Lindsay Corporation

Lindsay Corporation (NYSE: LNN) is a global manufacturer and distributor of irrigation and infrastructure equipment and technology. The Company operates through two segments: Irrigation and Infrastructure. The Company’s Irrigation segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems which are used principally in the agricultural industry to increase or stabilize crop production while conserving water, energy and labour. 

As per our previous US Earning Hunter Report published on ‘LNN’ on November 14, 2025, we provided an ‘Attractive’ stance on the stock at USD 111.88 based on “price action, Earning hunter score, decent fundamentals, and technical analysis”.

Noted below are the details of support and resistance levels provided in our previous report:

Rationales For “Sell” at Current Levels:

• Significant Contraction in Revenue and Earnings Performance: Lindsay Corporation reported a notable decline in financial performance during Q2 FY2026, with total revenues decreasing by 16% year-over-year and net earnings declining by 55%, reflecting weakened demand across core segments. The sharp contraction in earnings per share further underscores deteriorating profitability and signals a challenging near-term operating environment.
• Persistent Weakness in Core Irrigation Demand: The irrigation segment, a key revenue driver, continued to face headwinds with revenues declining amid subdued farmer sentiment, lower commodity prices, and constrained capital spending. In North America, reduced unit volumes highlight demand softness, while international markets, particularly Brazil, remain pressured by limited credit availability and elevated interest rates, restricting equipment purchases.
• Sharp Margin Compression and Operating Deleverage: Profitability metrics deteriorated materially, with operating income declining by 59% and operating margins compressing significantly from 17.2% to 8.3%. This reflects the impact of lower volumes, an unfavorable sales mix, and fixed cost deleverage, indicating limited ability to sustain margins in a weakening demand environment.
• Volatility and Project Dependency in Infrastructure Segment: The infrastructure segment exhibited significant volatility, with revenues declining by 58% due to the absence of large, non-recurring Road Zipper System projects that supported prior-year performance. This highlights the segment’s dependence on large episodic contracts, reducing earnings visibility and increasing variability in financial outcomes.
• Macroeconomic Headwinds and Limited Near-Term Visibility: The company continues to operate in a challenging macroeconomic environment characterized by high interest rates, constrained credit conditions, and uncertainty in agricultural markets. These factors are expected to persist in the near term, limiting demand recovery and creating uncertainty around order flow, backlog conversion, and overall revenue trajectory despite some long-term structural growth drivers.

Daily Chart

Considering the sharp moderation in near-term earnings momentum (with quarterly earnings per share declining significantly year-over-year), persistent demand weakness in the core irrigation segment driven by subdued farm economics and constrained credit conditions, pronounced margin compression amid operating deleverage and unfavourable sales mix, elevated reliance on large, non-recurring infrastructure projects impacting revenue visibility, and a constrained near-term growth outlook amid ongoing macroeconomic headwinds, an ‘Unattractive’ rating is assigned to the ‘LNN’ at the current market price of USD 111.28, as of April 10, 2026, at of 06:50 am PDT.

Note: This report may be updated with details around fundamental and technical analysis, price chart in due course, as appropriate.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is April 10, 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.