VALMONT INDUSTRIES INC Q2 FY2025 earnings call

• Delivered solid operational results with modest sales growth in utility, telecom, and intl agriculture. - Completed realignment work, exiting unprofitable solar, downsizing APAC access systems, integrating manufacturing into segments. - Aligned with secular trends like energy transition and infrastructure investment. - Focused on infrastructure wave, ag tech initiatives (e-commerce, Accents 365), and resource allocation for efficiency.

Infrastructure: Sales were $765.5 million, similar to prior year. Utility grew 5.4% due to higher volumes and pricing, telecom saw over 40% sales growth, solar declined nearly 50%. Adjusted operating income was $124.6 million, operating margin 16.3% of net sales. Agriculture: Sales were $289.4 million, up 2.7%. International sales up 22% led by EMEA, North America down due to storm-related and market softness. Adjusted operating income was $44.8 million, 15.6% of net sales.

• Net sales projected in range of $4 billion to $4.2 billion. - Raised full-year adjusted diluted earnings per share expectations to $17.50 to $19.50. - Sees $500 to $700 million in revenue growth and $7 to $12 in additional EPS over next 3-4 years.

• Uncertainty in solar market exit due to regulatory and competitive factors. - Tariffs and international market volatility impacting business. - Softness in ag market and execution risks in lighting/transportation segments.

Q: Jean Velez asked about T&D growth and aspects driving it.

A: Avner Applbaum said T&D growth is supported by megatrends, strength in transmission, distribution, substation, with $1.5 billion backlog and strong production week.

Q: Jon Braatz asked about SG&A cost increase and North American irrigation realignment.

A: Tom Liguori said SG&A had one-time items, Q3/Q4 expected mid-$170M range, realignment costs for North American irrigation were in Q2 financials.

Q: Brian Drab asked about infrastructure demand signs and lighting/transportation outlook.

A: Avner Applbaum cited customer discussions, $1.5 billion backlog, and AI piloting for infrastructure; said lighting/transportation had softer conditions but actions taken for improvement.