Valmont Industries, Inc. · NYSE:VMI
Valmont Industries — Q1 2025 Earnings Presentation
21 slides from Valmont Industries's earnings presentation, Apr 22, 2025
Slide 1: Q1 2025 Earnings Presentation
Q1 2025 Earnings Presentation April 22, 2025 © 2025 Valmont® Industries, Inc.
Slide 2: Disclosure Regarding Forward-Looking Statements
Disclosure Regarding Forward-Looking Statements These slides (and the accompanying oral discussion) contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions made by management, considering its experience
Slide 3: CEO Opening Comments
CEO Opening Comments Avner Applbaum, President & CEO 3 April 22, 2025 | Valmont Industries, Inc.
Slide 4: Q1 2025 Key Highlights
Q1 2025 Key Highlights Demand in Most End Markets Remains Resilient NET SALES − Aligned with megatrends such as the energy transition and infrastructure wave $969.3 MILLION − Managing through disruptions to capture long-term growth -0.9% − A growing backlog of ~$1.5 billion Disciplined Execution in
Slide 5: 2025 Critical Objectives to Build on Past Success
2025 Critical Objectives to Build on Past Success • Investing in new capabilities and capacity across our footprint to meet growing demand Catch the • Capitalizing on the largest opportunities in our Utility business Infrastructure Wave • Q1 Utility capacity investments include Texas, Oklahoma, Flor
Slide 6: Infrastructure Market Drivers
Infrastructure Market Drivers Growing segment backlog, supported by positive long-term growth drivers Near-Term Demand Global Megatrends • Utility: Healthy volume growth on rising energy consumption and need to replace aging infrastructure; value-based pricing and commercial excellence driving perfo
Slide 7: Agriculture Market Drivers
Agriculture Market Drivers Outlook for sustained long-term growth remains robust, despite short-term demand headwinds Near-Term Demand Global Megatrends • North America: Market conditions remain challenged due to expected declines in corn and soybean prices; trade policy uncertainty adds to cautious
Slide 8: Financial Results and Outlook
Financial Results and Outlook Tom Liguori, EVP & CFO 8 April 22, 2025 | Valmont Industries, Inc.
Slide 9: Q1 2025 Financial Summary
Q1 2025 Financial Summary • Net sales decreased; sales growth in Telecom, Utility, and Dollars in millions, except per-share amounts International Agriculture was offset by lower sales in Solar and North America Agriculture • Gross margin of 30% Net Sales Operating Income Diluted EPS decreased 130 b
Slide 10: Q1 2025 Results | Infrastructure
Q1 2025 Results | Infrastructure Dollars in millions Sales Operating Income • Utility: growth was driven by higher -2.4% -0.6% volumes and pricing; excluding concrete, sales grew 8% $723.6 $706.2 $117.9 $117.2 • L&T: sales declined; softness in international markets • Coatings: sales declined; North
Slide 11: Q1 2025 Results | Agriculture
Q1 2025 Results | Agriculture Dollars in millions Sales Operating Income +3.3% -11.6% $258.7 $267.3 • North America: volumes lower due $41.0 to continued market softness; $36.2 average irrigation selling prices were lower • International: sales increased significantly led by EMEA strength 15.9% 13.6
Slide 12: Capital Allocation Priorities
Capital Allocation Priorities • Invested $30.3M in Q1; anticipated 2025 CapEx to be $140-$160M, including growth capital of ~$100M ~50% Growing Our Cash Flow & Liquidity Capital Expenditures • Investments to catch the infrastructure wave and support growth Business • Cash balance of $184.4 million;
Slide 13: Reaffirming 2025 Full-Year Financial Outlook
Reaffirming 2025 Full-Year Financial Outlook 2025 Outlook Tariff Mitigation Actions • Expect mitigation actions to enable cost-neutral with respect to tariffs on a Net Sales $4.0B to $4.2B dollar basis in fiscal 2025 • Tariff mitigation actions include: Infrastructure Net Sales $3.02B to $3.16B − Pr
Slide 14: Confident in the Team and Our Long-Term Strategy
Confident in the Team and Our Long-Term Strategy • Demand in Most End Markets Remains Resilient • Disciplined Execution in a Dynamic Environment • Advancing Growth Initiatives & Investing in Capacity • Managing Tariffs • Driving Cost Efficiencies • Strong Cash Flows with Disciplined Capital Allocati
Slide 15: Q&A
Q&A 15 April 22, 2025 | Valmont Industries, Inc.
Slide 16: Appendix
Appendix 16 April 22, 2025 | Valmont Industries, Inc.
Slide 17: Committed to Long-Term Financial Targets
Committed to Long-Term Financial Targets Net Sales Operating Return on Invested Net Earnings Growth1 Margin Capital FCF Conversion Approaching MSD+ Mid-Teens High-Teens 100% • Driven by markets • Driven by strategic • Focused on a • Focused on managing with a positive growth pricing aligned discipli
Slide 18: Steel Material Index Trends
Steel Material Index Trends AMM Steel Material Index National Mills Carbon Grade Cut to Length and Coiled / Hot Rolled Plate Average • Steel index deflation impacted 2020 through 2025 YTD revenues in 2024 • Utility is most affected by steel cost changes due to the contractual pricing mechanisms and
Slide 19: Utility Industry Capital Expenditures
Utility Industry Capital Expenditures Chart represents total company spending of U.S. Investor-Owned Electric Utilities, consolidated at the parent or appropriate holding company. At the industry level, CapEx tends to be overestimated for the current, or first, year’s projection and underestimated f
Slide 20: U.S. Net Cash Farm Income by Year
U.S. Net Cash Farm Income by Year Source: USDA 20 April 22, 2025 | Valmont Industries, Inc. Updated: February 6, 2025
Slide 21: Calculation of Adjusted EBITDA and Leverage Ratio
Calculation of Adjusted EBITDA and Leverage Ratio Dollars in thousands Certain of our debt agreements contain covenants that require us to maintain certain coverage ratios. Our Debt to Adjusted EBITDA may not exceed 3.5X Adjusted EBITDA (or 3.75X Adjusted EBITDA after certain material acquisitions)