Valmont(US:VMI)2026-02-17 12:11Financial Performance - Fourth quarter net sales increased by 0.1% to $1.04 billion, while full-year net sales rose by 0.7% to $4.10 billion[5][10] - Diluted earnings per share (EPS) for the fourth quarter increased by 135.7% to $9.05, and adjusted EPS rose by 28.1% to $4.92[5][10] - Operating income for the fourth quarter decreased by 2.9% to $116.5 million, while adjusted operating income increased by 5.6% to $126.7 million[5][10] - Net earnings for the fifty-two weeks ended December 27, 2025, were $353,688 thousand, slightly up from $350,624 thousand in 2024, indicating a growth of 0.6%[34] - Net earnings attributable to Valmont Industries, Inc. for the thirteen weeks ended December 27, 2025, were $168,001, compared to $77,653 in 2024, with earnings per share (EPS) of $9.13, up from $3.88[24] - Adjusted net earnings attributable to Valmont Industries, Inc. were $97,113,000, or $4.92 per diluted share for the thirteen weeks ended December 27, 2025, and $380,603,000, or $19.09 per diluted share for the fifty-two weeks ended December 27, 2025[43] Sales and Backlog - The company reported a backlog increase of $217.0 million, or 15.1%, to $1.65 billion, driven primarily by strong demand in the utility market[10] - The total backlog increased to $1,653.7 million as of December 27, 2025, up from $1,436.7 million as of December 28, 2024, with infrastructure backlog at $1,548.3 million and agriculture backlog at $105.4 million[55] - Infrastructure segment net sales for the thirteen weeks ended December 27, 2025, were $816,587, an increase from $760,848 in 2024, while the Agriculture segment saw a decline to $221,673 from $276,446[26] Future Outlook - Full-year 2026 net sales outlook is projected between $4.2 billion and $4.4 billion, representing a growth of 2.5% to 7%[15] - Infrastructure net sales for 2026 are expected to be between $3.25 billion and $3.4 billion, reflecting a growth of 5% to 9%[15] - Capital expenditures for 2026 are anticipated to be between $170 million and $200 million[15] - The effective tax rate for 2026 is projected to be approximately 26.0%[15] Profitability and Margins - Gross profit for the thirteen weeks ended December 27, 2025, was $309,421, representing a gross margin of 29.8%, compared to $313,021 and a margin of 30.2% for the same period in 2024[24] - Adjusted gross profit for the fifty-two weeks ended December 27, 2025, was $1,241,296 thousand, compared to $1,239,936 thousand in 2024, reflecting a marginal increase of 0.1%[39] - The company reported a gross profit margin of 30.2% for the fifty-two weeks ended December 27, 2025, consistent with the previous year[39] Cash Flow and Capital Structure - Net cash flows from operating activities decreased to $456,484 thousand in 2025 from $572,678 thousand in 2024, a decline of 20.2%[34] - Free cash flow for the fifty-two weeks ended December 27, 2025, was $311,449,000, down from $493,227,000 for the same period in 2024, primarily due to increased capital expenditures[53] - Cash and cash equivalents at the end of the period increased to $187,140 thousand in 2025 from $164,315 thousand in 2024, a rise of 13.9%[34] - Long-term debt, excluding current installments, rose to $795,150 thousand in 2025 from $729,941 thousand in 2024, an increase of 8.9%[32] - Total current liabilities decreased to $731,620 thousand in 2025 from $811,425 thousand in 2024, a reduction of 9.8%[32] Charges and Impairments - The company incurred realignment charges of $6,506 for the thirteen weeks ended December 27, 2025, compared to no charges in the same period of 2024[24] - The company recorded non-cash impairment charges of $91.3 million for long-lived assets, impacting overall earnings[44] - The impairment of long-lived assets for the fifty-two weeks ended December 27, 2025, was $91,337, while there were no impairments reported in 2024[24] Taxation - The effective tax rate for the adjusted earnings before income taxes was 18.0% for the thirteen weeks ended December 27, 2025, and 23.2% for the fifty-two weeks ended December 27, 2025[47] Investment and Returns - Average invested capital was $2,343,300,000, resulting in a return on invested capital of 16.6% and an adjusted return on invested capital of 17.6%[57]