Lindsay (NYSE:LNN) executives pointed to continued pressure in North American irrigation demand and a lumpy international project environment as the company reported fiscal first-quarter 2026 results, while highlighting an $80 million Middle East and North Africa (MENA) supply agreement announced after quarter-end and year-over-year growth in its infrastructure segment.
Management cites headwinds, emphasizes cost and pricing discipline
President and CEO Randy Wood said ongoing trade uncertainty, low commodity prices, and high input costs have weighed on customer profitability and sentiment, contributing to delayed large capital purchases in the company’s domestic U.S. irrigation business. Despite those conditions, Wood said the company’s focus on price and cost management and operational efficiencies—supported by a diversified global footprint—helped maintain profitability and “earnings quality” during the quarter.
$80 million MENA agreement highlighted; timing remains a factor
After the fiscal first quarter ended, Lindsay announced a supply agreement to provide Zimmatic irrigation systems and FieldNet remote management and scheduling technology in the MENA region. Wood said the project is valued at approximately $80 million in total revenue, with about $70 million expected to be realized in fiscal 2026.
During the Q&A, Wood confirmed the new order is with a repeat customer in the same part of the world as a previously announced project. He also described the project pipeline as robust, with a “multi-year runway” of opportunities across the MENA region driven by food security priorities. However, he cautioned that large projects involve complex negotiations and can be slowed by credit and logistics, making it difficult to predict whether another project could close during fiscal 2026.
On profitability, Wood said margins on large projects are generally dilutive to the overall business, though they can provide operational efficiencies and absorption in Lindsay’s facilities. He indicated the margin profile on the new project will be “as good as or better” than the prior project, but “slightly below” the irrigation segment average.
Wood also addressed technology adoption in these international developments, saying large-scale operations in the region seek “every piece of technology” available to maximize efficiency in production and use of water and energy. He added that FieldNet and FieldNet Advisor are important parts of that mix.
First-quarter results: revenue and earnings modestly lower
Chief Financial Officer Sam Henriksen, participating in his first earnings call in the role, reported total revenue of $155.8 million for the fiscal first quarter, down 6% from $166.3 million a year earlier. The decline was attributed to lower volumes in the irrigation segment amid the same trade and commodity price uncertainty and higher input costs cited by management, partially offset by growth in the infrastructure segment.
Operating income was $19.6 million, down 6% from $20.9 million, while operating margin was 12.6%, consistent with the prior year. Henriksen said the margin performance reflected execution of the company’s operational strategy, alongside cost and pricing management, even with lower revenue.
Net earnings were $16.5 million, or $1.54 per diluted share, compared with $17.2 million, or $1.57 per diluted share, in the year-ago quarter. Henriksen said the difference was largely due to lower operating income and a slightly higher effective tax rate, partially offset by increased other income.
- Total revenue: $155.8 million (down 6% year over year)
- Operating income: $19.6 million (down 6%)
- Operating margin: 12.6% (flat year over year)
- Net earnings: $16.5 million, or $1.54 per diluted share (vs. $17.2 million, or $1.57)
Segment performance: irrigation down, infrastructure up
Irrigation segment revenue was $133.4 million, down 9% from $147.1 million. North America irrigation revenue declined 4% to $74.3 million from $77.7 million. Henriksen said lower unit volume was partially offset by higher average selling prices, and later emphasized the company’s “price stewardship” and cost management as contributors to maintaining margins.
International irrigation revenue was $59.1 million, down from $69.4 million. Henriksen attributed the decline primarily to the unpredictable timing of MENA project revenue—citing a gap between last year’s project and the recently awarded new project—and to lower-than-anticipated sales volumes in Brazil. He said Brazil remains constrained by elevated interest rates and an unfavorable credit environment that is weighing on growers’ investment activity. The international decline was partially offset by about $1.5 million in favorable foreign currency translation.
Irrigation segment operating income was $23.0 million, down from $24.7 million, while segment operating margin improved to 17.2% from 16.8% despite the lower revenue base.
Infrastructure segment revenue increased 17% to $22.4 million from $19.2 million, driven by higher sales of road safety products, while Road Zipper system revenue was similar to the prior year. Infrastructure operating income rose 9% to $4.5 million, though operating margin declined to 20.1% from 21.5% due to higher operating expenses.
Outlook: trough conditions in North America; Road Zipper remains lumpy
Wood said Lindsay expects “softer market conditions to persist” in North America until there is more clarity on international trade impacts and an improvement in customer profitability. Asked whether the domestic irrigation market is at a trough, Wood said the company agrees it is “bouncing along the trough,” with management not expecting meaningful near-term improvement, but also not expecting conditions to get progressively worse.
He noted a $12 billion Farmer Bridge assistance package announced by the U.S. administration, including one-time payments of about $44 per acre for corn and $31 per acre for soybeans, but said Lindsay does not expect it to drive significant incremental demand in the short term. Wood also said the company did not see a meaningful demand impact from accelerated depreciation, citing broader negative macro drivers that outweighed any potential benefit.
On North America irrigation for the full year, Wood said Lindsay is planning for conditions that are “flat to down,” noting that storm-related demand in the fourth quarter can be a swing factor. Henriksen reiterated that average selling prices in North America were up in the first quarter.
In the infrastructure segment, Wood said the company continues to see opportunities across system sales, leasing, and road safety products, with a strong sales funnel. However, Lindsay reiterated that it does not expect a large Road Zipper project to exit the funnel in fiscal 2026, creating a difficult comparison—particularly in the second quarter—after shipping a large $20 million project last year. Wood said management sees potential to offset about half of that total through smaller projects and other growth, mainly in the second half of the fiscal year. He also said the company remains encouraged by its Road Zipper leasing model, which he said is gaining traction and supports a more stable margin profile over time.
Henriksen also discussed capital spending and plant upgrades, including a large tube mill investment in Lindsay, Nebraska that has been activated and is expected to move into full production after vendor certification. Wood said a separate galvanizing facility investment will continue through the calendar year, with production potentially beginning around the end of calendar 2026. Henriksen said the project has not yet affected first-quarter margins and that, at current demand levels, incremental depreciation would offset productivity gains, with margin improvement expected via operating leverage when demand increases after completion.
On capital allocation, Henriksen said the company ended the quarter with total available liquidity of $249.6 million, including $199.6 million in cash and cash equivalents and $50 million available under its revolving credit facility. He added that the company repurchased $30.3 million of shares during the quarter, exhausting its prior authorization, and announced a new share repurchase program of up to $150 million.
About Lindsay (NYSE:LNN)
Lindsay Corporation (NYSE: LNN) is a U.S.-based manufacturer of agricultural irrigation and infrastructure products. Headquartered in Omaha, Nebraska, the company has built a reputation for designing and producing center pivot and lateral‐move irrigation systems under the Zimmatic brand. These systems feature advanced controls, precision sprinklers and automated monitoring technology that help growers optimize water use, improve crop yields and enhance sustainability in a variety of row-crop, specialty crop and forage operations.
Beyond its core irrigation business, Lindsay operates an infrastructure segment that delivers engineered products and services for water and roadway management.
