Clarifying the revenue recognition for the $80 million Middle East project, specifically if the remaining $10 million will be in Q1 FY27.

Sam Hinrichsen confirmed that $70 million is expected in FY26, and the remaining $10 million will spill into early Q1 FY27, with minor timing changes possible. “You're right, Ryan. So $70 million is to the expectation to be recognized in fiscal '26. The remaining $10 million will spill into 2027. There could be minor timing changes, but it's going to be early in the fiscal year.”

Clarifying if the galvanizing facility completion is calendar or fiscal 2027 and if its completion marks the end of major CapEx projects.

Randy Wood clarified it's calendar 2027. Sam Hinrichsen confirmed it's the final step of strategic investments, and CapEx will return to normalized levels (maintenance and organic growth) afterward. “That is correct, Ryan. So this is the final step of our strategic investments. Once the galvanizing goes live, you will see a return to normalized capital levels comprised of, of course, maintenance capital and investments in organic growth that have strong business cases behind them.”

Asking about the application of AI in FieldNET and Smart Pivot platforms, beyond general agricultural AI trends.

Randy Wood highlighted AI's use in FieldNET Advisor for irrigation scheduling (historical/predicted weather, crop stage, soil type) to improve customer profitability. He also mentioned machine learning in Smart Pivot for pre-diagnosing mechanical failures by recognizing abnormal characteristics. “With FieldNET Advisor specifically, we've really been deploying a lot of AI models to help with irrigation scheduling... The other side that I think is really interesting... is the Smart Pivot platform, where things like machine learning can allow us to pre-diagnose failures.”

LNN

Lindsay (LNN) Q3 FY26 earnings call: guidance and Q&A

Earnings call· May 2026 (Q3 FY26)· Industrials· Jul 2, 2026

Source: earnings call transcript

Executive summary

Lindsay Corporation Q3 FY26 — Infrastructure Growth and Strategic Investments Amidst Agricultural Headwinds

Lindsay Corporation navigated a challenging Q3 FY26, marked by a cyclical bottom in agricultural markets and soft irrigation demand in North America and Brazil. Despite these headwinds, the company achieved growth in its Infrastructure segment and continued strategic investments in manufacturing and technology, while implementing restructuring actions to optimize its cost structure for long-term agility and future growth.

Highlights

Infrastructure segment revenue increased 8% year-over-year, marking three consecutive quarters of growth.
Technology revenue is expected to achieve sustained double-digit growth in fiscal 2026.
Total available liquidity stood at $204.8 million, including $154.8 million in cash and cash equivalents.
The new tube mill has been successfully commissioned and is now in full production, enhancing efficiency.
The Brazil financing rate for the 2026-2027 crop plan declined from 12.5% to 11.5%.

Concerns

Total revenues decreased 5% to $160.8 million compared to the prior year.
Operating income decreased to $18.5 million from $23.8 million, with operating margin at 11.5% of sales compared to 14% last year.
North America irrigation revenues decreased 11% due to lower unit sales volume.
International irrigation revenues decreased 4%, primarily driven by lower sales volume in Brazil.
Total funding allocated to irrigation within Brazil's FINAME program was reduced by 38%, from BRL 2.75 billion to BRL 1.7 billion.

Guidance & targets

Category	Target	Timeline	Confidence
Technology revenue growth	sustained double-digit growth medium materiality	FY26	High
Road safety product sales growth	continued growth low materiality	ongoing	Medium
Restructuring savings	begin medium materiality	FY27	High
Middle East project revenue recognition	$10 million medium materiality	Q1 FY27	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Irrigation Decrease due to lower unit sales volume, higher input costs, and fixed cost deleverage. Operating margin: 15.3% of sales (vs 18.9% last year)	$133 million	-7%	—	$20.3 million
North America Irrigation Reflects continued softness in the U.S. market due to challenging farm economics. Primary driver: lower unit sales volume, partially offset by higher average selling prices	$61.3 million	-11%	—	—
International Irrigation Impacted by high interest rates and limited credit access in Brazil. Primary driver: lower sales volume in Brazil, partially offset by growth in other international markets	$71.7 million	-4%	—	—
Infrastructure Operating margin decrease due to less favorable mix from lower road safety revenues. Operating margin: 19.5% of sales (vs 21.1% last year)Driver: higher road safety product revenues	$27.7 million	8%	—	$5.4 million

Orderbook & backlog

Middle East Irrigation Project $80 million Q3 FY26

$70 million expected to be recognized in FY26, $10 million in early FY27.

Product announcements

Product	Type	Timeline	Details
Tower Watch feature	launch	—

Capital programs

New Tube Mill completed

Benefit:industry-leading automation and technology that increases safety, efficiency and throughput

Successfully commissioned and now in full production in Lindsay, Nebraska, allowing rapid response to demand shifts.

New Galvanizing Facility on schedule

Benefit:expand galvanizing capabilities, improving quality and opening new opportunities for growth

Remains on schedule, expected to be turned over to production in early calendar 2027. This is the final step of strategic investments.

Restructuring and Rightsizing Initiative underway

Start: Q3 FY26

Benefit:improving efficiency, eliminating complexity and better aligning resources with anticipated market demand

Initiative to restructure and rightsize portions of the organization and optimize operating cost structure. Expected savings to begin in fiscal 2027.

Risks & headwinds

Cyclical bottom in agricultural markets Q3 FY26, multiyear trend

Total revenues decreased 5% to $160.8 million; North America irrigation revenues decreased 11%; International irrigation revenues decreased 4%.

Mitigation:Focus on pricing, cost management, operational efficiency, strategic investments, and restructuring.

Trade uncertainty, high input costs, weak farmer sentiment current, ongoing

USDA projections indicate cost of production will exceed commodity prices.

Mitigation:Focus on levers within control; no significant near-term recovery expected until economics improve.

High interest rate environment and limited access to credit in Brazil current, near term

Brazil financing rate declined from 12.5% to 11.5%; total FINAME funding reduced from BRL 2.75 billion to BRL 1.7 billion (38% reduction).

Mitigation:Cautiously optimistic in short term, high confidence in long-term growth opportunity.

Fixed cost deleverage in Irrigation segment Q3 FY26

Operating income decreased to $18.5 million from $23.8 million; operating margin was 11.5% of sales compared to 14% last year.

Mitigation:Restructuring and rightsizing portions of the organization, optimizing operating cost structure.

More competitive pricing environment in domestic irrigation current

Can create a pinch on margins.

Mitigation:Protect customer relationships and dealers, not using pricing to drive volume or market share, maximizing pricing where possible.

Extreme drought conditions in core irrigation states current season

>1/3 of the country in severe to exceptional drought (vs 15% a year ago), Western Corn Belt experiencing extreme drought.

Mitigation:Promoting efficient use of water and utilization of tools like FieldNET Advisor.

What to watch in Q4 FY26

Brazil irrigation demand recovery

Q1 FY27

Current Soft, constrained by credit availability and reduced FINAME funding

Target Progress of 'shovel-ready' projects through funding mechanisms, leading to increased sales volume

Why it matters

Brazil is a key long-term growth opportunity; recovery here is crucial for international segment performance.

So we don't see an immediate spike in jump in Brazil, but we do know some of those projects that had been on hold are now going to progress through the system, and we'd hope to get our fair share of those likely not seeing that until first quarter of our next fiscal year.

Find out whether LNN delivers this. Inve re-checks your case every morning.

Q&A highlights

Inquiring about the outlook for Middle East projects beyond the current large order, given the conflict and the timing of water/electrical infrastructure development.

Randy Wood stated that public proclamations from leaders in the MENA region indicate continued investment in domestic agricultural production for food security. He sees significant market opportunity, describing it as 'early to mid innings with more growth to come,' dependent on water and electrical infrastructure development.

“The pipeline, Ryan, when you look at all of the public proclamations that [indiscernible] has made specifically, but not only in Egypt, if you look at Northern Africa and then across the Middle East, I think there's a lot of very public statements from leaders looking to continue investing in domestic ag production for food security purposes. And we haven't seen any significant shift in the total market opportunity.”

asked by Ryan Connors · answered by Randy Wood

2 min read 7 chapters

Detailed narrative

North American Irrigation Market Softness

The U.S. irrigation market remains soft due to trade uncertainty, high input costs, and weak farmer sentiment. Growers are delaying large capital purchases as USDA projections indicate production costs will exceed commodity prices for several key commodities, a multi-year trend. No meaningful near-term recovery is expected until these economic conditions improve.

International Irrigation Dynamics

International revenues were slightly down, primarily due to lower sales volumes in Brazil. While the financing rate under Brazil's 2026-2027 crop plan improved from 12.5% to 11.5%, the total funding allocated to irrigation within the FINAME program was reduced from BRL 2.75 billion to BRL 1.7 billion.

This 38% reduction tempers enthusiasm for rapid market recovery despite strong customer interest, as credit availability remains a constraint.

Infrastructure Segment Growth

The Infrastructure business continued its growth trajectory, with revenues increasing 8% year-over-year, marking three consecutive quarters of growth. This was driven by higher road safety product revenues. While a large Road Zipper project is not anticipated this fiscal year, the pipeline for such projects remains strong, supported by legislative frameworks like the Build America 250 Act.

Strategic Manufacturing Investments

Lindsay successfully commissioned a new tube mill in Lindsay, Nebraska, which is now in full production, enhancing safety, efficiency, and throughput. The new galvanizing facility remains on schedule for turnover in early calendar 2027, further expanding capabilities and opening new growth opportunities. These investments are designed to prepare the company for successful operation through market cycles and capitalize on future growth.

Technology and Innovation

The company's FieldNET and FieldWise platforms continue to drive adoption, with new features like the Smart Pivot platform's 'tower watch' improving machine diagnostics and reducing downtime. Management expects sustained double-digit technology revenue growth in fiscal 2026, reinforcing technology as a core competitive advantage for expanding recurring revenue, improving margin mix, and strengthening long-term customer retention.

Restructuring and Cost Optimization

Lindsay initiated restructuring actions to rightsize the organization and optimize its operating cost structure, aiming for improved efficiency, reduced complexity, and better alignment of resources with anticipated market demand. These actions are expected to yield savings starting in fiscal 2027, without compromising investment in core strategic priorities like innovation and growth opportunities.

Drought Conditions and Impact

Drought conditions in primary irrigation regions have significantly worsened year-over-year, with over one-third of the U.S. currently experiencing severe to exceptional drought, compared to 15% a year ago. While drought generally promotes efficient water use and technology adoption, extreme drought in areas like the Western Corn Belt could negatively impact crop yields, potentially influencing future commodity pricing.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.