Lindsay Corporation (LNN): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of where Lindsay Corporation (LNN) stands right now, so we're mapping its core businesses onto the classic Boston Consulting Group Matrix using the latest fiscal 2025 data. The story, frankly, is that international diversification is saving the day from a soft North American farm economy; think of the International Irrigation Business as the clear Star, showing Q4 revenue up 23% in South America and MENA. We'll show you exactly which mature businesses are still printing reliable cash-like that irrigation segment maintaining a 13.7% operating margin-and where the infrastructure bets are stuck as Question Marks, signaling uncertainty due to the backlog dropping to $110.7 million.

Background of Lindsay Corporation (LNN)

Lindsay Corporation is a major global manufacturer and distributor, focusing on equipment and technology for both irrigation and infrastructure. You're looking at a company that just closed its fiscal year 2025 on August 31st, reporting some solid top-line growth despite regional market variations.

For the full fiscal year 2025, Lindsay Corporation achieved total revenues of $676.4 million, which represents an 11% increase compared to the prior year. That growth flowed down to the bottom line, with operating income rising by 15% to $88.1 million, resulting in an operating margin of 13.0%. Honestly, net earnings for the year were $74.1 million, marking a 12% jump, and diluted earnings per share (EPS) came in at $6.78, up 13%.

The business is structured around two main reportable segments: Irrigation and Infrastructure. The Irrigation segment saw its revenues increase by 11% for the full year, largely thanks to strong project sales in the Middle East and North Africa (MENA) region and better demand in South America and Australia. Still, you have to note the domestic challenges; North America irrigation revenues actually fell by 19% in the fourth quarter due to softer market conditions and less storm damage replacement work.

On the Infrastructure side, revenues for the full year grew by 16%. This was primarily fueled by higher sales of road safety products and increased Road Zipper System project sales. However, the company's backlog of unfilled orders shows a shift in project timing; as of August 31, 2025, the backlog stood at $110.7 million, down from $180.9 million a year earlier. Finance: draft 13-week cash view by Friday.

Lindsay Corporation (LNN) - BCG Matrix: Stars

You're looking at the engine room of growth for Lindsay Corporation, the segment that demands investment to maintain its leading position in expanding markets. These are the Stars, units with a high market share in a market that's still growing fast. They consume cash to fuel that growth, but if they keep winning, they become the Cash Cows of tomorrow.

The International Irrigation Business is clearly positioned here. For the fourth quarter of fiscal 2025, this business saw its revenues increase by a solid 23 percent year-over-year, primarily fueled by strong demand in South America and the Middle East and North Africa (MENA) region. This geographic diversification is key, especially since North America irrigation revenues fell 19 percent in the same quarter. Honestly, that international strength is what kept the whole segment moving up.

The underlying market dynamics support this Star classification. The Global Mechanized Irrigation market isn't slowing down; it's projected to expand from a valuation of USD 3355 million in 2024 to over USD 8258 million by 2032, reflecting a compound annual growth rate (CAGR) of 14.1 percent. That's definitely a high-growth environment.

The execution on Large-Scale MENA Projects has been a major factor in realizing this growth. The execution and securing of these major project sales were instrumental in driving the full-year irrigation revenue growth of 11 percent. Specifically, a multi-year supply agreement for Zimmatic systems and FieldNET technology in the MENA region was valued at more than $100 million in revenue, with shipments continuing through fiscal 2025. This single project helped push the full-year international irrigation revenues to $294.2 million, marking a 39 percent increase.

Here's a quick look at the key financial performance metrics that define this segment's strength as of the end of fiscal 2025:

When we talk about Zimmatic Technology, we are talking about the product line that helps secure that high relative market share. Lindsay Corporation is one of the top three manufacturers in the Mechanized Irrigation Systems market, which collectively holds about 60 percent of the global market share. Zimmatic, which includes center pivot and lateral move agricultural irrigation systems, is a core brand within this competitive landscape. The company is also advancing its digital offerings, surpassing 150,000 total connected devices with 20 percent year-over-year growth in annual recurring revenue from these technologies.

The Star quadrant requires continued investment to fend off competitors and capture the growing market. Key areas of focus for maintaining this position include:

• Sustaining project pipeline in MENA and South America.
• Driving adoption of FieldNET and FieldWise technologies.
• Investing in IoT-enabled systems for precision agriculture.
• Maintaining cost discipline despite high growth investment needs.

To be fair, the high revenue growth in international projects, while driving the Star status, was dilutive to the segment's operating margin in some quarters, which is typical for a high-growth, investment-heavy unit. For the full year, the Irrigation segment operating income rose 11 percent to $97 million.

Finance: draft the 13-week cash view by Friday, focusing on capital allocation for the International Irrigation segment's growth initiatives.

Lindsay Corporation (LNN) - BCG Matrix: Cash Cows

Cash Cows represent the bedrock of Lindsay Corporation's financial stability, characterized by high market penetration in mature segments that reliably convert sales into significant cash flow. These units require minimal growth investment, allowing capital to be redirected to higher-growth areas within the portfolio.

North America Irrigation Core Business

The North America Irrigation Core Business fits the Cash Cow profile due to its established position in a mature domestic market. Lindsay Corporation is recognized as one of the top-three global manufacturers in the mechanized irrigation systems market, a segment where the top three players collectively hold approximately 60% of the global market share. Geographically, North America represents about 40% of the global share, underscoring the importance of this established base for Lindsay Corporation. While the market is mature, the installed base provides a foundation for steady aftermarket revenue.

The headwinds in the domestic market were evident in the fourth quarter of fiscal year 2025, where North America irrigation revenues decreased 19% compared to the prior year quarter, primarily due to lower unit sales volume. For the full fiscal year 2025, North America irrigation revenues decreased 9% to $273.8 million.

Stable Operating Margin

Despite the revenue headwinds in the domestic market during the fourth quarter of fiscal year 2025, the Irrigation segment demonstrated its ability to maintain profitability through operational discipline. The Irrigation segment achieved an operating margin of 13.7% of sales in Q4 2025, a slight improvement from 13.6% in the prior year's fourth quarter. For the full fiscal year 2025, the Irrigation segment operating margin was 17.1% of sales, similar to the prior year, with operating income increasing 11% to $97 million.

Here's a quick look at the segment's full-year financial performance:

Strong Free Cash Flow

The primary value of a Cash Cow is its cash generation capability, and Lindsay Corporation's performance in fiscal year 2025 was exemplary in this regard. The company generated free cash flow at 122% of net earnings for the full fiscal year 2025. This strong conversion rate is vital for corporate funding needs.

The company reported record net earnings of $74.1 million for fiscal year 2025. The free cash flow generation of 122% of this net earnings figure demonstrates the efficiency of the business model in converting profit into available cash, even with capital expenditures of $42.5 million for the year.

Recurring Revenue from Parts/Service

The installed base of center pivot systems underpins the steady, high-margin sales stream that defines a Cash Cow's passive income. This revenue stream is less susceptible to the cyclical nature of new equipment sales, which were impacted by lower storm damage replacement demand in North America during Q4 2025.

The characteristics supporting this cash flow stability include:

• Steady sales from the existing installed base.
• High-margin profile on replacement parts and service work.
• Lower promotional and placement investment required.
• Infrastructure to support the installed base can boost cash flow.

Finance: draft 13-week cash view by Friday.

Lindsay Corporation (LNN) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

You're looking at areas within Lindsay Corporation (LNN) that exhibit low growth characteristics, which aligns with the Dog quadrant of the Boston Consulting Group Matrix. These are the segments where market share is low relative to competitors, and the underlying market growth is slow or contracting, meaning expensive turn-around plans usually do not help.

Here are the specific real-life financial figures grounding the classification of these units as Dogs for the period ending in fiscal year 2025:

• North America Irrigation (Q4 2025): Revenue declined 19% in Q4 2025 due to soft farm income and lower storm replacement demand.
• Road Zipper System Leasing: Lease revenues were slightly lower in FY 2025 compared to the prior year.
• Standard Road Safety Products: Lower-margin, commodity-like products with slower growth compared to proprietary systems.

The performance data for the relevant segments in the fourth quarter of fiscal year 2025, which ended on August 31, 2025, clearly illustrates the headwinds faced by these specific areas of the business.

The North America Irrigation unit saw its revenues drop by 19% in the final quarter of fiscal 2025, landing at $50.0 million. For the full fiscal year 2025, North America irrigation revenues decreased by 9%.

Within the Infrastructure segment, the Road Zipper System leasing component contributed to the overall segment decline. Infrastructure revenues for Q4 FY2025 were $24.5 million, a 16% decrease year-over-year. The decrease was primarily driven by lower Road Zipper System sales and lease revenues. For the full fiscal year 2025, Road Zipper System lease revenues were slightly lower compared to the prior year, even as overall Infrastructure revenues grew 16% driven by project sales.

The Standard Road Safety Products, which are generally considered lower-margin compared to proprietary systems, saw sales that were slightly higher compared to the prior year in Q4. However, the overall Infrastructure segment operating income fell 37% in Q4 FY2025 to $3.5 million, with the operating margin compressing to 14.4% of sales from 19.2% the prior year.

You should note the contrast:

• International Irrigation revenues grew 23.1% in Q4 FY2025 to $79 million.
• Full Fiscal Year 2025 Total Revenue was $676.4 million, an 11% increase.
• Full Fiscal Year 2025 Net Earnings were $74.1 million, up 12%.

The North America Irrigation unit's performance, marked by the 19% Q4 revenue drop, clearly positions it as a unit requiring strategic review, especially when contrasted with the international growth story. Finance: draft a sensitivity analysis on North America Irrigation revenue recovery based on commodity price forecasts by end of next week.

Lindsay Corporation (LNN) - BCG Matrix: Question Marks

These business units operate in high-growth markets but currently hold a low market share, demanding significant cash investment while yielding limited immediate returns. They represent potential future Stars if market share can be rapidly captured.

Road Zipper System Project Sales

The Infrastructure segment saw its revenues increase by 16 percent for the full fiscal year 2025. This growth was directly attributed to higher Road Zipper System project sales. A specific large Road Zipper System project, valued at more than $20 million, was delivered during the second quarter of fiscal 2025. However, the segment's performance in the final quarter showed volatility; Infrastructure segment operating income for the fourth quarter of fiscal 2025 was $3.5 million, a decrease of 37 percent compared to the $5.6 million in the prior year's fourth quarter, resulting from lower Road Zipper System sales and lease revenues in that period.

Precision Agriculture/IoT Solutions

The company continues to position its FieldNET and FieldWise remote irrigation management technology, alongside FieldNET Advisor, as key innovation drivers within the Irrigation segment. Lindsay Corporation announced plans to invest more than $50 million over two years, completing the modernization of its Nebraska facility by the end of 2025, which involves implementing Industry 4.0 technologies.

Backlog Volatility

The uncertainty in near-term project realization is clearly visible in the year-over-year change in the backlog of unfilled orders. This metric dropped significantly, indicating that the large, lumpy projects that drive revenue are not consistently secured or are being completed.

The drop from $180.9 million at the end of fiscal 2024 to $110.7 million at the end of fiscal 2025 highlights this near-term revenue uncertainty.

Infrastructure Project Pipeline

The reliance on large, unpredictable projects for the Infrastructure segment's growth is a key characteristic of a Question Mark. The completion of the $20 million Road Zipper System project in fiscal 2025 created a revenue spike that is difficult to replace immediately. Management commentary suggests this near-term pipeline is lean:

• The prior year's fourth quarter included Road Zipper System project sales that did not repeat in the current year's fourth quarter.
• Timing of individual projects remains challenging to predict.
• Management does not anticipate a large project in fiscal 2026 to offset the $20 million project delivered in 2025.