Fourth Quarter and Fiscal Year 2026
Filed Oct 22, 2026Lindsay Corporation Reports Fourth Quarter and Fiscal Year 2026 Results
Fourth-quarter revenue, operating income and diluted earnings per share increased year over year, led by North America irrigation and infrastructure, but fiscal-year revenue, operating income, net earnings and diluted earnings per share declined amid lower irrigation project sales, weaker North America and Brazil volumes, and the absence of a prior-year Road Zipper project.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fourth Quarter total revenuesGAAP | $161.6M | – | 5% |
| Fourth Quarter cost of operating revenuesGAAP | $118.1M | – | – |
| Fourth Quarter gross profitGAAP | $43.5M | – | – |
| Fourth Quarter selling expenseGAAP | $10.40M | – | – |
| Fourth Quarter general and administrative expenseGAAP | $13.67M | – | – |
| Fourth Quarter engineering and research expenseGAAP | $3.64M | – | – |
| Fourth Quarter total operating expensesGAAP | $27.71M | – | – |
| Fourth Quarter operating incomeGAAP | $15.8M | – | 39% |
| Fourth Quarter operating marginGAAP | 9.8% | – | – |
| Fourth Quarter interest income, netGAAP | $2.27M | – | – |
| Fourth Quarter other expense, netGAAP | ($781) | – | – |
| Fourth Quarter total other incomeGAAP | $1.49M | – | – |
| Fourth Quarter earnings before income taxesGAAP | $17.28M | – | – |
| Fourth Quarter income tax expenseGAAP | $6.02M | – | – |
| Fourth Quarter net earningsGAAP | $11.3M | – | 4% |
| Fourth Quarter basic earnings per shareGAAP | $1.11 | – | – |
| Fourth Quarter diluted earnings per shareGAAP | $1.10 | – | 11% |
| Fourth Quarter shares used in computing basic earnings per shareGAAP | 10,169 | – | – |
| Fourth Quarter shares used in computing diluted earnings per shareGAAP | 10,219 | – | – |
| Fourth Quarter cash dividends declared per shareGAAP | $0.38 | – | – |
| Fiscal Year total revenuesGAAP | $635.9M | – | (6%) |
| Fiscal Year cost of operating revenuesGAAP | $452,080 | – | – |
| Fiscal Year gross profitGAAP | $183,783 | – | – |
| Fiscal Year selling expenseGAAP | $42,258 | – | – |
| Fiscal Year general and administrative expenseGAAP | $57,598 | – | – |
| Fiscal Year engineering and research expenseGAAP | $17,002 | – | – |
| Fiscal Year total operating expensesGAAP | $116,858 | – | – |
| Fiscal Year operating incomeGAAP | $66.9M | – | (24%) |
| Fiscal Year operating marginGAAP | 10.5% | – | – |
| Fiscal Year interest income, netGAAP | $9,890 | – | – |
| Fiscal Year other expense, netGAAP | ($1,500) | – | – |
| Fiscal Year total other incomeGAAP | $8,390 | – | – |
| Fiscal Year earnings before income taxesGAAP | $75,315 | – | – |
| Fiscal Year income tax expenseGAAP | $19,662 | – | – |
| Fiscal Year net earningsGAAP | $55.7M | – | (25%) |
| Fiscal Year basic earnings per shareGAAP | $5.35 | – | – |
| Fiscal Year diluted earnings per shareGAAP | $5.33 | – | (21%) |
| Fiscal Year shares used in computing basic earnings per shareGAAP | 10,397 | – | – |
| Fiscal Year shares used in computing diluted earnings per shareGAAP | 10,436 | – | – |
| Fiscal Year cash dividends declared per shareGAAP | $1.49 | – | – |
| Fourth Quarter Irrigation operating incomeGAAP | $17.3M | – | (2%) |
| Fourth Quarter Irrigation operating marginGAAP | 12.9% | – | – |
| Fourth Quarter Infrastructure operating incomeGAAP | $5M | – | 41% |
| Fourth Quarter Infrastructure operating marginGAAP | 17.9% | – | – |
| Fiscal Year Irrigation operating incomeGAAP | $80,081 | – | – |
| Fiscal Year Infrastructure operating incomeGAAP | $16,033 | – | – |
| Fiscal Year Corporate operating incomeGAAP | ($29,189) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Fourth Quarter Irrigation: North AmericaThe increase in revenues resulted primarily from higher unit sales volume while average selling prices were comparable to the prior year. | $55.4M | – | 11% |
| Fourth Quarter Irrigation: InternationalIncreases in the MENA region and other developed markets were offset by a decrease in Brazil. Revenues in the current year quarter were favorably impacted by the effects of foreign currency translation of approximately $2.4 million compared to the prior year. | $78.3M | – | (1%) |
| Fourth Quarter Irrigation totalNorth America irrigation revenues were higher, while international irrigation revenues were comparable to the prior year. | $133.7M | – | 4% |
| Fourth Quarter InfrastructureThe increase was primarily driven by higher sales of road safety products, which was partially offset by lower Road Zipper System™ sales and lease revenues compared to the prior year. | $27.8M | – | 13% |
| Fiscal Year Irrigation: North AmericaIrrigation revenues decreased $26.5 million primarily due to lower comparative project sales in the MENA region and lower sales volume in North America and Brazil. | $262,104 | – | – |
| Fiscal Year Irrigation: InternationalIrrigation revenues decreased $26.5 million primarily due to lower comparative project sales in the MENA region and lower sales volume in North America and Brazil. | $279,346 | – | – |
| Fiscal Year Irrigation totalIrrigation revenues decreased $26.5 million primarily due to lower comparative project sales in the MENA region and lower sales volume in North America and Brazil. | $541,450 | – | – |
| Fiscal Year InfrastructureInfrastructure revenues decreased $14.0 million, primarily due to lower Road Zipper System project sales as the prior year included a $20.0 million project that did not repeat. The decrease was partially offset by higher sales of road safety products compared to the prior year. | $94,413 | – | – |
Fiscal 2027 outlook
- NoteThe Company expects demand for irrigation equipment in North America to remain tempered until the outlook for commodity prices and farm income improves.
- NoteThe Company expects difficult year-over-year comparisons in the international irrigation project markets in fiscal 2027.
- NoteThe Company anticipates sustained growth in road safety products.
- NoteThe Company anticipates Road Zipper System leasing to be comparable to this fiscal year.
- NoteThe Company expects to recognize the majority of the remaining $10 million in services revenue over the next 12 to 24 months.
- NoteThe June global restructuring is expected to generate approximately $8.0 million of net annualized savings.
Capital returns
- Returned $96.1 million to shareholders through $80.7 million of share repurchases and $15.4 million of dividends.
- Repurchase of common shares was ($80,738) for the year ended August 31, 2026, compared with ($11,532) for the year ended August 31, 2025.
- Dividends paid were ($15,392) for the year ended August 31, 2026, compared with ($15,748) for the year ended August 31, 2025.
- A new share repurchase authorization of $150.0 million was announced, of which $100.0 million remained available at the end of the fiscal year.
What drove it
- Fourth-quarter North America irrigation revenue increased on higher unit sales volume, while average selling prices were comparable to the prior year.
- Fourth-quarter international irrigation results benefited from MENA and other developed markets, as well as approximately $2.4 million of favorable foreign currency translation, offset by Brazil.
- Fourth-quarter infrastructure growth was driven by road safety products and marked a third consecutive quarter of road safety products growth.
- Fourth-quarter consolidated operating income increased from higher revenues and lower operating expenses.
- Fiscal-year irrigation revenue declined on lower comparative MENA project sales and lower sales volume in North America and Brazil.
- Fiscal-year infrastructure revenue declined because a $20.0 million Road Zipper project in the prior year did not repeat, partly offset by higher road safety product sales.
- The Company implemented a global restructuring in June that reduced its workforce.
Concerns
- North America irrigation demand is expected to remain tempered until the outlook for commodity prices and farm income improves.
- Brazil faced limited credit availability, low farmer profitability, high interest rates and ongoing credit constraints.
- Fiscal 2027 international irrigation project markets are expected to face difficult year-over-year comparisons.
- Fiscal-year irrigation operating margin decreased due to lower unit volume and resulting lower fixed cost absorption, as well as higher input costs.
- Fourth-quarter irrigation operating margin declined because of higher input costs, partly offset by lower operating expenses.
- Backlog declined primarily because of deliveries relating to large irrigation projects in the MENA region.
What to watch
- Whether stronger commodity prices and improving farmer sentiment translate into a recovery in North America irrigation demand and unit volume.
- Recognition of the majority of the remaining $10 million in MENA services revenue over the next 12 to 24 months.
- Brazilian credit availability, interest rates and farmer profitability.
- The expected approximately $8.0 million of net annualized savings from the June restructuring.
- Sustained road safety product growth and Road Zipper System leasing performance.
- Progression of Road Zipper System projects through the sales funnel.
- The planned acquisition of Setorial Irrigação and its effect on the Company's irrigation portfolio and Brazilian market position.
Balance sheet and cash flow
- Cash and cash equivalents were $189,836 at August 31, 2026, compared with $250,575 at August 31, 2025.
- Long-term debt was $114,829 at August 31, 2026, compared with $114,810 at August 31, 2025.
- Net cash provided by operating activities was $74,920 for the year ended August 31, 2026, compared with $132,910 for the year ended August 31, 2025.
- Purchases of property, plant and equipment were ($40,172) for the year ended August 31, 2026, compared with ($42,496) for the year ended August 31, 2025.
- Net cash used in investing activities was ($42,817) for the year ended August 31, 2026, compared with ($48,574) for the year ended August 31, 2025.
- Net cash used in financing activities was ($96,222) for the year ended August 31, 2026, compared with ($26,851) for the year ended August 31, 2025.
- Net change in cash and cash equivalents was ($60,739) for the year ended August 31, 2026, compared with $59,696 for the year ended August 31, 2025.
- The backlog of unfilled orders was $102.5 million as of August 31, 2026, compared with $110.7 million as of August 31, 2025.
- Backlog included $17.6 million for orders not expected to be fulfilled within the subsequent twelve months, compared with $9.8 million at August 31, 2025.
Analysis
Lindsay closed fiscal 2026 with improved fourth-quarter operating performance. Fourth-quarter revenue was $161.6 million, up 5%, while operating income increased 39% to $15.8 million and operating margin expanded to 9.8% from 7.4%. Net earnings rose 4% to $11.3 million and diluted earnings per share increased 11% to $1.10. The company attributed the operating-income improvement to higher revenue and lower operating expenses, although the net-earnings increase was moderated by a higher effective tax rate and lower other income.
Irrigation delivered a 4% fourth-quarter revenue increase to $133.7 million. North America revenue rose 11% to $55.4 million on higher unit volume, with average selling prices comparable to the prior year. International revenue of $78.3 million was comparable to the prior year as increases in MENA and other developed markets offset a decline in Brazil; foreign currency translation added approximately $2.4 million relative to the prior year. Segment operating income was $17.3 million versus $17.7 million, and margin fell to 12.9% from 13.7%, primarily due to higher input costs.
Infrastructure was the stronger fourth-quarter profit contributor. Revenue increased 13% to $27.8 million, driven by higher road safety product sales, partly offset by lower Road Zipper System sales and lease revenue. Segment operating income increased 41% to $5.0 million, while margin rose to 17.9% from 14.4%, reflecting revenue growth and a more favorable revenue margin mix. Management highlighted this as the third consecutive quarter of road safety products growth.
The full fiscal year remained weaker than the exit quarter. Revenue declined 6% to $635.9 million, operating income fell 24% to $66.9 million, and net earnings decreased 25% to $55.7 million. Irrigation revenue declined because of lower comparative MENA project sales and lower sales volume in North America and Brazil. Infrastructure revenue declined because a $20.0 million Road Zipper project in the prior year did not repeat. Operating margin decreased to 10.5% from 13.0%, with lower revenues, lower fixed-cost absorption in irrigation, higher input costs, and the non-repeat of the Road Zipper project weighing on profitability.
Capital allocation remained active despite lower annual earnings. The company returned $96.1 million through share repurchases and dividends, while funding what management described as its largest capital investment in its history at the Lindsay, Nebraska facility. Net cash provided by operating activities was $74,920, compared with $132,910 in the prior year, and purchases of property, plant and equipment were ($40,172). Cash and cash equivalents ended the year at $189,836, while long-term debt was $114,829. Backlog declined to $102.5 million from $110.7 million, primarily due to deliveries on large MENA irrigation projects.
The fiscal 2027 outlook is qualitative and points to continued uneven demand. Management expects North America irrigation demand to remain tempered, sees Brazil credit conditions as a headwind, and expects difficult year-over-year comparisons in international irrigation projects. Offsetting these pressures, the company anticipates sustained road safety product growth, Road Zipper System leasing comparable to fiscal 2026, recognition of the majority of the remaining $10 million of MENA services revenue over the next 12 to 24 months, and approximately $8.0 million of net annualized savings from the June restructuring.
Management, verbatim
North America irrigation revenue and unit volume increased in the fourth quarter, supported by stronger commodity prices and improving farmer sentiment.
Randy Wood, President and Chief Executive Officer
In the Middle East North Africa (MENA) region we completed delivery of approximately $70 million of the $80 million project that began in our fiscal second quarter.
Randy Wood, President and Chief Executive Officer
In our infrastructure business, we anticipate sustained growth in road safety products, supported by the new road safety solutions we've recently introduced in the market.
Randy Wood, President and Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Free cash flow was not reported.
- An explicit effective tax rate was not reported.
- Numerical fiscal 2027 revenue guidance was not reported.
- Numerical fiscal 2027 gross margin guidance was not reported.
- Numerical fiscal 2027 operating expense guidance was not reported.
- Numerical fiscal 2027 tax-rate guidance was not reported.
- Prior-quarter comparisons were not reported.
- Non-GAAP financial metrics were not reported.
- Fiscal-year segment revenue percentage changes for North America irrigation, international irrigation, total irrigation, and infrastructure were not reported on their respective rows.
- Fiscal-year segment operating-income percentage changes and operating margins were not reported in the segment operating-results table.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.