Irrigation Manufacturers Results: Valmont Industries and Lindsay Corporation

Topline and Profitability

Lindsay’s irrigation segment posted strong growth, with irrigation revenue up 11% to $568 million and operating income up 11% to $97 million, maintaining a 13.7% margin.

Valmont, by contrast, saw agriculture segment sales fall 9% to $241.3 million, with operating income down 19.7% to $23.2 million and margins compressed to 9.7%.

The difference reflects Lindsay’s exposure to large international projects versus Valmont’s heavier weighting toward North America and its exposure to credit losses in Brazil.

Regional Dynamics

Lindsay’s international irrigation business was the standout, growing 39% to $294 million, fueled by demand in Brazil, MENA, and Australia.

Its North American sales, however, declined 9% to $274 million amid softer commodity prices and lower storm-replacement demand, which was much more consistent with Valmont.

Valmont’s mix was more balanced with $111.3 million in revenue for North America and $130 million international, but both regions declined as North American replacement activity slowed and global project timing weighed on results according to their materials.

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