Lindsay (LNN) Q1 2026 earnings summary

Executive summary

• Revenues for Q1 FY2026 declined 6% year-over-year to $155.8 million, with irrigation segment down 9% and infrastructure segment up 17% due to strong road safety product sales.

• Profitability and margins remained solid, with operating income at $19.6 million and operating margin steady at 12.6%.

• Net earnings were $16.5 million ($1.54 per diluted share), slightly down from $17.2 million ($1.57 per share) year-over-year.

• Secured a major $80 million irrigation and technology project in the MENA region after quarter-end, with $70 million expected to be realized in FY2026.

• Completed $30 million in share repurchases during the quarter and authorized a new $150 million repurchase program.

Financial highlights

• Total revenues were $155.8 million, down 6% year-over-year, primarily due to lower irrigation volumes.

• Operating income was $19.6 million, down 6% from $20.9 million, with an operating margin of 12.6%.

• Net earnings were $16.5 million ($1.54 per diluted share), a 4% decrease from $17.2 million ($1.57 per share) in the prior year.

• Gross profit was $50.1 million, flat year-over-year, with gross margin improving to 32.2% from 30.0%.

• Infrastructure segment revenue rose 17% to $22.4 million, with operating income up 9% to $4.5 million and margin at 20.1%.

Outlook and guidance

• North American irrigation market expected to remain flat to down for the full year, with trough conditions likely to persist.

• International outlook remains positive, especially in Latin America and MENA, though Brazil faces near-term constraints from high interest rates and limited credit.

• Approximately $70 million in revenue from the new MENA project anticipated in FY2026.

• Infrastructure segment faces a tough Q2 comparison due to absence of a large prior-year project, but growth in leasing and road safety products is expected to offset about half the impact.

• Fiscal 2026 capital expenditures expected to range from $50 million to $55 million, focused on modernization and productivity improvements.