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1. Company Snapshot

1.a. Company Description

Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally.The company operates in two segments, Irrigation and Infrastructure.The Irrigation segment manufactures and markets center pivot, lateral move irrigation systems, and irrigation controls under the Zimmatic brand; hose reel travelers under the Perrot and Greenfield brands; and chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems under the GrowSmart brand.


It also offers repair and replacement parts for its irrigation systems and controls; global positioning system positioning and guidance, variable rate irrigation, wireless irrigation management, irrigation scheduling, and smartphone applications; and industrial Internet of Things technology solutions, data acquisition and management systems, and custom electronic equipment for applications under the Elecsys brand.The Infrastructure segment provides Quickchange moveable barrier systems that help in highway reconstruction, paving and resurfacing, road widening, median and shoulder construction, and tunnels and bridge repairs; and re-directive and non-re-directive crash cushions, which are used to enhance highway safety at locations, such as toll booths, freeway off-ramps, medians and roadside barrier ends, bridge supports, utility poles, and other fixed roadway hazards.It also offers specialty barrier products; road marking and road safety equipment; and railroad signals and structures, and diameter steel tubing products, as well as outsourced manufacturing and production services for other companies.


The company serves departments of transportation, municipal transportation road agencies, roadway contractors, subcontractors, distributors, and dealers.Lindsay Corporation was founded in 1954 and is headquartered in Omaha, Nebraska.

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1.b. Last Insights on LNN

Lindsay Corporation's recent performance was negatively impacted by declining revenue, profits, and backlog. The company's irrigation segment faced headwinds from weak North American and international demand, as well as challenging farm economics. Q2 earnings missed estimates, with earnings per share of $1.15, compared to $2.44 a year ago. Valuation multiples are at the low end of fair value, limiting upside. Additionally, Nuance Investments LLC reduced its holdings by 13.1%, selling 6,833 shares.

1.c. Company Highlights

2. Lindsay Corp Q2 2026: Revenue Decline, Margin Compression, and Strategic Focus

Fiscal Q2 2026 saw Lindsay Corp’s revenues slide 16% to $157.7 million, while operating income collapsed from $32.1 million to $13 million, marking a margin fall from 17.2% to 8.3%. Earnings per share hit $1.15, missing the consensus $1.69. The company trades at a P/E of 20.07, P/B of 2.33, and EV/EBITDA of 12.48, with a dividend yield of 1.31% and a free‑cash‑flow yield of 6.15%—metrics that reflect the current margin pressure and cautious growth outlook.

Publication Date: Apr -10

📋 Highlights
  • Revenue Decline: Total revenues fell 16% to $157.7 million, driven by lower performance in both irrigation and infrastructure segments.
  • Irrigation Segment Drop: Revenues decreased 5% to $141.2 million, with North America down 8% due to low commodity prices and Middle East project timing.
  • Infrastructure Segment Shift: Revenues dropped to $16.5 million (vs. $38.9 million prior), primarily due to the absence of the $20 million Road Zipper project.
  • Brazil Outlook: Despite low irrigation penetration and three annual crops, credit constraints and interest rate uncertainty pose near-term challenges.
  • Strategic Investments: $50 million Project Fortify in Nebraska improved efficiency, while the 2027 galvanizing facility is positioned as a key growth driver.

Irrigation Segment Performance

Revenue in irrigation dipped 5% to $141.2 million. North America fell 8% amid weak commodity prices and farmer sentiment, while international sales held steady, offsetting lower Brazil and MENA volumes. CFO Samuel Hinrichsen highlighted fixed‑cost deleverage and an unfavorable regional mix as chief margin squeezers, prompting the CEO’s walkaway policy for under‑priced projects.

Infrastructure Segment Dynamics

Infrastructure sales dropped sharply to $16.5 million, largely due to the absence of the $20 million Road Zipper project. Excluding that project, revenue actually grew 6%, driven by road‑safety product uptake. The project’s cancellation remains the largest margin‑compressing factor, with cost absorption and deleverage further eroding profitability.

Global Market Outlook and MENA Focus

The Middle East remains a key growth area despite conflict‑driven uncertainty. Randy Wood noted that the MENA project is on schedule, with margins comparable to last year. While energy price spikes have inflated input costs, the long‑term impact hinges on conflict duration; a swift resolution would preserve the company’s food‑security investment narrative.

Capital Investments and Future Growth

Lindsay has invested $50 million in Project Fortify, enhancing safety and throughput, and plans a 2027 galvanizing facility to spur growth. The company stresses disciplined spending and prioritizes MENA execution, while banking on Brazil’s low irrigation penetration and high crop turnover to accelerate payback, despite near‑term credit challenges.

Valuation Snapshot

With a ROIC of 7.68% and ROE of 11.28%, Lindsay’s equity returns remain solid, supported by a negative Net Debt/EBITDA of –0.53. The current valuation multiples suggest the market has priced in margin compression, yet still anticipates incremental margin recovery as projects mature and market conditions normalize.

3. NewsRoom

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Lindsay Corporation - LNN

Apr -16

Source: prnewswire.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Lindsay Corporation - LNN

Apr -14

Source: globenewswire.com

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Lindsay Corporation: A Classic Buy-the-Dip Opportunity

Apr -07

Source: fool.com

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Lindsay Q2 Earnings Miss Estimates, Revenues Decrease 7% Y/Y

Apr -06

Source: zacks.com

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Lindsay Corporation Shareholders Are Encouraged to Reach Out to Johnson Fistel for More Information About Potentially Recovering Their Losses

Apr -06

Source: globenewswire.com

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Lindsay Corporation: Q2 Earnings Reveal Limited Growth Catalysts

Apr -05

Source: seekingalpha.com

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Lindsay Q2 Earnings Call Highlights

Apr -04

Source: defenseworld.net

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Lindsay (NYSE:LNN) Sets New 52-Week Low on Disappointing Earnings

Apr -03

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.41%)

6. Segments

Irrigation

Expected Growth: 3.5%

Lindsay Corporation's 3.5% growth in irrigation is driven by increasing global demand for efficient water management, adoption of precision agriculture, and government initiatives promoting sustainable farming practices. Additionally, the company's innovative products, such as pivot irrigation systems, and strategic acquisitions have contributed to its growth momentum.

Infrastructure

Expected Growth: 2.8%

Lindsay Corporation's Infrastructure segment growth of 2.8% is driven by increasing demand for road safety and traffic management solutions, investments in smart city initiatives, and government funding for infrastructure development projects. Additionally, the company's focus on innovation, such as its Road Zipper system, is contributing to its growth in this segment.

7. Detailed Products

Irrigation Systems

Lindsay Corporation provides irrigation systems that help farmers and growers to optimize water usage and increase crop yields.

Pivot Irrigation Systems

Lindsay Corporation's pivot irrigation systems are designed for efficient water distribution and crop management.

Lateral Move Irrigation Systems

Lindsay Corporation's lateral move irrigation systems provide flexible and efficient irrigation solutions for various crops.

Center Pivot Irrigation Systems

Lindsay Corporation's center pivot irrigation systems are designed for efficient water distribution and crop management.

Road Zipper

Lindsay Corporation's Road Zipper is a movable barrier system designed for highway construction and traffic management.

Traffic Management Solutions

Lindsay Corporation provides traffic management solutions for highway construction and traffic management.

8. Lindsay Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Lindsay Corporation's irrigation systems and infrastructure products have some substitutes, but they are not easily replaceable due to their high quality and customization options.

Bargaining Power Of Customers

Lindsay Corporation's customers have limited bargaining power due to the company's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

Lindsay Corporation's suppliers have some bargaining power due to the company's dependence on them for raw materials, but the company's large scale of operations helps to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the irrigation systems and infrastructure products industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The irrigation systems and infrastructure products industry is highly competitive, with several established players competing for market share, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.00%
Debt Cost 3.95%
Equity Weight 77.00%
Equity Cost 7.08%
WACC 6.36%
Leverage 29.87%

11. Quality Control: Lindsay Corporation passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Lindsay

A-Score: 5.4/10

Value: 5.4

Growth: 6.3

Quality: 6.6

Yield: 2.0

Momentum: 3.5

Volatility: 8.3

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Alamo Group

A-Score: 5.2/10

Value: 5.8

Growth: 7.0

Quality: 6.3

Yield: 1.0

Momentum: 3.0

Volatility: 8.3

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Wabash

A-Score: 5.0/10

Value: 9.8

Growth: 3.3

Quality: 6.5

Yield: 6.0

Momentum: 0.5

Volatility: 3.7

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Hyster-Yale

A-Score: 4.8/10

Value: 6.5

Growth: 6.4

Quality: 3.3

Yield: 7.0

Momentum: 1.5

Volatility: 4.3

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Stock-Card
Gencor

A-Score: 4.0/10

Value: 5.9

Growth: 6.3

Quality: 6.5

Yield: 0.0

Momentum: 0.5

Volatility: 4.7

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Columbus McKinnon

A-Score: 3.0/10

Value: 5.7

Growth: 2.1

Quality: 3.5

Yield: 3.0

Momentum: 0.5

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

108.18$

Current Price

108.18$

Potential

-0.00%

Expected Cash-Flows