A Member of Pat McKeough’s Inner Circle recently asked for his advice on Lindsay, a global manufacturer and distributor of agricultural irrigation systems, advanced water management technologies, and specialized highway infrastructure safety equipment.
Pat likes the firm’s massive, macro-driven secular runway in global food security and climate-resilient water management. While domestic farm capital expenditures are hitting a cyclical pause, global governments are aggressively funding large-scale agricultural modernization to secure localized food supplies. However, Pat notes that the company faces short-term demand challenges.
Lindsay Corp. (Symbol LNN on New York; www.lindsay.com) manufactures irrigation and infrastructure equipment and technology.
The company’s irrigation products include centre-pivot and lateral-move irrigation systems, remote irrigation management and scheduling technology, and other agriculture-related engineering services. Centre pivots rotate around a fixed point, creating circular patterns (often with corner arms for squares), while lateral moves travel in straight lines, covering rectangular fields nearly completely. Altogether, this segment accounts for approximately 84% of the company’s revenue.
The infrastructure products it manufactures include movable highway and road barriers, specialty barriers and crash cushions, road marking and road safety equipment, and railroad signals and structures. Lindsay also provides equipment for monitoring critical infrastructure. This segment accounts for the remaining 16% of revenue.
The company’s history dates back to 1955 when founder Paul Zimmerer opened a farm equipment business in Lindsay, Nebraska. Its first product was an irrigation towline for rough terrain. Zimmerer also manufactured road safety products. However, it was Zimmerer’s sons who created the Zimmatic centre pivot in the 1960s, which accelerated Lindsay’s push into the agriculture industry.
Today, the company still has manufacturing facilities in Lindsay, as well as Olathe, Kansas, and Norfolk, Nebraska. Internationally, Lindsay has operations in Brazil, France, China, Turkey, and South Africa, in addition to distribution and sales offices in the Netherlands, Egypt, Australia, and New Zealand.
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Lindsay’s long-term outlook is sound—but it faces short-term challenges
Meanwhile, in the three months ended February 28, 2026, Lindsay’s revenue decreased by 15.7%, to $157.7 million from $187.1 million a year earlier. The decrease was primarily driven by lower revenues in both the irrigation and infrastructure segments. As a result of the lower sales, lower operating income and a higher effective tax rate, the company earned $12.0 million, or $1.15 a share, down 54.9% from $26.6 million, or $2.45.
Lindsay’s outlook is sound, although in the near term it faces challenges as softer U.S. agricultural conditions continue to hurt as North American irrigation sales. Notably, though, the company’s pivot into a global infrastructure and irrigation platform is paying off.
In recent years, Lindsay has shifted from a cyclical U.S. equipment manufacturer to a diversified, technology-enabled global platform. This move includes also capturing emerging-market demand.
Recent initiatives include partnerships with regional governments and development agencies promoting irrigation modernization projects, notably in India and Africa; in those markets, mechanized irrigation penetration remains below 20%.
With the August 2025 payment, the company increased its dividend by 2.8%, to $0.37 a share from $0.36. The annual rate of $1.48 yields 1.2%.
Recommendation in Pat’s Inner Circle: Lindsay Corp. is okay to hold.
