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DATE

Oct. 22, 2026

CALL PARTICIPANTS

• Chief Executive Officer and President - Randy Wood
• Co-Interim Chief Financial Officer - Alicia Pfeifer
• Co-Interim Chief Financial Officer - Brett Coburn

TAKEAWAYS

• Total Revenues -- $161.6 million for the fourth quarter, representing a 5% increase compared to the prior year quarter.
• Net Earnings -- $11.3 million for the fourth quarter, an increase of 4% from $10.8 million in the same period last year.
• Diluted EPS -- $1.10 for the fourth quarter, representing an 11% increase compared to $0.99 in the prior year quarter.
• Full-Year Revenue -- $635.9 million for fiscal 2026, a decrease of 6% compared to the prior fiscal year.
• Full-Year Net Earnings -- $55.7 million for fiscal 2026, compared to $74.1 million in the prior year.
• Full-Year Diluted EPS -- $5.33 for fiscal 2026, representing a 21% decrease from $6.78 in the prior year.
• North America Irrigation Revenue -- $55.4 million in the fourth quarter, growing 11% primarily due to higher unit sales volume and storm damage replacement.
• International Irrigation Revenue -- $78.3 million in the fourth quarter, which was comparable to the prior year as project sales in the MENA region were offset by lower volumes in Brazil.
• MENA Project Revenue -- $70 million recognized during the fiscal year out of a total $80 million project award.
• MENA Services Revenue -- $10 million expected to be recognized over the next 12 to 24 months, reflecting delays in infrastructure and installations.
• Infrastructure Segment Revenue -- $27.8 million in the fourth quarter, a 13% increase driven by higher sales of road safety products.
• Infrastructure Operating Margin -- 17.9% for the fourth quarter, up from 14.4% in the prior year, benefiting from a favorable margin mix.
• Restructuring Savings -- $8 million in net annualized cost reductions expected from a global plan implemented in June 2026.
• Total Available Liquidity -- $239.8 million as of Aug. 31, 2026, including $189.8 million in cash and cash equivalents.
• Shareholder Returns -- $96.1 million returned to shareholders in fiscal 2026, representing approximately 173% of net earnings.
• Share Repurchases -- $80.7 million for the full fiscal year, exhausting a prior authorization and leaving $100 million available on a new program.
• Capital Expenditures -- $40.2 million for the fiscal year, primarily supporting the modernization of the Nebraska facility.
• Order Backlog -- $102.5 million as of Aug. 31, 2026, compared with $110.7 million at the end of the prior fiscal year.
• Irrigation Operating Income -- $80.1 million for the full year, a 17% decrease reflecting lower revenues and lower fixed cost absorption.
• Infrastructure Full-Year Revenue -- $94.4 million, a 13% decrease primarily due to the nonrepeat of a $20 million Road Zipper project from the prior year.
• Foreign Currency Impact -- $12.1 million favorable impact on international irrigation revenues for the full fiscal year.
• Effective Tax Rate -- 26.1% for the full year, with the fourth quarter impacted by a one-time calculation finalized at year-end.

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RISKS

• Wood stated, "While the project pipeline remains active, we do not currently anticipate any large project awards to begin delivery in fiscal 2027," noting a potential gap in project revenue for the upcoming year.
• Wood warned that in Brazil, "near-term irrigation demand continues to be constrained by high interest rates, limited credit availability and softer crop economics," which could temper short-term growth despite long-term potential.
• Pfeifer indicated that "it's challenging to be able to keep up with the pricing in terms of covering the rising costs," signaling margin pressure due to a delay in price realization relative to input costs.

SUMMARY

Lindsay Corporation (LNN +5.07%) reported fourth quarter results showing revenue growth across its infrastructure and North American irrigation segments. Management executed a global restructuring plan designed to simplify operations and achieved a total recordable incident rate below 1.0. The company entered into an agreement to acquire a Brazilian hose reel manufacturer while facing challenges in the Middle East North Africa project pipeline for the upcoming fiscal year. Capital allocation focused on facility upgrades in Nebraska and returning funds to shareholders through dividends and share repurchases. Management indicated that the infrastructure funding environment remains stable despite the expiration of specific federal legislation.

• Global restructuring: Management implemented a plan to streamline operations and simplify the organization to improve operating leverage.
• Strategic acquisition: The company signed a definitive agreement to purchase Setorial Irrigação to expand its portfolio in Brazil, specifically targeting the sugarcane market and smaller agricultural fields.
• MENA transition: Management noted that while equipment shipments for a major regional project are complete, revenue will transition toward long-term services and technology support.
• Industrial efficiency: The next-generation galvanizing operation in Nebraska is expected to enhance production capacity and create new growth opportunities for contract manufacturing services.
• Executive leadership: The search for a permanent Chief Financial Officer has reached the final stages, with an announcement expected in the coming weeks.
• Road safety momentum: Growth in road safety products compensated for the cyclical nature of large-scale infrastructure projects, marking a third consecutive quarter of growth in that category.

INDUSTRY GLOSSARY

• MENA: Middle East and North Africa region.
• Center Pivot Irrigation: A method of crop irrigation in which equipment rotates around a pivot and crops are watered with sprinklers.
• Hose Reel Irrigation: A flexible irrigation system using a hose on a reel, often used for smaller or irregularly shaped fields.
• Zimmatic: A brand of center pivot and lateral move irrigation systems.
• FieldNET: A remote irrigation management platform.
• Road Zipper System: A moveable barrier technology used to manage traffic flow and improve safety in construction zones.
• IoT: Internet of Things; a network of physical objects embedded with sensors and software for data exchange.

Full Conference Call Transcript

Operator: Good morning, and welcome to the Lindsay Corporation Fiscal Fourth Quarter and Full Year 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Randy Wood, CEO and President. Please go ahead.

Randy Wood: Thank you, and good morning, everyone. Welcome to our fiscal 2026 Fourth Quarter and full year earnings call. With me today are Alicia Pfeifer and Brett Coburn, our Co-Interim Chief Financial Officers. I want to begin by recognizing our global teams for their strong execution, resilience and operational discipline throughout the year as we remain focused on our priorities, strengthening operational performance, improving our cost structure and making targeted investments that enhance our competitive position and support long-term growth. From expanding our agricultural technology offerings and manufacturing capabilities to pursuing strategic acquisitions and developing new infrastructure solutions. Our actions are designed to position Lindsay to generate sustainable value through the market cycle.

In Irrigation, we executed extremely well in project markets while remaining disciplined in challenging North America and Brazil markets. In Infrastructure, our team continued to leverage improving market fundamentals and stable financing conditions to deliver growth. That same operating discipline is reflected in our safety performance. Safety is a core one Lindsay value, and this year, we achieved a total recordable incident rate below 1.0, representing a world-class level of performance. Our Norfolk, Olathe, France and Italy operations each achieved perfect safety records for the year. I'm extremely proud of these accomplishments and grateful to our employees around the world for their continued commitment to work safely every day.

We also strengthened our financial position by actively managing pricing, implementing structural cost reductions and driving operational efficiencies. In June, we executed a global restructuring plan focused on streamlining operations and simplifying the organization. We expect these actions to generate $8 million in net annualized cost reductions after reinvesting a portion of the savings in our highest-priority growth initiatives. The resulting leaner operating model should improve efficiency and drive stronger operating leverage as market conditions improve. In North America, we saw encouraging signs of improvement in the fourth quarter with irrigation revenues increasing 11%, driven primarily by higher unit volumes and storm damage.

Improving commodity prices also supported stronger customer sentiment early in the quarter with corn moving above $5 per bushel. While commodity prices have receded recently and market conditions remain below what we would consider mid-cycle, the improvement we saw during the quarter reinforces our confidence that demand can recover as farm economics strengthen. For that recovery to become more sustained, growers will need greater forward visibility and improved net farm income. Until then, we expect irrigation equipment investment to remain relatively subdued. Our Agricultural Technology business continued to build momentum, reflecting strong execution against our innovation strategy. Annual recurring revenue grew approximately 11% year-over-year, extending our 5-year CAGR to more than 15%.

Through solutions such as FieldNET and FieldNET Advisor, we are expanding our relationships with growers beyond the initial equipment sale, providing technology that helps customers improve productivity, optimize water usage and make more informed operating decisions. The continued growth of this business demonstrates our ability to build recurring revenue streams, deepen customer relationships and create additional opportunities for long-term growth. In Brazil, near-term irrigation demand continues to be constrained by high interest rates, limited credit availability and softer crop economics, with election-related uncertainty also contributing to some delayed purchasing decisions. However, we are seeing encouraging signs of underlying demand. Expectations for drier conditions in the north are increasing grower interest in irrigation and quotation activity has improved year-over-year.

We view this as a positive leading indicator, although a more meaningful recovery will depend on improvement in financing conditions and grower economics. In the MENA region, our team completed all scheduled equipment shipments despite ongoing regional uncertainty, and we recognized approximately $70 million of revenue during the fiscal year. The remaining balance is for services revenue in the region, which we expect to recognize over the next 12 to 24 months. Our ability to provide equipment, technology and ongoing service support is an important differentiator in these large-scale projects. We also believe this services-based model deepens our customer relationships and generates longer-term revenue.

And as our installed base expands, we see opportunities for additional technology adoption, aftermarket products and ongoing services, extending the value of these projects beyond the initial equipment sale. In Infrastructure, we continue to deliver solid growth and strong operating performance driven by our road safety products business. This marked our third consecutive quarter of growth as continued road infrastructure investments supported healthy demand. While the Infrastructure Investment and Jobs Act expired at the end of September, funding has been extended through the end of the calendar year. Looking ahead, as the Build America 250 Act progresses, we remain confident in the underlying infrastructure funding environment and the long-term growth opportunity it provides for our business.

We're also encouraged by the momentum in Road Zipper leasing and continue to pursue additional project opportunities. Turning to our outlook. In North America, elevated fuel and fertilizer costs continue to pressure farm economics, but a sustained improvement in net farm income and customer confidence would provide an important catalyst for broader recovery in irrigation investments. We continue to see Brazil as one of the most compelling long-term growth markets for global irrigation, although financing availability and election uncertainty remain important factors in near-term demand, the underlying fundamentals continue to support our confidence in the market's long-term growth potential.

Consistent with that view, we signed a definitive agreement to acquire Setorial Irrigação, a leading Brazilian manufacturer of hose reel irrigation equipment. This targeted investment builds on our existing capabilities in the region and advances 2 strategic priorities: capitalizing on growth opportunities in Brazil and creating incremental value for customers through a broader portfolio of irrigation solutions. We believe hose reels are a natural complement to our Zimmatic center pivots, particularly for smaller and irregularly shaped fields and applications such as sugarcane, where Setorial has strong customer relationships. Over time, we see opportunities to leverage our existing dealer network to expand Setorial's reach, introduce Zimmatic solutions to Setorial customers and grow the business across Latin America.

The transaction is subject to customary closing conditions and is expected to close in the coming months. Our success in MENA continues to reinforce our confidence in the long-term opportunity in the region, supporting food security and water conservation. While the project pipeline remains active, we do not currently anticipate any large project awards to begin delivery in fiscal 2027. In Infrastructure, we expect continued growth in road safety products, supported by ongoing infrastructure investment and new product introductions. We expect Road Zipper leasing to remain generally in line with fiscal 2026, while the project pipeline remains active with a number of opportunities under development.

Our major capital investment at the Lindsay, Nebraska facility continues to progress with our next-generation galvanizing operation expected to be online before calendar year-end. Together with our tube mill investment, these capabilities are designed to improve safety, increase capacity and productivity and provide greater operating flexibility across the cycle. We believe the added capacity also creates new growth opportunities by enabling us to expand our contract manufacturing business and serve growing demand for galvanizing services throughout the Midwest. Lastly, I want to thank Alicia and Brett for their leadership and commitment as interim Co-CFOs. Together with our Board, we've made strong progress in our CFO search and are very pleased with the caliber of candidates we have evaluated.

We're now in the final stages of the process and expect to announce our selection in the coming weeks. With that, I'd like to turn the call over to Alicia to discuss our fiscal fourth quarter and full year financial results. Alicia?

Alicia Pfeifer: Thank you, Randy, and good morning, everyone. Total revenues for the fourth quarter of fiscal 2026 were $161.6 million, an increase of 5% compared to the fourth quarter last year. Net earnings for the quarter were $11.3 million or $1.10 per diluted share compared to net earnings of $10.8 million or $0.99 per diluted share in the fourth quarter last year. Total revenues for the full year 2026 were $635.9 million, a decrease of 6% compared to the prior year. Net earnings were $55.7 million compared to $74.1 million in the prior year. Earnings per share were $5.33 per diluted share, a decrease of 21% compared to the prior year.

Full year results reflected lower revenues in both segments as the Irrigation segment was negatively impacted by the lower comparative project size in the MENA region and lower sales volumes in North America and Brazil. Full year 2026 Infrastructure results were affected by lower Road Zipper System project sales as the prior year included a $20 million project that we did not expect to repeat in 2026, partially offset by sales growth of road safety products. Turning to our quarterly segment results. Irrigation segment revenues for the fourth quarter increased 4% to $133.7 million compared to the prior year. North America irrigation revenues for the fourth quarter increased 11% to $55.4 million.

The increase in revenues resulted primarily from higher unit sales volume, while average selling prices were comparable to the prior year. Higher unit sales volumes were supported by near-term improvement in agricultural commodity prices, which strengthened demand and slightly higher storm damage replacement volume compared to the prior year. In international irrigation markets, revenues for the fourth quarter were $78.3 million, a level that was comparable to the prior year. Increases in project sales in the MENA region and higher sales volume in other developed markets were largely offset by the decrease in volumes from Brazil. In the MENA region, as Randy mentioned, we completed equipment delivery for the $80 million project during the quarter.

Total Irrigation segment operating income for the fourth quarter was $17.3 million, comparable to the prior year. Operating margin was 12.9% of sales compared to 13.7% of sales last year. The decrease in operating margin resulted from higher input costs, which were partially offset by reductions in operating expenses compared to the prior year. For the full fiscal year, total Irrigation segment revenues decreased 5% to $541.5 million. North America Irrigation revenues of $262.1 million decreased 4% primarily due to lower unit sales volume compared to the prior year as weaker agricultural commodity pricing continued to weigh on farm incomes and demand.

International irrigation revenues of $279.3 million decreased 5%, primarily a function of the smaller overall project scale in the MENA region and the lower sales volumes in Brazil. The favorable impact of foreign currency translation was approximately $12.1 million compared to the prior year. International irrigation revenues exceeded North America irrigation revenues for the second consecutive fiscal year, highlighting the value of our geographic diversification and the strong growing demand for irrigation outside of North America. Operating income in the Irrigation segment for the full fiscal year was $80.1 million, a decrease of 17% compared to the prior year and operating margin of 14.8% of sales compared to 17.1% of sales in the prior year.

The decrease in operating income resulted primarily from lower revenues, where the decrease in operating margin was a function of lower unit volume and the resulting lower fixed cost absorption as well as higher input costs. Infrastructure segment revenues for the fourth quarter increased 13% to $27.8 million. The solid increase in revenues resulted primarily from higher sales of road safety products which were partially offset by lower Road Zipper System sales and lease revenues compared to the prior year. Infrastructure segment operating income for the fourth quarter increased 41% to $5 million. Infrastructure operating margin for the quarter was 17.9% of sales, up compared to 14.4% of sales in the fourth quarter last year.

Higher operating income and operating margin resulted from higher revenues and a more favorable margin mix of revenues compared to the prior year. For the full fiscal year, Infrastructure segment revenues decreased 13% to $94.4 million. The decrease was primarily due to a $20 million Road Zipper System project in the prior year that did not repeat. Infrastructure operating income for the full fiscal year was $16 million compared to $26.3 million in the prior year. Operating margin for the year was 17% of sales compared to 24.3% of sales in the prior year. The decrease in operating income and operating margin resulted from the non-repeat of last year's project sale.

Excluding the impact of the large Road Zipper project sale in the prior year, revenue and operating income for the Infrastructure business increased 11% and 12%, respectively, compared to the prior year. Turning to the balance sheet and liquidity. Our total available liquidity at the end of the fourth quarter was $239.8 million, which included $189.8 million in cash and cash equivalents and $50 million available under our revolving credit facility. Free cash flow for the year was 62% of net earnings and included capital expenditures of $40.2 million. As Randy mentioned in his opening remarks, we have entered into a definitive agreement to purchase 100% of Setorial.

We expect to fund the transaction with cash on hand and closing is subject to the fulfillment of customary conditions expected to occur in the upcoming months. During fiscal 2026, we returned $96.1 million to shareholders, including $80.7 million of share repurchases and $15.4 million of dividends, representing approximately 173% of net earnings. During the year, our Board of Directors approved a new share repurchase program of up to $150 million. Our repurchases this year exhausted a prior $250 million authorization and leave $100 million available under this current program. Our strong balance sheet and cash flow generation provide the flexibility to execute against our capital allocation priorities.

We remain focused on deploying capital where we believe it can generate attractive long-term returns, including investments in productivity, innovation and strategic growth opportunities while continuing to return capital to shareholders. We believe this balanced approach reflects our commitment to maintaining financial discipline and creating sustainable shareholder value throughout the cycle. This concludes my remarks, and I will now turn the call over to the operator to take your questions.

Operator: [Operator Instructions] The first question comes from Nathan Jones with Stifel.

Adam Farley: This is Adam Farley on for Nathan. My first question is going to be around price cost. So in recent months, we have seen renewed inflation with increases in material prices, freight, et cetera. Do you anticipate being price cost neutral in dollars, maybe at the margin line or somewhere in between? And is there any type of timing dynamics that we should consider maybe here in the near term?

Alicia Pfeifer: Yes. Adam, this is Alicia. I think just in terms of pricing, we continue to pass along input cost increases to our customers. But it's pretty clear, our operating margins continue to be impacted. I think kind of in the fourth quarter, specifically in North America, increased volume moving through the facility certainly helped from a favorable volume and fixed cost absorption perspective. Just however, in the market, it's challenging to be able to keep up with the pricing in terms of covering the rising costs. So typically, when we do price, there's a delay in terms of how quickly that pricing becomes realized.

So assuming we start to see some stabilization in input costs, we would anticipate it to take a couple of quarters for price realization to actually flow through.

Adam Farley: Okay. That's helpful. And then looking at domestic irrigation, maybe here in the near term, how should we think about the market, just given the moves in the commodity prices? Should we expect that sentiment to maybe oscillate with crop prices here in the short term? Or are there other factors involved that could maybe help as well?

Randy Wood: Yes, Adam, this is Randy. I think a couple of perspectives on that one. I think we were pleased in the fourth quarter that when we did see some positive movement on commodity price, we saw a very near-term move in demand and volume. And I think the demand for us in the quarter, we did see some storm damage lift, but I was really pleased that we also saw some volume outside of the traditional storm volume market. So it does look like customers had a bump in sentiment.

They were willing -- some guys maybe sold some crop at that $5-plus level and felt like they had locked in a profit, so they're willing to spend some of that. So I think we've said pretty consistently when farm economics improve, we're going to see that volume. And right now, there's a lot of that pent-up demand developing. Now obviously, commodity prices have come back here recently, and I wouldn't say that there's a lot of optimism in the market. But right now, we've got a lot of guys looking at their tax situation, planning for year-end, planning with accelerated depreciation.

But I think it would be really tough to say that the market has turned, and we're back on the upswing. I think that the language we used in the prepared remarks was subdued, and I think that's probably going to continue until we see a little more sustainable level of commodity price support and a little more sustained level of net farm income.

Operator: The next question comes from Brian Drab with William Blair.

Brian Drab: First, on the international business. You made a point in the prepared remarks to say that you don't expect a large project to start shipping in fiscal '27. Wondering if you could just talk about the dynamics that are driving that comment. And obviously, I guess it has to do with the volatility in the region. And then can you do anything to set the bar for us for where you think that means international irrigation revenue goes in 2027 because it kind of looks like the -- if you just take that project out, then you're down pretty significantly, like double digits, like maybe around 20% year-over-year in fiscal '27, all else equal?

Randy Wood: Yes. The volume internationally related to projects, obviously, we want to be as transparent as we can with what we see. And we still see active projects across the MENA region, whether it's North Africa, the Middle East, Central Asia. The tricky part is these things don't start and end within a quarter. If there's design and engineering specifications, there may be a competitive quoting and bidding process. Once you know you won the project, then you move into a confirmed letter of credit. And these can take months from the time you see the project to the time it's closed, and we're talking to you guys about a confirmed project that we're going to recognize in revenue.

So I think right now, on the front end of all of that, we do see projects in that part of the world that are real people, real pieces of land, real geographies where we believe and expect projects are going to be designed and delivered. We've got a track record here of identifying these projects, of winning them and executing them extremely well. So we're at the table for almost anything that we would see in the region. And again, right now, there are several of those in the early stages. There may be project awards within the fiscal year. And if there are, we'll certainly be willing to talk about those.

But right now, we don't see one large one that we expect is going to get right to the finish line and be recognized in revenue in fiscal '27. And that was the basis of the comments. If we look at what it means to '27 results, I think it's pretty clear that if we had a $70 million project last year that we don't have this year, that's an immediate hole that we've got to cover. And I think we're comfortable saying that we're going to get at least half of that with some smaller projects that we do expect to kind of flow through the funnel.

And to be honest, anything in that $10 million, $15 million, $20 million range, we're probably not going to identify specifically. That's kind of traditional project volume that we wouldn't talk about. But between smaller projects, some other growth initiatives, whether it's technology or other mature market initiatives, we would expect half of that $70 million we cover with some self-help growth projects, Brian, but we don't see another $70 million project coming through in fiscal '27. But as that changes, we'll obviously continue to keep you updated.

Brian Drab: Okay. That's great to know. Okay. And then just one other question for now. You also mentioned in the prepared remarks that the highway funding within the current bill is going to expire at the end of 2026. But isn't -- there's nuance to that, isn't there? And the disbursements that could benefit you can persist quite a ways beyond 2026. Isn't that right? I'm just curious why you made a point to talk about that cutoff.

Randy Wood: Yes. I think the money is going to carry over. So the faucet doesn't get turned off and all of a sudden projects stop. Anything that's in the system is going to carry through and go forward. I think it's just something we keep an eye on. The funding mechanism is critically important to that business and having any level of uncertainty is certainly something we work very closely with our government officials here in the state and in D.C. So I think it's just a recognition of a potential red flag in the future, Brian.

But right now, we wouldn't expect that to have any impact, and we are still projecting to see some growth in that business through fiscal '27.

Operator: The next question comes from Ryan Connors with Northcoast Research.

Ryan Connors: I wanted to start off, if I could, on the cost reduction side. Can you drill down for us on the exact nature of what those moves were, where they fell from a segment perspective, whether they're operational, back office, sales? Just curious what the nature of those cost-cutting initiatives were.

Randy Wood: Yes, I'll start and then let Alicia provide any additional granularity. And it really was all of the above. I think we sat with our leadership team and kind of projected forward understanding some of the project volume that wasn't going to repeat year-over-year. If we assume that there isn't going to be a significant recovery in the domestic U.S. market, we wanted to make sure we continue to maintain business quality and control the things that we could control and really challenged everybody to look at how we're organized, how work gets done and really restructured and simplified the organization.

So we took cost out of a number of areas of the business, both on an SG&A basis and a COGS basis, without impacting our ability to continue executing our key strategies. And in fact, some of the savings we generated through restructuring, we're reinvesting in the business, and it's really about resource allocation and making sure that we're being smart in how we run the company in the near term, but we certainly never want to limit our ability to respond to the recovery when it comes, and we certainly don't want to take oxygen away from any of the key initiatives, particularly in channel, technology and innovation.

So I would say across the board, a close look at the business, removing costs where they would impact our ability to operate or drive execution of our strategies and really pleased with how everybody contributed. And I think we're going to see that flow through on a full year basis. And Alicia, any more granularity you'd add?

Alicia Pfeifer: Yes. I mean I think the only thing I would add, Ryan, is just making sure it's clear that any of the costs associated with this program were fully realized in the fiscal 2026 results. And so those identified savings will immediately start to materialize in fiscal 2027.

Ryan Connors: Got it. Very helpful. I wanted to talk also about the Setorial acquisition. And interesting that it's a hose reel technology. Is there anything we should read into that in terms of how you think the market is moving in Brazil? And should we read that to think that you think hose reels are strategically important in terms of the growth story there? And if so, why would that be? Because I guess I've always viewed that system as being more kind of the -- not quite as sophisticated or for larger operations as a traditional center pivot.

Randy Wood: Yes, I can take that one. And Setorial and hose reels in general, like a lot of other types of mechanized irrigation, have a niche. They have a purpose, and they are better in small and irregularly shaped fields where center pivots aren't necessarily going to be the best option from a design or cost-per-acre -- cost-per-hectare perspective. So hose reels certainly have a place. In fact, we've got a very robust hose reel business in Western Europe that we acquired as part of our Lindsay France expansion 20-plus years ago. So we've got experience in this space, understand how to design, engineer, manage technology in hose reels. And I think Setorial really did 2 things.

I think it expands the irrigation solutions that we can offer across all of Latin America, really, but it also gives us another option in Brazil. And we've talked a lot about Brazil having a long-term growth trajectory. And where we see hose reels in Brazil, they've got great penetration in the sugarcane market. And if you look at the growing ethanol business there, sugarcane is going to continue to see good signs of growth. Having a path to those customers now with both hose reels and center pivots, we think, gives us a nice position of differentiation.

If we can overlay technology like FieldNET and FieldNET Advisor with some of these hose reel companies, we think that creates another growth trajectory for us as well. So to me, this is an investment in a growing market in Brazil. It's an investment in expanding our irrigation portfolio that we think is going to give us more meaningful relationships with our customers in that part of the world.

Ryan Connors: Got it. That's very clear. And then a couple of quick housekeeping items. One is going back to the MENA project that, as you mentioned, Randy, is going to create that hole. But what I did notice was a bit of a change in the language around the residual piece of that. I think that the remaining $10 million where we -- I believe 3 months ago, you talked about that shipping early in fiscal '27. And now it seems like the language is more 12 to 24 months. Anything we should read into that in terms of that final piece?

Randy Wood: Yes. So the final piece is really related to services, to installation, to maintenance, to FieldNET, some of the technology products as well. And we do see some delays in installations there. And the good news is we're fully shipped on all of the equipment, but those delays on infrastructure, in roads, in underground electricity, some of those have kind of delayed how quickly the machines are getting installed and put into operation there. So nothing that operationally shifts other than we're not going to see that revenue as quickly as we thought because it will come as those installations get completed in the region.

Ryan Connors: Got it. And then one last housekeeping on the tax rate, really jumped in the quarter. I apologize, Alicia, if I missed it. I don't think you mentioned that, but are we -- I assume that's something special in the quarter and that we're going to revert to a more normal kind of low-20s level as we go into fiscal '27.

Brett Coburn: Yes, Ryan, this is Brett. I can take that one. Yes, you're right. It is a one-time item that we expect to normalize out going forward. So it just represented a disproportionate impact on the rate this year, just given some annual calculations we finalized, not having visibility to full year results. But our full year rate of just over 26% is a solid representation of the full year. And looking forward to next year, we'd expect the rate to be kind of normalized back in that 24.5%, 25% range.

Operator: The next question comes from Jon Braatz with Kansas City Capital.

Jon Braatz: Randy, back to the acquisition of Setorial, how sizable is it? Can you give us some idea of some numbers on the acquisition?

Randy Wood: Yes. It's relatively small, particularly when you look at it on a consolidated basis. But I think, again, if it opens up good synergy opportunities in channel and product mix and some of the customers that have trusted Setorial with their hose reel business that might now trust Lindsay with their Zimmatic center pivot business, that's where we see the opportunity. But the Setorial number on its own is still relatively small, again, particularly on a consolidated basis.

Jon Braatz: Okay. Okay. And you talked a little bit about the new galvanizing facility up in Nebraska. And over the last 1.5 years or so, galvanizing has become a hot industry. And what are the opportunities to, let's say, bring in outside business to do more with that galvanizing beyond what you need to do internally?

Randy Wood: Yes. We are going to be blessed with some capacity. And I think when you look at the step-up in capabilities and capacity and automation, we are going to have the ability to bring in some outside products. And then anything that we can do for somebody outside of Lindsay, obviously, is going to absorb the overhead and make the Lindsay business more profitable and stronger. So we have, to be clear, added resources here. We're working throughout the Midwest market. And you're right, there is some pent-up demand here, and we are going to be very uniquely positioned in terms of geography and capabilities to run that through the facility and strengthen the business.

So that's something that we look forward to keeping you updated on going forward because I do think it will become a more meaningful part of the story.

Jon Braatz: When will that be in place?

Randy Wood: So we should have zinc in there molten and be dipping before the end of the year. It may be 30, 60 days before we're fully utilized and up to full capacity, but we will have things going through that facility at the end of the calendar year.

Jon Braatz: Okay. Okay. One last question. Obviously, you did some restructuring in the quarter. But I noticed in the fourth quarter, your R&D, your engineering costs were -- and research were down rather sharply year-over-year and maybe sequentially too. Was that impacted by the restructuring, so to speak? Or how do you see that going forward?

Randy Wood: No. Some of that is just calendarization, John. There weren't any significant shifts in that part of the company.

Operator: [Operator Instructions] The next question comes from Brett Kearney with American River Opportunity.

Brett Kearney: It's been pretty notable the consistent execution of your teams on the project you've had in the Middle East in spite of a very fluid situation over there. Wondering whether that factors in on a going-forward basis at all as your teams work potential new projects in the pipeline, both the continuity of project delivery your teams can provide as well as potentially also your shipping freight costs, given your strategic location in that region of the world, whether that is an element at all going forward?

Randy Wood: We are very confident that the skills we've developed through consistent execution, I think it's obvious, if you make mistakes in that part of the world, you get noticed. And if you execute well in that part of the world, you get noticed. And I think right now, our team has a stellar reputation in that part of the world because of 2 back-to-back projects, significant projects in a region with a lot of complexity. I don't think flawless is the word I'd use, but they did a pretty darn good job. And so to me, I think we're proud of that. It does become a differentiator.

And if you picture a government or a private investor investing $70 million, $80 million, $100 million, you want to make sure you're with a partner that has a proven track record and Lindsay certainly does. So I'm proud of that team again, and I think it does give us a certain element of confidence going forward that when those projects are identified, we're going to be at the table, and we're going to have the opportunity to win those based on historical performance.

Relative to geography, I don't want to jinx anything, to be honest with you, but I feel very fortunate with where we are in Turkey right now, and it puts us in a good spot to serve North Africa, the Middle East. As we see recovery in Russia, Ukraine, obviously, that can be a pretty big market that we can service easily from there as well. So I like where we're positioned. I like the strength of the team. We've made very specific investments in people and talent and processes there that we'll continue to leverage going forward, Brett.

Brett Kearney: Terrific. And then just one on Brazil, Randy, given the recent engagement with Setorial, I know you guys are always close to the farmer down there. Obviously, interest rates, crop prices, major factors. But curious what you're hearing, feeling from farmers down there in terms of potential meaningful elections coming up in that country this month. I believe one of the candidates' fathers was very supportive of the farm community, not only policy-wise, but infrastructure helping growers expand their fields and just physical roads to get the crop to market. Just what you're sensing whether that would move the needle at all for the farm community in Brazil?

Randy Wood: Yes. So we are watching the election results fairly closely. I think we're 3 days away here now from the final runoff. I would say both candidates are pro-agriculture. You can't not be pro-agriculture in that part of the world as important as it is to GDP and exports. So I think both candidates are good for ag. I would say that the candidate that leans to the right, Bolsonaro, the one that you mentioned, is probably preferred by the ag community, and he was ahead of lead, coming out of the first round. And I guess we'll see what happens here in a couple of days.

But either way, both candidates, I think, are going to be supportive and maybe the right-of-center candidate may be perceived as being a little stronger for ag. I think customers there generally are -- it's like they're on a launch pad and ready to go. We are looking at the El Niño impact. And right now, I mentioned in my remarks, quotation volume, particularly in the north where they're projecting maybe a drier year, whether it's El Niño or Super El Niño, I think they're looking very closely at irrigation investment maybe being one of the most important investments that they'd have to make this year to protect from weather. So Brazil, long term is obviously a high-growth market.

We've commented on it. Others in the industry have as well. In the near term, we've got to get this election behind us, get some stability. And then I think we could see that market start to warm up again. But I know customers there are ready. I know the yield improvement benefits are proven and weather is going to be a supporting factor this year. So we're ready to go.

Operator: Thank you. This concludes our question-and-answer session. I would like to turn the conference back over to Randy Wood for any closing remarks.

Randy Wood: Thank you, operator. As we close today's call, I want to take a moment to reinforce why we remain confident in Lindsay's long-term outlook. We're executing a clear strategy, strengthening our core Irrigation and Infrastructure businesses, growing recurring technology revenue, expanding in attractive international markets such as Brazil and allocating capital with discipline. We believe our fourth quarter results demonstrate the operating leverage we're building into the business. Our balance sheet provides flexibility, and we continue to return meaningful capital to shareholders. Our leadership team and Board remain focused on delivering sustainable long-term value, and we believe Lindsay is well positioned to benefit as our markets recover.

Thank you again for joining us today and for your continued interest in Lindsay. We look forward to updating you on our fiscal 2027 first quarter earnings call.

Operator: Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.