8-K
Lindsay Corp (LNN)
UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported): January 07, 2025 |
|---|
Lindsay Corporation
(Exact name of Registrant as Specified in Its Charter)
| Delaware | 1-13419 | 47-0554096 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |
| 18135 Burke Street<br><br>Suite 100 | ||
| Omaha, Nebraska | 68022 | |
| (Address of Principal Executive Offices) | (Zip Code) | |
| Registrant’s Telephone Number, Including Area Code: (402) 829-6800 | ||
| --- |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $1.00 par value | LNN | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On January 7, 2025, Lindsay Corporation (the “Company”) issued a press release announcing the Company’s results of operations for its first quarter ended November 30, 2024. A copy of the press release is furnished herewith as Exhibit 99.1.
In addition, a copy of the slide presentation to be used during the Company’s fiscal 2025 first quarter investor conference call at 11:00 a.m. Eastern Time on January 7, 2025 is furnished herewith as Exhibit 99.2.
Item 9.01 Financial Statements and Exhibits.
99.1 Press Release, dated January 7, 2025, issued by the Company.
99.2 Slide Presentation for Fiscal 2025 First Quarter Investor Conference Call on January 7, 2025.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
In accordance with General Instruction B.2 of Form 8-K, the information contained in Item 2.02 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 relating to Item 2.02 and attached hereto, is being “furnished” and, as such, shall not be deemed to be “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LINDSAY CORPORATION | |||
|---|---|---|---|
| Date: | January 7, 2025 | By: | /s/ Brian L. Ketcham |
| Brian L. Ketcham, Senior Vice President and Chief Financial Officer |
EX-99.1
| Exhibit 99.1<br><br><br><br>18135 BURKE ST. OMAHA, NE 68022 TEL: 402-829-6800 FAX: 402-829-6836 |
|---|
Lindsay Corporation Reports Fiscal 2025 First Quarter Results
Growth in international irrigation projects support consolidated revenue expansion
OMAHA, Neb., January 7, 2025—Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its first quarter of fiscal 2025 which ended on November 30, 2024.
Key Highlights:
- Irrigation revenue growth driven by international project volume in the Middle East and North Africa (MENA) region
- Infrastructure operating margin expansion leads to improved operating income on lower revenues
- Net earnings and diluted earnings per share increase by 14 percent and 15 percent, respectively, versus prior year quarter
“Our first quarter results demonstrate the resilience of our business, as we were able to deliver revenue growth and expansion to net earnings, despite the ongoing cyclical challenges of the mature irrigation markets. While agricultural market conditions in North America and Brazil remain challenged as lower commodity prices negatively impact grower profitability, our international irrigation business drove revenue growth in the segment, supported by additional volumes from our large project in the MENA region,” said Randy Wood, President and Chief Executive Officer. "Revenues in the quarter for our infrastructure business were slightly lower than the prior year due to the timing of projects, however our diligent focus on cost management and manufacturing efficiency helped expand margins and drive higher operating income."
Wood continued, "Subsequent to quarter end, we finalized a Road Zipper System™ contract valued at more than $20 million which we expect to fully deliver in our fiscal second quarter. In addition, I'm pleased to announce that we also closed our acquisition of a minority interest in Pessl Instruments GmbH, with an option to acquire the remainder of the company at a later date. This investment broadens and strengthens our partnership with Pessl, accelerating innovations in water management, increasing our global reach, and providing new solutions needed to conserve natural resources and expand our world's potential."
First Quarter Summary
| Consolidated Financial Summary | First Quarter | |||
|---|---|---|---|---|
| (dollars in millions, except per share amounts) | FY2025 | FY2024 | $ Change | % Change |
| Total revenues | $166.3 | $161.4 | $4.9 | 3% |
| Operating income | $20.9 | $21.1 | ($0.2) | (1%) |
| Operating margin | 12.6% | 13.1% | ||
| Net earnings | $17.2 | $15.0 | $2.1 | 14% |
| Diluted earnings per share | $1.57 | $1.36 | $0.21 | 15% |
Revenues for the first quarter of fiscal 2025 were $166.3 million, an increase of $4.9 million, or 3 percent, compared to revenues of $161.4 million in the prior year. Revenue growth was driven by an increase in international irrigation revenues, which was partially offset by decreases in North America irrigation and infrastructure revenues compared to the prior year.
Operating income for the first quarter of fiscal 2025 was $20.9 million, a decrease of $0.2 million, or 1 percent, compared to operating income of $21.1 million in the prior year. Operating margin was 12.6 percent of sales, compared to operating margin of 13.1 percent of sales in the prior year first quarter. Lower operating income and operating margin in the irrigation segment was partially offset by improved operating income and operating margin in the infrastructure segment.
Net earnings for the first quarter of 2025 were $17.2 million, or $1.57 per diluted share, compared with net earnings of $15.0 million, or $1.36 per diluted share, in the prior year. The current year first quarter results benefited from an increase in other income and a lower effective income tax rate compared to the prior year.
First Quarter Segment Results
| Irrigation Segment | First Quarter | |||
|---|---|---|---|---|
| (dollars in millions) | FY2025 | FY2024 | $ Change | % Change |
| Revenues: | ||||
| North America | $77.7 | $89.4 | ($11.7) | (13%) |
| International | $69.4 | $50.8 | $18.6 | 37% |
| Total revenues | $147.1 | $140.2 | $6.9 | 5% |
| Operating income | $24.7 | $25.3 | ($0.6) | (2%) |
| Operating margin | 16.8% | 18.1% |
Irrigation segment revenues for the first quarter of fiscal 2025 were $147.1 million, an increase of $6.9 million, or 5 percent, compared to $140.2 million in the prior year. North America irrigation revenues of $77.7 million decreased $11.7 million, or 13 percent, compared to the prior year. The decrease in revenues resulted primarily from lower unit sales volume, as well as a less favorable mix of shorter machines and slightly lower average selling prices compared to the prior year. A projected reduction in net farm income for calendar 2024 has led to lower demand for irrigation equipment in the near term.
International irrigation revenues for the first quarter of fiscal 2025 of $69.4 million increased $18.6 million, or 37 percent, compared to the prior year. The increase resulted primarily from revenues related to the large project in the MENA region, along with higher sales in Europe and certain regions of Latin America compared to the prior year. This increase was partially offset by lower sales in Brazil. Revenues in the current year quarter were also impacted by the unfavorable effects of foreign currency translation of approximately $2.1 million compared to the prior year.
Irrigation segment operating income for the first quarter of fiscal 2025 was $24.7 million, a decrease of $0.6 million, or 2 percent, compared to the prior year. Operating margin was 16.8 percent of sales, compared to 18.1 percent of sales in the prior year. The decrease in operating income and operating margin resulted primarily from a higher proportion of international project revenues compared to the prior year, which were dilutive to overall margin.
| Infrastructure Segment | First Quarter | |||
|---|---|---|---|---|
| (dollars in millions) | FY2025 | FY2024 | $ Change | % Change |
| Total revenues | $19.2 | $21.2 | ($2.0) | (9%) |
| Operating income | $4.1 | $3.6 | $0.5 | 14% |
| Operating margin | 21.5% | 17.1% |
Infrastructure segment revenues for the first quarter of fiscal 2025 were $19.2 million, a decrease of $2.0 million, or 9 percent, compared to $21.2 million in the prior year. The decrease resulted primarily from a difference in the timing of Road Zipper System lease revenues and lower sales of road safety products compared to the prior year.
Infrastructure segment operating income for the first quarter of fiscal 2025 was $4.1 million, an increase of $0.5 million, or 14 percent, compared to the prior year. Operating margin was 21.5 percent of sales, compared to 17.1 percent of sales in the prior year first quarter. Increased operating income and operating margin resulted primarily from improved manufacturing efficiency and lower operating expenses compared to the prior year.
The backlog of unfulfilled orders at November 30, 2024 was $168.2 million compared with $86.8 million at November 30, 2023. Included in these backlogs are amounts of $17.4 million and $2.8 million, respectively, for orders that are not expected to be fulfilled within the subsequent 12 months. The backlog in both segments was higher compared to the prior year, with the increase in irrigation backlog resulting primarily from the addition of the large project in the MENA region.
Outlook
Mr. Wood concluded, “We expect softer market conditions in the North America and Brazil irrigation markets to continue in the near term, although there are indications we are nearing the trough of the cycle with some stabilization and improvement in commodity prices. In addition, new state-level financing programs recently announced in Brazil should provide additional clarity and support for investments in irrigation. We expect continued growth in developing international markets, highlighted by project activity in the MENA region."
“We expect to see growth in our infrastructure business in fiscal 2025 supported by the large Road Zipper System project we secured shortly after the end of our first quarter. The impact of additional U.S. federal infrastructure funding has been tempered by construction cost inflation, however it remains supportive of growth in Road Zipper System leasing and sales of road safety products.”
First Quarter Conference Call
Lindsay’s fiscal 2025 first quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. Interested investors may participate in the call by dialing (833) 535-2202 in the U.S., or (412) 902-6745 internationally, and requesting the Lindsay Corporation call. Additionally, the conference call will be simulcast live on the internet and can be accessed via the investor relations section of the Company's website, www.lindsay.com. Replays of the conference call will remain on our website through the next quarterly earnings release. The Company will have a slide presentation available to augment management's formal presentation, which will also be accessible via the Company's website.
About the Company
Lindsay Corporation (NYSE: LNN) is a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology. Established in 1955, the company has been at the forefront of research and development of innovative solutions to meet the food, fuel, fiber and transportation needs of the world’s rapidly growing population. The Lindsay family of irrigation brands includes Zimmatic™ center pivot and lateral move agricultural irrigation systems, FieldNET™ and FieldWise™ remote irrigation management technology, FieldNET Advisor™ irrigation scheduling technology, and industrial IoT solutions. Also a global leader in the transportation industry, Lindsay Transportation Solutions manufactures equipment to improve road safety and keep traffic moving on the world’s roads, bridges and tunnels, through the Barrier Systems™, Road Zipper™ and Snoline™ brands. For more information about Lindsay Corporation, visit www.lindsay.com.
Concerning Forward-looking Statements
This release contains forward-looking statements that are subject to risks and uncertainties, and which reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results. You can find a discussion of many of these risks and uncertainties in the annual, quarterly and current reports that the Company files with the Securities and Exchange Commission. Forward-looking statements include information concerning possible or assumed future results of operations and planned financing of the Company and those statements preceded by, followed by or including the words “anticipate,” “estimate,” “believe,” “intend,” "expect," "outlook," "could," "may," "should," “will,” or similar expressions. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking information contained in this press release.
For further information, contact:
| LINDSAY CORPORATION: | Alpha IR: | |||||
|---|---|---|---|---|---|---|
| Alicia Pfeifer | Joe Caminiti or Stephen Poe | |||||
| Vice President, Investor Relations & Treasury | 312-445-2870 | |||||
| 402-933-6429 | LNN@alpha-ir.com | |||||
| Alicia.Pfeifer@lindsay.com | ||||||
| LINDSAY CORPORATION AND SUBSIDIARIES | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | ||||||
| (Unaudited) | ||||||
| Three months ended | ||||||
| (in thousands, except per share amounts) | ||||||
| Operating revenues | 166,281 | 161,358 | ||||
| Cost of operating revenues | 116,315 | 111,453 | ||||
| Gross profit | 49,966 | 49,905 | ||||
| Operating expenses: | ||||||
| Selling expense | 10,211 | 9,817 | ||||
| General and administrative expense | 15,008 | 14,662 | ||||
| Engineering and research expense | 3,864 | 4,352 | ||||
| Total operating expenses | 29,083 | 28,831 | ||||
| Operating income | 20,883 | 21,074 | ||||
| Other income (expense): | ||||||
| Interest expense | (752 | ) | (877 | ) | ||
| Interest income | 1,245 | 1,068 | ||||
| Other income (expense), net | 658 | (270 | ) | |||
| Total other income (expense) | 1,151 | (79 | ) | |||
| Earnings before income taxes | 22,034 | 20,995 | ||||
| Income tax expense | 4,870 | 5,976 | ||||
| Net earnings | 17,164 | 15,019 | ||||
| Earnings per share: | ||||||
| Basic | 1.58 | 1.36 | ||||
| Diluted | 1.57 | 1.36 | ||||
| Shares used in computing earnings per share: | ||||||
| Basic | 10,853 | 11,017 | ||||
| Diluted | 10,903 | 11,059 | ||||
| Cash dividends declared per share | 0.36 | 0.35 |
All values are in US Dollars.
| LINDSAY CORPORATION AND SUBSIDIARIES | ||||||
|---|---|---|---|---|---|---|
| SUMMARY OPERATING RESULTS | ||||||
| (Unaudited) | ||||||
| Three months ended | ||||||
| (in thousands) | ||||||
| Operating revenues: | ||||||
| Irrigation: | ||||||
| North America | 77,669 | 89,377 | ||||
| International | 69,418 | 50,791 | ||||
| Irrigation segment | 147,087 | 140,168 | ||||
| Infrastructure segment | 19,194 | 21,190 | ||||
| Total operating revenues | 166,281 | 161,358 | ||||
| Operating income: | ||||||
| Irrigation segment | 24,736 | 25,307 | ||||
| Infrastructure segment | 4,124 | 3,619 | ||||
| Corporate | (7,977 | ) | (7,852 | ) | ||
| Total operating income | 20,883 | 21,074 |
All values are in US Dollars.
The Company manages its business activities in two reportable segments as follows:
Irrigation – This reporting segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems, as well as various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, remote irrigation management and scheduling technology, irrigation consulting and design and industrial IoT solutions.
Infrastructure – This reporting segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment.
| LINDSAY CORPORATION AND SUBSIDIARIES | ||||||
|---|---|---|---|---|---|---|
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (Unaudited) | ||||||
| (in thousands) | November 30,<br>2024 | November 30,<br>2023 | August 31,<br>2024 | |||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 194,066 | $ | 159,381 | $ | 190,879 |
| Marketable securities | — | 16,278 | — | |||
| Receivables, net | 120,875 | 143,049 | 116,601 | |||
| Inventories, net | 158,255 | 164,144 | 154,453 | |||
| Other current assets | 28,948 | 18,450 | 31,279 | |||
| Total current assets | 502,144 | 501,302 | 493,212 | |||
| Property, plant, and equipment, net | 117,982 | 103,818 | 112,815 | |||
| Intangibles, net | 24,591 | 27,005 | 25,366 | |||
| Goodwill | 83,941 | 84,029 | 84,194 | |||
| Operating lease right-of-use assets | 15,009 | 17,544 | 15,693 | |||
| Deferred income tax assets | 12,375 | 12,712 | 14,431 | |||
| Other noncurrent assets | 14,959 | 17,508 | 14,521 | |||
| Total assets | $ | 771,001 | $ | 763,918 | $ | 760,232 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 53,185 | $ | 52,242 | $ | 37,417 |
| Current portion of long-term debt | 229 | 227 | 228 | |||
| Other current liabilities | 76,435 | 89,502 | 88,171 | |||
| Total current liabilities | 129,849 | 141,971 | 125,816 | |||
| Pension benefits liabilities | 4,101 | 4,308 | 4,167 | |||
| Long-term debt | 114,948 | 115,120 | 114,994 | |||
| Operating lease liabilities | 14,824 | 17,746 | 15,541 | |||
| Deferred income tax liabilities | 646 | 695 | 678 | |||
| Other noncurrent liabilities | 18,174 | 17,218 | 18,143 | |||
| Total liabilities | 282,542 | 297,058 | 279,339 | |||
| Shareholders' equity: | ||||||
| Preferred stock | — | — | — | |||
| Common stock | 19,145 | 19,115 | 19,124 | |||
| Capital in excess of stated value | 104,995 | 98,628 | 104,369 | |||
| Retained earnings | 700,345 | 647,455 | 687,093 | |||
| Less treasury stock - at cost | (299,703) | (277,238) | (299,692) | |||
| Accumulated other comprehensive loss, net | (36,323) | (21,100) | (30,001) | |||
| Total shareholders' equity | 488,459 | 466,860 | 480,893 | |||
| Total liabilities and shareholders' equity | $ | 771,001 | $ | 763,918 | $ | 760,232 |
| LINDSAY CORPORATION AND SUBSIDIARIES | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| (Unaudited) | ||||||
| Three months ended | ||||||
| (in thousands) | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
| Net earnings | 17,164 | 15,019 | ||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||
| Depreciation and amortization | 5,412 | 5,307 | ||||
| Provision for uncollectible accounts receivable | 62 | 71 | ||||
| Deferred income taxes | 1,589 | (1,666 | ) | |||
| Share-based compensation expense | 1,977 | 1,603 | ||||
| Unrealized foreign currency transaction (gain) loss | (511 | ) | 79 | |||
| Other, net | (217 | ) | 73 | |||
| Changes in assets and liabilities: | ||||||
| Receivables | (6,442 | ) | 1,689 | |||
| Inventories | (5,968 | ) | (7,970 | ) | ||
| Other current assets | 1,251 | 2,762 | ||||
| Accounts payable | 16,656 | 7,087 | ||||
| Other current liabilities | (9,978 | ) | (4,263 | ) | ||
| Other noncurrent assets and liabilities | 608 | 2,081 | ||||
| Net cash provided by operating activities | 21,603 | 21,872 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
| Purchases of property, plant, and equipment | (9,142 | ) | (6,941 | ) | ||
| Purchases of marketable securities | — | (12,992 | ) | |||
| Proceeds from maturities of marketable securities | — | 2,325 | ||||
| Proceeds from settlement of net investment hedge | 835 | — | ||||
| Payments for settlement of net investment hedge | (98 | ) | — | |||
| Other investing activities, net | (401 | ) | (593 | ) | ||
| Net cash used in investing activities | (8,806 | ) | (18,201 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
| Dividends paid | (3,912 | ) | (3,861 | ) | ||
| Common stock withheld for payroll tax obligations | (1,450 | ) | (1,575 | ) | ||
| Other financing activities, net | 52 | 56 | ||||
| Net cash used in financing activities | (5,310 | ) | (5,380 | ) | ||
| Effect of exchange rate changes on cash and cash equivalents | (4,300 | ) | 335 | |||
| Net change in cash and cash equivalents | 3,187 | (1,374 | ) | |||
| Cash and cash equivalents, beginning of period | 190,879 | 160,755 | ||||
| Cash and cash equivalents, end of period | 194,066 | 159,381 |
All values are in US Dollars.
1st Quarter Fiscal 2025 Earnings Slide Deck Exhibit 99.2
Safe-Harbor Statement © 2024 Lindsay Corporation This presentation contains forward-looking statements that are subject to risks and uncertainties, and which reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, Company performance, financial results and planned financing. You can find a discussion of many of these risks and uncertainties in the annual, quarterly and current reports that the Company files with the Securities and Exchange Commission. Investors should understand that a number of factors could cause future economic and industry conditions and the Company’s actual financial condition and results of operations to differ materially from management’s beliefs expressed in the forward-looking statements contained in this presentation. These factors include those outlined in the “Risk Factors” section of the Company’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission, and investors are urged to review these factors when considering the forward-looking statements contained in this presentation. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. For additional financial statement information, please see the Company’s earnings release dated January 7, 2025.
© 2024 Lindsay Corporation Key Messages Irrigation revenue growth driven by international project volume in the Middle East and North Africa (MENA) region Infrastructure operating margin expansion leads to improved operating income on lower revenues Net earnings and diluted earnings per share (EPS) increase by 14 percent and 15 percent, respectively, versus prior year quarter Large Road Zipper System™ contract expected to be delivered in second quarter Acquisition of a minority interest in Pessl Instruments GmbH finalized
First Quarter Summary © 2024 Lindsay Corporation Revenues increased $4.9 million compared to the prior year Irrigation increased $6.9 million Infrastructure decreased $2.0 million Operating income decreased $0.2 million compared to the prior year Irrigation decreased $0.6 million Infrastructure increased $0.5 million Corporate expense increased $0.1 million Diluted EPS benefited from an increase in other income and a lower effective tax rate compared to the prior year +3% -1% +15% Revenue Operating Income (with operating margin) Diluted EPS
Irrigation – Current Market Factors As of November 2024, U.S. corn and soybean prices were approximately 8 percent and 27 percent lower, respectively, compared to November 2023 In December 2024, the USDA estimated 2024 U.S. net farm income to be $140.7 billion, a decrease of 4 percent from 2023 U.S. net farm income of $146.7 billion Decrease in government support payments of 14 percent Decrease in cash receipts for crops of 9 percent U.S. farm balance sheets remain solid following three years of profitability In Brazil, the market continues to be tempered by lower commodity prices and credit availability Project opportunities in developing international markets continue to be active, driven by food security and water scarcity concerns
Irrigation Segment – First Quarter Summary © 2024 Lindsay Corporation North America revenue of $77.7 million decreased 13 percent Lower unit sales volume due to challenging market conditions Less favorable mix of shorter machines Lower average selling prices Unit sales volume breakdown by category: Replacement 51%, Conversion 33%, Dryland 16% International revenue of $69.4 million increased 37 percent Higher sales to developing markets from the MENA region project Lower sales in Brazil Higher sales in Europe and certain regions of Latin America Unfavorable effects of foreign currency translation of $2.1 million Operating income of $24.7 million decreased 2 percent Lower operating income and margin resulted primarily from a higher proportion of international project revenues, which were dilutive to overall margin Revenue -2% +5% Operating Income (with operating margin) 6 $ in millions
Infrastructure – Current Market Factors Infrastructure Investment and Jobs Act (IIJA) funding includes $110 billion in incremental federal funding for roads, bridges, and other transportation projects Higher inflation on material prices and labor costs has offset some of the impact of the incremental funding Through August 2024, approximately 27 percent of the IIJA funds have been reimbursed to the states The value of U.S. highway & bridge construction activity increased 10 percent in 2023 and 5 percent through November 2024 over the same prior year periods Active management of opportunities in Road Zipper System project sales funnel continue to show progress
Infrastructure Segment – First Quarter Summary © 2024 Lindsay Corporation Revenue of $21.2 million decreased 9 percent Timing of Road Zipper System™ lease revenue Lower sales of road safety products Operating income of $4.1 million increased 14 percent Improved manufacturing efficiency and lower operating expenses Finalized a large Road Zipper System project Project is valued at over $20 million Expect to deliver in the second quarter Revenue +14% Operating Income (with operating margin) -9% $ in millions
© 2024 Lindsay Corporation Ample Liquidity to Execute Capital Allocation Priorities $244M Available liquidity Current Liquidity 1.0x Gross Debt to EBITDA leverage Substantial Room to add Leverage No Near-Term Debt Maturities $115M Total Debt Long-term debt matures in 2030
Capital Allocation Priorities © 2024 Lindsay Corporation Working capital to support sales growth New product development Capacity and productivity investments Align with strategic growth priorities Leverage or add to existing capabilities Deliver return on invested capital Increase annual dividends Opportunistic share repurchase Support Growth and Profitability of Current Businesses Acquisitions Return Capital to Shareholders
Innovation Leadership: Addressing Global Megatrends © 2024 Lindsay Corporation Capitalizing on global megatrends Megatrends Innovation Leadership Innovative sustainable solutions for growers across the globe Mobilizing global populations safely and sustainably Food Security Water Scarcity Land Availability Aging Infrastructure Mobility Safety Increased Safety Standards
Strong Commitment to Sustainable Practices © 2024 Lindsay Corporation Our mission is to conserve natural resources, expand our world’s potential, and enhance the quality of life for people. Investing in sustainable technologies Improving our operational footprint Empowering and protecting our people Engaging in our local communities Operating with integrity
Appendix
U.S. Net Farm Income and Net Cash Farm Income Inflation adjusted, 2004-2024F 2004-23 average NCFI Note: F = forecast. Values are adjusted for inflation using the U.S. Bureau of Economic Analysis Gross Domestic Product Price Index (BEA API series code: A191RG) rebased to 2024 by USDA, Economic Research Service. Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of December 3, 2024 $ billion 2004-23 average NFI
U.S. Corn Prices Source: Trading Economics
U.S. Soybean Prices Source: Trading Economics
Soybean Cash Price Index – Brazil Source:Cepea
Brazil Central Bank Interest Rate Source: Trading Economics| Banco Central do Brasil
United States Drought Condition Source: US Drought Monitor, December 2024 2023 2024