Lindsay (LNN) Q2 2026 earnings summary

Executive summary

• Second quarter FY2026 revenues were $157.7 million, down 16% year-over-year, with declines in both irrigation and infrastructure segments.

• Operating income dropped 59% to $13.0 million, with margin compressing to 8.3% from 17.2%.

• Net earnings were $12.0 million ($1.15 per diluted share), down 55% from the prior year.

• Deliveries began for the $80 million MENA irrigation project, supporting backlog growth despite regional conflict.

• Share repurchases totaled $25.2 million in the quarter, reaching $55.5 million for the fiscal year.

Financial highlights

• Irrigation segment revenue fell 5% to $141.2 million; North America down 8%, international down 1%.

• Infrastructure segment revenue dropped 58% to $16.5 million, mainly due to the absence of a $20 million Road Zipper project.

• Gross profit for the quarter was $42.3 million, with gross margin falling to 26.9% from 33.4%.

• Operating expenses decreased 3% to $29.3 million, mainly due to lower incentive compensation.

• Cash and cash equivalents at quarter-end were $186.1 million.

Outlook and guidance

• U.S. irrigation market expected to remain soft, with no traditional spring order volume pickup.

• Brazil recovery hinges on crop plan and improved financing, though credit and interest rate headwinds persist.

• Expect to recognize about $70 million in revenue from the MENA irrigation project in FY2026.

• Infrastructure segment anticipates growth in road safety products but no large Road Zipper project in FY2026.

• Fiscal 2026 capital expenditures expected to be $50–$55 million, focused on modernization and productivity.