Financial Data and Key Metrics Changes - GAAP EPS for the fourth quarter was $9.05, including a tax benefit of $78.5 million, or $3.98 per share, primarily due to a U.S. tax deduction related to the Prospera investment [20] - Adjusted diluted EPS was $4.92, up 28.1% year-over-year [21] - For the full year, adjusted diluted EPS was $19.09, an increase of 11.1% over 2024 [30] Business Line Data and Key Metrics Changes - Infrastructure sales grew 7.2% year-over-year to $819 million, with utility sales increasing by 21% due to strong market conditions and higher volumes [24] - Agriculture sales decreased 19.9% year-over-year to $222.7 million, with an operating loss of $3.3 million in the fourth quarter [27] - Coatings sales increased by 6.3%, supported by healthy infrastructure demand [26] Market Data and Key Metrics Changes - The utility market is experiencing strong demand driven by electrification, AI, and aging infrastructure replacement, with a backlog of $1.5 billion, up 22% from the previous year [10][44] - North American agriculture markets remain challenged, while international sales declined due to economic conditions in Brazil [27][15] - The telecommunications market has normalized, with ongoing investments in wireless and RAN [72] Company Strategy and Development Direction - The company is focused on disciplined resource allocation, safety, and continuous improvement to enhance performance [9] - Investments in technology and aftermarket services are aimed at improving efficiency and customer experience in agriculture [8][16] - The company plans to host an investor day to share deeper insights into its strategy and long-term financial targets [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the utility market's strength, citing multiple demand drivers and a robust backlog [44] - The agriculture segment is expected to see a meaningful recovery in Q1 2026, with a focus on improving margins [45][49] - The company anticipates net sales for 2026 to be between $4.2 billion and $4.4 billion, with diluted EPS projected in the range of $20.50 to $23.50 [35][36] Other Important Information - The company acquired the remaining 40% of ConcealFab, enhancing its technology and product pipeline [12] - A total of $250 million was returned to shareholders, including $198 million through share repurchases [32] Q&A Session Summary Question: Confidence in utility demand and changes in customer investment - Management is confident in the utility market due to strong drivers like electrification and aging infrastructure, supported by a backlog of $1.5 billion [44] Question: Actions to restore agriculture margins and expected recovery timeline - Management expects a meaningful recovery in agriculture margins in Q1 2026, having taken steps to address previous challenges [45][46] Question: Capital spending increase for utility capacity expansions - The company plans to spend $170 million to $200 million in 2026 on utility capacity expansions, driven by durable demand [53][54] Question: Expected agriculture margins for Q1 and full year - Management anticipates low teens margins in Q1, potentially reaching mid-teens by year-end [51] Question: Growth expectations in non-utility infrastructure segments - Management expects growth across all infrastructure segments, including telecom, coatings, and lighting [72]

Financial Data and Key Metrics Changes - GAAP EPS for Q4 was $9.05, including a tax benefit of $78.5 million, or $3.98 per share, primarily due to a U.S. tax deduction related to the Prospera investment [20] - Adjusted diluted EPS was $4.92, up 28.1% year-over-year [21] - Full-year net sales were $4.1 billion, slightly increasing year-over-year, with operating income at $538 million, or 13.1% of revenue [28] Business Line Data and Key Metrics Changes - Infrastructure sales grew 7.2% to $819 million, with utility sales increasing by 21% due to strong market conditions and higher volumes [24] - Agriculture sales decreased 19.9% year-over-year to $222.7 million, with an operating loss of $3.3 million in Q4 [27] - Coatings sales increased by 6.3%, supported by healthy infrastructure demand [26] Market Data and Key Metrics Changes - The utility market is experiencing strong demand driven by electrification, AI, and aging infrastructure, with a backlog of $1.5 billion, up 22% from the previous year [10] - North American agriculture markets remain challenged, while international sales declined due to economic conditions in Brazil [27][15] - The telecommunications market has normalized capital spending, with ongoing demand for 5G and broadband expansion [12] Company Strategy and Development Direction - The company is focused on disciplined resource allocation and continuous improvement to enhance operational performance [9] - Investments in technology and aftermarket services are aimed at improving efficiency and customer experience in agriculture [8] - The company plans to host an investor day to share deeper insights into its strategy and long-term financial targets [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the utility market's strength, citing multiple demand drivers and a robust backlog [46] - The agriculture segment is expected to see a meaningful recovery in Q1 2026, with North America maintaining double-digit operating margins [50][52] - The company anticipates net sales for 2026 to be between $4.2 billion and $4.4 billion, with diluted EPS projected in the range of $20.50 to $23.50 [35] Other Important Information - The company acquired the remaining 40% of ConcealFab, enhancing its technology and product pipeline [12] - Full-year operating cash flows totaled $457 million, with free cash flow at $311 million, representing approximately 90% of net earnings [30] - The company returned $250 million to shareholders through dividends and share repurchases [32] Q&A Session Summary Question: Confidence in utility demand and changes in customer investment - Management is confident in the utility market due to strong drivers like electrification and AI, with a backlog of $1.5 billion supporting the outlook [46] Question: Actions to restore agriculture margins and expected recovery - Management expects a meaningful recovery in agriculture margins in Q1 2026, with steps taken to strengthen the foundation in Brazil [50][52] Question: Expected ag margins for Q1 and full year - Management anticipates low teens for Q1 margins, potentially reaching mid-teens by year-end [58] Question: Increasing capital spending for utility capacity expansions - Capital spending is projected to be $170 million-$200 million in 2026, primarily for utility, driven by durable demand [61] Question: Balance sheet utilization for pricing - The company plans to use its strong balance sheet for growth rather than trading for better pricing [66] Question: Aftermarket share in a soft ag market - The company is enhancing its e-commerce system to improve aftermarket services for farmers [71] Question: Utility growth potential and pricing - Management sees potential upside in utility growth, with expectations of more volume than price contributing to growth in 2026 [82]

Financial Data and Key Metrics Changes - GAAP EPS for Q4 2025 was $9.05, including a tax benefit of $78.5 million, or $3.98 per share, primarily due to a U.S. tax deduction related to the Prospera investment [13] - Adjusted diluted EPS was $4.92, up 28.1% year-over-year [13] - Full-year adjusted diluted EPS was $19.09, an increase of 11.1% over 2024 [19] Business Line Data and Key Metrics Changes - Infrastructure sales for Q4 2025 were $819 million, growing 7.2% year-over-year, with utility sales increasing by 21% [16] - Agriculture sales decreased by 19.9% year-over-year to $222.7 million, with an operating loss of $3.3 million in Q4 [12][18] - Coatings sales increased by 6.3%, supported by healthy infrastructure demand [16] Market Data and Key Metrics Changes - The utility market is experiencing strong demand driven by electrification, AI, and grid expansion, with a backlog of $1.5 billion, up 22% from the previous year [7][27] - North American agriculture markets remain challenged, with international sales declining due to economic conditions in Brazil [10][12] - The telecommunications market has normalized, with ongoing investments in wireless and RAN [42] Company Strategy and Development Direction - The company is focused on disciplined resource allocation, safety, and continuous improvement to enhance performance [6] - Investments in technology and aftermarket services are aimed at improving efficiency and customer experience in agriculture [11] - The company plans to host an investor day to share deeper insights into its strategy and long-term financial targets [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the utility market's strength, citing multiple demand drivers and a robust backlog [27] - The agriculture segment is expected to see a meaningful recovery in Q1 2026, with a focus on restoring margins [28][29] - The company anticipates net sales for 2026 to be between $4.2 billion and $4.4 billion, with diluted EPS projected in the range of $20.50 to $23.50 [22][23] Other Important Information - The company acquired the remaining 40% of ConcealFab, enhancing its technology and product pipeline [9] - Full-year operating cash flows totaled $457 million, with free cash flow representing approximately 90% of net earnings [19] - The company returned $250 million to shareholders through dividends and share repurchases [20] Q&A Session Summary Question: Confidence in utility demand and competitive landscape - Management is confident in the utility market due to strong drivers like electrification and grid expansion, supported by a backlog of $1.5 billion [27] Question: Actions to restore agriculture margins - Management expects a meaningful recovery in agriculture margins in Q1 2026, having taken steps to address previous challenges [28][29] Question: Capital spending for utility capacity expansions - The company plans to increase capital spending to $170 million-$200 million in 2026 to meet durable demand in the utility sector [31][32] Question: Balance sheet utilization for pricing - The company aims to use its strong balance sheet for growth rather than trading price for prepayments, focusing on improving working capital [34][35] Question: Outlook for agriculture project wins - Management anticipates a slower first half for agriculture but is confident in the pipeline of projects for the second half of the year [39]

Q4 and Full-Year 2025 Earnings Presentation February 17, 2026 Valmont® Industries, Inc.© 2026 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 develo ...

Valmont Industries FY Conference Summary Company Overview - **Company**: Valmont Industries (NYSE: VMI) - **Market Cap**: Approximately $8 billion - **Segments**: 75% Infrastructure, 25% Agriculture - **Employee Count**: 11,000 employees across more than 100 countries - **Sales Distribution**: 70% in North America, 30% globally [5][4][3] Key Points and Arguments Growth Strategy and Financial Performance - **Earnings Growth**: Earnings per share (EPS) more than doubled since 2020, with a return on invested capital increasing to 16.4% [3][4] - **Future Projections**: Plans to drive growth of $500 million to $700 million, targeting incremental EPS of $7 to $12, aiming for a total EPS of $25 to $30 [4][19] - **Operating Income**: Despite plateauing net sales, operating income has doubled, indicating strong cost management and productivity [21][20] Infrastructure Market Drivers - **Aging Infrastructure**: Significant need for replacement of aging infrastructure, particularly utility poles and lighting systems, many dating back to the 1950s and 1960s [6][7] - **Energy Transition**: Increased power consumption driven by electrification, AI, and data centers, necessitating infrastructure upgrades [8][9] - **Utility Demand**: Strong demand in the utility sector, with plans to expand capacity to meet this demand [18][26] Agriculture Market Insights - **Cyclical Nature**: Agriculture is currently in a trough, but long-term drivers such as food security and population growth remain strong [12][13] - **Irrigation Solutions**: Valmont's irrigation solutions can significantly increase crop yields, with examples showing up to 280% yield increase for corn [15][16] - **International Growth**: Focus on expanding international sales, particularly in Brazil and regions like the Middle East and Africa, where food security is a priority [17][36] Capital Allocation and Shareholder Returns - **Balanced Approach**: Emphasis on disciplined capital allocation, including a $700 million share buyback program and consistent dividend increases [24][25] - **Investment in Growth**: Approximately $150 million per year in capital expenditures, with $100 million directed towards growth opportunities [23][24] - **M&A Strategy**: Selective and strategic acquisitions aimed at enhancing core competencies, particularly in agriculture and infrastructure [24][37] Operational Efficiency and Market Position - **Competitive Advantage**: Valmont's engineering and manufacturing expertise provide unmatched value in the infrastructure market [4][19] - **Capacity Constraints**: The industry is facing capacity constraints, which Valmont aims to address through investments in its facilities and workforce [20][33] - **Long-term Outlook**: Positive outlook for future growth driven by strong market demand and operational efficiencies [27][31] Additional Important Insights - **Technological Integration**: Use of technology in agriculture to optimize irrigation and improve efficiency [16] - **Market Adaptation**: Adjustments made in response to market conditions, including exiting certain solar markets to focus on Europe [20] - **Customer Relationships**: Strong customer relationships and a broad product portfolio support Valmont's market position [10][11] This summary encapsulates the key insights from the Valmont Industries FY Conference, highlighting the company's strategic focus on growth, infrastructure modernization, and agricultural innovation while maintaining a disciplined approach to capital allocation and shareholder returns.

Financial Data and Key Metrics Changes - Net sales increased by 2.5% year over year to $1,050 million, with operating margin improving by 120 basis points to 13.5% [20][21] - Diluted earnings per share rose by 21.2% to $4.98, marking a notable improvement compared to historical third-quarter performance [5][19] - Gross profit margin increased by 80 basis points to 30.4% [20] Business Line Data and Key Metrics Changes - Infrastructure sales grew by 6.6% to $808.3 million, with utility sales increasing by 12.3% driven by pricing and higher volumes [22] - Agriculture sales decreased by 9% year over year to $241.3 million, primarily due to lower irrigation equipment volumes and economic pressures in Brazil [24] - Telecommunications sales grew by 37%, supported by a quick turn order strategy [22] Market Data and Key Metrics Changes - The utility market is experiencing strong demand driven by data center expansion, manufacturing onshoring, and broader electrification, with transmission CapEx expected to grow at a 9% CAGR through 2029 [10] - The agriculture market in North America remains soft, with the USDA expecting a 2.5% decline in crop receipts for 2025 [13][14] - International sales in agriculture showed double-digit growth year to date, despite challenges in specific regions [16] Company Strategy and Development Direction - The company is focused on simplifying its business, directing resources to high-return initiatives, and enhancing performance through disciplined execution [5][6] - Valmont aims to lead the North American utility market through capacity expansions and operational improvements [6][27] - The strategy includes investing in aftermarket parts and technology to improve margins and support long-term growth [7][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the business, despite near-term macro pressures [17][18] - The company is raising its full-year earnings guidance, projecting net sales of approximately $4.1 billion and adjusted diluted earnings per share in the range of $18.7 to $19.5 [30][31] - Management highlighted the importance of maintaining flexibility in capacity to respond to customer needs while ensuring operational efficiency [44][45] Other Important Information - The company recorded $11 million in bad debt expense in the agriculture segment, impacting operating income and margins [25][83] - Cash and liquidity remain strong, with approximately $226 million in cash and net debt leverage below one times [26] - The company is investing in a project to simplify its legal entity structure to improve efficiency and reduce compliance burdens [29] Q&A Session Summary Question: What are the main opportunities for margin expansion in the infrastructure segment? - Management indicated that margin improvements stem from pricing and cost actions, with utility expansions contributing significantly to operating margins [35][36] Question: Can you discuss the capacity additions in the utility segment? - Management confirmed that capacity additions are tracking above expectations, with plans to exceed the benchmark of $100 million in additional revenue for every $100 million of capacity [39][40] Question: What is the outlook for pricing trends in the utility segment? - Management expects strong pricing trends to continue due to a tight demand-supply balance and healthy margins in the bid market [81] Question: What is driving current demand in the utility segment? - Demand is strong across all product lines, driven by electrification, AI, and grid connectivity, with a well-diversified customer base [73][74] Question: What are the expectations for agriculture margins moving forward? - Management anticipates that while Q4 may be challenging, margins should improve in Q1 as bad debt issues are resolved [84]

Q3 2025 Financial Performance - Net sales reached $1.05 billion, a 2.5% increase compared to the previous year[10] - Operating margin improved by 120 bps to 13.5%[10] - Diluted EPS increased by 21.2% to $4.98[10] Segment Performance - Infrastructure sales increased by 6.6% to $808.3 million, with operating income up by 15.9%[27, 28] - Utility sales grew by 12.3% to $391.9 million, while Telecommunications saw a significant increase of 37.0% to $88.1 million[31] - Agriculture sales decreased by 9.0% to $241.3 million, with operating income down by 19.7%[34, 35] Capital Allocation and Cash Flow - Q3 2025 operating cash flows were $112.5 million[43] - The company invested $42 million in capital expenditures[41] - Share repurchases amounted to $26 million at an average price of $374.33 per share[41] Outlook - Full-year 2025 net sales are projected to be approximately $4.1 billion[46] - Adjusted diluted EPS outlook raised to $18.70 to $19.50[46] - The adjusted effective tax rate is expected to be around 25.0%[46]

Financial Data and Key Metrics Changes - Net sales for the second quarter of 2025 were $1,050 million, a 1% increase year-over-year [20] - Adjusted operating income was $141.4 million, or 13.5% of net sales, a 70 basis point decrease from the prior year [22] - GAAP diluted loss per share was $1.53, while adjusted EPS declined slightly to $4.88 [21][22] Business Line Data and Key Metrics Changes - Infrastructure sales were $765.5 million, similar to last year, with utility sales increasing by 5.4% [23] - Solar sales declined nearly 50%, reflecting lower volumes, while telecommunications saw over 40% growth [23] - Agriculture sales increased by 2.7% to $289.4 million, driven by strong international market performance [24] Market Data and Key Metrics Changes - The infrastructure backlog approached $1.5 billion, indicating strong demand for products [10] - U.S. capital expenditures in utilities are expected to exceed $212 billion in 2025, a 22% increase [10] - International sales in agriculture increased by 22%, particularly in the EMEA region [24] Company Strategy and Development Direction - The company has completed a realignment strategy initiated in July 2023, exiting unprofitable solar segments and focusing on core strengths [7][8] - Future priorities include accelerating growth, driving efficiency, and advancing innovation [8] - The company aims to capture the infrastructure wave, with utility representing about 35% of total revenue [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term market fundamentals driven by megatrends such as energy transition and infrastructure investment [6][14] - The company expects to see revenue and EPS improvements starting in Q4 2025, with a smooth growth trajectory anticipated [53] - Management highlighted a strong production week and positive outlook for the second half of the year [76] Other Important Information - The company reported nonrecurring charges totaling $138.3 million due to realignment actions, with expected annualized savings of $22 million in 2026 [19] - Operating cash flows reached $167.6 million, with a significant reduction in net working capital days [25][26] - The company maintains a balanced capital allocation strategy, investing in growth while returning capital to shareholders [28] Q&A Session Summary Question: Can you discuss the decision to exit the solar business? - Management stated the exit was due to an inability to provide strong returns in a competitive and fragmented market, while maintaining profitable operations in Italy and Brazil [41][42][44] Question: How does the increased tariff on steel impact your outlook? - Management indicated that steel pricing is stable and they have not seen any impact on demand, with a strong value proposition for customers [46][48] Question: What is the visibility for telecom growth for the rest of the year? - Management noted strong growth driven by carrier technology upgrades and expects continued strength into 2026 [70][71] Question: What are the drivers for growth in the lighting and transportation business? - Management acknowledged softer market conditions but emphasized ongoing execution improvements and strong DOT spending as positive indicators [98][100] Question: Can you elaborate on the expected revenue and EPS growth over the next few years? - Management confirmed expectations for low double-digit earnings growth, aligning with their long-term financial model [101][102]