Q4 2024 Lindsay Corp Earnings Call Transcript
Key Points
- Lindsay Corp (LNN) reported a positive response to its new TAU XR express repair cushion, which has received state approvals and is awaiting federal highway administration approval.
- The company anticipates an increase in US infrastructure spending in fiscal 2025, driven by the Infrastructure Investments and Jobs Act.
- Lindsay Corp (LNN) achieved a 28% growth rate in annual recurring revenue from device subscriptions, supporting its overall margin profile.
- The company is progressing on a $50 million investment at its Nebraska facility to better manage variable costs and improve efficiencies.
- Lindsay Corp (LNN) has a robust project funnel in the MENA region, with continued shipping expected through fiscal year 2025.
- Total revenues for the fourth quarter decreased by 7% compared to the previous year, with net earnings also declining.
- International irrigation revenues decreased by 23%, primarily due to lower revenues in Brazil and other Latin American markets.
- Operating income and margin in the irrigation segment decreased significantly due to lower international revenues and deleveraging of fixed operating expenses.
- The company faces major headwinds in the cropping segment of its irrigation business, with customer sentiment surveys indicating low ratings.
- Lindsay Corp (LNN) expects continued tempered demand in Brazil and Latin America until farm profitability and credit availability improve.
Good day and welcome to the Lindsay Corporation fiscal fourth quarter, 2024 earnings conference call. (Operator Instructions) .
Please note this event is being recorded. I would now like to turn the conference over to Randy Wood, President and CEO. Please go ahead.
Thank you, and good morning, everyone. Welcome to our fourth quarter and full year 2024 earnings call. With me today is Brian Ketcham, our Chief Financial Officer. We are pleased with our fourth quarter and full year performance as our teams executed extremely well during the fiscal year.
This allowed us to deliver profitable operating performance amidst challenging market fundamentals, particularly in our irrigation business. In North America in Irrigation, we were pleased to see volume up slightly in the quarter versus last year, driven by carryover storm damage that shipped early in the quarter.
In international irrigation, market softness in Brazil due to lower grower profitability and poor
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