Lindsay Earnings Mixed
Lindsay Reports Strong Q3 Revenue and Earnings Beat, Infrastructure Growth Offsets Irrigation Dip
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Key Points
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Brazil's irrigation market remains weak for Lindsay, constrained by low profitability and restricted credit access, weighing on domestic performance.
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In Q3 2026, Lindsay reported gross profit of $47.8 million and operating income of $18.5 million on revenue of $160.8 million, underscoring the quarterly profitability mix.
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Institutional investor activity around Lindsay remained active, with notable moves in early 2026 such as Two Sigma Investments adding 107,826 shares and Jennison Associates reducing 112,337 shares.
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Irrigation segment revenue was $133.0 million for the quarter, with North America at $61.3 million (down 11%) and international at $71.7 million (down 4%), while the infrastructure segment rose to $27.7 million (up 8%) driven by higher road-safety product revenues.
Lindsay Corporation posted fiscal third-quarter 2026 revenue of $160.8 million and net earnings of $15.8 million, or $1.53 per share — beating the analyst consensus estimate of $1.35 ChartMill. Shares rose 2.42% in pre-market trading on July 2 after the profit beat, even as total revenue fell 5% from $169.5 million a year earlier GuruFocus.
CEO Randy Wood called the results a show of the company's "resiliency" in a "volatile macro-economic environment." The irrigation segment, Lindsay's core business, dropped 7% year over year. But a growing infrastructure division and a large Middle East project helped cushion the blow Finance Yahoo.
Irrigation Sales Slide as Farmers Feel the Squeeze
Irrigation segment revenue fell to $133.0 million in Q3, down from the prior year. North America led the decline, dropping 11% to $61.3 million. International irrigation slipped 4% to $71.7 million Finance Yahoo. Weak farmer sentiment and lower unit volumes drove both moves. About 51% of U.S. farmers surveyed by the Purdue University/CME Group Ag Economy Barometer cited high input costs as their top concern.
Brazil added to the pressure. Low commodity profitability and restricted credit access have frozen farm equipment investment there Markets Financial Content. Although Brazil's government unveiled a $117.9 billion agricultural financing plan on June 30, market sentiment stayed cautious. Analysts at Stifel, led by Nathan Jones, maintained a "Hold" rating and cut their price target from $128 to $113, pointing to "agriculture headwinds" as the key drag.
$80 Million MENA Project Bolsters Backlog to $136 Million
Lindsay signed an $80 million supply deal in December 2025 for Zimmatic irrigation systems and FieldNET technology in the Middle East and North Africa. The project remains on schedule, Wood confirmed. Lindsay expects to book roughly $70 million of that revenue in the current fiscal year GuruFocus. Total company backlog rose to $136.1 million, supported largely by that contract.
One risk looms: analysts at Northcoast Research raised concerns on the Q2 call about whether the Iran conflict could disrupt logistics for components made in Turkey. A prolonged conflict could delay recognition of the remaining revenue ChartMill. For now, management says the timeline holds, and the MENA strategy is central to offsetting weak domestic demand.
Infrastructure Segment Climbs 8% on Road Safety Demand
Lindsay's infrastructure business was a bright spot. Revenue rose 8% to $27.7 million, driven by higher road-safety product sales and Road Zipper system activity Finance Yahoo. Gross profit for the full company came in at $47.8 million, with operating income at $18.5 million. The infrastructure segment's operating margin of 11.5% helped protect overall profitability as irrigation volumes softened.
As the northern hemisphere enters its peak road construction season, analysts expect the infrastructure division to keep growing. It now provides a meaningful hedge against the agricultural cycle, which shows no clear sign of a near-term rebound in North America or Brazil.
Lindsay Buys Back $80.7 Million in Shares Year to Date
Lindsay repurchased $25.2 million of its own stock during Q3, bringing year-to-date buybacks to $80.7 million Quiver Quantitative. The company is working through a $150 million repurchase authorization announced in November 2025. CFO Sam Hinrichsen, who took the role in January 2026, signed off on the capital return strategy while keeping the debt-to-equity ratio at a conservative 0.27.
Institutional investors showed mixed signals in early 2026. Two Sigma Investments added 107,826 shares — a jump of 3,426% — while Jennison Associates cut its position by 112,337 shares, a 37.9% reduction Quiver Quantitative. The divergence suggests a "rebalancing" phase, with some funds buying on perceived undervaluation and others stepping back amid geopolitical and agricultural risk.
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