Lindsay Corp Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ryan Connors - Northcoast Research - Analyst : Good morning. Thanks for taking my question. So you had a comment there on Irrigation regarding the mixed effect of shorter systems or smaller systems in Irrigation. I've never heard you make that comment before. Can you call out the magnitude of that or exactly what that is and what might be driving that? That's a new one for me.

Question: Ryan Connors - Northcoast Research - Analyst : Yeah, okay. So it was on the margin then? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 07, 2025 / 4:00PM, LNN.N - Q1 2025 Lindsay Corp Earnings Call

Question: Ryan Connors - Northcoast Research - Analyst : Yeah, okay. And then, one more on Irrigation, and I have one on Infrastructure as well. So this large project in the Middle East, once that's completed, what's the follow-on service component, if any, on something like that, of that magnitude? Is that something where you'll be -- it can move the needles supplying parts and service into that on a go-forward basis, or is it just sort of once it's done, it's done, and we have to go find -- look for the next one?

Question: Ryan Connors - Northcoast Research - Analyst : Got it. Okay. And then on Infrastructure, Brian, you mentioned the timing of lease revenue as one of the headwinds on the revenue line there. I mean, my understanding of the leasing model was that it's actually less volatile, less lumpy than the book ship that we had in the past. So can you explain exactly what the dynamics are that can drive timing on lease revenue to cause that kind of volatility?

Question: Ryan Connors - Northcoast Research - Analyst : Yes, okay. But just to be clear, so when a lease project is signed, that becomes pretty much an annuity stream on a go-forward basis. There's no real -- so you're just saying there's book ship projects rolling off and there's not lease revenue necessarily to replace it immediately, but there's really no volatility associated with a leased system once it's up and running. Is that a fair characterization of that?

Question: Ryan Connors - Northcoast Research - Analyst : Got it. I see. So it's not a permanent installation. It's just on a specific project.

Question: Ryan Connors - Northcoast Research - Analyst : Got it. Okay, that makes sense. Thanks for your time.

Question: Adam Farley - Stifel Nicolaus and Company, Incorporated - Analyst : Yeah. Good afternoon. This is Adam Farley on for Nathan. Maybe first looking at Brazil, are there signs of it reaching a bottom here? What's the expectation for the year if Irrigation markets continue to stabilize there?

Question: Adam Farley - Stifel Nicolaus and Company, Incorporated - Analyst : Okay. Thank you for that. And then on domestic Irrigation, I think the presentation called out slightly lower ASPs in the quarter. Where are you seeing pricing pressure? And then if you think about it in aggregate, is price cost positive, neutral, or negative?

Question: Adam Farley - Stifel Nicolaus and Company, Incorporated - Analyst : All right. Great. Thank you for taking my questions.

Question: Jon Braatz - Kansas City Capital Associates - Analyst : Morning, Randy, Brian. Randy, since this fall, we've seen corn prices move up, at least on the board, up about 20%. And soybean's up a little bit less -- a lot less, but nonetheless, they've recovered a little bit. I guess when you look at the recovery that we've seen, do you sense any change in the supply and demand issues affecting these prices? What might account for some of the price -- some of the improvement? Any ideas?

Question: Jon Braatz - Kansas City Capital Associates - Analyst : Okay. What about in Brazil in terms of soybean prices? What's the trend been there?

Question: Jon Braatz - Kansas City Capital Associates - Analyst : Okay. And Brian, in the quarter, you talked a little bit about a lower tax rate and some positive other income. How do you see that going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 07, 2025 / 4:00PM, LNN.N - Q1 2025 Lindsay Corp Earnings Call

Question: Jon Braatz - Kansas City Capital Associates - Analyst : Okay. And the other income, anything?

Question: Jon Braatz - Kansas City Capital Associates - Analyst : Yes, absolutely. And Brian, in the past, the large infrastructure projects have typically had a nice margin to it. How do you view this $20 million project?

Question: Jon Braatz - Kansas City Capital Associates - Analyst : Right. Well, in the past, hasn't it been over 30% or something like that?

Question: Jon Braatz - Kansas City Capital Associates - Analyst : Yeah. Okay. All right. Thank you very much.

Question: Brett Kearney - American Rebirth Opportunity Partners LLC - Analyst : Hi, Randy, Brian. Good morning. Thanks for taking my question. I was just going to ask for a quick update on the CapEx projects you guys have underway. This fiscal year, I know the largest one being the expansion at the Lindsay, Nebraska facility, just how planning, procurement processes are going around that at this stage, as well as the other initiatives you guys have underway.

Question: Brett Kearney - American Rebirth Opportunity Partners LLC - Analyst : Okay. Terrific. Thanks very much, Randy.