Lindsay 2026 Q1 Earnings EPS Beats Estimates Despite 6.3% Revenue Decline

Lindsay (LNN) reported mixed results for Q1 2026, with revenue falling short of analyst expectations but EPS slightly exceeding forecasts. The company maintained profitability despite challenging agricultural market conditions and authorized a $150M share repurchase program to signal confidence in capital allocation.

Revenue

Lindsay’s total revenue declined 6.3% to $155.82 million in Q1 2026, reflecting softer demand in its core irrigation segment. The irrigation business, which accounts for 86% of revenue, saw a 9% drop to $133.44 million, driven by lower unit sales in North America (-4% to $74.3M) and a sharper 15% decline in international markets, particularly Brazil and Western Europe. In contrast, the Infrastructure segment posted robust growth, with revenues rising 17% to $22.38 million, fueled by increased road safety product sales and Road Zipper leasing adoption. Corporate expenses remained neutral, contributing $0 to operating revenues.

Earnings/Net Income

Lindsay’s net income fell 3.7% to $16.52 million, or $1.55 per diluted share, a 1.9% decline year-over-year. While the EPS marginally underperformed the prior year, it exceeded analyst estimates by 4.4%, highlighting the company’s disciplined cost management and operational efficiency amid sector-wide challenges.

Price Action

Post-earnings, LNN’s stock rallied 9.17% in a single trading day, extending its 7.44% weekly gain. However, a post-earnings strategy of buying the stock after a revenue miss underperformed the benchmark by a significant margin.

Post-Earnings Price Action Review

A post-earnings strategy of buying LNN following a revenue miss yielded a -0.15% return over 30 days, significantly underperforming the benchmark’s 80.61%. The strategy exhibited no risk-adjusted benefit, as evidenced by a Sharpe ratio of 0.00%, zero drawdown, and a CAGR of -0.03%. With a volatility of 32.78%, the approach faced substantial fluctuations and a slight capital erosion.

CEO Commentary

CEO Randy Wood emphasized Lindsay’s resilience in navigating trade uncertainty, low commodity prices, and high input costs. He highlighted progress in price/cost management and operational efficiencies, particularly in the irrigation segment, and expressed optimism about international growth opportunities, including the $80M MENA project.

Guidance

Lindsay expects North American irrigation demand to remain flat to down in 2026, with international markets—led by the MENA region—offering growth potential. The Infrastructure segment is poised to benefit from road construction activity and Road Zipper adoption, though Q2 comparisons will be challenging due to a $20M project shipped in the prior year.

Additional News

Lindsay announced a $150M share repurchase program, reflecting confidence in its $249.6M liquidity position and balanced capital allocation. The company also secured a $80M irrigation and technology project in the MENA region, expected to generate $70M in FY26 revenue. Infrastructure segment growth, driven by a 17% revenue increase, underscored the segment’s potential amid expanding road safety demands.

Key Takeaways

Lindsay’s Q1 results highlight its ability to maintain profitability despite sector-wide headwinds. The $80M MENA project and $150M buyback signal strategic confidence, while Infrastructure growth offsets irrigation declines. Investors should monitor international market execution and capital efficiency initiatives.