Lindsay Q2 revenue misses estimates on North America irrigation unit weakness

Overview

• U.S. irrigation and infrastructure firm's fiscal Q2 revenue fell 16%, missing analyst expectations

• Diluted EPS for fiscal Q2 dropped 53% yr/yr to $1.15

• Company repurchased $25.2 mln of shares during the quarter

Outlook

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

• Company anticipates growth in road safety products in infrastructure segment

• Lindsay does not expect to deliver a large Road Zipper System project in fiscal 2026

Result Drivers

• NORTH AMERICA IRRIGATION WEAKNESS - Co said lower unit sales volume and soft commodity markets constrained demand for irrigation equipment in North America

• BRAZIL CREDIT CONSTRAINTS - Co said credit availability and high interest rates limited farmers' ability to invest in capital equipment in Brazil

• INFRASTRUCTURE PROJECT COMPARISON - Co said infrastructure revenue fell due to a large Road Zipper System project in the prior year that did not repeat

Company press release: ID:nBwbtgDX6a

Key Details

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 $139.00, about 18.7% above its April 1 closing price of $117.15

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

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