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Lindsay
🇺🇸 NYSE:LNN
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Feb 29, 2024

Lindsay Q2 2024 Earnings Report

Lindsay's Q2 2024 results were released, showing a decrease in total revenues due to lower irrigation revenues, while infrastructure results saw improved margins.

Key Takeaways

Lindsay Corporation reported a 9% decrease in total revenues to $151.5 million, driven by lower irrigation revenues. Diluted earnings per share increased slightly to $1.64. The infrastructure segment experienced meaningful margin expansion due to increased Road Zipper System™ lease revenues.

Total revenues decreased by 9% to $151.5 million due to lower irrigation revenues.

Road Zipper System™ lease revenues increased, supporting sales mix and improving infrastructure results.

Diluted earnings per share increased to $1.64 compared to $1.63 in the prior year quarter.

The company launched the next generation of its FieldNET™ platform and announced plans to invest over $50 million to expand its manufacturing facility in Lindsay, NE.

Total Revenue
$152M
Previous year: $166M
-8.9%
EPS
$1.64
Previous year: $1.63
+0.6%
Operating Margin
14.6%
Previous year: 16.4%
-11.0%
Gross Profit
$49M
Previous year: $54.3M
-9.8%
Cash and Equivalents
$151M
Previous year: $97.7M
+54.2%
Free Cash Flow
-$21.6M
Previous year: -$219K
+9748.4%
Total Assets
$765M
Previous year: $709M
+7.9%

Lindsay

Lindsay

Lindsay Revenue by Segment

Lindsay Revenue by Geographic Location

Forward Guidance

The USDA's initial projection for 2024 U.S. net farm income reflects a substantial decline compared to 2023 levels, which could negatively affect demand for irrigation equipment. Continued growth is expected in Road Zipper System lease revenues due to increased construction activity and U.S. infrastructure spending.

Positive Outlook

  • Continued growth in Road Zipper System lease revenues expected.
  • Increased construction activity supported by growth in U.S. infrastructure spending.
  • Execution of Road Zipper System project sales pipeline continues.
  • Confident in the growth opportunity in South America end markets and Brazil in particular.
  • Investment in innovation strategy driving value creation through advanced technology platforms.

Challenges Ahead

  • USDA projects a substantial decline in 2024 U.S. net farm income compared to 2023.
  • Forecasted decline could negatively affect demand for irrigation equipment during the remainder of fiscal 2024.
  • Current market conditions are expected to temper demand for irrigation equipment in South America, at least in the near term.
  • Timing of Road Zipper System project implementation remains challenging to forecast.
  • Significant drop in commodity prices in Brazil during the quarter coupled with the anticipated impact of reduced yields for the current crop has reduced grower profitability and curtailed near-term capital investment capacity.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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