Group 1 - Valmont Industries reported revenue of $1.04 billion for the quarter ended December 2024, reflecting a 2.1% increase year-over-year [1] - The company's EPS was $3.84, up from $3.18 in the same quarter last year, exceeding the consensus estimate of $3.66 by 4.92% [1] - The reported revenue surpassed the Zacks Consensus Estimate of $1.01 billion, resulting in a surprise of 3.09% [1] Group 2 - Valmont's total sales in the Infrastructure segment were $763.64 million, below the average estimate of $776.31 million [4] - In the Agriculture segment, total sales reached $277.98 million, exceeding the average estimate of $233.80 million [4] - The company's operating income for the Infrastructure segment was $122.04 million, surpassing the average estimate of $111.75 million [4] Group 3 - Over the past month, Valmont's shares have returned -4.6%, contrasting with the Zacks S&P 500 composite's +4.7% change [3] - Valmont currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Q4 and Full-Year 2024 Earnings Presentation February 18, 2025 Valmont® © 2025 Industries, Inc. Disclosure Regarding Forward-Looking Statements These slides (and the accompanying oral discussion) contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions made by management, considering its experience in the industries where Valmont operates, perceptions of historical trends, current conditions, expected future devel ...

Financial Data and Key Metrics Changes - For the fourth quarter, net sales reached $1 billion, an increase of 2.1%, while operating income rose nearly 20% to $120 million, resulting in an operating margin of 11.6% [25][26] - Full year net sales decreased by 2.4% to $4.1 billion, but operating income increased by 10.9% to $525 million, with operating margins improving by 160 basis points to 12.9% [30][38] - Earnings per share for the fourth quarter was $3.84, up nearly 21%, and for the full year, it reached a record $17.19, improving nearly 15% [30][38] Business Line Data and Key Metrics Changes - Infrastructure segment sales increased by 2.1% in Q4, with operating income growing 24% to $122 million, driven by utility and telecom growth, while lighting and transportation sales declined by 2.5% [26][27] - Agriculture segment sales rose by 2.3% in Q4, with North America experiencing slight volume declines, but international sales increased nearly 10% [28][29] Market Data and Key Metrics Changes - Utility markets are strong, driven by increased CapEx spending due to energy demand, with Valmont positioned to capitalize on these trends [14][19] - North American agriculture market conditions are stable, but cash receipts for corn and soybeans are projected to decline by 4% to 6% [20][21] Company Strategy and Development Direction - The company aims to optimize capacity to meet growing demand, particularly in the utility market, and is investing in new capabilities and capacity [9][10] - Valmont is focusing on profitable growth, operational excellence, and customer-driven innovation to enhance its market position [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market challenges and achieve long-term sustainable value creation [13][39] - The outlook for 2025 includes projected net sales between $4 billion and $4.2 billion, with diluted earnings per share expected to grow by 5% at the midpoint [31][32] Other Important Information - The company plans to allocate 50% of operating cash flows towards growth investments and 50% to shareholder returns, with a new $700 million buyback authorization [35][36] - A 13% increase in the quarterly dividend was approved, reflecting the company's commitment to delivering shareholder value [38] Q&A Session Summary Question: Can you discuss the agriculture market's performance and the impact of foreign exchange? - Management noted that both North America and Brazil face challenges due to corn and soy prices, but there is strong activity in the North Africa EMEA region [42] Question: What are the expectations for operating margins in 2025? - Management indicated that there are opportunities for margin improvement through operational efficiencies and cost management, aiming for mid-teens margins in the long term [45][46] Question: How are tariffs factored into the guidance? - The company has accounted for the impact of tariffs in its guidance, focusing on pricing strategies and operational adjustments to mitigate costs [54][60] Question: Can you elaborate on the capital allocation priorities? - The company plans to increase CapEx to approximately $150 million, focusing on capacity expansion and efficiency improvements [62][64] Question: What is the outlook for the utility segment and new capabilities? - Management highlighted strong demand in the utility sector, particularly for substations, and ongoing innovation to enhance product offerings [81][96]

Core Viewpoint - Valmont Industries reported quarterly earnings of $3.84 per share, exceeding the Zacks Consensus Estimate of $3.66 per share, and showing an increase from $3.18 per share a year ago, indicating a positive earnings surprise of 4.92% [1][2] Financial Performance - The company achieved revenues of $1.04 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.09% and showing a slight increase from $1.02 billion year-over-year [2] - Over the last four quarters, Valmont has consistently surpassed consensus EPS estimates and topped revenue estimates twice [2] Stock Performance - Valmont shares have increased approximately 4.6% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $4.08 on revenues of $1.02 billion, while for the current fiscal year, the estimate is $17.96 on revenues of $4.15 billion [7] - The trend of estimate revisions for Valmont is favorable, which is a positive indicator for future stock performance [6] Industry Context - Valmont operates within the Steel - Pipe and Tube industry, which is currently ranked in the top 5% of over 250 Zacks industries, suggesting a strong industry outlook [8]

Financial Performance - Full-Year revenue reached $4.08 billion, a decrease of 2.4% compared to $4.17 billion in the previous year[9] - Fourth Quarter net sales increased by 2.1% to $1.04 billion, up from $1.02 billion[5] - Operating income for the Fourth Quarter rose to $120.0 million, representing 11.6% of net sales, compared to $63.5 million or 6.3% of net sales in the prior year[5] - Diluted earnings per share (EPS) for the Fourth Quarter increased to $3.84, a significant rise of 178.3% from $1.38 in the same quarter last year[5] - Operating cash flows surged by 66.9% to $193.4 million, compared to $115.9 million in the previous year[5] - Net sales for the thirteen weeks ended December 28, 2024, were $1,037,294, an increase from $1,015,526 for the same period in 2023, representing a growth of 2.7%[25] - Gross profit for the thirteen weeks ended December 28, 2024, was $313,021, compared to $282,941 in the prior year, reflecting a 10.6% increase[25] - Operating income for the thirteen weeks ended December 28, 2024, reached $119,988, significantly higher than $63,548 in the same quarter of 2023, marking an increase of 88.6%[25] - Earnings per share (EPS) for the thirteen weeks ended December 28, 2024, were $3.88, compared to $1.39 for the same period in 2023, indicating a substantial increase of 179.1%[25] - The company reported a net earnings increase to $78,435 for the thirteen weeks ended December 28, 2024, compared to $34,084 in the same quarter of 2023, a growth of 130.0%[25] - Net earnings for fiscal 2024 were $350,624 thousand, significantly up from $144,912 thousand in fiscal 2023, indicating a year-over-year increase of approximately 142.5%[36] Segment Performance - Infrastructure segment sales grew by 2.1% to $763.6 million, while Agriculture segment sales increased by 2.3% to $278.0 million[8][12] - The Infrastructure segment reported net sales of $760,848 for the thirteen weeks ended December 28, 2024, up from $745,713 in the prior year, a growth of 2.3%[27] - The Agriculture segment's net sales were $276,446 for the thirteen weeks ended December 28, 2024, compared to $269,813 in the same period of 2023, reflecting a 2.4% increase[27] - Year-over-year net sales change shows a decline of 1.8% in Infrastructure and an increase of 5.4% in Agriculture, resulting in a consolidated change of (3.4)% to 3.1%[58] Future Outlook - The company projects 2025 net sales between $4.0 billion and $4.2 billion, with Agriculture net sales expected to decline by approximately 9.5% to 3.5%[16] - The company forecasts a net sales outlook midpoint of $4,100 million for fiscal 2025, reflecting an expected increase of about 0.6% compared to fiscal 2024[38] - Fiscal 2025 net sales outlook ranges from $4,000,000 to $4,200,000, with a low end of $3,025,000 in Infrastructure and $975,000 in Agriculture[58] Capital and Investment - Capital expenditures for 2025 are estimated to be between $140 million and $160 million[16] - The company achieved a return on invested capital of 16.4%[9] - Return on invested capital stands at 16.4%, calculated from an average invested capital of $2,396,436[60] - Average invested capital decreased from $2,513,477 to $2,396,436 during the reporting period[60] Cash Flow and Assets - The company reported a net cash flow from operating activities of $572,678 thousand for fiscal 2024, up from $306,775 thousand in fiscal 2023, indicating an increase of approximately 86.6%[36] - Cash and cash equivalents decreased to $164,315 thousand in fiscal 2024 from $203,041 thousand in fiscal 2023, a decline of about 19.1%[34] - Total current assets decreased from $1,787,629 thousand in fiscal 2023 to $1,683,392 thousand in fiscal 2024, a reduction of approximately 5.8%[34] - The company’s total assets decreased from $3,477,448 thousand in fiscal 2023 to $3,329,972 thousand in fiscal 2024, a reduction of approximately 4.3%[34] Liabilities and Equity - Total liabilities decreased from $2,060,376 thousand in fiscal 2023 to $1,736,359 thousand in fiscal 2024, a decline of about 15.7%[34] - The leverage ratio as of December 28, 2024, was 0.99, indicating a strong balance sheet position[52] Dividends and Shareholder Returns - Cash dividends per share remained stable at $0.60 for both the thirteen weeks ended December 28, 2024, and December 30, 2023[25] - Diluted earnings per share for fiscal 2024 were $17.19, with an anticipated increase to $18.00 for fiscal 2025, representing a growth of approximately 4.7%[38] Miscellaneous - Moody's upgraded the company's credit rating to Baa2, reflecting improved financial performance[5] - The company incurred realignment charges of $31,030 thousand for the thirteen weeks ended December 30, 2023, impacting future stock compensation[47] - Impairment of goodwill and other intangible assets amounted to $140,844 thousand for the fifty-two weeks ended December 30, 2023[46] - The company has ceased considering historical adjustments related to Prospera as relevant for understanding the Agriculture segment's performance moving forward[47] - The effective tax rate for the period is reported at 25.2%, leading to an after-tax operating income of $392,534[60] - The impact of foreign exchange on net sales is estimated at $60,000 for both low and high ends in Infrastructure and Agriculture[58] - Net sales in constant currency show a year-over-year change of (0.4)% in Infrastructure and 6.6% in Agriculture, indicating a consolidated change of (1.1)% to 4.5%[58]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Valmont Industries despite lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Valmont is expected to report quarterly earnings of $3.66 per share, reflecting a year-over-year increase of +15.1%, while revenues are projected to be $1.01 billion, a decrease of 0.9% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their outlook for the company [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Valmont is lower than the consensus estimate, resulting in an Earnings ESP of -0.27%, suggesting a bearish sentiment among analysts [10]. Historical Performance - Valmont has consistently beaten consensus EPS estimates in the past four quarters, with a notable surprise of +3.79% in the last reported quarter [12][13]. Zacks Rank - The company currently holds a Zacks Rank of 2 (Buy), but the negative Earnings ESP makes it challenging to predict a beat against the consensus EPS estimate [11]. Conclusion - While Valmont may not be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [16].

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Core Insights - Valmont Industries reported a third-quarter profit of $83 million or $4.11 per share, a significant improvement from a loss of $49 million or $2.34 per share in the same quarter last year, beating the Zacks Consensus Estimate of $3.96 [2] - The company's revenues for the quarter were $1,020.2 million, down 2.9% year over year, but still surpassing the Zacks Consensus Estimate of $1,019.1 million [3] Segment Review - The infrastructure segment's revenues increased by approximately 0.4% year over year to $756.4 million, although it fell short of the estimate of $759.3 million, driven by a 15% increase in utility sales and rising telecommunications volumes [4] - The agriculture segment reported revenues of $263.8 million, down 11.1% year over year, but exceeded the estimate of $261.8 million, with international sales declining significantly in Brazil due to lower grain prices [5] Financials - Valmont's operating cash flows totaled $225.1 million, with cash and cash equivalents at $200.5 million at the end of the third quarter [6] - The company paid $12.1 million in dividends and repurchased $40.1 million of its stock, maintaining $81 million available for share repurchase [6] 2024 Outlook - Valmont anticipates a net sales decline of 1.5-3.5% and expects earnings per share to be in the range of $16.50 to $17.30, with capital expenditures projected between $85 million and $95 million [7] Estimates Movement - Estimates for Valmont have trended downward over the past month, indicating a shift in expectations [8][10] VGM Scores - Valmont holds a strong Growth Score of A but has a lower Momentum Score of C, resulting in an aggregate VGM Score of B, placing it in the middle 20% for the investment strategy [9]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Valmont Industries (VMI) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 20.7%, with a projected EPS growth of 13.5% this year, significantly outperforming the industry average of -10.3% [4] Group 2: Financial Metrics - Valmont's year-over-year cash flow growth is 7.7%, surpassing the industry average of 6.8% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 9.1%, compared to the industry average of 6.8% [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 0.6% over the past month [7] - Valmont has achieved a Growth Score of A and a Zacks Rank of 2 due to these positive earnings estimate revisions [8]

Group 1 - Valmont Industries (NYSE: VMI) is expected to see positive revenue growth next year, driven by strong demand in the Infrastructure segment [1] - The Infrastructure segment is benefiting from healthy capital expenditures in Utility and Telecom sectors, as well as IIJA funding supporting the Transportation end market [1] - There is a noted reversal in trends that is contributing to the anticipated growth in revenue for Valmont Industries [1]