Updated 5/29/25
Lindsay Corporation (LNN) has built a strong foundation in agricultural irrigation and infrastructure, supported by more than six decades of operational history. With a presence in both domestic and international markets, the company continues to expand its footprint through disciplined financial management, strong leadership, and a growing portfolio of infrastructure projects and irrigation systems.
Recent quarterly results have shown meaningful top-line growth, improved margins, and rising free cash flow. Backed by a solid balance sheet, a consistent dividend policy, and a leadership team focused on long-term strategy, Lindsay presents a compelling profile for income-focused investors looking for dependable fundamentals and steady operational performance.
Recent Events
In its most recent quarter, which ended February 28, 2025, Lindsay delivered some eye-opening numbers. Revenue jumped more than 23% year over year, clocking in at just under $650 million for the trailing twelve months. More impressively, net income surged almost 47%, and EPS hit $7.03. That kind of growth, particularly for a company operating in industrial equipment, says a lot about its execution and demand strength.
Both the irrigation and infrastructure sides of the business are pulling their weight. North America remains a core market, but Lindsay continues to gain ground internationally. What stands out is the company’s ability to push through cost pressures without damaging its margins. The operating margin is sitting comfortably at 17.17%—a sign that Lindsay knows how to manage its pricing and operations effectively.
Then there’s the cash picture, which is one of the best aspects for income investors. Operating cash flow hit $117.5 million, and levered free cash flow came in at $76.6 million. In other words, the company is not just earning—it’s converting those earnings into real, usable cash. That matters when you’re evaluating dividend sustainability.
The balance sheet is also squeaky clean. With $186.7 million in cash against $136 million in debt, Lindsay has plenty of breathing room. A debt-to-equity ratio of just over 26% reinforces the conservative approach management has taken—an approach that pays dividends, quite literally.
Key Dividend Metrics
💰 Forward Annual Dividend Rate: $1.44
📈 Forward Dividend Yield: 1.03%
🔄 Trailing Dividend Rate: $1.43
📉 Payout Ratio: 20.34%
🕐 5-Year Average Yield: 1.03%
📆 Next Dividend Date: May 30, 2025
⏳ Ex-Dividend Date: May 16, 2025
Dividend Overview
If you’re chasing high-yield dividend plays, Lindsay’s 1.03% yield might seem underwhelming at first glance. But it’s important to see the bigger picture. This yield is backed by a low payout ratio and a very well-run company. The dividend is clearly sustainable, and it’s supported by a business model that doesn’t rely on flashy growth or risky bets.
At just over 20%, the payout ratio gives Lindsay plenty of flexibility. That means they’re only using a small slice of their earnings to fund the dividend, leaving the rest for reinvestment, debt management, or even potential increases in payouts down the road. It’s a smart, measured strategy that values consistency.
There’s also a long track record of uninterrupted dividend payments, and that matters a lot. Investors can count on those regular deposits hitting their account without worrying about sudden changes due to economic cycles. It’s not a speculative stock; it’s a reliable one.
Dividend Growth and Safety
The dividend growth here isn’t flashy, but it’s steady. Over the last five years, the yield has remained stable around the 1.03% mark. That doesn’t mean Lindsay hasn’t raised its dividend—it has, just at a pace that mirrors real business growth. That’s the kind of alignment that builds trust with long-term investors.
What makes the dividend especially safe is the strength of the company’s financials. Lindsay is generating more free cash than it’s paying out, and with more cash than debt on its balance sheet, it’s in a position to continue those payments even during more difficult market conditions. The current ratio of 3.63 adds another layer of reassurance, showing that short-term liabilities are well covered.
Earnings have been climbing, and profitability metrics like return on equity (15.38%) and return on assets (6.81%) tell us that Lindsay is making good use of its capital. That sets the stage for ongoing dividend payments, and possibly more growth if the current trends continue.
One final point that’s easy to overlook: the stock’s beta is just 0.81. That’s a sign that Lindsay tends to be less volatile than the broader market. For dividend investors, especially those looking for something a little more defensive, that kind of stability can be very appealing.
Cash Flow Statement
Lindsay Corporation’s cash flow profile over the trailing twelve months reflects a disciplined and efficient financial strategy. Operating cash flow came in at $117.5 million, up significantly from the prior year and well ahead of pre-2023 levels. This increase aligns with the company’s solid earnings growth and reflects healthy conversion of profits into cash. Free cash flow reached $88.4 million, reinforcing that Lindsay isn’t just growing revenue—it’s doing so with real cash-generating power behind it. Capital expenditures were a manageable $29.1 million, indicating a steady level of reinvestment without overextension.
On the financing side, the company returned cash to shareholders primarily through share repurchases, totaling $23.9 million, while also trimming debt slightly. No new debt has been issued in recent years, signaling a cautious approach to leverage. Investing cash flow showed a $34.3 million outflow, consistent with ongoing capital investments. Despite these outflows, the company ended the period with a strong cash position of $176.7 million. Lindsay’s ability to maintain and grow its cash reserves while investing in the business and returning capital to shareholders highlights the financial flexibility that underpins its dividend reliability.
Analyst Ratings
🔄 Lindsay Corporation (LNN) has recently seen a shift in sentiment from analysts, with a few tweaking their ratings and price targets based on the company’s latest financial results and overall market positioning. One firm lowered its price target slightly from $134 to $128, while maintaining a hold stance. The adjustment wasn’t dramatic, but it signals a cautious view, possibly influenced by sector-wide concerns or expectations of more moderate growth ahead.
✅ Meanwhile, a different take came from another analyst who bumped their rating from hold to buy, suggesting growing confidence in Lindsay’s operational performance and margin improvement. The company’s strong cash flow, improved revenue trajectory, and consistent execution seem to have caught attention, prompting the upgrade. The call reflects the belief that Lindsay may still be undervalued considering its balance sheet strength and long-term strategic positioning in both irrigation and infrastructure markets.
📈 The average consensus price target now sits at $128, though projections vary, with some analysts placing it as high as $150. That spread shows a mix of cautious optimism and bullish conviction, depending on which performance metrics each analyst emphasizes. Overall, the tone leans slightly positive, supported by a solid recent quarter and visible operational improvements.
Earning Report Summary
Strong Top-Line Growth
Lindsay Corporation turned in a strong showing for its fiscal second quarter of 2025. Revenue came in at $187.1 million, up 23% from the same quarter last year. That kind of top-line growth doesn’t happen by accident—it was driven by impressive momentum in international irrigation and a standout quarter for the infrastructure segment.
On the earnings side, net income climbed to $26.6 million, up nearly 47% year-over-year. Diluted earnings per share reached $2.44, a solid jump from the $1.64 reported in the same period last year. The company’s performance shows it’s executing well and delivering stronger results even with some mixed trends in its core North American market.
Irrigation Sees Mixed Signals
The irrigation business was a bit of a tale of two regions. North American irrigation revenue slipped by 7%, largely because of lower unit sales and a small dip in average prices. That said, it wasn’t all bad news. The international irrigation side more than made up for it, jumping 42% thanks to strong demand out of the Middle East and North Africa, along with other emerging markets. Big projects in those regions helped lift the overall numbers.
Infrastructure Business Breaks Out
Infrastructure was the real standout this quarter. Revenue from that segment more than doubled, reaching $38.9 million. The growth was largely driven by a major Road Zipper System project that wrapped up this quarter. Operating income from infrastructure surged 278%, underscoring how important this segment has become in balancing the business and driving margin improvement.
Comments from Leadership
CEO Randy Wood called out the strong global performance, especially in irrigation projects outside North America. While he acknowledged that the domestic market has its challenges, particularly in agriculture, he pointed to growth opportunities overseas and the infrastructure segment’s continued momentum.
Looking ahead, management seems focused on keeping the momentum going while navigating challenges like tariffs and input costs. There’s been talk of refining supply chains and boosting international operations even further, all with the goal of maintaining steady financial performance and positioning the company for long-term growth.
Management Team
Lindsay Corporation is guided by a steady and experienced leadership group, with Randy Wood serving as President and CEO since January 2021. Under his leadership, the company has sharpened its focus on operational excellence and international expansion. Wood brings a clear sense of direction, emphasizing growth in both the irrigation and infrastructure segments while keeping financial discipline front and center.
The executive bench includes Brian Ketcham as Chief Financial Officer, who plays a key role in maintaining fiscal health and driving shareholder value. Scott Marion heads up the infrastructure segment and has been instrumental in executing on some of the company’s largest projects. The broader leadership team also includes senior professionals overseeing legal, technology, and operations—creating a well-rounded group that’s capable of adapting to challenges while staying focused on long-term goals.
Valuation and Stock Performance
Lindsay’s stock is currently trading around $141, close to its 52-week high, reflecting a strong run over the past year. It has appreciated over 25% in that time, outperforming many industrial names. That momentum is backed by solid earnings growth, margin expansion, and a clean balance sheet. The market cap now stands at approximately $1.52 billion, giving it a healthy mid-cap profile that balances scale with agility.
Valuation-wise, the stock trades at a trailing P/E of 19.88 and a forward P/E near 22.8. That suggests the market expects continued earnings growth but isn’t pricing in anything excessive. The price-to-book ratio of 2.94 and a price-to-sales ratio of 2.34 are both within reason for a company operating in capital-intensive sectors. Lindsay’s lower beta of 0.81 reflects its relatively steady performance and limited correlation to broader market swings.
These metrics suggest the stock remains fairly valued based on its historical averages, with potential upside if execution continues at its current pace or if infrastructure tailwinds accelerate further.
Risks and Considerations
Despite a solid foundation, there are risks that could challenge Lindsay’s trajectory. The company’s agricultural business is sensitive to factors that are often unpredictable, like weather, crop prices, and changes in farm income. Those variables can directly influence irrigation equipment sales, especially in North America.
The infrastructure segment, while performing well, is still somewhat dependent on public sector spending. Delays in government funding or project approvals could affect revenue timing. Lindsay also faces ongoing input cost pressures and supply chain complexities, especially in sourcing materials and managing logistics across global operations.
Foreign exchange exposure is another factor, given the company’s international reach. Currency swings can impact both reported results and operational planning. While Lindsay has taken steps to hedge some of that exposure and build local partnerships, it’s a variable that remains in play.
Final Thoughts
Lindsay Corporation stands out as a disciplined, well-run company with a strong balance between innovation and financial prudence. Its consistent performance, especially in free cash flow generation and margin management, underlines the quality of its operations. Leadership appears to have a firm grasp on where the business is headed, balancing short-term execution with long-term strategy.
While no company is immune to external shocks, Lindsay has positioned itself well to weather challenges and capitalize on new opportunities. Investors looking for exposure to infrastructure and agricultural markets with a touch of defensive character may find Lindsay to be a steady, well-managed name worth watching closely.