Overview

  • US irrigation and infrastructure maker's fiscal Q3 revenue fell 5% yr/yr, beating analyst expectations

  • Adjusted EPS declined 14% yr/yr as irrigation demand remained weak in North America and Brazil

  • Company completed $25.2 mln in share repurchases during the quarter

Outlook

  • Lindsay expects to recognize about $70 mln of MENA project revenue in fiscal 2026

  • Company anticipates continued growth in road safety products in infrastructure segment

  • Lindsay expects Brazil irrigation market to return to growth, but credit constraints may persist

Result Drivers

  • NORTH AMERICA IRRIGATION WEAKNESS - Co said North America irrigation revenues fell due to lower unit sales volume, persistent weakness in commodity markets, and high input costs affecting farmer sentiment

  • BRAZIL DEMAND SOFT - Co said Brazil irrigation revenues declined due to low profitability and limited credit availability

  • INFRASTRUCTURE GROWTH - Infrastructure revenues rose 8% yr/yr, driven by higher road safety product revenues

Company press release:

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$160.80 mln

$157.80 mln (4 Analysts)

Q3 EPS

$1.53

Q3 Net Income

$15.80 mln

Q3 Operating Income

$18.50 mln

Q3 Operating Margin

11.50%

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

  • Wall Street's median 12-month price target for Lindsay Corp is $124.00, about 2.4% above its July 1 closing price of $121.07

  • The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 18 three months ago

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