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Valmont(VMI) - 2025 Q1 - Quarterly Results
VMIValmont(VMI)2025-04-22 11:15
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Financial Performance - Net sales for Q1 2025 decreased by 0.9% to 969.3millioncomparedto969.3 million compared to 977.8 million in Q1 2024, with a 0.5% increase in constant currency[5]. - Operating income was 128.3million,representing13.2128.3 million, representing 13.2% of net sales, down from 131.6 million or 13.5% of net sales in the prior year[5]. - Diluted earnings per share remained unchanged at 4.32comparedtothepreviousyear[5].−NetearningsforthethirteenweeksendedMarch29,2025,were4.32 compared to the previous year[5]. - Net earnings for the thirteen weeks ended March 29, 2025, were 86.663 million, slightly down from 88.429millionintheprioryear,adecreaseofabout2.088.429 million in the prior year, a decrease of about 2.0%[31]. - The adjusted EBITDA for the four fiscal quarters ended March 29, 2025, was 640.829 million, providing insights into the company's core operating performance[36]. Cash Flow and Liquidity - Operating cash flows increased significantly to 65.1millionfrom65.1 million from 23.3 million, with cash and cash equivalents at 184.4millionandanetleverageratioofapproximately1.0x[5].−Cashandcashequivalentsincreasedto184.4 million and a net leverage ratio of approximately 1.0x[5]. - Cash and cash equivalents increased to 184.399 million as of March 29, 2025, compared to 164.315millionattheendof2024,markinganincreaseofapproximately12.5164.315 million at the end of 2024, marking an increase of approximately 12.5%[29]. - The leverage ratio as of March 29, 2025, was 0.97, indicating a stable financial position relative to debt levels[38]. - The company reported a net cash flow from operating activities of 65.130 million for the thirteen weeks ended March 29, 2025, compared to 23.332millioninthesameperiodin2024,showingasignificantimprovement[31].SegmentPerformance−Infrastructuresegmentsalesdecreasedby2.423.332 million in the same period in 2024, showing a significant improvement[31]. Segment Performance - Infrastructure segment sales decreased by 2.4% to 706.2 million, while Agriculture segment sales increased by 3.3% to 267.3million[7][10].−OperatingincomeintheAgriculturesegmentdecreasedby11.6267.3 million[7][10]. - Operating income in the Agriculture segment decreased by 11.6% to 36.2 million, or 13.6% of net sales, due to volume declines in North America[12]. - North America sales for the Infrastructure segment increased to 577.197millionfrom577.197 million from 568.572 million year-over-year, reflecting a growth of about 1.1%[27]. - The Infrastructure segment's sales totaled 706.221millionforthethirteenweeksendedMarch29,2025,downfrom706.221 million for the thirteen weeks ended March 29, 2025, down from 723.614 million in the prior year, a decline of approximately 2.4%[27]. - Net sales for the thirteen weeks ended March 29, 2025, totaled 969,314,withInfrastructurecontributing969,314, with Infrastructure contributing 703,491 and Agriculture 265,823[42].OutlookandProjections−Thecompanyreaffirmeditsfull−year2025financialoutlook,projectingnetsalesbetween265,823[42]. Outlook and Projections - The company reaffirmed its full-year 2025 financial outlook, projecting net sales between 4.0 billion and 4.2billionanddilutedearningspersharebetween4.2 billion and diluted earnings per share between 17.20 and 18.80[14].−Capitalexpendituresfor2025areexpectedtobebetween18.80[14]. - Capital expenditures for 2025 are expected to be between 140 million and 160million[14].−Fiscal2025netsalesoutlookrangesfrom160 million[14]. - Fiscal 2025 net sales outlook ranges from 4,000,000 to 4,200,000,withalowendof4,200,000, with a low end of 3,025,000 for Infrastructure and 975,000forAgriculture[42].−Year−over−yearchangeinnetsalesisprojectedat(1.8)975,000 for Agriculture[42]. - Year-over-year change in net sales is projected at (1.8)% for consolidated sales, with Infrastructure at 0.9% and Agriculture at (9.4)%[42]. - The company anticipates a net sales range of 3,160,000 to 4,060,000inconstantcurrencyforFiscal2025[42].ForeignExchangeImpact−Theimpactofforeignexchangeonnetsalesforthesameperiodwas4,060,000 in constant currency for Fiscal 2025[42]. Foreign Exchange Impact - The impact of foreign exchange on net sales for the same period was 13,153, with 6,070forInfrastructureand6,070 for Infrastructure and 7,083 for Agriculture[42]. - The company expects a foreign exchange impact of 60,000onnetsalesforFiscal2025,with60,000 on net sales for Fiscal 2025, with 25,000 attributed to Infrastructure and 35,000toAgriculture[42].−Theprojectedyear−over−yearchangeinnetsalesatconstantcurrencyis(1.1)35,000 to Agriculture[42]. - The projected year-over-year change in net sales at constant currency is (1.1)% for consolidated sales, with Infrastructure at 2.1% and Agriculture at (7.1)%[42]. - The foreign exchange rates assumed for translation effects include BRL/USD at 5.90, AUD/USD at 1.58, and EUR/USD at 0.96[42]. - The company reported a net sales increase of 6.6% in constant currency for Agriculture in the thirteen weeks ended March 29, 2025[42]. Shareholder Returns - The company plans to return 12.0 million to shareholders in dividends, increasing the quarterly dividend by 13% to 0.68perdilutedshare[5].BacklogandCurrentAssets−ThetotalbacklogasofMarch29,2025,was0.68 per diluted share[5]. Backlog and Current Assets - The total backlog as of March 29, 2025, was 1,489.2 million, up from 1,436.7millionattheendof2024,indicatinganincreaseofapproximately3.61,436.7 million at the end of 2024, indicating an increase of approximately 3.6%[40]. - The company’s total current assets increased to 1,722.817 million as of March 29, 2025, from $1,683.392 million at the end of 2024, reflecting a growth of about 2.3%[29].