| Imagery Source: Valmont Industries, Inc |
| Information Source: Valmont Industries, Inc |
| Valmont Industries, Inc. (NYSE: VMI), a global leader that provides products and solutions to support vital infrastructure and advance agricultural productivity, today reported financial results for the second quarter ended June 28, 2025. |
| President and Chief Executive Officer Avner M. Applbaum commented, “We delivered a solid quarter operationally, with continued strength in Utility, Telecommunications, and International Agriculture. Our teams executed well, driving volume growth in key markets while advancing our long-term strategy. We remain focused on our key value drivers: capturing infrastructure demand by expanding Utility capacity and throughput, positioning our Agriculture segment for long-term growth through international expansion and technology solutions, and maintaining disciplined capital and resource allocation. |
| This quarter, we completed the realignment work that we began when I became CEO in July 2023. We took decisive steps to streamline the organisation and refine our product portfolio, resulting in one-time charges that contributed to a GAAP loss for the quarter. These were purposeful changes designed to increase agility, bring operations closer to our commercial teams, and sharpen our focus on higher-return growth opportunities, improving time to market and customer responsiveness. With these changes, we’re operating with greater clarity and speed. Looking ahead, we’re now focused on scaling innovation, investing in growth, and driving greater efficiency across the business. I’m incredibly proud of how our teams continue to live our core values and deliver meaningful results for our shareholders.” |
| Second Quarter 2025 Highlights (all metrics compared to Second Quarter 2024 unless otherwise noted) |
- Net sales increased 1.0% to $1.05 billion, compared to $1.04 billion; sales growth in Utility, Telecommunications, and International Agriculture was offset by lower sales in Solar and North America Agriculture
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- Operating income of $29.3 million or 2.8% of net sales ($141.4 million or 13.5% adjusted), compared to $147.3 million or 14.2% of net sales
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- Operating cash flows increased 28.1% to $167.6 million, compared to $130.8 million
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- The Company recorded one-time charges of $112.1 million, consisting of:
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- Non-cash long-lived asset impairment charges of $91.3 million, including:
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- $71.1 million for goodwill and intangibles related to the Solar and Access Systems businesses
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- $20.2 million for other assets that will no longer be utilised
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- Cash realignment charges of $9.8 million, primarily severance-related
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- Other non-recurring charges of $10.9 million, primarily costs to fulfil contractually required payments for system licenses no longer needed
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- Expected benefit from lower SG&A costs of $8.0 million in the second half of 2025, and $22.0 million on an annualised basis in 2026, as a result of the above one-time charges
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- Diluted earnings (loss) per share (“EPS”) of ($1.53), or $4.88 adjusted, compared to $4.91
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- Cash and cash equivalents were $208.5 million, and the net leverage ratio was ~1.0x
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- Returned $113.6 million to shareholders through $100.0 million in share repurchases and $13.6 million in dividends
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- Invested $32.0 million in capital expenditures to support strategic growth initiatives
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- Increased backlog by $139.2 million or 9.7% since year-end 2024, driven primarily by continued strength in Infrastructure demand
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- Raising full-year 2025 adjusted diluted EPS outlook to a range of $17.50 to $19.50
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| Second Quarter 2025 Segment Review (all metrics compared to Second Quarter 2024 unless otherwise noted) |
| Infrastructure (72.6% of Net Sales) |
| Products and solutions to serve the infrastructure markets of utility, lighting, transportation, telecommunications, and solar, along with coatings services to protect metal products |
| Sales of $765.5 million were similar to prior-year sales of $762.7 million. |
| Utility sales grew due to higher volumes and pricing actions that more than offset the impact of lower steel prices. Telecommunications sales increased meaningfully, supported by our strategic positioning within carrier capex spending plans. Solar sales declined significantly, reflecting lower volumes. Lower Lighting & Transportation and Coatings sales were primarily driven by softer demand in international markets. |
| Operating income was $25.9 million or 3.4% of net sales ($124.6 million or 16.3% adjusted), compared to $133.6 million or 17.6% of net sales. An $89.4 million impairment of long-lived assets, including goodwill, led to lower GAAP operating income. Adjusted operating income and margins were lower, primarily due to lower international profitability from lower sales. |
| Agriculture (27.4% of Net Sales)Centre |
| R pivot and linear irrigation equipment components for agricultural markets, including aftermarket parts and tubular products, and advanced technology solutions for precision agriculture |
| Sales increased 2.7% to $289.4 million, compared to $281.7 million. |
| In North America, irrigation equipment sales declined due to meaningfully lower volumes of storm-related replacement sales compared to the prior year, along with continued agriculture market softness. International sales increased significantly, driven by strong growth in the Europe, Middle East, and Africa (“EMEA”) region and higher volumes in Brazil, supported by a stabilising market environment there. |
| Operating income was $36.1 million or 12.5% of net sales ($44.8 million or 15.6% adjusted), compared to $40.0 million or 14.3% of net sales. A $2.9 million organisational realignment charge, and $5.9 million in one-time charges related to the ag solar business led to lower GAAP operating income. Adjusted operating income and margins were higher due to improved profitability in the EMEA region and lower SG&A in North America. |
| Raising Full-Year 2025 Financial Outlook and Updating Key Assumptions |
| Following the realignment actions taken this quarter and the resulting impact on our cost structure and portfolio, the Company is updating its full-year 2025 adjusted diluted earnings per share outlook and updating key assumptions for the year. |
| Key Assumptions, Including Current Tariff Considerations |
- Steel cost assumptions are aligned with futures markets as of July 21, 2025
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- The Company’s fiscal 2025 outlook reflects its current plans and actions underway to mitigate the direct impacts of tariffs as of July 18, 2025; the Company believes these mitigation plans will enable it to remain profit neutral on a dollar basis in fiscal 2025
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| For the full document, click the link below |
| Valmont Industries, Inc |
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