Lindsay Corporation (LNN) Stock: Drops as Revenue Falls 16% and Margins Shrink in Q2

TLDR

• Lindsay revenue drops 16% as weaker demand hits key segments
• Operating margin falls to 8.3% as profitability faces pressure
• EPS declines sharply to $1.15 amid lower income and costs
• Infrastructure segment plunges 58% without prior major project
• Backlog rises on MENA project, supporting near-term outlook

Lindsay Corporation (LNN) stock declined after weaker quarterly results showed falling revenue and compressed margins. The company reported lower earnings alongside reduced operating income. Ongoing project deliveries and share repurchases provided partial support during the period.

Lindsay Corporation, LNN

Revenue Decline and Margin Pressure Weigh on Performance

Lindsay reported second-quarter fiscal 2026 revenue of $157.7 million, marking a 16% year-over-year decline. The drop reflected weaker demand across both irrigation and infrastructure segments. Operating income fell sharply to $13.0 million during the quarter.

Operating margin narrowed to 8.3% from 17.2% in the prior year period. Lower sales volumes and cost pressures contributed to the decline in profitability. As a result, net earnings dropped to $12.0 million compared to $26.6 million a year earlier.

Diluted earnings per share also declined significantly to $1.15 from $2.44 in the previous year. Higher tax impact and reduced operating income affected bottom-line results. However, other income provided slight support during the quarter.

Segment Weakness Offsets Project Execution and Product Growth

The irrigation segment generated $141.2 million in revenue, reflecting a 5% decline from last year. North America sales fell due to lower unit volumes and weak commodity conditions. International sales remained relatively stable despite softness in Brazil and timing effects in MENA.

Operating income in irrigation dropped to $19.5 million, while margins contracted to 13.8%. Lower sales mix and fixed cost pressures reduced segment profitability. Foreign exchange effects provided limited support to international performance.

The infrastructure segment recorded a sharper decline, with revenue falling 58% to $16.5 million. The decrease followed the absence of a large Road Zipper System project from the prior year. Still, road safety product sales increased, supported by ongoing construction activity.

Backlog Growth and Capital Allocation Support Outlook

Lindsay increased its backlog to $151.8 million, driven mainly by a large MENA irrigation project. A portion of this backlog extends beyond the next 12 months. Future revenue visibility remains supported by ongoing project execution.

The company began deliveries on an $80 million irrigation and technology project in the MENA region. It expects to recognize approximately $70 million from this project within the current fiscal year. This development provides a near-term revenue boost despite broader market softness.

Lindsay repurchased $25.2 million in shares during the quarter and $55.5 million year-to-date. The company retains $125 million under its current authorization. While market conditions remain soft, backlog strength and capital returns support stability.

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