Lindsay Secures Major Infrastructure Deal in MENA Region

Lindsay US5355551061

Shares of irrigation technology specialist Lindsay Corporation were trading at $122.49 following news of a substantial contract win. The company has finalized an $80 million infrastructure project agreement in the Middle East and North Africa (MENA) area, providing enhanced visibility for its upcoming fiscal year.

The stock concluded Friday's session at $122.49, marking a slight decline of 0.61%. With a market capitalization of $1.29 billion, the equity is currently trading below its 200-day moving average and within the mid-range of its 52-week price span. Analysts at Stifel recently adjusted their price target to $122, maintaining a "Hold" rating. Their assessment suggests the market has largely accounted for the positive order backlog news, viewing the shares as near fair value.

Details of the Contract and Financial Impact

The secured contract involves the supply of Zimmatic irrigation systems and FieldNET technology. Management anticipates that approximately $70 million of the total contract value will be recognized as revenue during fiscal year 2026. This figure represents a significant portion of the company's top line, exceeding 10% of the prior fiscal year's total revenue of $676.37 million. Shipments related to the project are scheduled to commence immediately.

Quarterly Performance Context and Future Outlook

Investors are weighing this new major order against a backdrop of mixed quarterly results. In its fourth fiscal quarter, Lindsay reported earnings per share (EPS) of $0.99, a decrease of 44.53% from the preceding quarter. Quarterly revenue stood at $153.56 million.

Attention now turns to the upcoming release of first-quarter results for fiscal 2026, scheduled for January 6, 2026. Current market expectations project revenue of $166.81 million and EPS of $1.46. The newly secured MENA contract is seen as improving the likelihood of meeting these targets.

Capital Return Strategy Continues

Alongside its operational developments, the company persists with its capital return program. A share repurchase authorization of up to $150 million remains in effect. Furthermore, Lindsay's board has declared a quarterly cash dividend of $0.37 per share.