Financial Data and Key Metrics Changes - Net sales increased by 2.5% year-over-year to $1.05 billion, with operating margin improving by 120 basis points and diluted earnings per share rising by 21% to $4.98 [4][14][15] - Gross profit margin increased to 30.4%, up 80 basis points from the previous year [14] - Operating income rose to $141 million, with operating margins at 13.5%, reflecting improved infrastructure results [14][15] Business Line Data and Key Metrics Changes - Infrastructure sales grew by 6.6% to $808.3 million, driven by a 12.3% increase in utility sales due to pricing and higher volumes [15] - Agriculture sales decreased by 9% year-over-year to $241.3 million, primarily due to lower irrigation equipment volumes and economic pressures in Brazil [16][17] Market Data and Key Metrics Changes - The utility market is experiencing strong demand driven by data center expansion, manufacturing onshoring, and broader electrification, with transmission CapEx expected to grow at a 9% CAGR through 2029 [8][15] - The Asia-Pacific market for lighting and transportation remains pressured, with operational challenges impacting results [9][15] Company Strategy and Development Direction - The company is focused on simplifying its business, directing resources to high-return initiatives, and enhancing performance in attractive markets [5][6] - Valmont aims to lead the North American utility market through capacity expansion and operational improvements, with significant investments in brownfield utility expansions [5][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the business, despite near-term macro pressures, and highlighted the importance of disciplined execution and innovation [12][20] - The company raised its full-year adjusted diluted earnings per share expectations to a range of $18.70-$19.50, indicating positive momentum [22] Other Important Information - The company is investing in technology and aftermarket parts, with aftermarket sales growing by 15% year-over-year [20] - A new Chief Accounting Officer has joined the team, bringing extensive experience in large-scale manufacturing [22] Q&A Session Summary Question: Infrastructure margins and improvement initiatives - Management highlighted that margin improvements stem from pricing and cost actions, with utility expansions contributing significantly to operating margins [25][26] Question: Capacity additions in utility - Management confirmed that capacity additions are tracking above expectations, with plans to exceed the benchmark of $100 million in additional revenue for every $100 million of capacity [29][30] Question: Utility segment pricing trends - Management indicated that pricing remains strong due to tariff mitigation plans and a healthy bid market, with expectations for continued strength in pricing [63][64] Question: Agriculture margins and bad debt expense - Management acknowledged challenges in agriculture margins due to lower sales and bad debt expense, but expects improvements in future quarters as issues are resolved [66][67]

Financial Data and Key Metrics Changes - The company reported net sales of $1.05 billion, reflecting a 2.5% year-over-year increase [14] - Operating margin improved by 120 basis points to 13.5%, with diluted earnings per share increasing by 21% to $4.98 [14][15] - Gross profit margin rose to 30.4%, an increase of 80 basis points from the previous year [14] Business Line Data and Key Metrics Changes - Infrastructure sales reached $808.3 million, up 6.6% year-over-year, with utility sales increasing by 12.3% driven by pricing and higher volumes [15] - Agriculture sales decreased by 9% year-over-year to $241.3 million, primarily due to lower irrigation equipment volumes in North America and economic pressures in Brazil [16][17] - Telecommunications sales grew by 37%, supported by a quick turnover strategy and alignment with carrier programs [15] Market Data and Key Metrics Changes - The utility market is experiencing strong demand driven by data center expansion, manufacturing onshoring, and broader electrification, with transmission CapEx expected to grow at a 9% CAGR through 2029 [8] - The Asia-Pacific market for lighting and transportation remains pressured, with operational challenges impacting performance [9] - In agriculture, grower sentiment in North America is soft, with the USDA expecting a 2.5% decline in crop receipts for 2025 [9][10] Company Strategy and Development Direction - The company is focused on simplifying its business, directing resources to high-return initiatives, and enhancing performance in attractive markets [5] - Valmont aims to lead the North American utility market through capacity expansion and operational improvements [5][19] - The company is investing in aftermarket parts and technology to build a more resilient agriculture business [7][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the business despite near-term macro pressures [12] - The company is raising its full-year adjusted diluted earnings per share expectations to a range of $18.70 to $19.50 [22] - Management highlighted the importance of maintaining flexibility in capacity to respond to customer needs while ensuring operational efficiency [30] Other Important Information - The company recorded $11 million in bad debt expense due to tighter credit conditions in Brazil, impacting agriculture margins [17][67] - The company plans to consolidate solar revenues into another product line for reporting purposes starting in 2026 [15] - The company has a strong backlog in utility projects, with demand expected to remain robust across various product lines [57] Q&A Session Summary Question: Can you discuss the infrastructure margins and the most impactful margin improvement initiatives? - Management noted that pricing and cost actions have contributed to improved margins, with utility expansions expected to drive significant operating margin contributions [25][26] Question: What is the outlook for utility segment pricing trends? - Management indicated that pricing remains strong due to tariff mitigation plans and a tight demand-supply balance in the bid market [64][66] Question: Are current demand drivers in utility across different product lines? - Management confirmed strong demand across all product lines, driven by electrification, AI, and grid connectivity, with a healthy backlog extending into 2026 [57][58] Question: What is the expectation for agriculture margins moving forward? - Management expects agriculture margins to improve in Q1, with efforts to resolve current bad debt issues and a focus on maintaining double-digit operating margins [67][68]

Financial Data and Key Metrics Changes - The company reported net sales of $1.05 billion, reflecting a year-over-year increase of 2.5% [12] - Operating margin improved by 120 basis points to 13.5%, with diluted earnings per share increasing by 21% to $4.98 [4][14] - Gross profit margin rose to 30.4%, an increase of 80 basis points from the previous year [12] Business Line Data and Key Metrics Changes - Infrastructure sales reached $808.3 million, growing 6.6% year-over-year, with utility sales increasing by 12.3% driven by pricing and higher volumes [14] - Agriculture sales decreased by 9% year-over-year to $241.3 million, primarily due to lower irrigation equipment volumes in North America [15] - Telecommunications sales grew by 37%, supported by a quick turnover strategy and alignment with carrier programs [14] Market Data and Key Metrics Changes - The utility market is experiencing strong demand driven by data center expansion, manufacturing onshoring, and broader electrification, with transmission CapEx expected to grow at a 9% CAGR through 2029 [7] - The Asia-Pacific market for lighting and transportation remains pressured, with operational factors impacting results [8] - In agriculture, North American grower sentiment is soft, with the USDA expecting a 2.5% decline in crop receipts for 2025 [8] Company Strategy and Development Direction - The company is focused on simplifying its business, directing resources to high-return initiatives, and enhancing performance [5] - Valmont aims to lead the North American utility market through a multi-pronged growth approach, including capacity expansion and operational improvements [5] - The company is investing in technology and aftermarket parts to build a more resilient agriculture business [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the business, despite near-term macro pressures [11] - The company is raising its full-year adjusted diluted earnings per share expectations to a range of $18.70 to $19.50 [20] - Management highlighted the importance of disciplined resource allocation and continuous improvement in operations [19] Other Important Information - The company plans to consolidate solar revenues into another product line for reporting purposes starting in 2026, as solar revenues are expected to be approximately 2% of total revenues going forward [14] - The company ended the quarter with approximately $226 million in cash, and net debt leverage remains below one times [16] Q&A Session Summary Question: Infrastructure margins performance - Management noted that the margin benefits have come from a combination of pricing and cost actions, with utility expansions contributing significantly to operating margins [24][25] Question: Capacity additions in utility - Management confirmed that the business is on track to exceed the benchmark of $100 million additional revenue for every $100 million of capacity added, with ongoing investments planned [26][27] Question: Utility segment pricing contributions - Pricing and volume were identified as relatively equal contributors to the 12.3% growth in utility sales, with pricing actions taken earlier in the year playing a significant role [32] Question: Agriculture business backlog - Management indicated that while the backlog is lower, the market environment remains supportive, and the project pipeline is diverse and strong [41][42] Question: Agriculture margins and bad debt expense - Management expects challenges in agriculture margins to continue in the fourth quarter but anticipates improvements in Q1 as issues are resolved [62]

Financial Data and Key Metrics Changes - Net sales increased by 2.5% year over year to $1,050 million, with operating margin improving by 120 basis points to 13.5% [20][21] - Diluted earnings per share rose by 21.2% to $4.98, marking a notable improvement compared to historical third-quarter performance [5][19] - Gross profit margin increased by 80 basis points to 30.4% [20] Business Line Data and Key Metrics Changes - Infrastructure sales grew by 6.6% to $808.3 million, with utility sales increasing by 12.3% driven by pricing and higher volumes [22] - Agriculture sales decreased by 9% year over year to $241.3 million, primarily due to lower irrigation equipment volumes and economic pressures in Brazil [24] - Telecommunications sales grew by 37%, supported by a quick turn order strategy [22] Market Data and Key Metrics Changes - The utility market is experiencing strong demand driven by data center expansion, manufacturing onshoring, and broader electrification, with transmission CapEx expected to grow at a 9% CAGR through 2029 [10] - The agriculture market in North America remains soft, with the USDA expecting a 2.5% decline in crop receipts for 2025 [13][14] - International sales in agriculture showed double-digit growth year to date, despite challenges in specific regions [16] Company Strategy and Development Direction - The company is focused on simplifying its business, directing resources to high-return initiatives, and enhancing performance through disciplined execution [5][6] - Valmont aims to lead the North American utility market through capacity expansions and operational improvements [6][27] - The strategy includes investing in aftermarket parts and technology to improve margins and support long-term growth [7][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the business, despite near-term macro pressures [17][18] - The company is raising its full-year earnings guidance, projecting net sales of approximately $4.1 billion and adjusted diluted earnings per share in the range of $18.7 to $19.5 [30][31] - Management highlighted the importance of maintaining flexibility in capacity to respond to customer needs while ensuring operational efficiency [44][45] Other Important Information - The company recorded $11 million in bad debt expense in the agriculture segment, impacting operating income and margins [25][83] - Cash and liquidity remain strong, with approximately $226 million in cash and net debt leverage below one times [26] - The company is investing in a project to simplify its legal entity structure to improve efficiency and reduce compliance burdens [29] Q&A Session Summary Question: What are the main opportunities for margin expansion in the infrastructure segment? - Management indicated that margin improvements stem from pricing and cost actions, with utility expansions contributing significantly to operating margins [35][36] Question: Can you discuss the capacity additions in the utility segment? - Management confirmed that capacity additions are tracking above expectations, with plans to exceed the benchmark of $100 million in additional revenue for every $100 million of capacity [39][40] Question: What is the outlook for pricing trends in the utility segment? - Management expects strong pricing trends to continue due to a tight demand-supply balance and healthy margins in the bid market [81] Question: What is driving current demand in the utility segment? - Demand is strong across all product lines, driven by electrification, AI, and grid connectivity, with a well-diversified customer base [73][74] Question: What are the expectations for agriculture margins moving forward? - Management anticipates that while Q4 may be challenging, margins should improve in Q1 as bad debt issues are resolved [84]

Q3 2025 Financial Performance - Net sales reached $1.05 billion, a 2.5% increase compared to the previous year[10] - Operating margin improved by 120 bps to 13.5%[10] - Diluted EPS increased by 21.2% to $4.98[10] Segment Performance - Infrastructure sales increased by 6.6% to $808.3 million, with operating income up by 15.9%[27, 28] - Utility sales grew by 12.3% to $391.9 million, while Telecommunications saw a significant increase of 37.0% to $88.1 million[31] - Agriculture sales decreased by 9.0% to $241.3 million, with operating income down by 19.7%[34, 35] Capital Allocation and Cash Flow - Q3 2025 operating cash flows were $112.5 million[43] - The company invested $42 million in capital expenditures[41] - Share repurchases amounted to $26 million at an average price of $374.33 per share[41] Outlook - Full-year 2025 net sales are projected to be approximately $4.1 billion[46] - Adjusted diluted EPS outlook raised to $18.70 to $19.50[46] - The adjusted effective tax rate is expected to be around 25.0%[46]

Financial Performance - Net sales increased by 2.5% to $1.05 billion compared to $1.02 billion in Q3 2024, with double-digit growth in Utility and Telecommunications segments[5] - Operating income rose by 12.5% to $141.5 million, representing 13.5% of net sales, up from 12.3% in the previous year[5] - Diluted earnings per share (EPS) increased by 21.2% to $4.98, compared to $4.11 in Q3 2024[5] - The company reported a net earnings attributable to Valmont Industries, Inc. of $99,031 for the thirteen weeks ended September 27, 2025, compared to $83,068 in 2024, marking a 19.2% increase[23] - Earnings per share (EPS) for the thirteen weeks ended September 27, 2025, were $5.02, compared to $4.13 for the same period in 2024, reflecting a 21.5% increase[23] - Net earnings for the thirty-nine weeks ended September 27, 2025, were $184,464 thousand, a decrease of 32.3% compared to $272,189 thousand for the same period in 2024[33] - Adjusted net earnings attributable to Valmont Industries, Inc. for the thirteen weeks ended September 27, 2025, were $99.031 million, or $4.98 per diluted share, compared to $283.490 million, or $14.17 per diluted share for the thirty-nine weeks ended September 27, 2025[42] Shareholder Returns - The company returned $39.2 million to shareholders through share repurchases of $25.8 million and dividends of $13.4 million[5] - Cash dividends per share increased to $0.68 for the thirteen weeks ended September 27, 2025, up from $0.60 in the same period last year[23] Sales and Segment Performance - Infrastructure segment sales grew by 6.6% to $808.3 million, with Utility sales up by 12.3% due to favorable pricing and higher volumes[7][8] - Agriculture segment sales decreased by 9.0% to $241.3 million, reflecting continued market softness in North America[10] - Operating income for the Agriculture segment fell by 19.7% to $23.2 million, or 9.7% of net sales, due to lower volumes and higher credit loss expenses[11] - Agriculture segment net sales decreased to $239,418 for the thirteen weeks ended September 27, 2025, down from $263,805 in 2024, a decline of 9.3%[25] - Total sales for the thirty-nine weeks ended September 27, 2025, reached $3,065,842, a slight increase from $3,037,740 in the previous year[29] Outlook and Guidance - The full-year 2025 adjusted diluted EPS outlook was raised to a range of $18.70 to $19.50[5] - The company updated its full-year 2025 net sales outlook to approximately $4.1 billion, with Infrastructure net sales expected around $3.1 billion[14] Backlog and Future Sales Potential - Backlog increased by $293.2 million or 20.4% since year-end 2024, primarily driven by strong Utility market demand[5] - Total backlog as of September 27, 2025, was $1.7299 billion, an increase from $1.4367 billion as of December 28, 2024, with infrastructure backlog at $1.6348 billion and agriculture backlog at $95.1 million[52] Cash Flow and Assets - Cash and cash equivalents increased to $226,107 thousand at the end of the period, compared to $164,315 thousand at the beginning, marking a net change of $61,792 thousand[33] - Net cash flows from operating activities for the thirty-nine weeks ended September 27, 2025, were $345,243 thousand, down from $379,264 thousand in the prior year[33] - Total assets increased to $3,367,999 thousand as of September 27, 2025, up from $3,329,972 thousand at December 28, 2024, reflecting a growth of 1.14%[31] Impairment and Charges - The company incurred impairment charges of $91,337 thousand during the thirty-nine weeks ended September 27, 2025, impacting overall profitability[40] - The company recorded non-cash impairment charges of $71.1 million for goodwill and certain intangible assets, along with $20.2 million for other long-lived assets that will no longer be utilized[43] - The company incurred realignment charges resulting in pre-tax charges of $9.8 million, primarily related to severance[43] Non-GAAP Measures - The company utilized non-GAAP financial measures to provide insights into operational profitability, including Adjusted EBITDA and Free Cash Flow metrics[35] - Adjusted EBITDA for the four fiscal quarters ended September 27, 2025, was $636.356 million, with net earnings attributable to Valmont Industries, Inc. at $259.925 million[48] - Cash flows from operating activities for the four fiscal quarters ended September 27, 2025, were $538.657 million[48] Other Financial Metrics - The leverage ratio as of September 27, 2025, was 0.91, calculated using net indebtedness of $579.633 million and adjusted EBITDA of $636.356 million[50] - Earnings before income taxes for the thirteen weeks ended September 27, 2025, were $131.537 million, with an effective tax rate of 23.1%[46] - Total current liabilities decreased to $778,584 thousand from $811,425 thousand, indicating a reduction of approximately 4.0%[31]

Core Viewpoint - Valmont Industries (VMI) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in a company's earnings potential, which is strongly correlated with near-term stock price movements [4][6]. - Institutional investors often base their valuation models on earnings estimates, leading to buying or selling actions that affect stock prices [4]. Valmont's Earnings Outlook - The upgrade for Valmont signifies an improvement in its underlying business, which is expected to drive the stock price higher as investors respond positively to this trend [5][10]. - For the fiscal year ending December 2025, Valmont is projected to earn $18.71 per share, with a 3.3% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating [9][10]. - The system has a proven track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill this potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Valmont Industries (VMI) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 18.5%, with projected EPS growth of 8.8% this year, significantly outperforming the industry average of 4.4% [4] Group 2: Financial Metrics - Valmont's asset utilization ratio is 1.2, indicating that the company generates $1.2 in sales for every dollar in assets, surpassing the industry average of 1.01 [5] - The company's sales are expected to grow by 0.9% this year, compared to an industry average of 0% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Valmont, with the Zacks Consensus Estimate for the current year increasing by 0.4% over the past month [8] - Valmont has achieved a Growth Score of A and a Zacks Rank 2, indicating its potential as a strong choice for growth investors [10]

Core Insights - Valmont Industries, Inc. is set to release its third quarter 2025 financial results on October 21, 2025, before market opening [1] - Following the earnings release, a webcast and conference will be hosted by the President and CEO, Avner M. Applbaum, and the Executive Vice President and CFO, Thomas Liguori [1] Company Overview - Valmont Industries is recognized as a global leader in providing products and solutions that support vital infrastructure and enhance agricultural productivity [1]

Core Insights - Valmont Industries, Inc. (NYSE:VMI) has been recognized as one of the best diversified stocks to buy, showcasing significant upside potential according to hedge funds [1] - The company reached an all-time high stock price of $384.84 on September 11, 2025, reflecting a 31.42% return over the past year, driven by strong investor confidence in its diversified manufacturing operations [2] - Valmont's steady cash flows and a 47-year history of consistent dividend payments enhance investor sentiment, supported by strategic initiatives such as targeted capital investments and efficient cost management [3] Company Overview - Valmont Industries, Inc. operates in the infrastructure and agriculture sectors, manufacturing products and providing services in the U.S., Australia, Brazil, and other international markets [4]