Lindsay’s second quarter results saw a strong positive market reaction, with revenue and profit both exceeding Wall Street expectations. Management attributed the robust performance to significant growth in international irrigation markets—particularly in Latin America and the Middle East and North Africa—while U.S. irrigation demand remained steady. CEO Randy Wood highlighted ongoing execution on large projects overseas and noted that infrastructure segment growth was driven by increased sales of road safety products as the North American construction season began. Wood also pointed to operational efficiencies and favorable pricing actions in the U.S. irrigation business as contributing factors.
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Lindsay (LNN) Q2 CY2025 Highlights:
- Revenue: $169.5 million vs analyst estimates of $162 million (21.7% year-on-year growth, 4.6% beat)
- EPS (GAAP): $1.78 vs analyst estimates of $1.41 (27% beat)
- Adjusted EBITDA: $23.61 million vs analyst estimates of $23.89 million (13.9% margin, 1.2% miss)
- Operating Margin: 14%, in line with the same quarter last year
- Organic Revenue rose 18.4% year on year (-16.4% in the same quarter last year)
- Market Capitalization: $1.49 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 Lindsay’s Q2 Earnings Call
- Mason Banwar (Oppenheimer): Asked about the impact of geopolitical tensions in the Middle East on project activity. CEO Randy Wood responded that long-term fundamentals remain intact and no significant disruptions are expected in project deliveries.
- Ryan Connors (Northcoast Research): Inquired about pricing trends in U.S. irrigation. CFO Brian Ketcham explained that recent pricing actions helped offset tariff impacts, but the effect was modest and mainly in the U.S. market.
- Brian Drab (William Blair): Questioned whether smaller project wins in the Middle East signal a trend. Wood clarified that the pipeline includes both large and smaller projects, with no shift away from larger deals, but more frequent small to mid-sized projects are likely.
- Jon Braatz (Kansas City Capital): Asked how Lindsay will offset the completion of a large Middle East project. Ketcham said there are enough projects in the funnel to fill future gaps, but timing and unpredictability are challenges.
- Adam Farley (Stifel): Sought updates on manufacturing modernization and margin contributions. Wood and Ketcham said facility upgrades are on track, with margin gains mainly from international volume leverage and operational efficiency.
Catalysts in Upcoming Quarters
Looking forward, our team will monitor (1) the pace and profitability of project execution in the Middle East and Brazil, (2) the trajectory of U.S. irrigation demand as weather and crop prices fluctuate, and (3) progress in infrastructure sales, especially in Road Zipper system leasing. Ongoing tariff impacts and supply chain strategies will also remain key watchpoints.
Lindsay currently trades at $143.14, up from $137.29 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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