Total Revenue and Profitability Maintained
Total revenues of $155.8 million (down 6% year-over-year from $166.3M) with operating income of $19.6 million (down 6% from $20.9M). Operating margin remained steady at 12.6% year-over-year, reflecting maintained earnings quality despite lower revenue.
Irrigation Segment Margin Improvement
Irrigation segment operating income of $23.0 million and operating margin improved to 17.2% of sales (up from 16.8% prior year), demonstrating resilience through pricing, cost management and productivity gains despite a 9% revenue decline to $133.4 million.
Infrastructure Revenue Growth
Infrastructure segment revenue increased 17% year-over-year to $22.4 million (from $19.2M). Infrastructure operating income rose 9% to $4.5 million (from $4.1M), driven by higher sales of road safety products.
Large International Project Win (MENA)
Announced a supply agreement for Zimmatic systems and FieldNET technology in MENA valued at approximately $80 million total, with approximately $70 million expected to be realized in this fiscal year — evidence of ability to compete for and win large-scale global projects.
Strong Balance Sheet and Shareholder Returns
Total available liquidity of $249.6 million ($199.6M cash and $50M revolver). Deployed $30.3 million in share repurchases in the quarter and announced a new share repurchase authorization of up to $150 million.
Progress on Strategic Capital Investments
Activated a new large tube mill in Lindsay, Nebraska (near full production), and progressing a galvanizing facility reengineering. Expected productivity, safety and efficiency gains; near-term depreciation may offset gains until demand recovers.
Modest EPS Decline and Other Income Support
Net earnings of $16.5 million or $1.54 diluted EPS (vs. $17.2M or $1.57 prior year) — a slight decline. Other (interest) income increased in Q1, partially offsetting operating pressures.