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May 31, 2024

Lindsay Q3 2024 Earnings Report

Lindsay Corporation's Q3 2024 results reflected infrastructure strength offsetting irrigation market challenges.

Key Takeaways

Lindsay Corporation's third-quarter results showed a decrease in overall revenue due to irrigation segment softness, although this was partially offset by growth in the infrastructure segment. The company secured a large multi-year international irrigation supply agreement valued at more than $100 million and completed $17.9 million in share repurchases during the quarter. Net earnings increased due to an income tax credit in Brazil and higher other income.

Diluted earnings per share were $1.85, compared to $1.53 in the prior year quarter.

An income tax credit in Brazil added $4.8 million to net earnings.

The company secured a large multi-year international irrigation supply agreement valued at more than $100 million.

Completed $17.9 million in share repurchases during the quarter.

Total Revenue
$139M
Previous year: $165M
-15.4%
EPS
$1.85
Previous year: $1.53
+20.9%
Gross Profit
$46.5M
Previous year: $53.2M
-12.6%
Cash and Equivalents
$153M
Previous year: $132M
+16.1%
Free Cash Flow
$25.8M
Previous year: $45.2M
-43.0%
Total Assets
$758M
Previous year: $724M
+4.8%

Lindsay

Lindsay

Lindsay Revenue by Segment

Lindsay Revenue by Geographic Location

Forward Guidance

Lindsay Corporation anticipates tempered demand in North America and Brazil due to weather conditions and market conditions, while expecting continued growth in developing international markets and Road Zipper System lease revenues.

Positive Outlook

  • Expect continued growth in Road Zipper System lease revenues.
  • Expect continued growth in developing international markets
  • Supported by increased U.S. infrastructure spending, we expect continued growth in sales of road safety products
  • Confident in the longer-term growth opportunity in Brazil
  • Optimistic regarding our Road Zipper System project sales pipeline

Challenges Ahead

  • Expect demand in North America to remain tempered until the outlook for net farm income improves.
  • Expect current market conditions in Brazil to temper demand for irrigation equipment in the near term
  • Weather conditions will influence crop yields, production estimates and ultimately the direction of crop prices and net farm income for the year.
  • Timing of individual Road Zipper System project recognition remains challenging to predict.
  • Market conditions in our irrigation segment continue to weigh on farmer sentiment, resulting in demand softness.

Revenue & Expenses

Visualization of income flow from segment revenue to net income