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1. Company Snapshot

1.a. Company Description

Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally.The company operates in two segments, Irrigation and Infrastructure.The Irrigation segment manufactures and markets center pivot, lateral move irrigation systems, and irrigation controls under the Zimmatic brand; hose reel travelers under the Perrot and Greenfield brands; and chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems under the GrowSmart brand.


It also offers repair and replacement parts for its irrigation systems and controls; global positioning system positioning and guidance, variable rate irrigation, wireless irrigation management, irrigation scheduling, and smartphone applications; and industrial Internet of Things technology solutions, data acquisition and management systems, and custom electronic equipment for applications under the Elecsys brand.The Infrastructure segment provides Quickchange moveable barrier systems that help in highway reconstruction, paving and resurfacing, road widening, median and shoulder construction, and tunnels and bridge repairs; and re-directive and non-re-directive crash cushions, which are used to enhance highway safety at locations, such as toll booths, freeway off-ramps, medians and roadside barrier ends, bridge supports, utility poles, and other fixed roadway hazards.It also offers specialty barrier products; road marking and road safety equipment; and railroad signals and structures, and diameter steel tubing products, as well as outsourced manufacturing and production services for other companies.


The company serves departments of transportation, municipal transportation road agencies, roadway contractors, subcontractors, distributors, and dealers.Lindsay Corporation was founded in 1954 and is headquartered in Omaha, Nebraska.

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1.b. Last Insights on LNN

Lindsay Corporation's recent performance was negatively impacted by its Q4 earnings miss, with softer North America irrigation sales offset by global gains. The company's earnings of $0.99 per share missed the Zacks Consensus Estimate of $1.04 per share. Despite this, the company announced a new $150 million share repurchase program, indicating a commitment to delivering value to shareholders. Additionally, several institutional investors, including American Century Companies Inc., have increased their stakes in the company, suggesting confidence in its future prospects.

1.c. Company Highlights

2. Lindsay Corporation's Q1 FY2026: A Mixed Bag with Irrigation Segment Decline

Lindsay Corporation reported total revenues of $155.8 million for its fiscal 2026 first quarter, down 6% year-over-year, primarily due to lower irrigation segment volumes. The operating income was $19.6 million, also down 6%, resulting in an operating margin of 12.6%. Net earnings were $16.5 million, or $1.54 per diluted share, beating analyst estimates of $1.46. The irrigation segment revenue decreased 9% to $133.4 million, driven by lower volumes, partially offset by higher average selling prices.

Publication Date: Jan -09

📋 Highlights
  • Revenue Decline:: ...
  • Irrigation Segment Performance:: ...
  • Infrastructure Growth:: ...
  • New Project and Liquidity:: ...
  • Financial Strategies and Margins:: ...
  • Revenue Decline:: Total revenues fell 6% to $155.8M YoY, driven by a 9% drop in irrigation segment sales to $133.4M.
  • Infrastructure Growth:: Infrastructure revenue rose 17% to $22.4M with operating income up 9% to $4.5M.
  • New Project & Liquidity:: Announced an $80M Middle East/North Africa project ($70M projected FY26 revenue); liquidity at $249.6M.
  • Share Repurchases:: $30.3M spent on buybacks in Q1 under a new $150M authorization.
  • Margin Outlook:: New project margins expected slightly below irrigation segment average, but infrastructure and pricing gains to support margin stability.

Irrigation Segment Performance

The irrigation segment saw a decline in revenues, with North America irrigation revenues down 4% to $74.3 million and international irrigation revenues down 15% to $59.1 million. The decline was attributed to lower volumes, but the company noted that higher average selling prices partially offset the impact. The company's new $80 million project in the Middle East and North Africa region is expected to contribute approximately $70 million in revenue this fiscal year, with a margin profile slightly below the irrigation segment average.

Infrastructure Segment Growth

The Infrastructure segment delivered a solid performance, with revenues up 17% to $22.4 million and operating income up 9% to $4.5 million. The company expects further momentum in the infrastructure segment as road construction activity and infrastructure funding advance. The Road Zipper business, characterized as a lumpy project-oriented business, has many projects in the sales funnel, and the company is engaged with customers on specific projects.

Outlook and Valuation

The company expects softer market conditions to persist in North America in the near term, but international markets, particularly in Latin America and the Middle East, show growth potential. Analysts estimate revenue growth of 6.8% for the next year. With a current P/E Ratio of 18.41 and an EV/EBITDA of 11.24, the stock appears to be reasonably valued. The company's return on equity (ROE) is 14.01%, and the return on invested capital (ROIC) is 9.93%, indicating a decent profitability profile.

Capital Management

Lindsay Corporation deployed $30.3 million into share repurchases in the quarter and has a new authorization of up to $150 million. The company had total available liquidity of $249.6 million at the end of the quarter. The interest income line saw a significant contribution in Q1, driven by the regional mix of funds and interest rates. The company's net debt to EBITDA ratio is -0.58, indicating a healthy debt position.

3. NewsRoom

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Lindsay Q1 Earnings Beat Estimates, Revenues Decrease 6% Y/Y

Jan -12

Source: zacks.com

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Lindsay Corporation (LNN) Q1 2026 Earnings Call Transcript

Jan -08

Source: seekingalpha.com

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Helmerich & Payne Announces John Lindsay Retirement, Appoints Trey Adams as Next CEO

Dec -11

Source: businesswire.com

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Cresset Asset Management LLC Has $925,000 Stake in Lindsay Corporation $LNN

Dec -11

Source: defenseworld.net

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Lindsay Corporation $LNN Shares Acquired by American Century Companies Inc.

Dec -03

Source: defenseworld.net

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2 Farm Equipment Stocks Worth Watching Amid Industry Challenges

Nov -26

Source: zacks.com

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Bank of New York Mellon Corp Has $13.57 Million Stock Position in Lindsay Corporation $LNN

Nov -19

Source: defenseworld.net

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KinderCare Announces Lindsay Sorhondo as New COO to Lead Next Phase of Growth

Nov -10

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.41%)

6. Segments

Irrigation

Expected Growth: 3.5%

Lindsay Corporation's 3.5% growth in irrigation is driven by increasing global demand for efficient water management, adoption of precision agriculture, and government initiatives promoting sustainable farming practices. Additionally, the company's innovative products, such as pivot irrigation systems, and strategic acquisitions have contributed to its growth momentum.

Infrastructure

Expected Growth: 2.8%

Lindsay Corporation's Infrastructure segment growth of 2.8% is driven by increasing demand for road safety and traffic management solutions, investments in smart city initiatives, and government funding for infrastructure development projects. Additionally, the company's focus on innovation, such as its Road Zipper system, is contributing to its growth in this segment.

7. Detailed Products

Irrigation Systems

Lindsay Corporation provides irrigation systems that help farmers and growers to optimize water usage and increase crop yields.

Pivot Irrigation Systems

Lindsay Corporation's pivot irrigation systems are designed for efficient water distribution and crop management.

Lateral Move Irrigation Systems

Lindsay Corporation's lateral move irrigation systems provide flexible and efficient irrigation solutions for various crops.

Center Pivot Irrigation Systems

Lindsay Corporation's center pivot irrigation systems are designed for efficient water distribution and crop management.

Road Zipper

Lindsay Corporation's Road Zipper is a movable barrier system designed for highway construction and traffic management.

Traffic Management Solutions

Lindsay Corporation provides traffic management solutions for highway construction and traffic management.

8. Lindsay Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Lindsay Corporation's irrigation systems and infrastructure products have some substitutes, but they are not easily replaceable due to their high quality and customization options.

Bargaining Power Of Customers

Lindsay Corporation's customers have limited bargaining power due to the company's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

Lindsay Corporation's suppliers have some bargaining power due to the company's dependence on them for raw materials, but the company's large scale of operations helps to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the irrigation systems and infrastructure products industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The irrigation systems and infrastructure products industry is highly competitive, with several established players competing for market share, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.00%
Debt Cost 3.95%
Equity Weight 77.00%
Equity Cost 7.08%
WACC 6.36%
Leverage 29.87%

11. Quality Control: Lindsay Corporation passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Lindsay

A-Score: 5.4/10

Value: 5.4

Growth: 6.3

Quality: 6.6

Yield: 2.0

Momentum: 3.5

Volatility: 8.3

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Alamo Group

A-Score: 5.2/10

Value: 5.8

Growth: 7.0

Quality: 6.3

Yield: 1.0

Momentum: 3.0

Volatility: 8.3

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Wabash

A-Score: 5.0/10

Value: 9.8

Growth: 3.3

Quality: 6.5

Yield: 6.0

Momentum: 0.5

Volatility: 3.7

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Hyster-Yale

A-Score: 4.8/10

Value: 6.5

Growth: 6.4

Quality: 3.3

Yield: 7.0

Momentum: 1.5

Volatility: 4.3

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Gencor

A-Score: 4.0/10

Value: 5.9

Growth: 6.3

Quality: 6.5

Yield: 0.0

Momentum: 0.5

Volatility: 4.7

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Columbus McKinnon

A-Score: 3.0/10

Value: 5.7

Growth: 2.1

Quality: 3.5

Yield: 3.0

Momentum: 0.5

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

126.65$

Current Price

126.65$

Potential

-0.00%

Expected Cash-Flows