Lindsay Corporation (LNN) Q3 2026 Financial Results Summary
· Stocks · QuoteReporter
Lindsay Corporation (LNN) Q3 2026: Revenue Decline Amid Market Challenges — Disappointing Quarter
Lindsay Corporation reported its third quarter results for fiscal 2026, revealing a significant decline in revenue and earnings compared to the previous year. Total revenues for the quarter were $160.8 million, down $8.7 million or -5% from $169.5 million in Q3 2025. This decline was primarily driven by a decrease in irrigation revenues, which fell 7% year-over-year.
The quarter was disappointing for shareholders, as both net earnings and diluted earnings per share (EPS) also saw declines. Net earnings were $15.8 million, down $3.7 million or -19% from $19.5 million in the prior year, resulting in diluted EPS of $1.53, a decrease of $0.25 or -14% from $1.78.
Key Financial Metrics
- Total Revenues: $160.8 million (Q3 2026) vs. $169.5 million (Q3 2025) — down $8.7 million or -5%
- Operating Income: $18.5 million (Q3 2026) vs. $23.8 million (Q3 2025) — down $5.3 million or -22%
- Net Earnings: $15.8 million (Q3 2026) vs. $19.5 million (Q3 2025) — down $3.7 million or -19%
- Diluted EPS: $1.53 (Q3 2026) vs. $1.78 (Q3 2025) — down $0.25 or -14%
- Operating Margin: 11.5% (Q3 2026) vs. 14.0% (Q3 2025)
Segment Performance
- Irrigation Segment:
- Total Revenues: $133.0 million (Q3 2026) vs. $143.7 million (Q3 2025) — down $10.7 million or -7%
- Operating Income: $20.3 million (Q3 2026) vs. $27.2 million (Q3 2025) — down $6.8 million or -25%
- North America Revenues: $61.3 million (Q3 2026) vs. $69.1 million (Q3 2025) — down $7.7 million or -11%
- International Revenues: $71.7 million (Q3 2026) vs. $74.7 million (Q3 2025) — down $3.0 million or -4%
- Infrastructure Segment:
- Total Revenues: $27.7 million (Q3 2026) vs. $25.7 million (Q3 2025) — up $2.0 million or +8%
- Operating Income: $5.4 million (Q3 2026) — unchanged from Q3 2025
- Operating Margin: 19.5% (Q3 2026) vs. 21.1% (Q3 2025)
Shareholder Returns and Guidance
Lindsay Corporation completed $25.2 million in share repurchases during the quarter, bringing the total for the fiscal year to $80.7 million. The company also declared a cash dividend of $0.37 per share, slightly up from $0.36 in the prior year.
Looking ahead, the company anticipates recognizing approximately $70 million in revenue from the ongoing irrigation project in the Middle East North Africa (MENA) region. However, the outlook for the irrigation market in North America remains cautious due to high input costs and weak commodity prices. In Brazil, while there are expectations for a return to growth, challenges such as credit constraints and high interest rates persist.
Analyst View
This quarter's results reflect ongoing challenges in the irrigation segment, particularly in North America and Brazil, which have negatively impacted overall performance. The decline in both revenue and earnings is concerning, especially given the company's reliance on these markets for growth. While the infrastructure segment showed some resilience with an 8% revenue increase, it was not enough to offset the declines in irrigation.
Investors should closely monitor the company's ability to navigate these market challenges and the progress of the MENA project in the upcoming quarters. The effectiveness of cost management strategies and any potential recovery in the irrigation market will be critical for Lindsay's performance moving forward.
Note: All amounts in the following tables are in millions, except for the balance sheet which is in thousands.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
| FY2026 | FY2025 | $ Change | % Change | |
|---|---|---|---|---|
| Total revenues | $160.8 | $169.5 | -$8.7 | -5% |
| Operating income | $18.5 | $23.8 | -$5.3 | -22% |
| Operating margin | 11.5% | 14.0% | ||
| Net earnings | $15.8 | $19.5 | -$3.7 | -19% |
| Diluted earnings per share | $1.53 | $1.78 | -$0.25 | -14% |
| Revenues: | ||||
| North America | $61.3 | $69.1 | -$7.7 | -11% |
| International | $71.7 | $74.7 | -$3.0 | -4% |
| Total revenues | $133.0 | $143.7 | -$10.7 | -7% |
| Operating income | $20.3 | $27.2 | -$6.8 | -25% |
| Operating margin | 15.3% | 18.9% | ||
| Total revenues | $27.7 | $25.7 | $2.0 | 8% |
| Operating income | $5.4 | $5.4 | — | — |
| Operating margin | 19.5% | 21.1% | ||
| Cash dividends declared per share | $0.37 | $0.36 | $0.01 |
CONDENSED CONSOLIDATED BALANCE SHEETS
| ASSETS | May 31, 2026 | May 31, 2025 | August 31, 2025 |
|---|---|---|---|
| Cash and cash equivalents | $154,760 | $196,117 | $250,575 |
| Marketable securities | — | $14,676 | — |
| Receivables, net | $137,449 | $147,848 | $113,027 |
| Inventories, net | $145,945 | $150,462 | $136,859 |
| Other current assets | $42,198 | $38,143 | $32,303 |
| Total current assets | $480,352 | $547,246 | $532,764 |
| Property, plant, and equipment, net | $166,394 | $130,611 | $142,307 |
| Intangible assets, net | $22,576 | $23,703 | $23,331 |
| Goodwill | $84,473 | $84,304 | $84,459 |
| Operating lease right-of-use assets | $19,887 | $16,899 | $18,096 |
| Deferred income tax assets | $23,173 | $18,945 | $19,525 |
| Equity method investments | $8,423 | $8,337 | $8,763 |
| Other noncurrent assets | $16,365 | $10,818 | $11,591 |
| Total assets | $821,643 | $840,863 | $840,836 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Current liabilities | |||
| Accounts payable | $58,712 | $47,000 | $48,670 |
| Current portion of long-term debt | $89 | $232 | $233 |
| Other current liabilities | $104,872 | $103,012 | $94,689 |
| Total current liabilities | $163,673 | $150,244 | $143,592 |
| Pension benefits liabilities | $3,215 | $3,979 | $3,418 |
| Long-term debt | $114,816 | $114,856 | $114,810 |
| Operating lease liabilities | $18,796 | $16,572 | $17,354 |
| Deferred income tax liabilities | $1,163 | $693 | $1,024 |
| Other noncurrent liabilities | $20,884 | $25,743 | $27,788 |
| Total liabilities | $322,547 | $312,087 | $307,986 |
| Shareholders' equity: | |||
| Preferred stock | — | — | — |
| Common stock | $19,199 | $19,162 | $19,167 |
| Capital in excess of stated value | $117,974 | $110,523 | $113,042 |
| Retained earnings | $778,258 | $738,598 | $745,397 |
| Less treasury stock - at cost | -$391,962 | -$302,367 | -$311,224 |
| Accumulated other comprehensive loss, net | -$24,373 | -$37,140 | -$33,532 |
| Total shareholders' equity | $499,096 | $528,776 | $532,850 |
| Total liabilities and shareholders' equity | $821,643 | $840,863 | $840,836 |
Disclaimer
The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information.