Valmont's Q4 Earnings and Revenues Surpass Expectations

Core Viewpoint - Valmont Industries, Inc. (VMI) reported strong financial results for the fourth quarter of 2024, with significant year-over-year profit growth and revenue exceeding estimates [1][2]. Financial Performance - The company reported a profit of $77.6 million or $3.84 per share for Q4 2024, compared to $28.6 million or $1.38 per share in the same quarter last year, beating the Zacks Consensus Estimate of $3.66 [1]. - Revenues for the quarter were $1,037.3 million, reflecting a 2.1% increase year-over-year and surpassing the Zacks Consensus Estimate of $1,006.3 million [2]. Segment Review - Infrastructure segment revenues increased by approximately 2.1% year-over-year to $763.6 million, although it fell short of the estimate of $766.9 million. Utility sales rose by about 5.9% due to pricing and product mix improvements [3]. - Agriculture segment revenues reached $278 million, up 2.3% year-over-year, exceeding the estimate of $236.7 million. International sales saw strong growth, particularly in Europe, the Middle East, and Africa, as well as Brazil [4]. Financial Health - Operating cash flows totaled $572.7 million for the 52 weeks ending December 28, 2024. Cash and cash equivalents at the end of Q4 were $164.3 million [5]. - The company returned $118.4 million to shareholders through share repurchases and dividends in 2024 and fully repaid borrowings on its revolving credit facility, achieving a net leverage ratio of 1 [5]. 2025 Outlook - Valmont anticipates net sales between $4 billion and $4.2 billion for 2025, with earnings per share expected in the range of $17.20 to $18.80. Capital expenditures are projected to be between $140 million and $160 million, with an effective tax rate around 26% [6]. Stock Performance - VMI shares have increased by 61.8% over the past year, outperforming the industry growth of 30% [7].