林赛公司- LNN -2026第三季度业绩电话会

00:00:04 Good morning,and welcome to the Lindsay corporation fiscal third quarter2026earningsconference call.All participants will be in listen only mode. 00:00:14 Should you need assistance, please signal a conference specialist by pressing the star keyfollowed by zero. 00:00:21 After today's presentation, there will be an opportunity to ask questions. To ask a questionyou may press star, then one on your telephone keypad.To withdraw your question, pleasepress star then two. 00:00:34 Please note this event is being recorded.I would now like to turn the conference over toRandy wood,President and CEO.Please go ahead. 00:00:43 Thank you and good morning everyone. Welcome to our fiscal 2026 third quarter earningscall. With me today is Sam hendricksson, our chief financial officer. 00:00:53 Starting with our third quarter results. 00:00:56 I'm proud of our team's continued execution and resilience through what's been a difficultenvironment amid a cyclical bottom in agricultural markets. Trade uncertainty, high inputcosts and weak farmer sentiment continue to weigh on our business. We remained focusedon the levers within our control, including pricing, cost management and operationalefficiency, while continuing to invest strategically to position the business for long termgrowth. 00:01:21 In North America, our irrigation customers continued to delay large capital purchases.Given current farm economics, which resulted in lower unit sales volumes in the quarter,demand remains soft, consistent with our expectations. While commodity prices showedsome improvement in government support, programs have provided modest relief togrowers. Neither has significantly impacted demand. 00:01:44 In our international business, revenues were down slightly yearoveryear, driven by lowersales volumes in Brazil due to the high interest rate environment and limited access tocredit, which continues to constrain verer's ability to finance capital equipment purchases. 00:01:59 Our infrastructure business continued to grow yearoveryear. Third quarter revenues increased 8, %，driven by higher road safety product revenues marking three consecutivequarters of growth. 00:02:10 Roadzipper lease revenues were similar to the prior year.As we said previously,we don'tanticipate a large roadzipper project this fiscal year.Turning to our market outlook. 00:02:21 The us irrigation market remains soft as growers await further trade certainty andimprovement in profitability. 00:02:28 Current us SGA projections indicate cost of production will exceed commodity prices forseveral key commodities this year, a continuation of a multiyear trend. We do expect ameaningful near we do not expect a meaningful near term recovery in North America ndemand until these economics improve. 00:02:46 In Brazil, we continue to view the market as one of the most attractive longterm growthopportunities in global irrigation. Customer engagement at recent agricultural trade shows,including agrishow, was encouraging, with strong traffic, high levels of grower interest androbust quoting activity. 00:03:02 These interactions reinforce our view that growers increasingly recognize the productivity,water efficiency, and profitability benefits that mechanized irrigation can deliver. 00:03:12 These underlying demand drivers in Brazil remain compelling, including the ability toincrease yields, improve crop consistency and support multiyear growing cycles per year. 00:03:23 We are also pleased to see the financing rate under Brazil's twenty twenty six twenty twenty seven crop plan decline from 12.5. %。-11.5%，lower financing costs are a positivedevelopment for growers and should improve the affordability and return on investment of irrigation systems. This rate certainty should drive customers who have been taking awaitandsee approach to enter the market. Historically, access to attractive financingprograms has been an important catalyst for irrigation adoption and the reduction in ratesis directionally supportive for future demand. 00:03:55 At the same time, we believe it's important to remain measured in our outlook whilefinancing rates improve. The total funding allocated to irrigation within the farnamiprogram has been reduced from approximately 2.75 billion to 1.7 billion reish. As a result,the availability of credit remains a constraint and could limit the pace of market expansionin the near term. And our view of the lower interest rate improves the economics ofirrigation investments. But the reduced size of the funding pool effectively places the ceilingon near term market growth and tempers our enthusiasm for rapid recovery in demand.This dynamic is consistent with what we've been discussing for several quarters, wherestrong customer interest has been offset by credit availability and financing constraints. Asa result, we remain cautiously optimistic in the short term while maintaining a high degreeof confidence in the longterm growth opportuni