Lindsay 2025 Q3 Earnings Revenue Up 21.7% Despite Net Income Decline

Lindsay Corporation reported a 21.7% increase in revenue for fiscal Q3 2025, reaching $169.46 million. This surpassed market expectations, driven by strong gains in their irrigation segment. However, net income declined by 4.3% year-over-year to $19.50 million due to the absence of a prior year’s one-time tax credit. The company’s guidance remains cautiously optimistic, expecting steady demand in the irrigation sector, with international markets showing robust growth potential despite challenges in North America.

Revenue

Lindsay’s fiscal Q3 2025 revenue rose to $169.46 million, marking a 21.7% increase from the previous year. The irrigation segment was the primary driver, generating $143.75 million, largely due to international market strength. Infrastructure contributed $25.72 million, showcasing a 6% growth attributed to higher sales volumes of road safety products. The overall increase in revenue underscores the company’s ability to capitalize on both international market expansion and steady domestic demand.

Earnings/Net Income

Lindsay reported a decline in its Q3 2025 EPS, dropping 2.7% to $1.80 from $1.85 in the prior year. This decrease reflects an overall reduction in net income to $19.50 million, down 4.3% from $20.38 million. The decline was primarily due to the absence of a one-time income tax credit recognized in the previous year. Overall, the EPS performance was relatively stable despite challenges.

Price Action

Lindsay's stock experienced a 3.22% drop in the latest trading day, though it gained 6.21% over the most recent full trading week and increased by 3.80% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Lindsay Corporation stock when revenues exceed expectations and holding for 30 days produced a return of 42.49%, which underperformed the benchmark by 50.61%. This strategy was characterized by notable volatility and risk, evidenced by a Sharpe ratio of 0.22 and a maximum drawdown of -42.00%. The return, while positive, was tempered by these significant swings in performance, indicating that investors faced a challenging environment. The underlying volatility suggests that while the strategy can yield gains, it also requires a high risk tolerance due to the potential for substantial fluctuations in stock price during the holding period.

CEO Commentary

Randy A. Wood, President and CEO, expressed pride in Lindsay's execution, noting the third consecutive quarter of year-over-year growth in revenue and operating income. He highlighted strong performance in international irrigation markets, particularly in Latin America and the Middle East, with domestic demand remaining stable. Wood emphasized a strategic focus on expanding road safety products and the Road Zipper System, underscoring a commitment to stable revenue through leasing. Despite North American challenges, the CEO remains cautiously optimistic about international opportunities.

Guidance

Lindsay expects continued growth momentum in the fourth quarter, with stable irrigation demand influenced by weather and crop prices. Project deliveries in the Middle East and a new $20 million project set to start in Q4 are anticipated to drive future revenue. In Brazil, while long-term prospects are strong, short-term caution exists due to high-interest rates potentially affecting funding availability. The next year’s crop plan, set to be released in July, will provide further market clarity.

Additional News

In non-earnings news, Lindsay Corp announced a 3% increase in its quarterly dividend, raising it to $0.37 per share. This decision underscores the company's financial strength and commitment to returning value to shareholders. Additionally, the Board of Directors approved the dividend, payable on August 29, 2025, to shareholders of record as of August 15, 2025. The announcement is seen as a positive indicator of Lindsay's robust cash flow and profitability, reinforcing confidence in its sustained growth within the irrigation and infrastructure sectors.