• North America irrigation demand expected to remain stable, with no near-term improvement despite higher U.S. net farm income forecasts.

• International irrigation, especially in developing regions and MENA, projected to continue growing, though subject to regional volatility and project timing.

• Infrastructure segment outlook remains positive, supported by federal funding and a strong project pipeline, but timing of large projects is uncertain.

• Tariff impacts expected to be marginal and largely passed through pricing; mitigation plans in place.

• FY2025 capital expenditures expected between $35–$40 million, focused on modernization and productivity.