Lindsay Corporation's Q2 2025: Navigating Revenue Timing, Tariff Challenges, and International Strategies

These are the key contradictions discussed in Lindsay Corporation's latest 2025 Q2 earnings call, specifically including: International Revenue Recognition and Tariff Impact, International Irrigation Business Revenue Timing, and Tariff Exposure and Pricing Strategies:



Revenue Growth Across Segments:
- Lindsay Corporation reported consolidated revenues of $187.1 million for Q2 2025, an increase of 23% compared to the prior year.
- This growth was driven by higher revenues in both International Irrigation and Infrastructure segments, partly offset by lower North America Irrigation revenues.

International Irrigation Market Growth:
- International Irrigation revenues increased by 42% to $71 million compared to the prior year.
- This growth was supported by the completion of a large project in the MENA region and higher sales in other parts of the region, despite a slight reduction in other international markets and currency translation effects.

Challenges in North America Irrigation Market:
- North America Irrigation revenues decreased by 7% to $77.1 million compared to the prior year.
- The decline was attributed to lower unit sales volume, slightly lower average selling prices, and reduced sales of replacement parts, though there was year-over-year growth in certain US regions.

Infrastructure Segment Performance:
- Infrastructure segment revenues more than doubled to $38.9 million, driven by the completion of a large Road Zipper system project valued at over $20 million.
- Despite lower lease revenues and road safety product sales compared to the prior year, the segment's operating margin improved to 34.1% due to a more favorable revenue mix.

Tariff and Market Uncertainty:
- The company is implementing a comprehensive action plan to mitigate potential cost impacts from recent tariff announcements, with expectations of a marginal increase in cost of goods.
- Market uncertainty in the US due to tariffs may affect customer sentiment and demand for irrigation equipment, though government support is anticipated for farmers if needed.