NYSE:LNN
LINDSAY CORP
A leading North American manufacturer of premium agricultural tillage and planting equipment focused on maximizing farm efficiency.
Key Metrics
Investment Thesis
Bull Case
The stock is attractive as a cyclical play on expected farm equipment replacement cycles and potential expansion in US crop acreage. Strong operating cash flow provides financial flexibility for dividends and share repurchases while funding necessary capital expenditures. Lindsay's premium positioning allows it to maintain pricing power even during periods of moderate economic slowdown.
Bear Case
Valuation may be stretched if the agricultural cycle turns downward due to lower commodity prices or reduced farm profitability. The company has minimal international exposure, leaving it vulnerable solely to US-specific weather patterns and regulatory changes. Significant accumulated other comprehensive losses and a retained earnings deficit suggest historical capital allocation challenges that could pressure future returns.
About LINDSAY CORP
Lindsay Corporation designs, manufactures, and distributes agricultural machinery including tillage equipment, planters, seeders, and sprayers. The company primarily serves the North American farming industry with a focus on efficiency and durability for crop production. Lindsay's product portfolio caters to large-scale commercial farmers and mid-sized agribusinesses seeking high-performance machinery.
Analysis
Management Discussion
Lindsay Corporation reported a revenue recovery in 2025 reaching $676.4M after a slight contraction in 2024, demonstrating resilience in the current ag economy. Net income improved to $74.1M driven by strong operating leverage and effective cost management despite elevated capital expenditures of $42.5M for facility upgrades. The cash flow from operations of $132.9M significantly exceeds net income, highlighting the quality of earnings and robust working capital conversion.
Industry Overview
The global agricultural machinery industry is cyclical and heavily influenced by macroeconomic factors such as fuel prices, input costs, and government subsidy policies. Competition is intense with several large multinational players controlling significant market share in developed nations. Technological advancements in precision agriculture are becoming a key differentiator for manufacturers aiming to capture higher value segments.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $674.1M | $607.1M | $676.4M |
| Cost of Revenue | $461.1M | $416.0M | $465.6M |
| Gross Profit | $213.0M | $191.1M | $210.8M |
| Operating Expenses | $110.8M | $114.4M | $122.7M |
| Operating Income | $102.2M | $76.6M | $88.1M |
| R&D | $18.2M | $17.1M | $17.9M |
| G&A | $56.4M | $57.4M | $63.0M |
| Stock-Based Comp | $6.5M | $6.4M | $8.1M |
| D&A | $19.3M | $21.2M | $20.9M |
| Depreciation | $13.9M | $14.8M | $14.6M |
| Amortization | $2.0M | $2.9M | $2.2M |
| Other OpEx | $36.2M | $39.9M | $41.7M |
| Non-Operating Income | $-1.8M | $2.4M | $6.5M |
| Interest Expense | $3.8M | — | — |
| Interest Income | $2.8M | $5.2M | $7.7M |
| Pre-Tax Income | $100.4M | $79.0M | $94.6M |
| Income Tax | $28.0M | $12.8M | $20.5M |
| Continuing Ops | $72.4M | $66.3M | $74.1M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $72.4M | $66.3M | $74.1M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $72.4M | $66.3M | $74.1M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $487.5M | $493.2M | $532.8M |
| Cash & Equivalents | $160.8M | $190.9M | $250.6M |
| Marketable Securities | $5.6M | $0 | — |
| Inventory | $155.9M | $154.5M | $136.9M |
| Other Current Assets | $165.2M | $147.9M | $145.3M |
| Long-Term Assets | $258.2M | $267.0M | $308.1M |
| PP&E (Net) | $99.7M | $112.8M | $142.3M |
| Intangibles | $27.7M | $25.4M | $23.3M |
| Goodwill | $83.1M | $84.2M | $84.5M |
| Operating Leases | $17.0M | $15.7M | $18.1M |
| Other LT Assets | $30.6M | $29.0M | $31.1M |
| Total Assets | $745.7M | $760.2M | $840.8M |
| Current Liabilities | $136.1M | $125.8M | $143.6M |
| Accounts Payable | $44.3M | $37.4M | $48.7M |
| Current Debt | $226.0K | $228.0K | $233.0K |
| Current Leases | $3.0M | $3.6M | $4.1M |
| Deferred Revenue | $18.8M | $20.5M | $13.5M |
| Other Current Liab | $69.8M | $64.1M | $77.1M |
| Long-Term Liabilities | $153.9M | $153.5M | $164.4M |
| Long-Term Debt | $115.2M | $115.0M | $114.8M |
| LT Operating Leases | $17.7M | $15.5M | $17.4M |
| Other LT Liab | $21.0M | $23.0M | $32.2M |
| Total Liabilities | $290.0M | $279.3M | $308.0M |
| Shareholders' Equity | $455.7M | $480.9M | $532.9M |
| Retained Earnings | $636.3M | $687.1M | $745.4M |
| AOCI | $-21.0M | $-30.0M | $-33.5M |
| Treasury Stock | $277.2M | $299.7M | $311.2M |
| Total L&E | $745.7M | $760.2M | $840.8M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $72.4M | $66.3M | $74.1M |
| Non-Cash Adjustments | $114.1M | $63.5M | $78.5M |
| Working Capital Changes | $-66.8M | $-34.0M | $-19.6M |
| Cash from Operations | $119.7M | $95.8M | $132.9M |
| Capital Expenditures | $18.8M | $29.0M | $42.5M |
| Cash from Investing | $-47.4M | $-25.9M | $-48.6M |
| Debt Repayments | $222.0K | — | — |
| Share Buybacks | — | $22.5M | $11.5M |
| Dividends Paid | $15.1M | $15.5M | $15.7M |
| Cash from Financing | $-17.3M | $-38.6M | $-26.9M |
| FX Effect | $716.0K | $-1.1M | $2.2M |
| Net Change in Cash | $55.7M | $30.1M | $59.7M |
| Beginning Cash | $105.0M | $160.8M | $190.9M |
| Ending Cash | $160.8M | $190.9M | $250.6M |
Frequently Asked Questions
How does LINDSAY CORP make money?
The company operates through its Tillage segment offering disc harrows and chisel plows for soil preparation, and the Planting segment providing precision planters and seed drills. Additional revenue streams include sprayers for crop protection application and custom manufacturing services for specific client requirements. The business model relies on cyclical demand driven by commodity prices and farm acreage expansion plans.
What are the main risks for LNN?
Agricultural equipment demand is highly sensitive to fluctuations in crop commodity prices, interest rates, and farm income levels. The company faces exposure to raw material cost volatility, particularly steel prices, which can impact gross margins if not passed on quickly. North American market concentration creates dependency on regional economic conditions and limited geographic diversification compared to global peers.
What is LNN's competitive advantage?
Lindsay holds a strong brand reputation in North America known for building heavy-duty, durable equipment that withstands rigorous field conditions. The company benefits from deep industry expertise in metallurgy and design that allows it to innovate specific solutions for challenging soil types. Its direct sales model provides closer customer relationships and faster service response times compared to larger conglomerates.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.