LINDSAY CORP Q1 FY2026 earnings call

• Randy Wood acknowledges team execution despite external headwinds. Domestic U.S. irrigation has delayed large purchases; international has project strength, including a $80M MENA deal with $70M revenue this fiscal year.
• Infrastructure segment had 17% y-o-y revenue growth, with solid interest in Road Zipper.
• Market outlook: North America market conditions to remain soft; U.S. farmer assistance won't drive immediate demand. International Latin America has long-term growth potential but near-term credit constraints. Infrastructure sales funnel strong.
• Financial results: Total revenue $155.8M, down 6% y-o-y. Operating income $19.6M, down 6%. Net earnings $16.5M, down slightly. Balance sheet: $249.6M liquidity, $30.3M share repurchased, new $150M share repurchase authorization.

Irrigation Segment

• Revenue: $133.4 million in Q1 2026, down 9% y-o-y. North America irrigation revenue: $74.3 million, down 4% y-o-y (partially offset by higher average selling prices). International irrigation revenue: $59.1 million, down due to project timing and Brazil's constraints. Contribution: Irrigation segment contributed a significant portion, with operating income at $23 million, down $1.8 million y-o-y, and margin at 17.2% (up from 16.8%).

Infrastructure Segment

• Revenue: $22.4 million in Q1 2026, up 17% y-o-y (driven by road safety products). Operating income: $4.5 million, up 9% y-o-y, with margin at 20.1% (down from 21.5% due to higher operating expenses).

• North America market conditions expected to remain soft in the near term.
• International Latin America has long-term growth potential despite near-term credit constraints.
• Infrastructure segment expects further momentum with infrastructure funding and road projects.
• $80M MENA project has $70M revenue realization this fiscal year.
• CapEx investments in Nebraska tube mill and galvanizing facility, expecting margin improvements post-completion.

• Ongoing trade uncertainty, low commodity prices, and high input costs impacting customer profitability and sentiment.
• Uncertainty in timing of project revenues in the MENA region.
• Elevated interest rates and credit access constraints in Latin America tempering equipment investment.
• Road Zipper is a lumpy business, leading to difficult year-over-year comparisons.

Q: Nathan Jones asks about North America irrigation trough, risks of further decline, and international projects.

A: Randy Wood says North America is bouncing along the trough, no immediate improvement but no further decline; international has robust funnel with repeat and new customers in MENA.

Q: Brian Drab asks about MENA project details and margin, and accelerated depreciation.

A: Randy Wood says it's a repeat customer in MENA, margin slightly below segment average; no significant impact from accelerated depreciation due to macro drivers.

Q: Ryan Connors asks about North America run rate, price vs volume, interest income, and Infrastructure Road Zipper.

A: Randy Wood says North America flat to down for full year; Sam Hinrichsen says North America average selling prices up, interest income driven by regional interest rates; Road Zipper is lumpy, with long-term growth potential.

Q: Brett Kearney asks about international irrigation technology adoption.

A: Randy Wood says MENA agro operations want advanced technology like FieldNET for efficiency in desert conversion.