Lindsay Corporation

Third-quarter fiscal 2026 revenue was $160.8 million, down 5% from $169.5 million a year ago. Operating income was $18.5 million versus $23.8 million last year, and operating margin was 11.5% compared with 14.0%. Net earnings were $15.8 million, or $1.53 per diluted share, versus $19.5 million, or $1.78 per diluted share. Irrigation revenue was $133.0 million, down 7%, including North America at $61.3 million, down 11%, and international at $71.7 million, down 4%. Infrastructure revenue was $27.7 million, up 8%. Management did not give formal next-quarter or full-year revenue/EPS guidance, but said Q4 should be typical to down seasonally, Brazil project activity may begin to show in fiscal Q1 2027, and savings from restructuring are expected to begin in fiscal 2027. They also said they expect sustained double-digit technology revenue growth in fiscal 2026.

Randy Wood said the quarter reflected a difficult cyclical bottom in agricultural markets, with trade uncertainty, high input costs, and weak farmer sentiment still weighing on demand. He emphasized staying focused on controllable levers like pricing, cost management, operational efficiency, and strategic investment, while also calling out long-term opportunities in Brazil, the Middle East, technology, and road safety. His tone was cautious near term but constructive on the long-term business and product roadmap.

Sam Hinrichsen said the quarter’s $160.8 million in revenue and $1.53 EPS reflected continued irrigation softness partly offset by infrastructure growth. He pointed to operating margin of 11.5%, a year-over-year decline driven by lower revenue and fixed cost leverage, and noted that a one-time tariff refund benefit partially offset tariff costs incurred to date. He also highlighted $204.8 million of total available liquidity, including $154.8 million in cash and cash equivalents and $50 million available on the revolver, $35.5 million of capex in the first nine months, and $25.2 million of share repurchases in the quarter, bringing nine-month repurchases to $80.7 million.

Analysts pressed on Brazil, with management saying the lower 11.5% financing rate is supportive but that the reduced FINAME funding pool still constrains near-term growth; they expect limited impact in Q4 and some project flow in fiscal Q1 2027. Questions also focused on Q4 seasonality, where management said the quarter is typically the lowest volume period and that current storm volume looks softer than prior years. Another discussion centered on restructuring and margins: management said the actions are about efficiency and organization design, will not affect Q4, and are expected to produce savings in fiscal 2027, while gross margin will still be pressured by seasonality, project timing, and raw material inflation.