LINDSAY CORP (NYSE:LNN) Q4 Earnings Miss Estimates, Stock Falls on Weak Guidance

LINDSAY CORP (NYSE:LNN) reported financial results for its fourth quarter and full 2025 fiscal year, delivering a performance that fell short of analyst expectations and was met with a negative market reaction in pre-market trading.

Quarterly Performance Versus Estimates

The company's fourth quarter results presented a mixed but ultimately disappointing picture when measured against Wall Street forecasts. While the company demonstrated resilience in certain segments, it failed to meet key financial targets.

• Revenue: The company reported Q4 revenue of $153.6 million. This fell short of the analyst consensus estimate of approximately $158.5 million.
• Earnings Per Share (EPS): The reported non-GAAP EPS of $0.99 significantly missed the estimated $1.11.
• Market Reaction: The market's immediate response was negative, with the stock trading down over 5.4% in pre-market activity following the earnings release.

The miss on both the top and bottom lines, particularly the substantial EPS shortfall, appears to be the primary driver behind the negative investor sentiment.

Full Year 2025 Summary

Despite the challenging fourth quarter, Lindsay Corporation's full-year fiscal 2025 results highlighted overall growth and record profitability, underscoring the strength of its diversified business model.

• The company achieved record net earnings of $74.1 million and diluted earnings per share of $6.78, representing a 13% increase from the prior year.
• Total revenues for the year were $676.4 million, an 11% increase compared to fiscal 2024.
• Operating income grew 15% to $88.1 million, with the operating margin improving to 13.0%.
• A key highlight was the generation of strong free cash flow, which reached 122% of net earnings.

Segment Performance Breakdown

The quarter was characterized by a tale of two segments, with international operations providing a powerful counterbalance to domestic softness.

Irrigation Segment:

• International Strength: International irrigation revenues surged 23% to $79.0 million, driven by robust growth in South America, the MENA region, and Australia.
• North America Weakness: North America irrigation revenues declined 19% to $50.0 million, impacted by lower storm damage replacement demand and persistently soft market conditions.
• Overall: Total irrigation segment revenues increased 3% to $129.0 million, with operating income rising 4%.

Infrastructure Segment:

• Revenues decreased 16% to $24.5 million, primarily due to the timing of Road Zipper System project sales, as a large project from the prior year did not repeat.
• Operating income for the segment fell 37%, reflecting the lower revenue and a less favorable margin mix.

Management Outlook and Analyst Comparisons

The company's provided outlook for the coming year suggests a continuation of current challenges, which may align with or contribute to a cautious market stance. President and CEO Randy Wood indicated that demand for irrigation equipment in North America is expected to remain tempered until the outlook for commodity prices and farm income improves. He noted headwinds in Brazil from high interest rates and credit constraints, while expressing optimism for growth opportunities in other international markets. For the infrastructure business, management anticipates stable growth in leasing and road safety products but does not foresee a large Road Zipper System project being realized in fiscal 2026.

This cautious tone can be contrasted with analyst estimates for the upcoming year. For the full 2026 fiscal year, analysts are projecting sales of approximately $679.4 million. For the upcoming first quarter of 2026, the revenue consensus stands at about $174.3 million. The company's commentary does not explicitly guide toward these figures, leaving room for investor uncertainty.

Conclusion

Lindsay Corporation's fourth quarter earnings report revealed a company navigating a divergent global landscape. While its international irrigation business is firing on all cylinders, weakness in the North American agricultural market and a cyclical dip in infrastructure project sales led to a double miss on revenue and earnings per share. The market's negative reaction reflects disappointment with these quarterly results and the company's cautious near-term outlook. The strong full-year performance and record earnings demonstrate the underlying health and geographic diversification of the business, but investors will be looking for signs of a North American recovery and new infrastructure project wins in the quarters ahead.

For a detailed look at historical earnings and future analyst estimates for Lindsay Corporation, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. All investment decisions involve risk, and readers should conduct their own research before making any investment decisions.