Lindsay Corp's Hidden Growth Gems: Why Investors Should Dig In Now

The markets are buzzing with uncertainty—trade wars, inflation, and geopolitical chaos—but Lindsay Corporation (NYSE: LNN) just delivered a performance that screams opportunity. This irrigation and infrastructure powerhouse just reported a Q2 2025 earnings beat that wasn't just a blip on the radar; it was a roadmap for growth in two sectors that could thrive even as the world grapples with tariffs and trade tensions. Let's dig into the details.

The Earnings Beat: A Triumph of Strategic Execution

Lindsay's Q2 results were a masterclass in balancing global ambition with tactical resilience. Revenue surged 23% to $187.1 million, while EPS exploded 49% to $2.44, trouncing estimates. The real story? Two engines firing on all cylinders:
- Infrastructure Segment: Revenue jumped 110% to $38.9 million, driven by the completion of a $20M+ Road Zipper System™ project. This high-margin product (34.1% operating margins!) is a goldmine for Lindsay.
- Irrigation Segment: Despite a 7% dip in North American sales, international growth (up 42%)—particularly in the Middle East and North Africa (MENA)—propelled this division to a record $148.1 million in revenue.

The backlog is now $127 million, up from $94 million a year ago. That's a 35% jump, signaling strong demand for both irrigation and infrastructure projects. But here's the kicker: Lindsay isn't just selling products; it's positioning itself as a global solutions provider.

Why Infrastructure Is Lindsay's Secret Weapon

The Road Zipper System—a traffic-management tool that's become indispensable for U.S. road projects—is a cash cow. With U.S. infrastructure spending poised to surge (think: Biden's Bipartisan Infrastructure Law), this segment is primed to dominate.

While the S&P 500 has treaded water, Lindsay's shares have risen 14% annually, outpacing the industry. The Road Zipper's 34% operating margins are a stark contrast to the 14.6% margins Lindsay posted in 2024—proof that this division isn't just growing but becoming more profitable.

Irrigation: Navigating Trade Storms with Agility

North America's irrigation sales are weak, but Lindsay isn't sitting still. The company is shifting focus to high-growth regions:
- MENA: Mega-projects in the Middle East are fueling demand, with Lindsay's precision irrigation tech ideal for arid climates.
- Brazil: Despite currency fluctuations, unit sales stabilized, and Brazil's agricultural boom (soybeans, coffee) could spark a comeback.

The data shows a clear strategy: don't rely on a single market. While North America falters, international sales are skyrocketing—a hedge against U.S. farm income headwinds.

Trade Tensions? Lindsay's Already Got a Plan

Tariffs on steel and other inputs? Lindsay's global supply chain is a shield. The company is:
1. Negotiating with suppliers to lock in favorable terms.
2. Storing inventory strategically to offset cost hikes.
3. Expanding production in Brazil, where currency volatility is offset by strong local demand.

CEO Randy Wood put it bluntly: “We're not waiting for governments to resolve trade wars—we're working smarter.”

Risks? Sure, But the Upside Is Worth It

• Project Delays: Infrastructure timelines can be unpredictable, but the $127M backlog reduces this risk.
• Tariff Uncertainty: Lindsay's proactive cost-mitigation strategies (see above) are already priced into the business plan.
• North America Irrigation Slump: A drag, but international growth and infrastructure offset this.

Bottom Line: Buy Lindsay Now—Before the Crowd Catches On

At $129/share, Lindsay is trading near its 52-week low despite record earnings. Investors are pricing in near-term noise—like soft North American sales and tariff fears—but this is a buying opportunity.

Action Plan:
- Buy now if you can stomach volatility.
- Target: $150–$160 within 12 months, driven by infrastructure wins and MENA growth.
- Watch for: New Road Zipper orders and international backlog expansion.

Lindsay isn't just surviving—it's thriving in sectors that matter. In a world of uncertainty, this is a stock that's digging deeper and smarter than the competition. Dig in now.