Core Insights - The company is focusing on strategic execution and financial goals in the near term [1] Financial Performance Goals - The management has set clear short-term financial targets, aiming for sales growth of $500 million to $700 million and earnings per share to increase to $25 to $30 [2] Project Advancement - The utility sector is currently the fastest-growing business line for the company, with plans to invest approximately $150 million annually, including $100 million specifically for utility capacity expansion to capitalize on market opportunities from aging infrastructure replacement and energy transition [3] Capital Allocation - The company has authorized a $700 million stock buyback program and established a mechanism for regular dividend increases each first quarter, with a 13% dividend increase in 2025, reflecting management's confidence in cash flow generation and commitment to shareholder returns [4] Industry Conditions - The agricultural business is currently in a cyclical low, with market attention on the company's international market strategies (such as in Brazil, the Middle East, and Africa) and its ability to improve performance as food security demands rise and the industry cycle recovers [5]

Core Viewpoint - Analysts project that Valmont Industries (VMI) will report quarterly earnings of $4.95 per share, reflecting a year-over-year increase of 28.9%, with revenues expected to reach $1.05 billion, a 0.9% increase from the same quarter last year [1] Group 1: Earnings Estimates - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating a reassessment by covering analysts [1] - Changes in earnings estimates are crucial for predicting investor reactions to the stock, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock performance [2] Group 2: Key Metrics Projections - Analysts expect 'Net Sales- Agriculture' to be $230.21 million, indicating a decrease of 16.7% from the prior-year quarter [4] - 'Total Sales- Infrastructure' is projected to be $820.69 million, reflecting an increase of 7.5% from the prior-year quarter [4] - 'Total Sales- Agriculture' is expected to be $227.72 million, indicating a decrease of 18.1% from the prior-year quarter [4] - The consensus for 'Net Sales- Infrastructure' is $818.97 million, suggesting a year-over-year increase of 7.6% [5] Group 3: Stock Performance - Valmont shares have increased by 9% over the past month, compared to a -0.3% change in the Zacks S&P 500 composite [5] - With a Zacks Rank 2 (Buy), VMI is anticipated to outperform the overall market in the near future [5]

Core Viewpoint - Valmont Industries, Inc. will participate in multiple investor conferences in February 2026, showcasing its commitment to engaging with investors and providing updates on its business performance [1]. Group 1: Investor Conferences - Management will participate in the Barclays Industrial Select Conference on February 18, 2026, hosting investor meetings throughout the day [1]. - The company will also take part in Citi's 2026 Global Industrial Tech and Mobility Conference on February 19, 2026, featuring a presentation and fireside chat at 8:50 AM ET [1]. Group 2: Earnings Release - Valmont Industries will release its fourth quarter and full year 2025 financial results before the market opens on February 17, 2026 [1]. Group 3: Dividend Declaration - The Board of Directors has declared a quarterly dividend of $0.68 per share, payable on January 15, 2026, to shareholders of record on December 26, 2025, indicating an annual rate of $2.72 per share [1].

Core Viewpoint - Valmont Industries, Inc. will release its fourth quarter and full year 2025 financial results on February 17, 2026, before market opens [1] Financial Results Announcement - The earnings release will be followed by a webcast and conference call hosted by Avner M. Applbaum, President and CEO, and Thomas Liguori, Executive Vice President and CFO at 8:00 a.m. CT on the same day [2] - Participants can join the live call by dialing +1 877.407.6184 or +1 201.389.0877, or via webcast [3] Replay Information - A replay of the event will be available three hours after the call, accessible via the same link or by telephone at +1 877.660.6853 or +1 201.612.7415, with access code 13756343, until 10:59 p.m. CT on February 24, 2026 [3] Company Overview - Valmont Industries has been a global leader for nearly 80 years, providing products and solutions that support vital infrastructure and enhance agricultural productivity [4] - The company is committed to customer-focused innovation that delivers lasting value [4]

Core Viewpoint - Valmont Industries, Inc. is positioned for growth due to its diverse portfolio and strategic market positioning, making it an attractive investment opportunity [1] Financial Performance - Valmont has experienced a 7.49% increase in stock price over the past 30 days, indicating strong upward momentum and investor confidence [2][6] - The company has a Piotroski Score of 8, reflecting robust financial health and strong fundamentals, which positions it well for future growth [3][6] Growth Potential - Analysts have set a projected price target of $453 for Valmont, indicating an upside potential of approximately 11.13% from current levels, driven by operational strengths and market opportunities [4][6]

Summary of SMid Cap Industrials Conference Call Industry Overview - **Industry Focus**: North America Small and Mid Cap Industrials, particularly in AI infrastructure and related sectors [1][3][4] - **Key Themes**: - Market penetration within untapped Total Addressable Market (TAM) - Broad infrastructure investments - Nuclear power growth and safety - Electrification and automation trends [4][9] Company Insights APi Group (APG) - **Rating**: Overweight - **Current Price**: $37.4 - **Price Target**: $42 (12.1% upside) - **Market Cap**: $15.563 billion - **P/E Ratio**: 30.4x - **Revenue Growth CAGR**: 8% [3][6] Mirion Technologies (MIR) - **Rating**: Overweight - **Current Price**: $24.0 - **Price Target**: $34 (41.5% upside) - **Market Cap**: $5.955 billion - **P/E Ratio**: 57.3x - **Revenue Growth CAGR**: 2% [3][10] Rollins Inc. (ROL) - **Rating**: Overweight - **Current Price**: $59.4 - **Price Target**: $70 (17.9% upside) - **Market Cap**: $28.763 billion - **P/E Ratio**: 59.2x - **Revenue Growth CAGR**: 25% [3][6] Valmont Industries (VMI) - **Rating**: Overweight - **Current Price**: $391.2 - **Price Target**: $480 (22.7% upside) - **Market Cap**: $7.706 billion - **P/E Ratio**: 22.5x - **Revenue Growth CAGR**: 13% [3][13] Gates Industrial Corp (GTES) - **Rating**: Overweight - **Current Price**: $21.5 - **Price Target**: $33 (53.2% upside) - **Market Cap**: $5.563 billion - **P/E Ratio**: 15.5x - **Revenue Growth CAGR**: 7% [3][6] Regal Rexnord (RRX) - **Rating**: Overweight - **Current Price**: $131.0 - **Price Target**: $190 (45.0% upside) - **Market Cap**: $8.696 billion - **P/E Ratio**: 14.4x - **Revenue Growth CAGR**: 5% [3][6] Key Industry Trends - **Data Center Demand**: Expected electricity consumption from data centers to reach ~1,100 TWh by 2028, with a power installed base growing to 242GW by 2028 [22][24] - **Capex Growth**: Anticipated ~55% increase in annual grid investments from 2024 to 2030, driven by rising power consumption and infrastructure needs [31][32] - **Nuclear Power**: Significant partnerships with hyperscalers for nuclear energy supply, indicating a shift towards sustainable energy sources [37][45] Competitive Landscape - **Mirion Technologies**: Leading in nuclear safety technologies with a strong market share in 17 of 19 markets served, focusing on radiation safety and medical applications [52][54] - **Valmont Industries**: Positioned as a global leader in irrigation equipment and infrastructure solutions, benefiting from utility and telecommunications demand [91][96] Financial Metrics - **Average P/E Ratio**: 26.4x across covered companies - **Average Revenue Growth CAGR**: 14% for the sector [3][6] Conclusion - The SMid Cap Industrials sector is poised for growth driven by infrastructure investments, data center demand, and nuclear energy partnerships. Companies like Mirion and Valmont are well-positioned to capitalize on these trends, with strong financial metrics and growth potential.

Core Points - The presentation is hosted by Trent Meyer, an industrial analyst from Baird, focusing on Valmont Industries [1] - Avner Applbaum, President and CEO of Valmont, and Renee Campbell, Senior VP of Investor Relations and Treasurer, are key speakers [1] - The format includes a presentation followed by a Q&A session for attendees [1][2]

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.

Group 1 - The analyst has over 15 years of experience in investing and has provided research services to mid-sized hedge funds with assets under management between $100 million and $500 million [1] - The focus is on medium-term investing in ideas with catalysts to unlock value or short selling in case of downside catalysts [1] - The analyst has a generalist approach but has higher conviction in the industrial, consumer, and technology sectors due to extensive professional experience [1]

Core Viewpoint - Valmont Industries, Inc. is participating in Baird's 55th Annual Global Industrial Conference, indicating its commitment to engaging with investors and showcasing its industry leadership [1] Company Participation - Management, including President and CEO Avner M. Applbaum and Senior Vice President of Investor Relations & Treasurer Renee Campbell, will host investor meetings on November 12 [1]