Lindsay’s third quarter saw a flat year-on-year revenue performance, coming in slightly above analyst expectations, but the market reacted negatively as non-GAAP profit missed consensus by 10%. Management attributed the quarter’s mixed performance to diverging trends across its irrigation and infrastructure segments. Strength in international irrigation, particularly in South America and the Middle East, was offset by ongoing weakness in North America, where low commodity prices and reduced storm damage demand suppressed sales. CEO Randy Wood acknowledged, “Pivot analytics data indicates irrigated hours across the core Midwest markets of Nebraska, Oklahoma and Texas were down over 20% versus prior year,” highlighting the challenging backdrop for domestic sales.
Is now the time to buy LNN? Find out in our full research report (it’s free for active Edge members).
Lindsay (LNN) Q3 CY2025 Highlights:
- Revenue: $153.6 million vs analyst estimates of $151.1 million (flat year on year, 1.6% beat)
- Adjusted EPS: $0.99 vs analyst expectations of $1.10 (10% miss)
- Adjusted EBITDA: $16.51 million vs analyst estimates of $18.38 million (10.8% margin, 10.2% miss)
- Operating Margin: 7.4%, down from 8.7% in the same quarter last year
- Organic Revenue was flat year on year vs analyst estimates of 2.7% declines (278.6 basis point beat)
- Market Capitalization: $1.21 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Lindsay’s Q3 Earnings Call
- Kristen Owen (Oppenheimer) asked what catalysts management is watching to shape its outlook and about margin levers for next year. CEO Randy Wood cited ongoing North American weakness but highlighted international diversification, while CFO Brian Ketcham pointed to pricing discipline and recurring subscription revenue as key supports for margins.
- Nathan Jones (Stifel) questioned expectations for North American irrigation volumes and margins in 2026. Ketcham projected low to mid-single-digit volume declines but expects flattish revenue due to higher pricing and subscription growth; margins may see short-term pressure from new depreciation.
- Jones (Stifel) also inquired about the outlook for international project revenues. Wood acknowledged the potential to match prior project volume if new contracts materialize but stressed the unpredictability of timing.
- Brian Drab (William Blair) sought clarity on the timing and size of major project deliveries and infrastructure margin expectations. Ketcham detailed project spillover into the first quarter and expects infrastructure margins to normalize around 20% without large projects.
- Ryan Connors (Northcoast Research) probed the effects of credit constraints in Brazil and planned capital expenditures. Wood indicated stable market conditions with limited credit-driven downside, while Ketcham confirmed elevated capital investment for 2026 due to expanded galvanizing scope.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely watch (1) whether North American irrigation demand begins to recover as commodity prices and farm income evolve, (2) the pace and timing of new international irrigation projects, especially in the MENA region, and (3) the impact of increased recurring subscription revenue and manufacturing investments on margin stability. Execution on capital projects and successful navigation of credit constraints in Brazil will also be important signposts.
Lindsay currently trades at $111.55, down from $122.65 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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