Valmont(US:VMI)2025-10-21 11:02Financial 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]