# LINDSAY CORP (LNN)

Informational only - not investment advice.

CIK: 0000836157
SIC: 3523 Farm Machinery & Equipment
SIC breadcrumb: [Manufacturing](/division/D/) > [Industrial And Commercial Machinery And Computer Equipment](/major-group/35/) > [SIC 3523 Farm Machinery & Equipment](/industry/3523/)
Latest 10-K filed: 2025-10-23
SEC page: https://www.sec.gov/edgar/browse/?CIK=836157
Filing source: https://www.sec.gov/Archives/edgar/data/836157/000119312525248751/lnn-20250831.htm

## At a glance

FY2025 · period end 2025-08-31 · filed 2025-10-23 · accession 0001193125-25-248751 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000836157.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 676,368,000 USD | 2025 | verified |
| Net income | 74,052,000 USD | 2025 | verified |
| Assets | 840,836,000 USD | 2025 | verified |
| Free cash flow | 90,414,000 USD | 2025 | computed |
| Net margin | 10.95% | 2025 | computed |
| Operating margin | 13.03% | 2025 | computed |
| Revenue YoY | +11.41% | 2025 | computed |
| ROE | 13.90% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | LNN | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 10.9% | 7.7% | 65 | 110 |
| Operating margin | 13.0% | 13.1% | 50 | 104 |
| Revenue growth | 11.4% | 5.8% | 65 | 111 |
| FCF margin | 13.4% | 9.6% | 67 | 103 |
| ROE | 13.9% | 11.7% | 60 | 108 |
| ROA | 8.8% | 5.6% | 75 | 111 |
| Liabilities / equity | 0.58 | 1.10 | 20 | 108 |
| Current ratio | 3.71 | 2.02 | 89 | 110 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 35 Industrial And Commercial Machinery And Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 676368000 | USD | 2025 | 2025-10-23 |
| Net income | 74052000 | USD | 2025 | 2025-10-23 |
| Assets | 840836000 | USD | 2025 | 2025-10-23 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-10-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000836157.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  | 516,411,000 | 517,985,000 | 547,705,000 | 444,072,000 | 474,692,000 | 567,646,000 | 770,743,000 | 674,084,000 | 607,074,000 | 676,368,000 |
| Net income |  |  | 20,267,000 | 23,179,000 | 20,277,000 | 2,172,000 | 38,629,000 | 42,572,000 | 65,469,000 | 72,379,000 | 66,257,000 | 74,052,000 |
| Operating income |  |  | 34,375,000 | 40,649,000 | 39,012,000 | 6,115,000 | 54,202,000 | 54,107,000 | 94,643,000 | 102,184,000 | 76,608,000 | 88,124,000 |
| Gross profit |  |  | 148,613,000 | 145,012,000 | 151,462,000 | 114,608,000 | 152,543,000 | 150,205,000 | 199,178,000 | 213,015,000 | 191,055,000 | 210,780,000 |
| Diluted EPS |  |  | 1.85 | 2.17 | 1.88 | 0.20 | 3.56 | 3.88 | 5.94 | 6.54 | 6.01 | 6.78 |
| Operating cash flow |  |  | 33,125,000 | 39,449,000 | 33,934,000 | 3,797,000 | 46,034,000 | 43,968,000 | 3,048,000 | 119,707,000 | 95,761,000 | 132,910,000 |
| Capital expenditures |  |  | 11,496,000 | 8,863,000 | 11,054,000 | 23,211,000 | 21,445,000 | 26,511,000 | 15,595,000 | 18,775,000 | 28,979,000 | 42,496,000 |
| Dividends paid |  |  | 12,244,000 | 12,490,000 | 13,006,000 | 13,375,000 | 13,645,000 | 14,166,000 | 14,599,000 | 15,082,000 | 15,461,000 | 15,748,000 |
| Share buybacks | 41,059,000 | 96,883,000 | 48,335,000 |  |  |  |  |  | 0.00 | 0.00 | 22,454,000 | 11,532,000 |
| Assets |  |  | 487,515,000 | 506,032,000 | 499,815,000 | 500,314,000 | 570,526,000 | 637,185,000 | 710,653,000 | 745,660,000 | 760,232,000 | 840,836,000 |
| Liabilities |  |  | 235,948,000 | 235,977,000 | 222,949,000 | 232,105,000 | 272,008,000 | 298,740,000 | 317,295,000 | 290,009,000 | 279,339,000 | 307,986,000 |
| Stockholders' equity |  |  | 251,567,000 | 270,055,000 | 276,866,000 | 268,209,000 | 298,518,000 | 338,445,000 | 393,358,000 | 455,651,000 | 480,893,000 | 532,850,000 |
| Cash and cash equivalents |  |  | 101,246,000 | 121,620,000 | 160,787,000 | 127,204,000 | 121,403,000 | 127,107,000 | 105,048,000 | 160,755,000 | 190,879,000 | 250,575,000 |
| Free cash flow |  |  | 21,629,000 | 30,586,000 | 22,880,000 | -19,414,000 | 24,589,000 | 17,457,000 | -12,547,000 | 100,932,000 | 66,782,000 | 90,414,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  | 3.92% | 4.47% | 3.70% | 0.49% | 8.14% | 7.50% | 8.49% | 10.74% | 10.91% | 10.95% |
| Operating margin |  |  | 6.66% | 7.85% | 7.12% | 1.38% | 11.42% | 9.53% | 12.28% | 15.16% | 12.62% | 13.03% |
| Return on equity |  |  | 8.06% | 8.58% | 7.32% | 0.81% | 12.94% | 12.58% | 16.64% | 15.88% | 13.78% | 13.90% |
| Return on assets |  |  | 4.16% | 4.58% | 4.06% | 0.43% | 6.77% | 6.68% | 9.21% | 9.71% | 8.72% | 8.81% |
| Liabilities / equity |  |  | 0.94 | 0.87 | 0.81 | 0.87 | 0.91 | 0.88 | 0.81 | 0.64 | 0.58 | 0.58 |
| Current ratio |  |  | 3.15 | 3.18 | 4.13 | 3.82 | 3.40 | 3.01 | 2.96 | 3.58 | 3.92 | 3.71 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/LNN/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-02. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000836157.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-05-31 |  |  | 2.28 | reported discrete quarter |
| 2023-Q1 | 2022-11-30 | 176,159,000 | 18,217,000 | 1.65 | reported discrete quarter |
| 2023-Q2 | 2023-02-28 | 166,241,000 | 18,052,000 | 1.63 | reported discrete quarter |
| 2023-Q3 | 2023-05-31 | 164,553,000 | 16,881,000 | 1.53 | reported discrete quarter |
| 2023-Q4 | 2023-08-31 | 167,131,000 | 19,229,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-11-30 | 161,358,000 | 15,019,000 | 1.36 | reported discrete quarter |
| 2024-Q2 | 2024-02-29 | 151,519,000 | 18,123,000 | 1.64 | reported discrete quarter |
| 2024-Q3 | 2024-05-31 | 139,199,000 | 20,379,000 | 1.85 | reported discrete quarter |
| 2025-Q2 | 2025-02-28 | 187,064,000 | 26,576,000 | 2.44 | reported discrete quarter |
| 2025-Q3 | 2025-05-31 | 169,464,000 | 19,500,000 | 1.78 | reported discrete quarter |
| 2025-Q1 | 2025-11-30 | 155,818,000 | 16,524,000 | 1.54 | reported discrete quarter |
| 2026-Q2 | 2026-02-28 | 157,715,000 | 12,045,000 | 1.15 | reported discrete quarter |
| 2026-Q3 | 2026-05-31 | 160,764,000 | 15,820,000 | 1.53 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from LNN's latest 10-K: [/company/LNN/business/](/company/LNN/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from LNN's latest 10-K: [/company/LNN/risk-factors/](/company/LNN/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/836157/000119312526294516/lnn-20260531.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-02
Report date: 2026-05-31

ITEM 2 ‑ Management's Discussion and Analysis of Financial Condition and Results of Operations

Concerning Forward‑Looking Statements

This Quarterly Report on Form 10-Q contains not only historical information, but also forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not historical are forward-looking and reflect information concerning possible or assumed future results of operations and planned financing of the Company. In addition, forward-looking statements may be made orally or in press releases, conferences, reports, on the Company's web site, or otherwise, in the future by or on behalf of the Company. When used by or on behalf of the Company, the words “expect,” “anticipate,” “estimate,” “believe,” “intend,” “will,” “plan,” “predict,” “project,” “outlook,” “could,” “may,” “should” or similar expressions generally identify forward-looking statements. Statements in the section entitled “Executive Overview and Outlook” that are not historical should be considered forward-looking statements. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve a number of risks and uncertainties, including but not limited to those discussed in the “Risk Factors” section in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2025. Readers should not place undue reliance on any forward-looking statement and should recognize that the statements are predictions of future results or conditions, which may not occur as anticipated. Actual results or conditions could differ materially from those anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties described herein and in the Company’s other public filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended August 31, 2025, as well as other risks and uncertainties not now anticipated. The risks and uncertainties described herein and in the Company’s other public filings are not exclusive and further information concerning the Company and its businesses, including factors that potentially could materially affect the Company's financial results, may emerge from time to time. Except as required by law, the Company assumes no obligation to update forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.

Accounting Policies

In preparing the Company’s condensed consolidated financial statements in conformity with U.S. GAAP, management must make a variety of decisions which impact the reported amounts and the related disclosures. These decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. In making these decisions, management applies its judgment based on its understanding and analysis of the relevant circumstances and the Company’s historical experience.

The Company’s accounting policies that are most important to the presentation of its results of operations and financial condition, and which require the greatest use of judgments and estimates by management, are designated as its critical accounting policies. See discussion of the Company’s critical accounting policies under Item 7 in the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended August 31, 2025. Management periodically re-evaluates and adjusts its critical accounting policies as circumstances change. There were no significant changes in the Company’s critical accounting policies during the nine months ended May 31, 2026.

Recent Accounting Guidance

See Note 1 – Basis of Presentation and the disclosure therein of recently adopted accounting guidance to the condensed consolidated financial statements set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Executive Overview and Outlook

Operating revenues for the three months ended May 31, 2026 were $160.8 million, a decrease of 5 percent compared to $169.5 million for the three months ended May 31, 2025. Irrigation segment revenues for the three months ended May 31, 2026 decreased 7 percent to $133.0 million, while infrastructure segment revenues increased 8 percent to $27.7 million. Net earnings for the three months ended May 31, 2026 were $15.8 million, or $1.53 per diluted share, compared to net earnings of $19.5 million, or $1.78 per diluted share, for the three months ended May 31, 2025. Operating income was lower than the prior year primarily due to lower revenues in the irrigation segment and lower gross margins in both segments. This decrease in operating income was partially offset by slightly higher other income and a lower effective income tax rate compared to the prior year.

The primary drivers for the Company’s irrigation segment are the need for irrigated agricultural crop production, which is tied to population growth and the attendant need for expanded food production, and the need to use water resources more efficiently. These drivers are affected by a number of factors, including the following:

- 17 -

Table of Contents

•
Agricultural commodity prices – As of May 2026, U.S. corn prices have decreased approximately 2 percent and U.S. soybean prices have increased approximately 11 percent from price levels prevailing in May 2025. Agriculture commodity prices fluctuate based on supply factors, such as global production and inventory levels of commodities, and demand factors such as food and feed consumption, biofuel production and the level of China's demand for agricultural imports.

•
Net farm income – As of February 2026, the U.S. Department of Agriculture (the “USDA”) forecast for 2026 U.S. net farm income was projected to be $153.4 billion, a decrease of 1 percent from the USDA's estimated 2025 U.S. net farm income of $154.5 billion. This projected decrease is largely driven by an expected decrease in cash receipts of 3 percent and is partially offset by an anticipated increase in government payments.

•
Weather conditions – Demand for irrigation equipment is often positively affected by storm damage and prolonged periods of drought conditions as producers look for ways to reduce the risk of low crop production and crop failures. Conversely, demand for irrigation equipment can be negatively affected during periods of more predictable or abundant natural precipitation.

•
Governmental action – A number of governmental laws, regulations and policies can affect the Company’s business, including the following:

•
In 2025, new tariffs were imposed in the U.S., including under the International Emergency Economic Powers Act (the "IEEPA"), on imports from Canada, Mexico, China and other countries on certain materials involved in the Company's production of goods. In response to these tariffs, the Company implemented a comprehensive action plan that included supplier negotiation, strategic inventory placement, and other supply chain initiatives to manage potential cost impacts. The impact of the tariffs has resulted in a marginal increase to the Company's cost of goods, of which a portion has been passed through to the market through an increase in the pricing of products. The potential impact of additional tariffs or retaliatory actions has been considered, and the Company plans to utilize its global footprint and supply chain to try to minimize the potential impact of these actions on its business and customers. On February 20, 2026, the United States Supreme Court issued a decision invalidating tariffs imposed under the IEEPA. The Company has applied for refunds for IEEPA tariffs where it believes it is entitled to a refund claim. The Company has recorded a recovery of the tariff for claims where any refund is considered probable and reasonably estimable.

•
On December 8, 2025, the Trump administration announced $12 billion in one-time payments to farmers, primarily those who grow corn and soybeans, in the wake of the recent tariff impact. These payments were made starting in the first calendar quarter of 2026 and are expected to continue throughout 2026. While helpful to overall farm income, these payments are not expected to result in a meaningful increase in demand for irrigation equipment.

•
On July 4, 2025, the One Big Beautiful Bill Act (the "OBBBA") was enacted in the U.S. permanently extending many of the expiring provisions of the Tax Cuts and Jobs Act of 2017. In particular, the OBBBA restores Section 168 bonus depreciation, which is intended to encourage equipment purchases by allowing 100 percent of the cost of the equipment to be treated as an income tax deduction in the year of purchase rather than being amortized over its useful life. This new legislation has multiple effective dates, with certain provisions having become effective in 2025 and 2026 and others to be implemented through 2027. The enactment of the OBBBA did not have a significant impact on the Company's estimated annual effective income tax rate in fiscal 2026.

•
The Agriculture Improvement Act of 2018 (the “Farm Bill”) was signed into law in December 2018 and provides a degree of certainty to growers, including funding for the Environmental Quality Incentives Program, which provides financial assistance to farmers to implement conservation practices, and is frequently used to assist in the purchase of center pivot irrigation systems. The Farm Bill expired on September 30, 2025, however the OBBBA extended key commodity support programs under the Farm Bill and is projected to increase agricultural-focused spending by approximately $65.6 billion over the next decade (fiscal 2025 through fiscal 2034). Of that total, $59.0 billion is directed toward core farm safety net enhancements. In addition, on November 12, 2025, legislation was adopted that included a one-year extension of the remaining provisions of the Farm Bill that were not included in the OBBBA.

- 18 -

Table of Contents

•
Biofuel production continues to be a major demand driver for irrigated corn, sugar cane and soybeans as these crops are used in high volumes to produce ethanol and biodiesel. The U.S. Environmental Protection Agency (“EPA”) establishes biofuel volume requirements for the Renewable Fuels Standard (RFS). In March 2026, the EPA finalized new volume requirements for 2026 and 2027 that represent increases of approximately 16 percent over 2025 requirements. The new requirements, along with other proposed regulatory changes, are intended to strengthen the RFS program and support the growth of domestically produced renewable fuels.

•
Many international markets are affected by government policies such as subsidies and other agriculturally related incentives. While these policies can have a significant effect on individual markets, they typically do not have a material effect on the consolidated results of the Company.

•
Currency – The value of the U.S. dollar fluctuates in relation to the value of currencies in a number of countries to which the Company exports products and in which the Company maintains local operations. The strengthening of the dollar increases the cost in the local currency of the products exported from the U.S. into these countries and, therefore, could negatively affect the Company’s international sales and margins. In addition, the U.S. dollar value of sales made in any affected foreign currencies will decline as the value of the dollar rises in relation to these other currencies.

While the USDA's forecasted 2026 total net farm income is comparable to the expected 2025 results, forecasted cash receipts in 2026 are expected to be lower than 2025 and only partially offset by government paymen

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/836157/000119312525248751/lnn-20250831.htm
Complete FY 2025 MD&A: /company/LNN/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2025-10-23
Report date: 2025-08-31

ITEM 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations

Concerning Forward—Looking Statements

This Annual Report on Form 10-K, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains not only historical information, but also forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not historical are forward-looking and reflect expectations for future Company performance. In addition, forward-looking statements may be made orally or in press releases, conferences, reports, on the Company’s web site, or otherwise, in the future by or on behalf of the Company. When used by or on behalf of the Company, the words “expect,” “anticipate,” “estimate,” “believe,” “intend,” “will,” “plan,” “predict,” “project,” “outlook,” “could,” “may,” “should,” and similar expressions generally identify forward-looking statements. For these statements throughout this Annual Report on Form 10-K, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The entire sections entitled “Financial Overview and Outlook” and “Risk Factors” should be considered forward-looking statements.

Forward-looking statements involve a number of risks and uncertainties, including but not limited to those discussed in the “Risk Factors” section contained in Item 1A. Readers should not place undue reliance on any forward-looking statement and should recognize that the statements are predictions of future results or conditions, which may not occur as anticipated. Actual results or conditions could differ materially from those anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties described herein, as well as others not now anticipated. The risks and uncertainties described herein are not exclusive and further information concerning the Company and its businesses, including factors that potentially could materially affect the Company’s financial results, may emerge from time to time. Except as required by law, the Company assumes no obligation to update forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.

Company Overview

The Company manufactures and markets center pivot, lateral move, and hose reel irrigation systems. The Company also produces and markets irrigation controls, chemical injection systems, remote monitoring and irrigation scheduling systems. These products are used by farmers to increase or stabilize crop production while conserving water, energy, and labor. Through its acquisitions and third-party commercial arrangements, the Company has been able to enhance its capabilities in providing innovative, turn-key solutions to customers through the integration of designs, controls, and pump stations. The Company sells its irrigation products primarily to a world-wide independent dealer network, who resell to their customers, the farmers. The Company’s irrigation production facilities are located in the United States, Brazil, Türkiye, France, China and South Africa, and also has distribution and sales operations in the Netherlands, Egypt, Australia, and New Zealand. The Company also manufactures and markets, through distributors and direct sales to customers, various infrastructure products, including moveable barrier systems for traffic lane management, crash cushions, preformed reflective pavement tapes, and other road safety devices, through its production facilities in the United States and Italy, and has produced road safety products in irrigation manufacturing facilities in China, Brazil and Türkiye. In addition, the Company’s infrastructure segment produces railroad signals and structures.

For the business overall, the global, long-term drivers of population growth, water conservation and environmental sustainability, the need for increased food production, and the need for safer, more efficient transportation solutions remain positive. Key factors which impact demand for the Company’s irrigation products include total worldwide agricultural crop production, the profitability of agricultural crop production, agricultural commodity prices, net farm income, availability of financing for farmers, governmental policies regarding the agricultural sector, water and energy conservation policies, the regularity of rainfall, regional climate conditions, food security concerns and foreign currency exchange rates. A key factor which impacts demand for the Company’s infrastructure products is the amount of spending authorized by governments to improve road and highway systems. Much of the U.S. highway infrastructure market is driven by government spending programs. For example, the U.S. government funds highway and road improvements through the Federal Highway Trust Fund Program. This program provides funding to improve the nation’s roadway system. In November 2021, the Infrastructure Investment and Jobs Act ("IIJA") was enacted and included a five-year reauthorization of the Fixing America's Surface Transportation ("FAST") Act. This legislation also introduced $110 billion in incremental federal funding planned for roads, bridges, and other transportation projects, which supports demand for the Company's transportation safety products as states utilize these funds in construction projects. The federal programs under the IIJA are scheduled to run through September 2026.

23

The Company continues to have an ongoing, structured, acquisition process that it expects to generate additional growth opportunities throughout the world and add to its irrigation and infrastructure capabilities. The Company is committed to achieving earnings growth by global market expansion, improvements in margins, and strategic acquisitions.

New Accounting Standards Issued

See Note 2, New Accounting Pronouncements, to the Company’s consolidated financial statements for information regarding recently issued accounting pronouncements.

Critical Accounting Policies

Management has evaluated the Company’s accounting policies and determined that none involve estimates or assumptions that are considered critical under SEC guidance. However, the Company considers its revenue recognition policy to be critical to understanding its financial condition and results of operations due to the significance of revenue to its business and the judgment involved in applying the principles of ASC 606 as follows:

Revenue Recognition

The Company determines the appropriate revenue recognition for its contracts by analyzing the type, terms and conditions of each contract or arrangement with a customer. Revenue is recognized when the Company satisfies the performance obligation by transferring control over goods or services to a customer. The amount of revenue recognized is measured as the consideration the Company expects to receive in exchange for those goods or services pursuant to a contract with the customer. In both of its segments, the vast majority of the Company's revenues relate to the sale of physical goods, where control generally transfers to the customer based on shipping terms. In some circumstances, contracts include multiple performance obligations where revenue is allocated and recognized individually for each performance obligation. The standalone selling price for individual performance obligations is based on observable standalone prices or in other cases, management's estimate of the standalone selling price.

Financial Overview and Outlook

Operating revenues in fiscal 2025 were $676.4 million, an 11 percent increase compared to $607.1 million in the prior year. Irrigation segment revenues increased 11 percent to $568.0 million and infrastructure segment revenues increased 16 percent to $108.4 million. Net earnings for fiscal 2025 increased 12 percent to $74.1 million or $6.78 per diluted share compared with $66.3 million or $6.01 per diluted share in the prior fiscal year. The increase in net earnings resulted from the impact of higher operating revenues and higher other income, driven by lower interest expense and higher interest income compared to the prior fiscal year. These increases were partially offset by the impact of a higher effective income tax rate compared to the prior fiscal year.

The primary drivers for the Company’s irrigation segment are the need for irrigated agricultural crop production, which is tied to population growth and the attendant need for expanded food production, and the need to use water resources more efficiently. These drivers are affected by a number of factors, including the following:

•
Agricultural commodity prices – As of August 2025, corn prices were approximately 5 percent higher and soybean prices approximately 8 percent higher, when compared to price levels prevailing in August 2024. Agriculture commodity prices fluctuate based on supply factors, such as global production and inventory levels of commodities, and demand factors such as food and feed consumption, biofuel production, and the level of China's demand for agricultural imports.

•
Net farm income – As of September 2025, the U.S. Department of Agriculture (the “USDA”) forecast for U.S. 2025 net farm income was projected to be $179.8 billion, an increase of 41 percent from the USDA’s final U.S. 2024 net farm income of $127.8 billion. This projected increase is based mainly on an increase in government support payments from supplemental and ad-hoc disaster support programs, while cash receipts from crops are expected to decrease 3 percent.

•
Weather conditions – Demand for irrigation equipment is often positively affected by storm damage and prolonged periods of drought conditions as producers look for ways to reduce the risk of low crop production and crop failures. Conversely, demand for irrigation equipment can be negatively affected during periods of more predictable or abundant natural precipitation.

24

•
Governmental policies – A number of government laws and regulations can impact the Company’s business, including:

o
In response to U.S. tariffs on imports from Canada, Mexico, China and other countries, the Company implemented a comprehensive action plan that included supplier negotiation, strategic inventory placement, and other supply chain initiatives to manage potential cost impacts. The impact of the tariffs has resulted in a marginal increase to the Company's cost of goods, which has been passed through to the market through an increase in the pricing of products. The potential impact of additional tariffs or retaliatory actions has been considered, and the Company plans to utilize its global footprint and supply chain to try to minimize the potential impact of these actions on its business and customers.

o
On July 4, 2025, the One Big Beautiful Bill Act (the "OBBBA") was enacted in the U.S. permanently extending many of the expiring provisions of the Tax Cuts and Jobs Act of 2017. Namely, the OBBBA also restores Section 168 bonus depreciation, which is intended to encourage equipment purchases by allowing 100 percent of the cost of the equipment to be treated as an income tax deduction in the year of purchase rather than being amortized over its useful life. This new legislation has multiple effective dates, with certain provisions becoming effective in 2025 and others implemented through 2027. The enactment of the OBBBA did not have a significant impact on the Company's effective income tax rate in fiscal 2025.

o
The Agriculture Improvement Act of 2018 (the “Farm Bill”) was signed into law in December 2018 and provides a degree of certainty to growers, including funding for the Environmental Quality Incentives Program, which provides financial assistance to farmers to

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/LNN/mda/fy2025/
All MD&A years: /company/LNN/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/LNN/mda/fy2024/): filed 2024-10-24; accession 0000950170-24-117056 (https://www.sec.gov/Archives/edgar/data/836157/000095017024117056/lnn-20240831.htm)
- [FY 2023 MD&A](/company/LNN/mda/fy2023/): filed 2023-10-19; accession 0000950170-23-054198 (https://www.sec.gov/Archives/edgar/data/836157/000095017023054198/lnn-20230831.htm)
- [FY 2022 MD&A](/company/LNN/mda/fy2022/): filed 2022-10-20; accession 0000950170-22-019799 (https://www.sec.gov/Archives/edgar/data/836157/000095017022019799/lnn-20220831.htm)
- [FY 2021 MD&A](/company/LNN/mda/fy2021/): filed 2021-10-21; accession 0001564590-21-051450 (https://www.sec.gov/Archives/edgar/data/836157/000156459021051450/lnn-10k_20210831.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3523 Farm Machinery & Equipment) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/LNN.md · JSON record: /company/LNN.json · verified financials: /company/LNN/financials.json / /company/LNN/financials.csv · machine TOC for the whole site: /llms.txt