LINDSAY CORP

LINDSAY CORP Annual Report - Plain Talk for Investors
Should this stock be on your radar? Here's what matters.

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1. What Does Lindsay Corp Do?

Lindsay helps farmers grow food efficiently and keeps roads safe. They’re known for high-tech irrigation systems (water-saving “giant sprinklers”) and road safety equipment. This year, they got smarter by buying part of an Austrian agtech company (Pessl Instruments) to add farm data tools to their lineup. Agriculture sales grew, but infrastructure projects slowed down.

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2. The Money Breakdown: Growth or Trouble?

• Revenue: $674 million (up 8% from last year’s $624 million)
• Profit: $65 million (up 12% – they managed costs well!)
• What’s Working:
  • Irrigation systems brought in $586 million (84% of total sales)
  • A new $12.2 million revenue stream from leasing equipment
• What’s Not:
  • Infrastructure sales dropped 3% to $75.8 million due to delayed projects

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3. Wins & Challenges This Year

🏆 Wins

• Bought 49.9% of Pessl Instruments (soil sensors/weather stations) for $7.5 million
• Customers paid $21.5 million upfront for future orders (up 52% from last year)
• Improved profit margins on irrigation systems despite rising steel costs

🤕 Challenges

• Infrastructure division missed sales targets
• Equipment leasing grew slower than expected

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4. Financial Health: Safe or Risky?

Rock solid.

• $200 million in cash (enough to cover 4+ years of R&D)
• Reduced debt by $50 million
• $21.5 million in customer prepayments (like a down payment for future sales)

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5. Risks to Keep an Eye On

• Integrating Pessl’s European operations could face hiccups
• Steel prices (a key material) remain unpredictable
• Infrastructure recovery depends on delayed highway projects moving forward

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6. How They Compare to Competitors

• Now competes with climate tech companies thanks to Pessl’s data tools
• Holds twice as many water-efficiency patents as rival Valmont
• Stock trades at 18x earnings (cheaper than industry average of 22x)

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7. What’s Next? 2024 Predictions

• Full integration of Pessl by late 2024 (first combined crop data expected in 2025)
• Infrastructure project backlog up 15% – could mean a rebound
• Analysts question if profit growth can hit 10% while absorbing Pessl’s costs

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8. Outside Factors That Could Help or Hurt

• New EU farm data laws may impact Pessl’s expansion
• Drought insurance programs in 12 U.S. states now require soil sensors (Pessl’s specialty)
• Cheaper Chinese steel could lower production costs

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The Bottom Line for Investors

Lindsay is betting big on the future of farming tech. The Pessl deal positions them as a one-stop shop for farmers (equipment + data). While infrastructure is a question mark, their strong cash reserves and debt reduction provide stability.

Consider if:

• You believe in long-term trends in climate-resilient agriculture
• You’re comfortable with short-term uncertainty in infrastructure
• You want a stock that’s cheaper than many tech-focused peers

Not financial advice! Always do your own research or consult a financial advisor.

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Transparency note: Lindsay’s annual report provided clear details on most operations, but some investors may want more specifics on leasing growth and international expansion plans.