LINDSAY CORP

Lindsay Corporation operates as a global provider of proprietary water management and road infrastructure products and services, organized into two reporting segments: Irrigation and Infrastructure. The Irrigation segment manufactures and markets center pivot, lateral move, and hose reel irrigation systems used principally in agriculture to increase or stabilize crop production while conserving water, energy, and labor, and also produces repair and replacement parts, controls, and large diameter steel tubing. The Infrastructure segment manufactures and markets moveable barriers, specialty barriers and crash cushions, road marking and road safety equipment, and railroad signals and structures, and offers technology to monitor critical safety infrastructure on roadways. The company has been involved in the manufacture and distribution of agricultural irrigation equipment since 1955 and has grown from a regional company to an international firm with worldwide sales, distribution, and manufacturing operations. The majority of worldwide irrigation is accomplished by traditional flood irrigation, and center pivot and lateral move systems compete with flood, drip, and other mechanical devices such as hose reel travelers and solid set sprinklers. Demand for center pivot and lateral move systems is determined by whether the value of increased crop production and cost savings attributable to the equipment exceeds the increased costs of purchasing, installing, and operating it, and thus reflects the profitability of agricultural production, which is determined primarily by the prices of agricultural commodities and the costs of other farming inputs. In new or developing international markets, demand can also be driven by food security concerns and the desire of some countries to become more self-sufficient in food production. The current demand for center pivot systems has three sources: conversion from less water-efficient, more labor-intensive types of irrigation; replacement of older center pivot systems that are beyond their useful lives or technologically obsolete; and conversion of dry land farming to irrigated farming. The company expects demand for center pivots and lateral move systems to continue to increase relative to other irrigation methods because they are preferred where soil is sandy, terrain is not flat, the land area to be irrigated is sizeable, there is a shortage of reliable labor, water supply is restricted and conservation is preferred or critical, and/or fertigation or chemigation will be utilized. The infrastructure market is driven by population growth and the need for improved road safety, with much of the U.S. highway infrastructure market driven by federal and state government spending programs such as the Federal Highway Trust Fund Program, and the global market shaped by standardization in performance requirements and acceptance criteria for highway safety devices adopted by the European Committee for Standardization.

In the U.S. center pivot irrigation system market, four manufacturers control a substantial majority of the market, and the international irrigation market includes participation and competition by the leading U.S. manufacturers as well as various regional manufacturers. The company competes by continuously improving its products through ongoing research and development activities, channel improvement initiatives, and operational strategies, and continues to strengthen irrigation product offerings through innovative technology such as GPS positioning and guidance, variable rate irrigation, wireless irrigation management, and mobile device applications, as well as through acquisitions of products and services that allow it to provide a more comprehensive solution to growers' needs. Competition also occurs in areas of price and seasonal programs, product quality, durability, controls, product characteristics, retention and reputation of local dealers, customer service, and, at certain times of the year, the availability of systems and their delivery time. In the infrastructure segment, the company competes in certain product lines with several manufacturers and competes with certain products and companies in its crash cushion business, but has limited competition in its moveable barrier line, although its barrier product does compete with traditional safety-shaped concrete barriers and other safety barriers. The company's industry position and geographic footprint are such that it believes it will likely be considered as a potential supplier for most large international agricultural development projects utilizing center pivot or lateral move irrigation systems. The company distributes infrastructure products in Europe, South America, the Middle East, Australia, and Asia, and expects to continue expanding in international markets as populations grow and markets become more established.

The company generates revenue through the manufacture and marketing of irrigation systems, repair and replacement parts, and subscription-based technology in the Irrigation segment, and through the manufacture and marketing of moveable barriers, crash cushions, specialty barriers, road marking and road safety equipment, and rail products in the Infrastructure segment. In the United States, the company sells its branded irrigation systems, including Zimmatic, to over 200 independent dealers who resell to farmers; dealers assess customers' requirements, design the most efficient solution, assemble and erect the system in the field, and provide additional system components primarily relating to water supply (wells, pumps, pipes) and electrical supply. Internationally, the company sells direct to consumers as well as through an international dealer network, with production and sales operations serving key markets in South America, Western and Eastern Europe, China, Africa, the Middle East, Australia, and New Zealand, and international sales accounted for approximately 52 percent of total irrigation segment revenues in each of fiscal 2026 and 2025. The company markets proprietary remote monitoring and automation technology that works on any brand of electronic pivot and drip irrigation systems and is sold on a subscription basis under the FieldNET and FieldWise brands, with FieldNET commercialized exclusively through Zimmatic dealers and FieldWise used primarily by non-Zimmatic dealers and customers. In the Infrastructure segment, sales efforts consist of both direct sales and sales programs managed by a network of distributors and third-party representatives, with distributors traditionally having exclusive territories and responsibility for developing sales and providing service including product maintenance, repair, and installation; customers include departments of transportation, municipal transportation road agencies, roadway contractors, subcontractors, distributors, and resellers, and due to the project nature of the roadway construction and congestion management markets, the customer base changes from year to year. The company offers a variety of equipment lease options for Road Zipper Systems and BTM equipment used in construction applications, with leases extending for periods of one month or more for equipment already existing in the lease fleet.

The Irrigation segment manufactures and markets center pivot and lateral move irrigation systems and irrigation controls under the Zimmatic brand, hose reel travelers under the Perrot brand, and chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems. A standard center pivot in the U.S. is typically seven spans and approximately 1,300 feet long and is designed to circle within a quarter-section of land comprising 160 acres, wherein it irrigates approximately 125 to 130 acres, and a center pivot or lateral move system can be custom designed to irrigate from 25 to 600+ acres. In a dry land conversion to center pivot irrigation, approximately one-half of the investment is for the pivot itself, with the remainder attributable to installation of additional equipment such as wells, pumps, underground water pipes, electrical supply, and a concrete pad. The company designs and manufactures IIOT technology solutions, data acquisition and management systems, and custom electronic equipment for critical applications under the Elecsys brand, and provides contract manufacturing services including steel tubing production, hot-dip galvanization, fabrication, welding, and related finishing and assembly services for third-party industrial applications. The company markets patented technology under the FieldNET Advisor product name that combines crop and irrigation science and expertise accumulated since 1955 with FieldNET's cloud computing capabilities, remote sensing functionality, and machine learning to provide farmers with field-specific and crop-specific irrigation recommendations, and through its strategic partnership with Pessl Instruments it incorporates data from Pessl's METOS weather stations and soil moisture probes into these technologies. The company's primary domestic irrigation manufacturing facilities are located in Lindsay, Nebraska; Olathe, Kansas; and Norfolk, Nebraska, with international commercial and production operations in Brazil, France, China, Türkiye, and South Africa, and distribution and sales operations in the Netherlands, Egypt, Australia, and New Zealand.

The Infrastructure segment's Quickchange Moveable Barrier system, commonly known as the Road Zipper System, is composed of three parts: T-shaped concrete and steel barriers connected to form a continuous wall; a Barrier Transfer Machine capable of moving the barrier laterally across the pavement; and variable length barriers necessary for accommodating curves. A barrier element is approximately 32 inches high, 12-24 inches wide, 3 feet long, and weighs 1,500 pounds, with elements interconnected by heavy duty steel hinges to form a continuous barrier, and the BTM employs an inverted S-shaped conveyor mechanism that lifts the barrier, moves it laterally to the opposite side of a lane, and sets it back down on the roadway surface. In permanent applications, the Road Zipper System increases capacity and reduces congestion by varying the number of directional traffic lanes to match traffic demand and promotes safety by maintaining physical separation of opposing lanes, with applications including high-volume highways where expansion may not be feasible due to lack of additional right-of-way, environmental concerns, or insufficient funding, and it is particularly useful in busy commuter corridors and at choke points such as bridges and tunnels. The company offers a complete line of redirective and non-redirective crash cushions used to enhance highway safety at locations such as toll booths, freeway off-ramps, medians and roadside barrier ends, bridge supports, utility poles, and other fixed roadway hazards, under brand names including TAU, Universal TAU-II, TAU-II-R, TAU-B_NR, ABSORB 350, Walt, TAU-M, ABSORB-M, TAU-XR, and TAU-TUBE. Specialty barrier products include the SAB, ArmorGuard, PaveGuard, and DR46 portable barrier and/or barrier gate systems, with the DR46 being an energy-absorbing barrier that can help protect motorcyclists from impacting guardrail posts. The company also offers preformed tape used primarily in temporary applications such as markings for work zones, street crossings, and road center lines or boundaries, and road safety equipment consisting of mostly plastic and rubber products used for delineation, slowing traffic, and signaling, and manages an ISO 17025 certified testing laboratory that performs full-scale impact testing of highway safety products in accordance with NCHRP Report 350, MASH, and the EN1317 Norms. Rail products include signals and lights, structures, foundations, junction boxes, and signs. The principal infrastructure manufacturing facilities are located in Rio Vista, California; Milan, Italy; and Lindsay, Nebraska.

During fiscal 2026, the company entered into a multi-year supply agreement valued at approximately $80 million to provide Zimmatic irrigation systems and FieldNET remote management and scheduling technology for a key customer's project in the MENA region. In fiscal years 2026 and 2025, one customer within the irrigation segment accounted for 12% and 13%, respectively, of consolidated revenues relating to a large irrigation project in the MENA region, while in fiscal year 2024 no individual customer accounted for more than 10% of consolidated revenues. As of August 31, 2026, the company had an order backlog of $102.5 million compared with $110.7 million as of August 31, 2025, with amounts of $17.6 million and $9.8 million, respectively, for orders not expected to be fulfilled within the subsequent twelve months, and the decrease in backlog is primarily attributable to orders relating to a large irrigation project in the MENA region as of August 31, 2025 that were shipped during fiscal 2026. Capital expenditures for fiscal 2026, 2025, and 2024 were $40.2 million, $42.5 million, and $29.0 million, respectively, and capital expenditures for fiscal 2027 are expected to amount to approximately $40.0 million, including equipment replacement, productivity improvements, new product development, and commercial growth investments, with an increase over recent levels relating to modernization and productivity improvements planned at certain manufacturing facilities. On November 5, 2025, the company announced that its Board of Directors authorized a new share repurchase program to repurchase up to $150.0 million of the company's outstanding common stock, with no expiration date, and as of August 31, 2026, $100.0 million remained available under the plans or programs. The company paid a total of $15.4 million and $15.7 million in dividends during fiscal 2026 and 2025, respectively. The company and its wholly-owned subsidiaries had 1,083 employees as of August 31, 2026, and none of the company's United States based employees are represented by a union, while certain non-U.S. employees are unionized due to local governmental regulations.

The company's financial performance reflects the cyclicality and seasonality of its end markets, with irrigation equipment sales seasonal by nature as farmers generally order systems to be delivered and installed before the growing season, and shipments to customers in Northern Hemisphere countries usually peaking during the company's second and third fiscal quarters for the spring planting period, while sales of infrastructure products are traditionally higher during prime road construction seasons and lower in the winter, with the primary construction season for Northern Hemisphere countries generally corresponding with the company's third and fourth fiscal quarters. Approximately 35 and 34 percent of total consolidated company revenues were conducted in currencies other than the U.S. dollar in fiscal 2026 and 2025, respectively. The company's backlog can fluctuate from period to period due to seasonality, cyclicality, timing, and execution of contracts, and backlog typically represents long-term projects as well as short lead-time orders, so it is generally not a good indication of the revenues to be realized in succeeding quarters. The company's business is not dependent, to any material extent, on any single patent or group of patents, and it relies on a variety of intellectual property laws, confidentiality procedures, and contractual provisions to protect its proprietary offerings and its brand.

Capital expenditures for fiscal 2027 are expected to amount to approximately $40.0 million, including equipment replacement, productivity improvements, new product development, and commercial growth investments, with an increase over recent levels relating to modernization and productivity improvements planned at certain manufacturing facilities, and management maintains flexibility to modify the amount and timing of some of the planned expenditures in response to economic conditions.

The company expects demand for center pivots and lateral move systems to continue to increase relative to other irrigation methods because center pivot and lateral move systems are preferred where the soil is sandy, the terrain is not flat, the land area to be irrigated is sizeable, there is a shortage of reliable labor, water supply is restricted and conservation is preferred or critical, and/or fertigation or chemigation will be utilized. In new or developing international markets, demand for irrigation systems can also be driven by food security concerns and the desire of some countries to become more self-sufficient in food production, and the company's industry position and geographic footprint are such that it believes it will likely be considered as a potential supplier for most large international agricultural development projects utilizing center pivot or lateral move irrigation systems. The company continues to strengthen irrigation product offerings through innovative technology such as GPS positioning and guidance, variable rate irrigation, wireless irrigation management, irrigation scheduling, IIOT technology solutions, and mobile device applications, as well as through the acquisition of products and services that allow it to provide a more comprehensive solution to growers' needs.

In the infrastructure segment, the company expects to continue expanding in international markets as populations grow and markets become more established, with the global market for infrastructure products driven by population growth and the need for improved road safety. The standardization in performance requirements and acceptance criteria for highway safety devices adopted by the European Committee for Standardization has led to greater uniformity and a larger installation program, and prevention programs put in place in various countries to lower highway traffic fatalities have also led to greater demand. In the long term, the company believes that the federal program provides a solid platform for growth in the U.S. market, as it is generally acknowledged that additional funding will be required for infrastructure development and maintenance in the future. The company has incurred, and will continue to incur, research and development and testing expense to develop products to comply with MASH standards.

The company's margin trajectory is subject to the availability and price of parts, components, and raw materials, which have changed significantly and rapidly at times and are affected by factors like demand, tariffs, freight costs, and outbreaks, and due to price competition in the market for irrigation equipment and certain infrastructure products, the company may not be able to recoup increases in these costs through price increases, which would result in reduced profitability. Whether increased operating costs can be passed through to the customer depends on a number of factors, including farm income and the price of competing products. The company relies on a limited number of suppliers for certain raw materials, parts, and components in the manufacturing process, and disruptions or delays in supply or significant price increases from these suppliers could adversely affect operations and profitability.

The company's operational outlook includes maintaining a sufficient number of skilled employees at its various manufacturing sites as a key focus of its human capital efforts, and it believes it maintains a sufficient number of skilled employees by offering competitive wages, benefits, and training and development programs. The company's facilities are well-maintained, in good operating condition, and suitable for present purposes, and these facilities, together with both short-term and long-term planned capital expenditures, are expected to meet the company's manufacturing needs in the foreseeable future. The company does not anticipate any difficulty in retaining occupancy of any leased facilities, either by renewing leases prior to expiration or by replacing them with equivalent leased facilities. The company's cybersecurity program includes maintaining a dedicated cybersecurity team under the direction of the Chief Information Officer, conducting vulnerability assessments including network scans, penetration testing, and security audits, requiring all employees to participate in cybersecurity training and awareness programs including annual cybersecurity training and monthly phishing campaigns, and maintaining an incident response retainer with a respected cybersecurity firm.

The company's capital allocation priorities include capital expenditures for fiscal 2027 expected to amount to approximately $40.0 million, including equipment replacement, productivity improvements, new product development, and commercial growth investments. On November 5, 2025, the company announced that its Board of Directors authorized a new share repurchase program to repurchase up to $150.0 million of the company's outstanding common stock, with no expiration date, and as of August 31, 2026, $100.0 million remained available under the plans or programs. The company paid a total of $15.4 million and $15.7 million in dividends during fiscal 2026 and 2025, respectively, and currently expects that cash dividends comparable to those paid historically will continue to be paid in the future, although there can be no assurance as to the payment of future dividends as such payment depends on results of operations, financial condition, business prospects, capital requirements, contractual restrictions, any potential indebtedness the company may incur, restrictions imposed by applicable law, tax considerations, and other factors that the Board of Directors deems relevant.

The company faces structural headwinds including changing worldwide demand for food and biofuels that could affect the price of agricultural commodities and consequently the demand for irrigation equipment, as the primary benefit of many of the company's irrigation products is to increase yields and the resulting revenue for farmers, and as commodity prices decline, the breakeven point of incremental production is more difficult to achieve, reducing or eliminating the profit and return on investment from the purchase of the company's products. A decline in oil prices or the overall demand for motor fuels, or changes in government policies regarding biofuels, could also negatively affect the biofuels market and/or reduce government revenues of oil-producing countries that purchase or subsidize the purchase of irrigation equipment. The company's irrigation revenues are highly dependent on the agricultural industry and weather conditions, and an increased frequency or duration of extreme weather conditions, or other factors which may be the result of climate change, could adversely impact the company's business and operations. The company's infrastructure revenues are highly dependent on government funding of transportation projects, and if highway funding is reduced or delayed, it may reduce demand for the company's infrastructure products.

The company's international sales efforts and profit margins are affected by international trade barriers, including governmental policies on tariffs, taxes, import or export licensing requirements, and trade sanctions, and in recent years certain of the components required for the manufacture of the company's products have been or may be impacted by tariffs. Other international trade disputes, changes to or termination of existing international trade agreements, treaties, or policies, or imposition of trade protection measures by certain countries in favor of their local producers or competing products could increase the company's costs, reduce the company's competitiveness, and have an adverse effect on the company's business, financial condition, and results of operations. Since fiscal 2022, sales to Russia and Belarus have been paused indefinitely due to the Russian invasion of Ukraine, and prior to that time, sales with Russian, Ukrainian, and Belarusian customers had historically represented less than 5 percent of consolidated revenues, with commercial activities in Russia and Belarus remaining on hold while hostile actions against Ukraine continue. The company's international sales and profit margins are also subject to currency exchange risk, and any strengthening of the U.S. dollar or any other currency of a country in which the company manufactures its products (e.g. the Euro, the Brazilian real, the South African rand, the Turkish lira, and the Chinese renminbi) and/or any weakening of local currencies can increase the cost of the company's products in its foreign markets.

The company's irrigation revenues are highly dependent on the agricultural industry and weather conditions, and changes in commodity prices can significantly affect sales levels, as the primary benefit of many irrigation products is to increase yields and the resulting revenue for farmers, and as commodity prices decline, the breakeven point of incremental production is more difficult to achieve, reducing or eliminating the profit and return on investment from the purchase of the company's products. The company's revenues can be highly dependent on a limited number of key customers and projects, and in fiscal 2026, the company entered into a multi-year supply agreement valued at approximately $80 million to provide Zimmatic irrigation systems and FieldNET remote management and scheduling technology for a key customer's project in the MENA region, while in fiscal years 2026 and 2025, one customer within the irrigation segment accounted for 12% and 13%, respectively, of consolidated revenues relating to a large irrigation project in the MENA region. The company's infrastructure revenues are highly dependent on government funding of transportation projects, and if highway funding is reduced or delayed, it may reduce demand for the company's infrastructure products. The company is currently defending a number of product liability lawsuits involving the company's X-Lite end terminal, and the same individual relator who filed a federal civil False Claims Act lawsuit that was dismissed in 2023 has subsequently filed a limited number of state-level lawsuits in which he makes substantially similar allegations under state false claims or fraud laws. The company's profitability may be negatively affected by changes in the availability and price of certain parts, components, and raw materials, including steel and zinc, which have changed significantly and rapidly at times and are affected by factors like demand, tariffs, freight costs, and outbreaks, and due to price competition in the market for irrigation equipment and certain infrastructure products, the company may not be able to recoup increases in these costs through price increases.

Management's message to shareholders emphasizes the company's position as a global leader in providing proprietary water management and road infrastructure products and services, with a strategic focus on innovation and market leadership in its core businesses. The company's organizational priorities highlight three areas in particular: workplace culture, employee engagement and inclusion, and employee health and safety, with a culture focused on the core values of safety, integrity, quality, collaboration, and creativity. Management has chosen to emphasize three strategic priorities for the period ahead: first, strengthening irrigation product offerings through innovative technology such as GPS positioning and guidance, variable rate irrigation, wireless irrigation management, irrigation scheduling, IIOT technology solutions, and mobile device applications, as well as through the acquisition of products and services that allow the company to provide a more comprehensive solution to growers' needs; second, expanding in international infrastructure markets as populations grow and markets become more established, while maintaining the company's position in the U.S. market where it believes the federal program provides a solid platform for growth; and third, maintaining a sufficient number of skilled employees at its various manufacturing sites by offering competitive wages, benefits, and training and development programs. The company expects demand for center pivots and lateral move systems to continue to increase relative to other irrigation methods, and it believes its industry position and geographic footprint are such that it will likely be considered as a potential supplier for most large international agricultural development projects utilizing center pivot or lateral move irrigation systems. Capital expenditures for fiscal 2027 are expected to amount to approximately $40.0 million, including equipment replacement, productivity improvements, new product development, and commercial growth investments, with an increase over recent levels relating to modernization and productivity improvements planned at certain manufacturing facilities. The company currently expects that cash dividends comparable to those paid historically will continue to be paid in the future, although there can be no assurance as to the payment of future dividends.