Lindsay (NYSE:LNN) reported a sharp decline in second-quarter profitability as a contraction in both its agricultural and infrastructure segments weighed on the top line, leading to a more than 50% drop in net earnings.
The Omaha, Nebraska-based manufacturer saw consolidated revenues fall 16% to $157.7 million for the quarter ended Feb. 28, 2026, down from $187.1 million in the same period last year.
Management attributed the downturn to broad-based volume declines, as market uncertainty and shifting project timelines impacted both of the company’s primary business units.
The bottom-line results reflected the impact of lower operating leverage.
Operating income for the quarter plummeted 59% to $13 million, compared to $32.1 million a year ago.
This contraction squeezed the company’s operating margin to 8.3%, a significant retreat from the 17.2% margin recorded in the prior-year period.
While Lindsay managed to reduce corporate expenses during the quarter, these savings were not enough to offset the margin compression within the core industrial segments.
Net earnings for the quarter reached $12 million, or $1.15 per diluted share, representing a 55% decrease compared to $26.6 million, or $2.44 per share, in fiscal 2025.
Beyond the decline in operating profit, results were further pressured by a higher effective tax rate, though an uptick in "other income" provided a slight cushion.