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Nov 30, 2024
Lindsay Q1 2025 Earnings Report
Lindsay Corporation's first quarter of fiscal year 2025 demonstrated revenue growth and increased net earnings, despite cyclical challenges in mature irrigation markets.
Key Takeaways
Lindsay Corporation reported a 3% increase in total revenues, driven by international irrigation growth, particularly in the MENA region. Net earnings increased by 14% and diluted earnings per share increased by 15%. The infrastructure business saw operating margin expansion, leading to improved operating income despite slightly lower revenues.
Irrigation revenue growth was driven by international project volume in the Middle East and North Africa (MENA) region.
Infrastructure operating margin expansion led to improved operating income on lower revenues.
Net earnings and diluted earnings per share increased by 14 percent and 15 percent, respectively, versus prior year quarter.
A Road Zipper System contract valued at more than $20 million was finalized subsequent to quarter end, expected to be fully delivered in the fiscal second quarter.
Revenue by Geographic Location
Forward Guidance
Lindsay Corporation anticipates continued softer market conditions in North America and Brazil irrigation markets in the near term, but expects growth in developing international markets and the infrastructure business in fiscal year 2025.
Positive Outlook
- Expect continued growth in developing international markets, highlighted by project activity in the MENA region.
- New state-level financing programs recently announced in Brazil should provide additional clarity and support for investments in irrigation.
- Expect to see growth in the infrastructure business in fiscal 2025 supported by the large Road Zipper System project secured shortly after the end of the first quarter.
- There are indications we are nearing the trough of the cycle with some stabilization and improvement in commodity prices.
- The impact of additional U.S. federal infrastructure funding has been tempered by construction cost inflation, however it remains supportive of growth in Road Zipper System leasing and sales of road safety products.
Challenges Ahead
- Softer market conditions in the North America and Brazil irrigation markets are expected to continue in the near term.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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