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Aug 31, 2023

Lindsay Q4 2023 Earnings Report

Reported strong fourth quarter performance driven by growth in international irrigation markets and resilient demand in North America.

Key Takeaways

Lindsay Corporation reported strong Q4 2023 results, driven by international irrigation market growth and resilient North American demand. Record full-year net earnings and EPS were achieved due to operating income and margin expansion. The company's irrigation business led the strong quarterly performance, particularly in South America and Brazil, which achieved record fourth-quarter revenue.

Revenue of $167.1 million and EPS of $1.74 led by strong irrigation results

Strong growth in international irrigation revenues and record revenues in Brazil

Record operating income and operating margin in irrigation segment

Free cash flow generation reaches 139 percent of net earnings

Total Revenue
$167M
Previous year: $190M
-12.1%
EPS
$1.74
Previous year: $1.62
+7.4%
Operating Margin
14%
Gross Profit
$52.5M
Previous year: $57.1M
-8.1%
Cash and Equivalents
$161M
Previous year: $105M
+53.0%
Free Cash Flow
$55M
Previous year: $24.6M
+123.7%
Total Assets
$746M
Previous year: $711M
+4.9%

Lindsay

Lindsay

Lindsay Revenue by Geographic Location

Forward Guidance

Lindsay Corporation anticipates robust sales volume levels in developed international markets, led by strong demand in Brazil, and expects to see a more meaningful positive impact of increased U.S. infrastructure spending on its infrastructure business in fiscal 2024.

Positive Outlook

  • Order levels running ahead of the prior year.
  • Sales volume levels in developed international markets to remain robust, led by strong demand in Brazil.
  • Continuing project opportunities in developing markets supported by continuing global concerns over food security and global grain supplies.
  • Expect to see a more meaningful positive impact of increased U.S. infrastructure spending on our infrastructure business in fiscal 2024.
  • Actively manage projects in Road Zipper System sales funnel.

Challenges Ahead

  • Current commodity prices and U.S. net farm income projections, although lower compared to the marked strength seen a year ago, continue to support demand for irrigation equipment in North America.
  • The timing of when Road Zipper System projects will be executed is difficult to predict.

Revenue & Expenses

Visualization of income flow from segment revenue to net income