Lindsay Corporation held its fiscal 2026 first quarter earnings conference call on January 8, 2026. President and CEO Randy Wood and CFO Samuel Hinrichsen presented the results.
Total revenues for the quarter were $155.8 million, a decrease of 6% compared to $166.3 million in the same quarter last year. Operating income was $19.6 million, down 6% from $20.9 million in the prior year period. Net earnings were $16.5 million, or $1.54 per diluted share, compared to $17.2 million, or $1.57 per share, a year ago.
Randy Wood stated that the team delivered solid profitability despite external headwinds. "While ongoing trade uncertainty, low commodity prices and high input costs have negatively impacted customer profitability and sentiment, our team's focus on price and cost management and operational efficiencies gained through our diversified global footprint helped us deliver solid profitability and maintain earnings quality in the quarter," Wood said.
He noted that in the domestic U.S. irrigation business, customers continue to delay large capital purchases due to high input costs and low profitability.
The company announced a new supply agreement in the Middle East and North Africa (MENA) region subsequent to the quarter's end. The project is valued at approximately $80 million in total revenue, with about $70 million expected this fiscal year. It involves providing Zimmatic irrigation systems and FieldNET technology.
"This announcement reflects our ability to compete and win large-scale projects globally, but also demonstrates Lindsay's role as a trusted partner in advancing sustainable agriculture while supporting localized production and enhancing food security," Wood commented.
In the Infrastructure segment, revenues increased 17% year-over-year to $22.4 million, driven by higher sales of road safety products.
Discussing the market outlook, Wood said that in North America, softer market conditions are expected to persist in the near term. "Market indicators suggest the current trough environment will persist until there's greater clarity around international trade impacts and an improvement in customer profitability," he stated.
He referenced the U.S. administration's $12 billion Farmer Bridge Assistance package, which includes onetime payments for crops, but said the company does not expect it to drive significant incremental demand in the short term.
Samuel Hinrichsen, in his first earnings call as CFO, provided financial details. He said the revenue decline was driven by lower volumes in the irrigation segment. Operating margin for the quarter was 12.6%, consistent with the prior year.
Irrigation segment revenue was $133.4 million, a decrease of 9%. North America irrigation revenues were $74.3 million, down 4%. International irrigation revenues were $59.1 million, compared to $69.4 million last year. Hinrichsen attributed the international decrease partly to the timing of project revenues in the MENA region and lower sales volumes in Brazil due to elevated interest rates and credit constraints.
Infrastructure segment operating income increased 9% to $4.5 million. The company reported total available liquidity of $249.6 million at quarter-end and deployed $30.3 million into share repurchases, exhausting its original authorization. A new share repurchase program of up to $150 million was authorized.
During the question-and-answer session, analyst Nathan Jones asked about the North American irrigation market. Randy Wood responded, "We would agree that we are bouncing along the trough here." He added, "In the near, near term, we don't see it getting progressively better, but I would say also we don't see it get progressively worse. So I do believe bouncing along the bottom of the trough here is how we'd characterize it."
Regarding the new $80 million MENA project, Wood confirmed it is with a repeat customer in the same part of the world. When asked about margins for the project, he said, "Overall, we would acknowledge project margins generally are going to be dilutive to the overall business." He added that the margin profile would be "as good as or better than the prior project" but "slightly below" the segment average.
On capital expenditures, Wood discussed investments in Lindsay, Nebraska, including a new tube mill that is expected to be in full production soon and a galvanizing facility upgrade planned for completion around the end of calendar 2026. Samuel Hinrichsen noted that incremental depreciation from these projects would offset productivity gains at current demand levels, with margin improvements expected once demand picks up.
Analyst Ryan Connors inquired about the North America revenue trend. Wood said, "I think we'd characterize North America as flat to down on a full year basis." He suggested the first quarter run rate could be consistent for the rest of the year.
Regarding the Infrastructure segment and Road Zipper products, Wood described it as a "lumpy project-oriented business." He stated, "This is us being transparent, I believe, in what we think we see in the market." He added that the company sees long-term growth opportunities for Road Zipper.
When asked about technology adoption in international projects, Wood said customers in large-scale operations want every technological advantage. "Certainly, FieldNET, FieldNET Advisor and the advantage that it creates for our growers is an important part of that mix," he said.
The call concluded with Wood thanking participants and looking ahead to the second quarter update.