Lindsay (LNN) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 delivered profitable operating performance despite challenging irrigation market fundamentals, with strong execution in both irrigation and infrastructure segments; North America irrigation demand was steady, while international softness, especially in Brazil, was partially offset by a large MENA project.

• Infrastructure segment growth was driven by new product launches, increased Road Zipper System sales and lease revenues, and higher U.S. infrastructure spending.

• Share repurchases totaled $22.5 million for the year, including $4.6 million in Q4.

Financial highlights

• Q4 revenues were $155.0 million, down 7% year-over-year; net earnings were $12.7 million ($1.17 per share), down 33%; Q4 operating income was $13.5 million, down 42%.

• Full-year revenues were $607.1 million, down 10%; net earnings were $66.3 million ($6.01 per share), down 8%; operating income was $76.6 million, down 25%.

• Free cash flow for the year was $66.8 million, representing 101% of net earnings.

• Backlog at year-end was $180.9 million, up 130% from the prior year, driven by the MENA project.

Outlook and guidance

• North American irrigation market expected to be slightly down in 2025 unless net farm income improves; Brazil and Latin America to remain soft until farm profitability and credit availability recover.

• Large MENA project to continue shipping through fiscal 2025, with $80 million expected to ship next year.

• U.S. infrastructure spending anticipated to increase in 2025, supporting growth in Road Zipper sales and leases.

• Anticipated tax rate for fiscal 2025 is around 25%.