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Lindsay Corporation operates two businesses. Its irrigation segment manufactures center pivot and lateral move systems sold to farmers across North America, Brazil, the Middle East and other international markets. Its infrastructure segment produces road safety products, including the Road Zipper movable barrier system used to reconfigure traffic lanes.
It is a well-run company with genuine competitive advantages in both businesses. It is also tied to a customer base that is not currently in a position to spend, and that is the problem.
The Zacks Rundown
Lindsay is a Zacks Rank #5 (Strong Sell). Shares reside near $109, below key moving averages, and much closer to the bottom of their one-year range. The stock has been unable to sustain a rally for most of 2026.
The company is part of the Zacks Manufacturing – Farm Equipment industry group, which is ranked in the bottom 48% out of roughly 250 Zacks Ranked Industries. Because this industry is ranked in the bottom half of all Zacks Ranked Industries, we expect it to underperform the market over the next 3 to 6 months.
While individual stocks have the ability to outperform even when included in weak industries, their industry association serves as a headwind for any potential rallies. Stocks in this group are also expected to post below-average earnings growth. With much better alternatives in the current market environment, this stock should be avoided.
A Good Quarter Inside a Bad Year
Lindsay reported fiscal fourth-quarter results on October 22nd that actually beat expectations. Adjusted earnings of $1.10 per share topped the $0.98 consensus, revenue of $161.6 million exceeded the $149.6 million expected, and operating income rose 39% to $15.8 million. The shares rose on the news.
It’d be wise to look past that headline, because the full year tells a very different story. Fiscal 2026 revenue of $635.9 million declined 6% from $676.4 million. Operating income fell 24% to $66.9 million, taking operating margin down to 10.5% from 13.0%. Net earnings dropped 25% to $55.7 million, and diluted earnings per share fell 21% to $5.33 from $6.78.
The gap between that 21% EPS decline is worth noting. Lindsay repurchased $80.7 million of stock during the year. Buybacks of that size absorb part of the per-share damage, which means the underlying deterioration in the business is somewhat worse than the earnings per share line suggests.
Cash generation tells the same story. Operating cash flow fell to $74.9 million from $132.9 million, a decline of 44%, and the cash balance ended the year at $189.8 million against $250.6 million a year earlier. Backlog slipped to $102.5 million from $110.7 million.
The Project That Carried the Year Is Finishing
Here is the detail we find most concerning. Lindsay's (LNN - Free Report) international irrigation revenue has been supported by a large multi-year project in the Middle East and North Africa. Roughly $70 million of that $80 million project has now been delivered, and management indicated the remaining $10 million or so is primarily services revenue that will be recognized over the next twelve to twenty-four months.
In other words, the single largest contributor to international irrigation revenue is winding down. Management acknowledged as much, guiding to difficult year-over-year comparisons in international project markets in fiscal 2027.
The domestic picture offers little offset. Management stated plainly that it is still too early to forecast significant recovery in North American irrigation demand, and expects conditions to remain tempered until commodity prices and farm income improve. Brazil, the other major international market, faces high interest rates and constrained credit availability.
Deteriorating Forecasts
Analysts have responded as you would expect. Lindsay was downgraded to a Zacks Rank #5 (Strong Sell) at the end of October. The consensus for the current fiscal year now sits at $4.70 per share, which would represent a decline of roughly 12% from the $5.33 the company just earned.
Consider what that means. Fiscal 2026 earnings already fell 21%, and the Street is modeling another double-digit decline on top of it. Two consecutive years of contracting earnings while the broader market compounds is a recipe for sustained underperformance, and falling estimates of this kind are precisely what the Zacks Rank is designed to capture.
Image Source: Zacks Investment Research
Technical Outlook
LNN stock has been in a downtrend for most of 2026. Both the 50-day (blue line) and 200-day (red line) moving averages are sloping downward, and shares have spent much of the year trading beneath them. Rally attempts have been repeatedly capped at progressively lower levels, which is the signature of distribution rather than accumulation.
Image Source: StockCharts
Shares would need to reclaim both moving averages and show a genuine turn in earnings estimate revisions to warrant taking any long positions in the stock.
Final Thoughts
Farm income and commodity prices drive irrigation demand, and both remain unsupportive. The MENA project that masked weakness elsewhere is nearly complete. Management will not forecast a recovery. And the consensus calls for a second straight year of declining earnings.
A deteriorating fundamental and technical backdrop, membership in one of the weaker industry groups in our universe, and falling future earnings estimates will likely serve as a ceiling on any potential rallies.
View the Zacks #1 Rank List
Bear of the Day: Lindsay Corporation (LNN)
Lindsay Corporation operates two businesses. Its irrigation segment manufactures center pivot and lateral move systems sold to farmers across North America, Brazil, the Middle East and other international markets. Its infrastructure segment produces road safety products, including the Road Zipper movable barrier system used to reconfigure traffic lanes.
It is a well-run company with genuine competitive advantages in both businesses. It is also tied to a customer base that is not currently in a position to spend, and that is the problem.
The Zacks Rundown
Lindsay is a Zacks Rank #5 (Strong Sell). Shares reside near $109, below key moving averages, and much closer to the bottom of their one-year range. The stock has been unable to sustain a rally for most of 2026.
The company is part of the Zacks Manufacturing – Farm Equipment industry group, which is ranked in the bottom 48% out of roughly 250 Zacks Ranked Industries. Because this industry is ranked in the bottom half of all Zacks Ranked Industries, we expect it to underperform the market over the next 3 to 6 months.
While individual stocks have the ability to outperform even when included in weak industries, their industry association serves as a headwind for any potential rallies. Stocks in this group are also expected to post below-average earnings growth. With much better alternatives in the current market environment, this stock should be avoided.
A Good Quarter Inside a Bad Year
Lindsay reported fiscal fourth-quarter results on October 22nd that actually beat expectations. Adjusted earnings of $1.10 per share topped the $0.98 consensus, revenue of $161.6 million exceeded the $149.6 million expected, and operating income rose 39% to $15.8 million. The shares rose on the news.
It’d be wise to look past that headline, because the full year tells a very different story. Fiscal 2026 revenue of $635.9 million declined 6% from $676.4 million. Operating income fell 24% to $66.9 million, taking operating margin down to 10.5% from 13.0%. Net earnings dropped 25% to $55.7 million, and diluted earnings per share fell 21% to $5.33 from $6.78.
The gap between that 21% EPS decline is worth noting. Lindsay repurchased $80.7 million of stock during the year. Buybacks of that size absorb part of the per-share damage, which means the underlying deterioration in the business is somewhat worse than the earnings per share line suggests.
Cash generation tells the same story. Operating cash flow fell to $74.9 million from $132.9 million, a decline of 44%, and the cash balance ended the year at $189.8 million against $250.6 million a year earlier. Backlog slipped to $102.5 million from $110.7 million.
The Project That Carried the Year Is Finishing
Here is the detail we find most concerning. Lindsay's (LNN - Free Report) international irrigation revenue has been supported by a large multi-year project in the Middle East and North Africa. Roughly $70 million of that $80 million project has now been delivered, and management indicated the remaining $10 million or so is primarily services revenue that will be recognized over the next twelve to twenty-four months.
In other words, the single largest contributor to international irrigation revenue is winding down. Management acknowledged as much, guiding to difficult year-over-year comparisons in international project markets in fiscal 2027.
The domestic picture offers little offset. Management stated plainly that it is still too early to forecast significant recovery in North American irrigation demand, and expects conditions to remain tempered until commodity prices and farm income improve. Brazil, the other major international market, faces high interest rates and constrained credit availability.
Deteriorating Forecasts
Analysts have responded as you would expect. Lindsay was downgraded to a Zacks Rank #5 (Strong Sell) at the end of October. The consensus for the current fiscal year now sits at $4.70 per share, which would represent a decline of roughly 12% from the $5.33 the company just earned.
Consider what that means. Fiscal 2026 earnings already fell 21%, and the Street is modeling another double-digit decline on top of it. Two consecutive years of contracting earnings while the broader market compounds is a recipe for sustained underperformance, and falling estimates of this kind are precisely what the Zacks Rank is designed to capture.
Image Source: Zacks Investment Research
Technical Outlook
LNN stock has been in a downtrend for most of 2026. Both the 50-day (blue line) and 200-day (red line) moving averages are sloping downward, and shares have spent much of the year trading beneath them. Rally attempts have been repeatedly capped at progressively lower levels, which is the signature of distribution rather than accumulation.
Image Source: StockCharts
Shares would need to reclaim both moving averages and show a genuine turn in earnings estimate revisions to warrant taking any long positions in the stock.
Final Thoughts
Farm income and commodity prices drive irrigation demand, and both remain unsupportive. The MENA project that masked weakness elsewhere is nearly complete. Management will not forecast a recovery. And the consensus calls for a second straight year of declining earnings.
A deteriorating fundamental and technical backdrop, membership in one of the weaker industry groups in our universe, and falling future earnings estimates will likely serve as a ceiling on any potential rallies.