Group 1 - Valmont Industries reported revenue of $1.04 billion for the quarter ended December 2024, reflecting a 2.1% increase year-over-year [1] - The company's EPS was $3.84, up from $3.18 in the same quarter last year, exceeding the consensus estimate of $3.66 by 4.92% [1] - The reported revenue surpassed the Zacks Consensus Estimate of $1.01 billion, resulting in a surprise of 3.09% [1] Group 2 - Valmont's total sales in the Infrastructure segment were $763.64 million, below the average estimate of $776.31 million [4] - In the Agriculture segment, total sales reached $277.98 million, exceeding the average estimate of $233.80 million [4] - The company's operating income for the Infrastructure segment was $122.04 million, surpassing the average estimate of $111.75 million [4] Group 3 - Over the past month, Valmont's shares have returned -4.6%, contrasting with the Zacks S&P 500 composite's +4.7% change [3] - Valmont currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Performance - Valmont's full-year 2024 net sales reached $4075 billion, a decrease of 24% compared to $41746 billion in 2023[37] - The company's operating margin for the full year 2024 was 129%, an increase of 160 basis points from the 70% GAAP operating margin in 2023[7] - Full-year 2024 diluted EPS was $1719, an increase of 148% compared to $1498 in 2023[37] - Operating cash flows for the full year 2024 were $573 million, an increase of 867% compared to the previous year[7] - In Q4 2024, net sales were $10155 million, a 21% increase compared to $10373 million in Q4 2023[25] - Q4 2024 diluted EPS was $384, a 208% increase compared to $318 in Q4 2023[25] Segment Performance - Infrastructure sales in Q4 2024 increased by 21% to $7636 million from $7483 million in Q4 2023[29] - Agriculture sales in Q4 2024 increased by 23% to $2780 million from $2716 million in Q4 2023[33] - Utility sales in Q4 2024 increased by 59% to $3507 million[30] - Telecommunications sales in Q4 2024 increased by 308% to $741 million[30] - Solar sales in Q4 2024 decreased by 347% to $357 million due to strategic deselection of low-margin projects[30] 2025 Outlook - The company projects net sales between $40 billion and $42 billion for 2025, representing an approximate decrease of 2% to an increase of 3%[40] - Infrastructure net sales are projected to be between $302 billion and $316 billion, representing an increase of approximately 1% to 55%[40] - Agriculture net sales are projected to be between $980 million and $104 billion, representing a decrease of approximately 95% to 35%[40] - Diluted EPS is expected to be between $1720 and $1880, indicating a flat to 9% increase[40]

Financial Data and Key Metrics Changes - For the fourth quarter, net sales reached $1 billion, an increase of 2.1%, while operating income rose nearly 20% to $120 million, resulting in an operating margin of 11.6% [25][26] - Full year net sales decreased by 2.4% to $4.1 billion, but operating income increased by 10.9% to $525 million, with operating margins improving by 160 basis points to 12.9% [30][38] - Earnings per share for the fourth quarter was $3.84, up nearly 21%, and for the full year, it reached a record $17.19, improving nearly 15% [30][38] Business Line Data and Key Metrics Changes - Infrastructure segment sales increased by 2.1% in Q4, with operating income growing 24% to $122 million, driven by utility and telecom growth, while lighting and transportation sales declined by 2.5% [26][27] - Agriculture segment sales rose by 2.3% in Q4, with North America experiencing slight volume declines, but international sales increased nearly 10% [28][29] Market Data and Key Metrics Changes - Utility markets are strong, driven by increased CapEx spending due to energy demand, with Valmont positioned to capitalize on these trends [14][19] - North American agriculture market conditions are stable, but cash receipts for corn and soybeans are projected to decline by 4% to 6% [20][21] Company Strategy and Development Direction - The company aims to optimize capacity to meet growing demand, particularly in the utility market, and is investing in new capabilities and capacity [9][10] - Valmont is focusing on profitable growth, operational excellence, and customer-driven innovation to enhance its market position [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market challenges and achieve long-term sustainable value creation [13][39] - The outlook for 2025 includes projected net sales between $4 billion and $4.2 billion, with diluted earnings per share expected to grow by 5% at the midpoint [31][32] Other Important Information - The company plans to allocate 50% of operating cash flows towards growth investments and 50% to shareholder returns, with a new $700 million buyback authorization [35][36] - A 13% increase in the quarterly dividend was approved, reflecting the company's commitment to delivering shareholder value [38] Q&A Session Summary Question: Can you discuss the agriculture market's performance and the impact of foreign exchange? - Management noted that both North America and Brazil face challenges due to corn and soy prices, but there is strong activity in the North Africa EMEA region [42] Question: What are the expectations for operating margins in 2025? - Management indicated that there are opportunities for margin improvement through operational efficiencies and cost management, aiming for mid-teens margins in the long term [45][46] Question: How are tariffs factored into the guidance? - The company has accounted for the impact of tariffs in its guidance, focusing on pricing strategies and operational adjustments to mitigate costs [54][60] Question: Can you elaborate on the capital allocation priorities? - The company plans to increase CapEx to approximately $150 million, focusing on capacity expansion and efficiency improvements [62][64] Question: What is the outlook for the utility segment and new capabilities? - Management highlighted strong demand in the utility sector, particularly for substations, and ongoing innovation to enhance product offerings [81][96]

Core Viewpoint - Valmont Industries reported quarterly earnings of $3.84 per share, exceeding the Zacks Consensus Estimate of $3.66 per share, and showing an increase from $3.18 per share a year ago, indicating a positive earnings surprise of 4.92% [1][2] Financial Performance - The company achieved revenues of $1.04 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.09% and showing a slight increase from $1.02 billion year-over-year [2] - Over the last four quarters, Valmont has consistently surpassed consensus EPS estimates and topped revenue estimates twice [2] Stock Performance - Valmont shares have increased approximately 4.6% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $4.08 on revenues of $1.02 billion, while for the current fiscal year, the estimate is $17.96 on revenues of $4.15 billion [7] - The trend of estimate revisions for Valmont is favorable, which is a positive indicator for future stock performance [6] Industry Context - Valmont operates within the Steel - Pipe and Tube industry, which is currently ranked in the top 5% of over 250 Zacks industries, suggesting a strong industry outlook [8]

Financial Performance - Full-Year revenue reached $4.08 billion, a decrease of 2.4% compared to $4.17 billion in the previous year[9] - Fourth Quarter net sales increased by 2.1% to $1.04 billion, up from $1.02 billion[5] - Operating income for the Fourth Quarter rose to $120.0 million, representing 11.6% of net sales, compared to $63.5 million or 6.3% of net sales in the prior year[5] - Diluted earnings per share (EPS) for the Fourth Quarter increased to $3.84, a significant rise of 178.3% from $1.38 in the same quarter last year[5] - Operating cash flows surged by 66.9% to $193.4 million, compared to $115.9 million in the previous year[5] - Net sales for the thirteen weeks ended December 28, 2024, were $1,037,294, an increase from $1,015,526 for the same period in 2023, representing a growth of 2.7%[25] - Gross profit for the thirteen weeks ended December 28, 2024, was $313,021, compared to $282,941 in the prior year, reflecting a 10.6% increase[25] - Operating income for the thirteen weeks ended December 28, 2024, reached $119,988, significantly higher than $63,548 in the same quarter of 2023, marking an increase of 88.6%[25] - Earnings per share (EPS) for the thirteen weeks ended December 28, 2024, were $3.88, compared to $1.39 for the same period in 2023, indicating a substantial increase of 179.1%[25] - The company reported a net earnings increase to $78,435 for the thirteen weeks ended December 28, 2024, compared to $34,084 in the same quarter of 2023, a growth of 130.0%[25] - Net earnings for fiscal 2024 were $350,624 thousand, significantly up from $144,912 thousand in fiscal 2023, indicating a year-over-year increase of approximately 142.5%[36] Segment Performance - Infrastructure segment sales grew by 2.1% to $763.6 million, while Agriculture segment sales increased by 2.3% to $278.0 million[8][12] - The Infrastructure segment reported net sales of $760,848 for the thirteen weeks ended December 28, 2024, up from $745,713 in the prior year, a growth of 2.3%[27] - The Agriculture segment's net sales were $276,446 for the thirteen weeks ended December 28, 2024, compared to $269,813 in the same period of 2023, reflecting a 2.4% increase[27] - Year-over-year net sales change shows a decline of 1.8% in Infrastructure and an increase of 5.4% in Agriculture, resulting in a consolidated change of (3.4)% to 3.1%[58] Future Outlook - The company projects 2025 net sales between $4.0 billion and $4.2 billion, with Agriculture net sales expected to decline by approximately 9.5% to 3.5%[16] - The company forecasts a net sales outlook midpoint of $4,100 million for fiscal 2025, reflecting an expected increase of about 0.6% compared to fiscal 2024[38] - Fiscal 2025 net sales outlook ranges from $4,000,000 to $4,200,000, with a low end of $3,025,000 in Infrastructure and $975,000 in Agriculture[58] Capital and Investment - Capital expenditures for 2025 are estimated to be between $140 million and $160 million[16] - The company achieved a return on invested capital of 16.4%[9] - Return on invested capital stands at 16.4%, calculated from an average invested capital of $2,396,436[60] - Average invested capital decreased from $2,513,477 to $2,396,436 during the reporting period[60] Cash Flow and Assets - The company reported a net cash flow from operating activities of $572,678 thousand for fiscal 2024, up from $306,775 thousand in fiscal 2023, indicating an increase of approximately 86.6%[36] - Cash and cash equivalents decreased to $164,315 thousand in fiscal 2024 from $203,041 thousand in fiscal 2023, a decline of about 19.1%[34] - Total current assets decreased from $1,787,629 thousand in fiscal 2023 to $1,683,392 thousand in fiscal 2024, a reduction of approximately 5.8%[34] - The company’s total assets decreased from $3,477,448 thousand in fiscal 2023 to $3,329,972 thousand in fiscal 2024, a reduction of approximately 4.3%[34] Liabilities and Equity - Total liabilities decreased from $2,060,376 thousand in fiscal 2023 to $1,736,359 thousand in fiscal 2024, a decline of about 15.7%[34] - The leverage ratio as of December 28, 2024, was 0.99, indicating a strong balance sheet position[52] Dividends and Shareholder Returns - Cash dividends per share remained stable at $0.60 for both the thirteen weeks ended December 28, 2024, and December 30, 2023[25] - Diluted earnings per share for fiscal 2024 were $17.19, with an anticipated increase to $18.00 for fiscal 2025, representing a growth of approximately 4.7%[38] Miscellaneous - Moody's upgraded the company's credit rating to Baa2, reflecting improved financial performance[5] - The company incurred realignment charges of $31,030 thousand for the thirteen weeks ended December 30, 2023, impacting future stock compensation[47] - Impairment of goodwill and other intangible assets amounted to $140,844 thousand for the fifty-two weeks ended December 30, 2023[46] - The company has ceased considering historical adjustments related to Prospera as relevant for understanding the Agriculture segment's performance moving forward[47] - The effective tax rate for the period is reported at 25.2%, leading to an after-tax operating income of $392,534[60] - The impact of foreign exchange on net sales is estimated at $60,000 for both low and high ends in Infrastructure and Agriculture[58] - Net sales in constant currency show a year-over-year change of (0.4)% in Infrastructure and 6.6% in Agriculture, indicating a consolidated change of (1.1)% to 4.5%[58]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Valmont Industries despite lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Valmont is expected to report quarterly earnings of $3.66 per share, reflecting a year-over-year increase of +15.1%, while revenues are projected to be $1.01 billion, a decrease of 0.9% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their outlook for the company [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Valmont is lower than the consensus estimate, resulting in an Earnings ESP of -0.27%, suggesting a bearish sentiment among analysts [10]. Historical Performance - Valmont has consistently beaten consensus EPS estimates in the past four quarters, with a notable surprise of +3.79% in the last reported quarter [12][13]. Zacks Rank - The company currently holds a Zacks Rank of 2 (Buy), but the negative Earnings ESP makes it challenging to predict a beat against the consensus EPS estimate [11]. Conclusion - While Valmont may not be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [16].

Water is the lifeblood of our planet, and it is increasingly under pressure. Growing populations, expanding industrial activities, and the looming effects of climate change are converging to create a global water scarcity crisis. This growing challenge has placed a spotlight on the critical role of water technology in ensuring sustainable water management for the future. For investors, this presents a compelling opportunity. This fledgling sector offers a chance to invest in companies at the forefront of in ...

Core Insights - Valmont Industries reported a third-quarter profit of $83 million or $4.11 per share, a significant improvement from a loss of $49 million or $2.34 per share in the same quarter last year, beating the Zacks Consensus Estimate of $3.96 [2] - The company's revenues for the quarter were $1,020.2 million, down 2.9% year over year, but still surpassing the Zacks Consensus Estimate of $1,019.1 million [3] Segment Review - The infrastructure segment's revenues increased by approximately 0.4% year over year to $756.4 million, although it fell short of the estimate of $759.3 million, driven by a 15% increase in utility sales and rising telecommunications volumes [4] - The agriculture segment reported revenues of $263.8 million, down 11.1% year over year, but exceeded the estimate of $261.8 million, with international sales declining significantly in Brazil due to lower grain prices [5] Financials - Valmont's operating cash flows totaled $225.1 million, with cash and cash equivalents at $200.5 million at the end of the third quarter [6] - The company paid $12.1 million in dividends and repurchased $40.1 million of its stock, maintaining $81 million available for share repurchase [6] 2024 Outlook - Valmont anticipates a net sales decline of 1.5-3.5% and expects earnings per share to be in the range of $16.50 to $17.30, with capital expenditures projected between $85 million and $95 million [7] Estimates Movement - Estimates for Valmont have trended downward over the past month, indicating a shift in expectations [8][10] VGM Scores - Valmont holds a strong Growth Score of A but has a lower Momentum Score of C, resulting in an aggregate VGM Score of B, placing it in the middle 20% for the investment strategy [9]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Valmont Industries (VMI) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 20.7%, with a projected EPS growth of 13.5% this year, significantly outperforming the industry average of -10.3% [4] Group 2: Financial Metrics - Valmont's year-over-year cash flow growth is 7.7%, surpassing the industry average of 6.8% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 9.1%, compared to the industry average of 6.8% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Valmont, with the Zacks Consensus Estimate for the current year increasing by 0.6% over the past month [7] - Valmont has achieved a Growth Score of A and a Zacks Rank of 2 due to these positive earnings estimate revisions [8]

Group 1 - Valmont Industries (NYSE: VMI) is expected to see positive revenue growth next year, driven by strong demand in the Infrastructure segment [1] - The Infrastructure segment is benefiting from healthy capital expenditures in Utility and Telecom sectors, as well as IIJA funding supporting the Transportation end market [1] - There is a noted reversal in trends that is contributing to the anticipated growth in revenue for Valmont Industries [1]