Lindsay (LNN) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 delivered profitable operating performance despite challenging irrigation markets, with North America irrigation demand steady and infrastructure segment growth driven by Road Zipper System sales and new product launches.

• International irrigation faced softness, notably in Brazil, while large MENA project deliveries began, supporting international revenue.

• Continued investment in technology and operational efficiency, with 28% growth in connected device subscriptions and a $50 million investment in Nebraska facility.

• Share repurchases totaled $22.5 million for the year, including $4.6 million in Q4.

Financial highlights

• Q4 revenues were $155 million, down 7% year-over-year; net earnings were $12.7 million ($1.17 per share), down 33%; Q4 operating income was $13.5 million, down 42%.

• Full-year revenues were $607.1 million, down 10%; net earnings were $66.3 million ($6.01 per share), down 8%; operating income was $76.6 million, down 25%.

• Free cash flow for the year was $66.8 million, representing 101% of net earnings.

• Backlog at year-end was $180.9 million, up 130% from prior year, driven by the MENA project.

• Effective tax rate for Q4 improved to 16.1% from 22.8% year-over-year; full-year EPS included a $0.54 one-time tax benefit in Brazil.

Outlook and guidance

• North American irrigation market expected to be slightly down in 2025 unless net farm income improves; grain prices have stabilized.

• Brazil and Latin America irrigation demand expected to remain tempered until farm profitability and credit availability recover.

• Large MENA project to continue shipping through fiscal 2025, with $80 million anticipated next year.

• U.S. infrastructure spending projected to increase in 2025, supporting further growth in Road Zipper sales and leases.

• Anticipated tax rate for 2025 is around 25%.