Agricultural and farm machinery company Lindsay (NYSE: LNN) missed Wall Street’s revenue expectations in Q4 CY2025, with sales falling 6.3% year on year to $155.8 million. Its non-GAAP profit of $1.54 per share was 4.4% above analysts’ consensus estimates.

Is now the time to buy LNN? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Lindsay’s fourth quarter results drew a positive market response despite lower year-over-year sales, as the company maintained profitability through disciplined pricing and cost management. CEO Randy Wood highlighted that ongoing trade uncertainty, lower commodity prices, and elevated input costs put pressure on customer sentiment, particularly in North American irrigation markets, leading to delayed capital purchases. However, growth in the infrastructure segment and strong execution on operational initiatives helped support margins. Wood stated, “Operational efficiencies gained through our diversified global footprint helped us deliver solid profitability and maintain earnings quality in the quarter.”

Looking ahead, Lindsay’s outlook is shaped by persistent softness in North American irrigation but tempered by opportunities in international project markets and infrastructure. Management projects continued resilience through cost controls and operational improvements, while large-scale projects in the Middle East and North Africa (MENA) region are expected to meaningfully contribute to future revenues. Wood cautioned that, despite recent government support for U.S. farmers, “we don’t expect it to drive significant incremental demand in the short term.” The company is also investing in plant upgrades and digital technologies, which it believes will position Lindsay for growth as market conditions improve.

Key Insights from Management’s Remarks

Management attributed the quarter’s financial performance to a combination of domestic irrigation weakness, international project timing, and infrastructure segment momentum.

• North American irrigation softness: Farmers delayed purchases due to low commodity prices and high input costs, with management describing business as “bouncing along the bottom of the trough.”
• International project timing: Revenues in the international segment declined due to a gap between last year’s MENA project and the newly awarded $80 million project, which will primarily benefit future periods.
• Infrastructure segment growth: The infrastructure division delivered a 17% year-over-year revenue increase, driven by road safety product sales and ongoing interest in Road Zipper solutions, though management noted project revenues remain lumpy.
• Operational investments: Lindsay activated a new tube mill and began upgrades to its galvanizing facility, aiming for improved efficiency, safety, and reduced labor reliance. These investments are expected to yield future productivity gains.
• FieldNET technology adoption: Large-scale international projects increasingly require advanced irrigation management technologies such as FieldNET, as customers seek to maximize resource efficiency and productivity in new agricultural developments.

Drivers of Future Performance

Lindsay’s guidance is shaped by expectations of continued U.S. irrigation headwinds, international project execution, and infrastructure market opportunities.

• Persistent North American headwinds: Management expects North American irrigation demand to remain flat or slightly down, citing ongoing uncertainty around trade, farmer profitability, and input costs. Recent government aid is not expected to significantly boost short-term demand.
• International project pipeline: Lindsay anticipates a multiyear runway for large-scale international projects, particularly in the MENA region, though project timing and execution risks remain due to complex negotiations and credit arrangements.
• Infrastructure segment outlook: Continued momentum in road safety products and leasing models supports infrastructure growth; however, a lack of large Road Zipper projects in the near term will result in difficult year-over-year comparisons, especially in the second quarter.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the pace of revenue recognition from the $80 million MENA project and additional international wins, (2) stabilization or recovery in North American irrigation demand as commodity prices and farm profitability evolve, and (3) sustained infrastructure segment momentum, particularly the uptake of Road Zipper leasing. Progress on plant efficiency projects and FieldNET technology adoption will also be key indicators.

Lindsay currently trades at $126.64, up from $118.89 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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