President and Chief Executive Officer Avner M. Applbaum commented, “Our team delivered another solid quarter, expanding operating margins and generating strong operating cash flows despite lower sales. The Infrastructure segment benefited from strong utility market demand and an improving telecommunications market in North America. Pricing discipline, a more favorable product mix, and a leaner cost structure contributed to margin improvement. In Agriculture, while North American and Brazilian markets remain muted, I’m proud of our swift response in supplying replacement equipment to support our dealers following the Midwest U.S. storms earlier this year. I want to thank the Valmont team for their hard work and execution in delivering higher operating margins and cash flows. Overall, I’m pleased with our continued progress towards our strategic priorities and creating long-term value for our stakeholders.”

Third Quarter 2024 Highlights (all metrics compared to Third Quarter 2023 unless otherwise noted)

• Net sales of $1.0 billion decreased 2.9%, as strong growth in Transmission, Distribution, and Substation (“Utility”) and Telecommunications was offset by lower sales in Solar and international Agriculture, specifically Brazil
• Operating income increased to $125.7 million or 12.3% of net sales compared to an operating loss of ($24.2) million [adjusted ^1Ěýoperating income of $120.8 million or 11.5% of net sales]
• Diluted earnings per share (“EPS”) of $4.11 compared to diluted loss per share of ($2.34) [$4.12 EPS adjusted ¹Ěý±Ő
• Generated operating cash flows of $225.1 million; cash and cash equivalents at the end of the third quarter were $200.5 million
• Returned $52.2 million to shareholders through share repurchases and dividends
• Reduced revolving credit facility borrowings by approximately $120.0 million
• Reaffirming 2024 full-year financial outlook

Source: | Member since 1965

Operating income (loss) was ($24.2) million ($120.8 million or 11.5% of net sales adjusted) compared to $110 million or 10% of net sales in 2022 ($114.1 million or 10.6% of net sales adjusted).

President and Chief Executive Officer Avner M. Applbaum commented, “As expected, North America agriculture sales decreased year-over-year due to continued muted farmer sentiment and third quarter 2022 benefited from the ongoing delivery of elevated backlog. I’m very pleased with our reduction in inventory which helped deliver strong operating cash flows.”

Agriculture Segment

In the Agriculture segment, sales were $298.5 million, decreased 8.8% year-over-year as higher international sales were more than offset by lower sales in North America. Sales of agriculture technology products and services globally were similar to last year.

In North America, the sales decrease was primarily driven by lower irrigation equipment sales volumes. Farmer sentiment remained somewhat muted during the quarter and the third quarter of 2022 benefited from the ongoing delivery of elevated backlog. Average irrigation equipment selling prices were comparable with last year.

| Member since 1965

Source:

Valmont’s agriculture segment accounted for 26.6% of net sales, and came in at $279.9 million in sales for Q2 2023, down 25.9% year-over-year. In North America, the company reported a decline in sales, as the second quarter of 2022 benefited from the ongoing delivery of record year-end backlog and growers delaying capital investment decisions in the quarter. Operating income in the ag segment decreased to $49.3 million versus $58.0 million in the same period last year. Operating margin improved, driven by favorable pricing and improved overall cost of goods sold, partially offset by higher SG&A, including incremental R&D expense for technology investments.

|Member since 1965

Source:

Fourth Quarter 2022 Highlights

• Net Sales of $1.1 billion increased 17.5%, a fourth quarter record
• Operating Income increased 116.2% to $109.7 million, or 9.7% of net sales (increased 32.9% to $113.7 million or 10.1% adjusted1) compared to $50.8 million or 5.3% of net sales ($85.6 million or 8.9% adjusted1)
• Diluted Earnings per Share (“EPS”) of $1.86 ($3.57 adjusted1) compared to $1.25 ($2.73 adjusted1)

Full Year 2022 Highlights

• Record Net Sales of $4.3 billion, an increase of 24.1%
  • Strong sales growth as Infrastructure grew to a record $2.9 billion and Agriculture grew to a record $1.3 billion, including 17.6% growth in agriculture technology products and services
• Operating Income increased 51.1% to $433.2 million, or 10.0% of net sales (increased 34.6% to $449.7 million or 10.3% adjusted1) compared to $286.8 million or 8.2% of net sales ($334.0 million or 9.5% adjusted1)
  • Higher operating income was led by favorable pricing and volume growth in both Infrastructure and Agriculture
• Generated strong operating cash flows of $326.3 million, a significant improvement compared to 2021, driven by higher net earnings and improvements in working capital performance
• Capital expenditures were $93.3 million, including approximately $30.0 million for strategic investments including a new concrete utility structures facility in Bristol, Indiana and irrigation capacity expansions in Brazil and Dubai

Source:

Second Quarter 2022 Highlights (all metrics compared to Second Quarter 2021 unless otherwise noted)

• Record Net Sales of $1.1 billion increased 26.9%
• Operating Income increased to $118.7 million, or 10.5% of net sales ($122.9 million or 10.8% adjusted¹) compared to $82.6 million or 9.2% of net sales ($90.9 million or 10.2% adjusted¹)

Key Financial Metrics

“We delivered record quarterly revenue, an increase of 27% year-over-year, and record adjusted earnings per share that increased 21%,” said Stephen G. Kaniewski, President and Chief Executive Officer. “Operating margin improvement was driven by our ability to successfully execute on pricing strategies, higher volumes, and better fixed-cost leverage. We continue to prioritize actions to better serve our customers by leveraging our global manufacturing footprint, strategically expanding capacity in key growth markets, and implementing sourcing strategies to help mitigate continuing supply chain volatility. We are seeing strong demand for our products and solutions across global infrastructure and agriculture markets and our Valmont teams around the world are doing an excellent job of delivering value to our customers every day. We are executing consistently on our strategy of creating sustainable growth across our businesses and long-term value for our shareholders.”

Second Quarter 2022 Segment Review

Agriculture (33.0% of Net Sales)

Center pivot and linear irrigation equipment for agricultural markets, including parts and tubular products; advanced technology solutions for precision agriculture

Sales of $377.8 million increased 34.0% year-over-year, led by higher average selling prices of irrigation equipment globally and higher volumes, notably in North America and Brazil. In Brazil, revenues grew more than $40 million year-over-year, demonstrating robust market demand for irrigation equipment and ag solar products.

Operating Income was $58.0 million, or 15.5% of net sales ($62.2 million or 16.6% adjusted¹) compared to $42.0 million or 15.0% of net sales ($42.9 million or 15.3% adjusted¹) in 2021. The benefit of higher average selling prices and additional volume leverage was partially offset by higher SG&A, including incremental R&D expense for technology investments.

Net sales increased by 29.9 percent compared to the same quarter in 2020. Significantly higher sales in its irrigation segment and utility support structures fueled the growth.

In the irrigation segment, which represents 31.5 percent of business, the company reported a 57.6 percent increase in sales compared to 2020. International sales grew 144 percent year-over-year.

The company also reported that global backlog has increased 17.5 percent since the end of fiscal 2020—a record rise.

The earnings report also highlighted two acquisitions in the irrigation segment during the second quarter: Prospera Technologies, Ltd. and PivoTrac.

The company revised its full-year net sales growth guidance upward to 16 to 19 percent. The previous outlook anticipated a 9 to 14 percent increase.

In the irrigation segment, the full-year expectation is that sales will increase 45 to 50 percent.

Source: Business Wire
Member since 1965 |

Since 2019, Valmont and Prospera have integrated AI technologies with center pivot irrigation to develop real-time crop analysis and anomaly detection solutions. The partnership has expanded its intelligent solutions, monitoring 5 million acres in 2020, although it expected to monitor 1 million. Twice as many growers used the service in 2020 compared to 2019. Grower adoption is expected to double again in 2021.

The announcement said the transaction will create the largest global, vertically-integrated AI company in agriculture. It also said Prospera’s senior leadership team and 90 colleagues will continue with the business post-close.

Senior leaders are headquartered in Austin. A research-and-development center is based in Tel Aviv.

Member since 1965 |

Overall net sales increased by 14.9 percent compared to the first quarter of last year.

In agriculture, global sales increased 46.5 percent due to higher volumes across most markets, particularly in the Middle East, and higher technology sales.

North American ag sales increased by 15.2 percent compared to 2020, driven by higher volumes across all irrigation product lines and higher industrial tubing sales.

International sales in ag more than doubled year-over-year and increased more than 125 percent in local currencies. The company also reported a record global backlog.

“We achieved solid sales and earnings growth across the majority of our businesses this quarter through proactively implementing pricing actions starting in fourth quarter 2020, which helped largely offset steep inflationary pressures,” said Stephen G. Kaniewski, president and CEO. “Sales growth was led by significantly higher sales in the irrigation segment including a 34 percent increase in technology products year-over-year, as higher agricultural commodity prices are driving positive farmer sentiment ….”

A statement from the company said it has taken steps since the pandemic began to strengthen its global supply chain.

“Valmont has been able to continue procuring raw materials and components critical to its operations, particularly steel,” it said. “Other supply constraints have been largely mitigated by effectively utilizing the company’s global footprint. Further, current constraints at global seaports have not significantly disrupted its operations.”

In its second quarter outlook, Valmont expects net sales to increase by 17 to 20 percent compared to last year.

Member since 1965 |

The agreement demonstrates the growing global demand for more efficient and reliable food production.

“We are excited to be partnering with progressive thought leaders who see the need and value for fresh water conservation and modern agriculture,” said Stephen G. Kaniewski, Valmont president and CEO. “Projects like these are highly transformative to local economies, bringing much-needed infrastructure and modern agricultural systems that enhance the food supply chain.”

The approximately 500,000-acre project will provide irrigation for highly efficient crop production, significantly minimizing the use of previously-marginal agricultural land and enabling double-cropping to produce world-class yields, while conserving approximately half the water currently used with traditional irrigation methods.

This project will become the largest connected irrigation project on the planet upon completion, further confirming Valmont’s technology leadership on the irrigated farm, an announcement from the company said.

“This multi-year engagement is a testament to our ability to secure large-scale projects that address the critical need to increase food production to serve a growing population,” Kaniewski said. “We speak often about the strength of our international project pipeline, and we are very excited to be awarded this opportunity, which provides meaningful momentum heading into 2021.”

Source: Business Wire | Member since 1965 |

For the fourth quarter of 2019, net sales declined by 2 percent. Lower sales in international markets, particularly in access systems and international irrigation, were mostly offset by improvement across North American markets, led by utility support structures.

For the full year of 2019, the company reported flat net sales.
President and CEO Stephen G. Kaniewski said irrigation sales in North America were “in line with expectations,” but overall growth in the segment was affected by lower project business in international irrigation markets.

“Even with the impact of muted net farm income and trade uncertainty, our North American irrigation business performed well, supported by higher sales of advanced technology solutions,” Kaniewski said.

The irrigation segment represents 19.5 percent of Valmont’s business. Global sales decreased by about 6.7 percent compared to last year. North American sales were flat compared to 2018.

International irrigation sales decreased by 16.1 percent compared to last year. Irrigation technology sales for the full year, as a subset of total segment sales, increased by 25 percent, led by growers’ increasing demand for integrated solutions that help reduce input costs and improve profitability.

Kaniewski also said the company’s “performance in the fourth quarter was in line with our expectations,” minus the poor results from access systems in Australia.

Member since 1965 |