Revenue Recognition

12 Months Ended

Aug. 31, 2025

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 3 – Revenue Recognition

The Company determines the appropriate revenue recognition for its contracts by analyzing the type, terms and conditions of each contract or arrangement with a customer. Revenue is recognized when the Company satisfies the performance obligation by transferring control over goods or services to a customer. The amount of revenue recognized is measured as the consideration the Company expects to receive in exchange for those goods or services pursuant to a contract with the customer. The Company does not recognize revenue in cases where collectability is not probable, and defers the recognition until collection is probable or payment is received. Sales taxes, value added taxes, and other taxes collected from its customers concurrent with its revenue activities are excluded from revenue.

The Company elected the practical expedient of treating shipping and handling costs associated with outbound freight as a fulfillment obligation instead of a separate performance obligation. Shipping and handling fees billed to the customer are reported as revenue and recorded in the same period as the associated fulfillment costs. Customer rebates, cash discounts and other sales incentives are recorded as a reduction of revenues in the period in which the sale is recognized.

For contracts with a length longer than twelve months, the unsatisfied performance obligations were $10.7 million and $97.9 million at August 31, 2025 and 2024, respectively. The balance of unsatisfied performance obligations at August 31, 2025 is expected to be satisfied within the next twelve to eighteen months.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied.

For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation using the standalone selling price of each distinct good or service in the contract. For most performance obligations, the standalone selling price is directly observable as these goods or services are also sold separately by the Company. For performance obligations where the standalone selling price is not directly observable, the Company determines the standalone selling price using information that may include market conditions and other observable inputs.

The Company’s performance obligations are satisfied at either a point in time or over time depending on the measure of progress applied toward the complete satisfaction in the transfer of control of the related goods and services to the customer.

Revenue recognized at a point in time is derived from the sale of equipment and related parts. Revenue recognition for equipment and parts is generally recognized at a point in time upon transfer of control of the goods to the customer, which usually happens upon shipment of goods to the customer.

Revenue recognized over time is primarily derived from remote monitoring subscription services and custom and contract manufactured products. For fixed price agreements, the Company recognizes revenue on an inputs basis, using total costs incurred to date as a percentage of total costs expected to be incurred. For remote monitoring subscription services, customers are generally billed in advance and revenue is recognized ratably over the life of the agreement.

The Company also leases certain infrastructure property to customers. Revenues from the leasing of infrastructure property are recognized on a straight-line basis over the lease term.

A breakout by segment of revenue recognized over time versus point in time for twelve months ended August 31, 2025, 2024 and 2023, is as follows:

	Year ended August 31, 2025
($ in thousands)	Irrigation		Infrastructure		Total
Point in time	$	534,492	$	84,373	$	618,865
Over time		33,508		6,701		40,209
Revenue from the contracts with customers		568,000		91,074		659,074
Lease revenue		—		17,294		17,294
Total operating revenues	$	568,000	$	108,368	$	676,368
	Year ended August 31, 2024
($ in thousands)	Irrigation		Infrastructure		Total
Point in time	$	485,790	$	64,821	$	550,611
Over time		28,106		5,539		33,645
Revenue from the contracts with customers		513,896		70,360		584,256
Lease revenue		—		22,818		22,818
Total operating revenues	$	513,896	$	93,178	$	607,074
	Year ended August 31, 2023
($ in thousands)	Irrigation		Infrastructure		Total
Point in time	$	559,826	$	69,540	$	629,366
Over time		26,205		6,334		32,539
Revenue from the contracts with customers		586,031		75,874		661,905
Lease revenue		—		12,179		12,179
Total operating revenues	$	586,031	$	88,053	$	674,084

Further disaggregation of revenue is disclosed in the Note 18 – Business Segments.

Contract Balances

Contract assets arise when recorded revenue for a contract exceeds the amounts billed under the terms of such contract. Contract liabilities arise when billed amounts exceed revenue recorded. Amounts are billable to customers upon various measures of performance, including achievement of certain milestones and completion of specified units of completion of the contract.

Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date. The contract liabilities primarily relate to the advance consideration received from customers for

customer contracts, for which transfer of control of products or performance of service occurs in the future, and therefore revenue is recognized upon completion of the performance obligation. The Company has elected to recognize the incremental costs of obtaining a contract with a term of less than one year as a selling expense when incurred.

At August 31, 2025 and 2024, contract assets amounted to $1.1 million and $3.3 million, respectively. These amounts are included within other current assets on the consolidated balance sheet.

At August 31, 2025, and 2024, contract liabilities amounted to $14.2 million and $21.5 million, respectively. Contract liabilities are included within other current liabilities and noncurrent liabilities on the consolidated balance sheet. During the year ended August 31, 2025, the Company recognized $18.9 million of revenue that was included in the liability as of August 31, 2024. The revenue recognized was due to performance obligations being completed during the year. Amounts included here exclude deferred lease revenues that are included within other current liabilities.