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Aug 31, 2024
Lindsay Q4 2024 Earnings Report
Lindsay reported a decrease in revenue due to lower international irrigation revenues, which was partially offset by increases in North America irrigation and infrastructure revenues.
Key Takeaways
Lindsay Corporation's Q4 2024 revenues decreased by 7% to $155.0 million compared to Q4 2023. Operating income decreased by 42% to $13.5 million, and net earnings decreased by 34% to $12.7 million, or $1.17 per diluted share. The decrease was primarily due to lower international irrigation revenues, partially offset by improved infrastructure results.
North America irrigation revenues increased due to higher unit sales volume.
Delivery began on a large irrigation project in the Middle East and North Africa (MENA) region.
Infrastructure results improved, driven by an increase in Road Zipper System™ sales and lease revenues.
Consolidated gross margin performance remained steady despite a decline in irrigation revenues.
Lindsay
Lindsay
Lindsay Revenue by Geographic Location
Revenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Lindsay expects a more stable market outlook for growers in North America, continued growth in developing international irrigation markets, and continued growth in its infrastructure business supported by additional U.S. federal infrastructure funds.
Positive Outlook
- Indications that grain prices may have reached a bottom provides for a more stable market outlook for growers in North America
- Greater clarity regarding the demand outlook for irrigation equipment post-harvest.
- Interest rates have been on the decline and local soybean prices have improved recently in Brazil.
- Continued growth in developing international irrigation markets, supported by our project in the MENA region currently underway and other project opportunities under development.
- Continued growth in our infrastructure business in fiscal 2025 supported by the additional U.S. federal infrastructure funds directed to road and bridge construction.
Challenges Ahead
- Farmer profitability and credit availability remains a market headwind in Brazil.
- We do not expect a significant rebound in the near term in Brazil.
- Lower sales activity in Brazil, following record fourth quarter and full-year sales levels last year.
- Impacted by lower sales activity in Brazil.
- Market softness in Brazil.
Revenue & Expenses
Visualization of income flow from segment revenue to net income