VALMONT INDUSTRIES INC Q1 FY2026 earnings call

• Delivered strong start to the year with sales growth, record earnings per share, and progress against strategic priorities. - Infrastructure performing well with North America utility having 27% sales growth due to capacity expansion plans. - Agriculture grew in North America due to favorable pricing, but international markets had challenges. - Prioritizing high-value offerings, strengthening core businesses, and improving operational performance. - Focused on supporting employees in challenging environments like the Middle East.

Net sales were 1.03 billion, up 6.2% year over year. Infrastructure sales were $806 million, up 14.1% year over year. North America utility sales increased 27.4% due to pricing and higher volumes. North America Coatings increased 13.3% supported by infrastructure and data center demand. North America lighting and transportation had mixed conditions. Agriculture sales decreased 15.1% year over year, but North America agriculture increased 1.5% and operating margin improved to 14.8%. Infrastructure operating income was $143 million, 17.8% of net sales. Agriculture operating margin was 14.8%.

• Increased full-year EPS guidance. Net sales projected between $4.2 to $4.4 billion. Infrastructure sales projected between $3.3 to $3.45 billion, agriculture sales between 0.9 to 0.95 billion. - Diluted earnings per share projected in range of $21.50 to $23.50. - Mitigating Section 232 tariff exposure by using primary U.S. melt and poured steel, aiming to be tariff, cost, profit neutral. - Investing $170 to $200 million this year, mostly in utility for capacity expansion.

• Geopolitical risks in the Middle East impacting international operations. - Fluctuations in raw material prices. - Changes in industry supply chain conditions with extended lead times. - Impact of tariffs and government policy changes on costs and pricing.

Q: Question on 232 tariffs and mitigation.

A: Welcomed clarity on April 6th regulations, maximizing U.S. poured and melted steel, aiming to be tariff, cost, profit neutral.

Q: On U.S. utility business productivity from CapEx.

A: Capital is one lever, also operational and commercial capacity improvements, seeing more than one for one return on CapEx.

Q: On backlog and utility market.

A: Backlog relatively flat sequentially but up year-over-year, utility market has unprecedented demand with U.S. utilities planning $1.4 trillion investment through 2030.

Q: On ag and fertilizer prices.

A: Rising fertilizer prices pressure farmers' profitability, challenging environment in 2026, focused on driving farmer profitability through aftermarket and technology.

Q: On North America utility pricing and competitive landscape.

A: Strong market environment, leader in market with high market share, disciplined in value pricing.

Q: On ag margins and sales headwinds.

A: Ag margins 14.8% driven by pricing, product and regional mix, seasonality and Dubai facility fixed costs will pressure margins in rest of year.

Q: On Section 232 tariff sizing for utility business.

A: Approximately 10% tariff, making rapid progress to maximize U.S. melt and pour steel to reduce exposure, general range of incremental costs roughly right.

Q: On utility price vs volume breakdown.

A: Q1 27% growth driven primarily by price, with volume also a contributor, balance of price and volume expected for 2026, pricing to market considering material and logistics escalations