Lindsay (LNN) Stock Forecast & Price Target

Lindsay Corp reported a 1.2% year-over-year increase in North American irrigation revenues, totaling $69.1 million, with unit sales volumes remaining comparable to the prior year and slightly higher average selling prices. The company experienced a significant 60.2% year-over-year growth in international irrigation revenue, largely driven by projects in the MENA region and increased sales in South America, which is expected to continue as countries prioritize food security and water resource management. Additionally, the Infrastructure segment saw a 5.6% year-over-year revenue increase, underscoring the positive momentum in road safety products.

Lindsay Corp faces a negative financial outlook primarily due to weak grain prices and negative farm cash flows, which have adversely affected banker confidence and overall market demand for its irrigation products. The company has reported a decline in both operating income and operating margin, largely attributed to a less favorable margin mix from its Road Zipper™ revenues compared to the previous year. Additionally, risks include the potential inability to pass increased steel prices onto customers and the possibility of a lower-than-expected demand in key markets, further putting pressure on financial performance.