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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 Q4 earnings missing estimates, with softer North America irrigation sales offset by global gains. The company's quarterly earnings of $0.99 per share lagged the Zacks Consensus Estimate of $1.04 per share. Key metrics, including revenue and EPS, underperformed Wall Street estimates and year-ago numbers. The impending departure of CFO Brian Ketcham, to be succeeded by Sam Hinrichsen, may also have contributed to investor uncertainty.

1.c. Company Highlights

2. Lindsay Corporation's Fiscal 2025 Earnings: A Mixed Bag

Lindsay Corporation reported a revenue of $153.6 million for the fourth quarter of fiscal 2025, a 1% decrease from the prior year, while net earnings were $10.8 million or $0.99 per diluted share, missing analyst estimates of $1.04. For the full year, revenue increased 11% to $676.4 million, and net earnings rose 12% to $74.1 million, with earnings per share up 13% to $6.78. The company's operating margin remained relatively stable, with the Infrastructure segment experiencing a slight decline due to lower Road Zipper System project sales and lease revenues.

Publication Date: Nov -01

📋 Highlights
  • Full-Year Revenue & Earnings Growth:: Revenue rose 11% to $676.4M, net earnings increased 12% to $74.1M, and EPS grew 13% to $6.78 in fiscal 2025.
  • Segment Performance:: Irrigation international markets (South America, MENA, Australia) drove growth, while North America irrigation declined 19% and Infrastructure dropped 16%.
  • 2026 Outlook:: North American irrigation volume expected to fall low to mid-single digits, offset by price hikes and subscription revenue; international growth anticipated in Brazil and Australia.
  • Liquidity & Free Cash Flow:: Strong liquidity of $300M+ and free cash flow at 122% of net earnings, with CapEx rising to $50M in 2026 for galvanizing expansion.
  • Margin Stability:: Operating margin to remain steady at ~20% in Infrastructure, supported by price increases and recurring subscription revenue growth.

Segment Performance

The Irrigation segment saw revenue growth in international markets, particularly in South America, the Middle East, North Africa, and Australia, but North America irrigation revenues declined 19% due to lower unit sales volume. The Infrastructure segment experienced a 16% decrease in revenues, primarily due to lower Road Zipper System project sales and lease revenues. As management noted, international revenue faced a headwind due to the completion of a large project, but the company expects to backfill with new projects.

Outlook for Fiscal 2026

Looking ahead to fiscal 2026, the company expects North American irrigation headwinds to persist, with demand for irrigation equipment to remain suppressed until commodity prices and farm income improve. Internationally, early signs of recovery are evident in Brazil and other key growth markets. The company expects a low to mid-single-digit decline in North America irrigation volume, but flat revenue overall due to price increases and higher subscription revenue.

Valuation and Growth Prospects

With a P/E Ratio of 16.31 and an EV/EBITDA of 9.95, Lindsay Corporation's valuation appears reasonable. Analysts estimate next year's revenue growth at -2.6%. However, the company's strong liquidity position, with over $300 million in available liquidity, and free cash flow of 122% of net earnings, provide a solid foundation for future growth. The company's ROIC of 9.89% and ROE of 14.33% also indicate a healthy return on investment.

Margin Dynamics and Capex

The company expects stable margin dynamics, with an operating margin of around 20% in the infrastructure business. CapEx is expected to be around $50 million in 2026, up from previous years, due to the expansion of the galvanizing investment. Free cash flow potential may be slightly lower in 2026 due to increased CapEx and less potential for inventory management improvements.

3. NewsRoom

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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

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Lindsay Corporation $LNN Shares Sold by Teacher Retirement System of Texas

Nov -06

Source: defenseworld.net

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Lindsay Corporation Announces New $150 Million Share Repurchase Program

Nov -05

Source: businesswire.com

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Mutual of America Capital Management LLC Sells 187 Shares of Lindsay Corporation $LNN

Oct -31

Source: defenseworld.net

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Lindsay Share Price Decreases 7% as Earnings Miss Estimates in Q4

Oct -28

Source: zacks.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: 6.0/10

Value: 5.3

Growth: 6.4

Quality: 6.7

Yield: 2.0

Momentum: 7.0

Volatility: 8.3

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Alamo Group

A-Score: 5.8/10

Value: 5.2

Growth: 7.1

Quality: 6.6

Yield: 1.0

Momentum: 6.0

Volatility: 8.7

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Wabash

A-Score: 4.9/10

Value: 9.6

Growth: 3.3

Quality: 6.5

Yield: 6.0

Momentum: 0.5

Volatility: 3.3

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Hyster-Yale

A-Score: 4.9/10

Value: 7.0

Growth: 6.4

Quality: 3.6

Yield: 7.0

Momentum: 0.5

Volatility: 4.7

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Gencor

A-Score: 3.9/10

Value: 5.3

Growth: 7.4

Quality: 6.0

Yield: 0.0

Momentum: 0.5

Volatility: 4.3

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Columbus McKinnon

A-Score: 2.6/10

Value: 5.2

Growth: 2.1

Quality: 3.4

Yield: 2.0

Momentum: 0.5

Volatility: 2.7

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

118.88$

Current Price

118.88$

Potential

-0.00%

Expected Cash-Flows