Lindsay Corporation

What they do

Lindsay manufactures and markets center pivot, lateral move, and hose reel irrigation systems under the Zimmatic and Perrot brands, along with repair parts, controls, and large diameter steel tubing. It also produces moveable barriers, crash cushions, road marking and safety equipment, and railroad signals through its Infrastructure segment. The company operates manufacturing facilities in the U.S. (Lindsay and Norfolk, Nebraska; Olathe, Kansas; Rio Vista, California) and internationally in Brazil, France, China, Türkiye, South Africa, and Italy, with sales and distribution in the Netherlands, Egypt, Australia, and New Zealand.

Revenue drivers

• Irrigation Segment — Generates revenue from the sale of center pivot and lateral move irrigation systems, hose reel travelers, repair and replacement parts, and large diameter steel tubing. In Q3 FY2026, Irrigation revenues were $133.0 million, representing about 83% of total quarterly revenues.
• Infrastructure Segment — Revenue comes from moveable barriers, specialty barriers, crash cushions, road marking and safety equipment, railroad signals, and infrastructure monitoring technology. In Q3 FY2026, Infrastructure revenues were $27.7 million, about 17% of total quarterly revenues, and increased 8% year-over-year.
• North America Irrigation — Sales of irrigation equipment in the U.S. and Canada, subject to agricultural commodity prices and farm income. Q3 FY2026 North America irrigation revenues were $61.3 million, down 11% from the prior year.
• International Irrigation — Sales of irrigation systems and parts outside North America, including a large project in the Middle East North Africa (MENA) region. Q3 FY2026 international irrigation revenues were $71.7 million, down 4% year-over-year.

Recent performance

For the third quarter of fiscal 2026 ended May 31, 2026, Lindsay reported total revenues of $160.8 million, down 5% from $169.5 million in the prior-year quarter. Net earnings were $15.8 million, or $1.53 per diluted share, compared to $19.5 million, or $1.78 per diluted share, in Q3 FY2025. Operating income fell 22% to $18.5 million, and operating margin declined to 11.5% from 14.0%. Irrigation segment revenues decreased 7% to $133.0 million due to lower unit sales volume and challenging market conditions in North America and Brazil, partially offset by higher average selling prices. Infrastructure segment revenues increased 8% to $27.7 million, driven by road safety products.

Strategy

Lindsay continues to invest in innovative irrigation technologies such as GPS positioning and guidance, variable rate irrigation, wireless irrigation management, and IIoT solutions to strengthen its product offerings. The company is executing a large irrigation project in the MENA region, which remains on schedule despite geopolitical challenges. It is also focused on growing its road safety products business, which has delivered consecutive quarters of growth. During Q3 FY2026, the company repurchased $25.2 million of shares, bringing total fiscal year repurchases to $80.7 million.

Risks

• Commodity price and farm income pressure — Lower agricultural commodity prices and high input costs reduce farmer sentiment and demand for irrigation equipment in North America, as evidenced by an 11% decline in North America irrigation revenues in Q3 FY2026.
• Brazil market weakness — Demand in Brazil is impacted by low profitability and limited credit availability, contributing to the 4% decline in international irrigation revenues in Q3 FY2026.
• Geopolitical uncertainty — The large MENA irrigation project faces continued geopolitical challenges that could affect delivery schedules or costs, although it remains on schedule.
• Margin compression — Gross margins declined in both segments in Q3 FY2026, leading to a 22% drop in operating income and a reduction in operating margin to 11.5% from 14.0%.

Outlook

Management stated that deliveries for the large MENA irrigation project remain on schedule despite geopolitical challenges. In North America, demand for irrigation equipment remains tempered as margin pressure from high input costs impacts customer sentiment, and in Brazil demand continues to be affected by low profitability and limited credit availability. The company expects continued growth in road safety products as the northern hemisphere enters road construction season.