Profit tops forecasts as infrastructure business provides support
Lindsay Corporation (NYSE:LNN) shares gained 2.42% in premarket trading on Thursday after the irrigation and infrastructure equipment manufacturer reported fiscal third-quarter earnings that exceeded Wall Street expectations, although revenue came in slightly below forecasts.
For the quarter ended 31 May 2026, the company posted adjusted earnings per share of $1.53, surpassing the analyst consensus estimate of $1.35. Revenue totaled $160.8 million, below the expected $162.2 million and down 5% from $169.5 million in the same period last year.
Net income declined 19% year over year to $15.8 million from $19.5 million.
Irrigation sales remain under pressure
The weaker top-line performance reflected ongoing softness in the irrigation business, where revenue fell 7% to $133.0 million.
Sales in North America declined 11% to $61.3 million as elevated input costs continued to weigh on customer demand, while international irrigation revenue slipped 4% to $71.7 million, largely due to challenging market conditions in Brazil.
By contrast, the infrastructure segment delivered an 8% increase in revenue to $27.7 million, supported by stronger demand for road safety products.
MENA project continues on schedule
“Deliveries for the large irrigation project in the Middle East North Africa (MENA) region remain on schedule despite continued geopolitical challenges,” said Randy Wood, President and Chief Executive Officer.
“In North America, demand for irrigation equipment remains tempered as margin pressure from high input costs continues to impact customer sentiment.”
Margins narrow as costs remain elevated
Lindsay reported an operating margin of 11.5%, down from 14.0% a year earlier, as lower sales volumes, higher input costs and reduced operating leverage affected profitability.
During the quarter, the company repurchased $25.2 million of its own shares, increasing total share buybacks for the fiscal year to $80.7 million.
Backlog expands on major irrigation contract
Lindsay ended the quarter with a backlog of $136.1 million, compared with $117.1 million a year earlier, largely driven by the major MENA irrigation project.
The company expects approximately $70 million of revenue from that project to be recognised during the current fiscal year.