Financial Analysis

Note 8 Commitments and Contingencies In the ordinary course of its business operations, the Company enters into arrangements that obligate it to make future payments under contracts such as lease agreements. Additionally, the Company is involved, from time to time, in commercial litigation, employment disputes, administrative proceedings, business disputes and other legal proceedings. The Company has established accruals for certain proceedings based on an assessment of probability of loss. The Company believes that any such currently-pending proceedings are either covered by insurance or would not have a material effect on the business or its condensed consolidated financial statements if decided in a manner that is unfavorable to the Company. Such proceedings are exclusive of environmental remediation matters which are discussed separately below. Infrastructure Products Litigation The Company is currently defending a number of product liability lawsuits arising out of vehicle collisions with highway barriers incorporating the Companys X-Lite end terminal. Despite the September 2018 reversal of a sizable judgment against a competitor and the October 2023 dismissal of the FCA Lawsuit (as defined below), the significant attention brought to the infrastructure products industry by the original judgment may lead to additional lawsuits being filed against the Company and others in the industry. Following the March 2019 filing of a qui tam lawsuit (as amended, the FCA Lawsuit) by …

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A breakout by segment of revenue recognized over time versus at a point in time for the three and nine months ended May 31, 2026 and 2025 is as follows: Three months ended Three months ended May 31, 2026 May 31, 2025 ($ in thousands) Irrigation Infrastructure Total Irrigation Infrastructure Total Point in time $ 124,060 $ 21,675 $ 145,735 $ 135,334 $ 20,170 $ 155,504 Over time 8,973 2,180 11,153 8,411 1,759 10,170 Revenue from contracts with customers 133,033 23,855 156,888 143,745 21,929 165,674 Lease revenue 3,876 3,876 3,790 3,790 Total operating revenues $ 133,033 $ 27,731 $ 160,764 $ 143,745 $ 25,719 $ 169,464 Nine months ended Nine months ended May 31, 2026 May 31, 2025 ($ in thousands) Irrigation Infrastructure Total Irrigation Infrastructure Total Point in time $ 382,092 $ 49,500 $ 431,592 $ 414,958 $ 66,192 $ 481,150 Over time 25,615 5,033 30,648 24,013 4,891 28,904 Revenue from contracts with customers 407,707 54,533 462,240 438,971 71,083 510,054 Lease revenue 12,057 12,057 12,755 12,755 Total operating revenues $ 407,707 $ 66,590 $ 474,297 $ 438,971 $ 83,838 $ 522,809 …

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Note 10 Share-Based Compensation The Companys current share-based compensation plans, approved by the stockholders of the Company, provide for awards of stock options, restricted shares, restricted stock units (RSUs), stock appreciation rights, performance shares, and performance stock units (PSUs) to employees and non-employee directors of the Company. The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. Share-based compensation expense was $ 1.9 million for each of the three months ended May 31, 2026 and 2025 , and $ 5.2 million and $ 6.2 million for the nine months ended May 31, 2026 and 2025, respectively. …

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Note 7 Fair Value Measurements The following table presents the Companys financial assets and liabilities measured at fair value, based upon the level within the fair value hierarchy in which the fair value measurements fall, as of May 31, 2026, May 31, 2025, and August 31, 2025. There were no transfers between any levels for the periods presented. May 31, 2026 ($ in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 154,760 $ $ $ 154,760 Derivative liabilities ( 12,739 ) ( 12,739 ) May 31, 2025 ($ in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 196,117 $ $ $ 196,117 Marketable securities 14,676 14,676 Derivative liabilities ( 10,325 ) ( 10,325 ) August 31, 2025 ($ in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 250,575 $ $ $ 250,575 Derivative liabilities ( 14,622 ) ( 14,622 ) The Company enters into derivative instrument agreements to manage risk in connection with changes in foreign currency. The Company only enters into derivative instrument agreements with counterparties who have highly rated credit and does not enter into derivative instrument agreements for trading or speculative purposes. The fair values are based on inputs other than quoted prices that are observable for the asset or liability and are determined by standard calculations and models that use readily observable market parameters. These inputs include foreign currency exchange rates and interest rates. Industry standard data providers are …

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Note 4 Income Taxes The Company recorded income tax expense of $ 4.8 million and $ 6.2 million for the three months ended May 31, 2026 and 2025, respectively, and recorded income tax expense of $ 13.6 million and $ 17.7 million for the nine months ended May 31, 2026 and 2025, respectively. It is the Companys policy to report income tax expense for interim periods using an estimated annual effective income tax rate. The estimated annual effective income tax rate was 22.3 percent for each of the nine months ended May 31, 2026 and 2025. The tax effects of significant or unusual items are not considered in the estimated annual effective income tax rate. The tax effects of such discrete events are recognized in the interim period in which the events occur. The impact of discrete items was negligible during the three months ended May 31, 2026 and 2025. The impact of discrete items amounted to expense of $ 0.7 million and benefit of $ 0.3 million during the nine months ended May 31, 2026 and 2025, respectively . …

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Note 6 Long-Term Debt The following table sets forth the outstanding principal balances of the Companys long-term debt as of the dates shown: ($ in thousands) May 31, 2026 May 31, 2025 August 31, 2025 Series A Senior Notes $ 115,000 $ 115,000 $ 115,000 Elecsys Series 2006A Bonds 89 321 263 Total debt 115,089 115,321 115,263 Less current portion ( 89 ) ( 232 ) ( 233 ) Less unamortized debt issuance costs ( 184 ) ( 233 ) ( 220 ) Total long-term debt $ 114,816 $ 114,856 $ 114,810 Principal payments on the debt are due as follows: Due within $ in thousands 1 year $ 89 Thereafter 115,000 Total debt $ 115,089 …

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"Recent Accounting Guidance Not Yet Adopted In December 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires entities to disclose more detailed information in their reconciliation of their statutory tax rate to their effective tax rate. The Company will adopt this guidance on a prospective basis as part of its fiscal 2026 Annual Report on Form 10-K and does not expect any impact on its results of operations, as the changes primarily relate to enhanced disclosures. In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (DISE) , which requires additional disclosure of the nature of expenses included in the income statement in response to longstanding requests from investors for more information about an entitys expenses. The Company will adopt this ASU as part of its fiscal 2028 Annual Report on Form 10-K and does not expect any impact on its results of operations, as the changes primarily relate to enhanced disclosures."

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Note 2 Revenue Recognition Disaggregation of Revenue A breakout by segment of revenue recognized over time versus at a point in time for the three and nine months ended May 31, 2026 and 2025 is as follows: Three months ended Three months ended May 31, 2026 May 31, 2025 ($ in thousands) Irrigation Infrastructure Total Irrigation Infrastructure Total Point in time $ 124,060 $ 21,675 $ 145,735 $ 135,334 $ 20,170 $ 155,504 Over time 8,973 2,180 11,153 8,411 1,759 10,170 Revenue from contracts with customers 133,033 23,855 156,888 143,745 21,929 165,674 Lease revenue 3,876 3,876 3,790 3,790 Total operating revenues $ 133,033 $ 27,731 $ 160,764 $ 143,745 $ 25,719 $ 169,464 Nine months ended Nine months ended May 31, 2026 May 31, 2025 ($ in thousands) Irrigation Infrastructure Total Irrigation Infrastructure Total Point in time $ 382,092 $ 49,500 $ 431,592 $ 414,958 $ 66,192 $ 481,150 Over time 25,615 5,033 30,648 24,013 4,891 28,904 Revenue from contracts with customers 407,707 54,533 462,240 438,971 71,083 510,054 Lease revenue 12,057 12,057 12,755 12,755 Total operating revenues $ 407,707 $ 66,590 $ 474,297 $ 438,971 $ 83,838 $ 522,809 Further disaggregation of revenue is disclosed in Note 13 Business Segments. For contracts with an initial length longer than 12 months, the unsatisfied performance obligations were $ 40.5 million at May 31, 2026, much of which is expected to be satisfied within the next 12 months. Contract Balances Contract assets arise when recorded revenue for a …

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Note 13 Business Segments The Companys chief operating decision maker (CODM) is the Chief Executive Officer . The CODM utilizes operating income to guide resource allocation across reportable segments as part of the Companys strategic and annual planning efforts, and to assess segment performance by comparing planned results to actual outcomes. The CODM manages the Company's business activities in two reportable segments: Irrigation and Infrastructure. Irrigation This reporting segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems and large diameter steel tubing, as well as various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, remote irrigation management and scheduling technology, and industrial IoT solutions. The irrigation reporting segment consists of one operating segment. Infrastructure This reporting segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment. The infrastructure reporting segment consists of one operating segment. Three months ended May 31, 2026 ($ in thousands) Irrigation Infrastructure Consolidated Operating revenues $ 133,033 (1) $ 27,731 $ 160,764 Cost of operating revenues 95,238 17,694 112,932 Gross profit 37,795 10,037 47,832 Operating expenses 17,459 4,636 22,095 Segment operating income $ 20,336 $ 5,401 $ 25,737 Unallocated corporate …

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