VMI - Earnings call 3 2022 | Valmont Industries, Inc.

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Operator

Greetings, and welcome to Valmont Industries, Inc.

Third Quarter 2020 Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Renee Campbell, Senior Vice President, Investor Relations and Treasurer. Ms. Campbell, you may begin.

Renee Campbell

morning. good and you, Thank Welcome to Earnings Quarter Industries Third XXXX Call. Valmont and President today President Executive Officer; Vice are me Controller. and and and Francis, Corporate President Steve Financial Vice With Executive Kaniewski, Chief Senior Applbaum, Officer; Chief Tim Avner

with a will indications indications and quarter and markets, followed summary of business provide remarks financial for performance strategy. preliminary Avner closing our This results, provide our XXXX This on and commenting XXXX Steve. morning, and will for Q&A. brief by Steve our outlook our long-term third from will review be

webcast is presentation at later Please note or of on A available A today's live webcast for this morning. page investors be read the disclosure website valmont.com. of call available and the Slide our is full the on the replay statements, accompany that on from is today's download be will to X will end to today's on this our will forward-looking in discussion and call applies which call. outlined of at the presentation subject

would the to Chief President and Kaniewski. call Officer, like turn Steve I our Executive over to now

Stephen Kaniewski

Carolinas. X Thank Valmont our start us. by I the Good of On like for of Florida entire caused by to devastation the you, the month you offering joining impacted behalf facilities morning, last everyone, and to our by which today's Renee. impacted call would thoughts team, thank those and Ian Hurricane in

this loss of regions, people team affected by historic and in the our the from members, witnessed swift are We and wish recovery storm. a we families saddened life destruction have their and the

natural we other invest In grid and helping improving grid as the the of have a industry and infrastructure a recent a be by recovery faster. normalcy grid very that withstand tragic region in resiliency. Ian, case the is catastrophes. The more to job considering why speak place, lot a about and intensity were to serves return services hardening structures has better continue resilient This restored efforts the electricity companies of invested quickly, when and along will of Utilities in communication which reminder to as infrastructure having done spent storm allowing storms. to tremendous

However, there yet hardening susceptible in to of natural a done, significant amount disasters. still is grid areas be to specifically

As innovate provide work an solutions, to globally we proud with to leader, industry improve our we customers continue of resiliency to to better the grid. are the and

investments elevated and X products. reflecting third preferences all Slide volatility, Turning and Demand remains despite of macroeconomic our the quarter. in to ongoing of a infrastructure across for global and end markets recap our agriculture customers' our our

quarter per We achieved of sales values. strong outstanding live share demand of out the they driven our and record core entire and Valmont earnings the as team another by contributions

more solutions technology-driven on focused our customers have businesses operate Our sustainably. help to

am proud of what I were very to able we quarter. accomplish this

wage, and our in offerings and staying by addition are flexibility remain expenses health specifically responsiveness customer energy strategies the added to In meet as insurance. we team's our we ensure and ahead of our as to pricing capturing value administration such distinct as to well inflation, care full demand, disciplined

support we complete important on cost, engineered It's in lean and but variations for to to our adjust simply highly customers. pricing the for into superior ship note is solutions, our not to to that value also through approach time, offer unmatched our

quarter eighth of by sales third XX% of results. grew quarter resulting in growth. Infrastructure year-over-year, sales of mid-single-digit $XXX.X a Sales the pricing billion consecutive to and and renewable drive aging and continue ongoing Investments strength products broad-based for energy the upgrades $X.X of with year-over-year double-digit all year-over-year across volume XX% growth, grid combination to million to sustainable globally Moving sources market XG strong our sales and grew and lines. infrastructure product resiliency solutions. driven build-outs

Additionally, during are expect appropriated believe other we to along the Investment from for our Reduction government be with Inflation Infrastructure long-term Act funding tailwinds Act and We global Jobs XXXX, these markets. deployed, businesses. and being spending is the initiatives across

$XXX.X of strong XX% combination grew sentiment global along food farmer year-over-year. is favorable, investments. irrigation drought increased sales of conditions demand widespread Agriculture technology encouraging The and keeping million production for with

have we quarter. Ag seasonality successfully to the our also pronounced of market had farmer as As quarter fundamentals from less year we expected, and third second backlog the typical impact delivered was positive this project persisting on stock sentiment in pressure crop commodity conditions expected the Severe are notably levels, elevated. Middle drought pipeline, and keeping East global and yields global many robust putting prices our across markets, Africa. key contributed

X. Slide to Turning

We the markets have with organizations. all expanding productive technology X using executing focus, strategic disruption on our of we excellence pillars across ESG our drive operational been and to serve, pursuing

We build benefits more are seeing our of the approach as strategic business. we resilient a

XX% grown ag tech to an year we for full on of attractive example, our exceed million. have approximately over $XXX an sales year, last year-to-date, As increase sales to $XX million track with margins

Another example opportunities long-term on end trends. and with favorable demand focus global in is our high-growth markets

this organic done in ConcealFab recent growth strategic We and through of acquisitions investments the market. telecommunications in purchase have our targeted such as

capital On framework. and Slide of X solutions our is and example a testament an our disciplined to allocation strategy sustainable

and into have as investment. in in XXXX entrance Italia acquisition acquisition our markets. Over infrastructure successfully our market later we Solar past The utility both Valmont and grown Convert solar solar of the marked through and four and agriculture years, presence, entered rebranded

projects. than generation have time, attractive focus large-scale risk distributed solidified profile, material that margin offer strategic we Over faster less raw more on a utility our projects and completion

North drive additional time, our are helps key been have we barriers legislation markets favorable entry At demand. have and pronounced presence successfully move Our Brazil forward. Europe, that of U.S. the we expanding to Africa growth more and the as same in international and targeting

sales we continued solar been acquired provide anticipate robust Agriculture since Solbras, nearly their growth approximately within majority and in advantages competitive stake supply relationship to have the dealer Valley expect world-class a to our utilities. with capabilities services million we solutions. enhanced are our our in a double XXXX. In integrated deep global and and segment, Our with chain XXXX, global network year, ag by manufacturing of $XXX developers This to

With sole for market, we that to our unique, the network unparalleled has growth investment, scale than which allowing offers became this enjoy tremendous our distributed the in typically farmers much partner be or energy produce applications. underserved generation. Also global are meet support potential, goals, and us the of projects Scope world, region or alternative Solbras the of variety player to in utility smaller emission power generation. choice dealer a every for positioning is savings credits the grower looking Whether and X to tax realize of service

are to there dealers Valley help. Our

growth business. continued strong expect We in this

year. Since exceed entering the in ag $XXX are solar on the we market, by of track this sales end to million

with We continue. are of both demand and the solar sources as very performance meaningful teams of renewable pleased execution expected to is energy

the well the the momentum on building half from first performed during we quarter, year. our third summary, In of

on our best history robust and values We our demonstrating to service. customer the Demand infrastructure full core agricultural of our share company. outstanding products is our are track while per remains for deliver the year providing earnings in and team

and the external and over call review our third deliver helping for focus we Our excellence on are customers that, to XXXX path is to I outlook. even the and confidence shareholders Avner to our to our that operational us quarter right challenges, updated to in now navigate reinforcing turn financial beyond. With value the greater on will

Avner Applbaum

Steve, you, Thank morning, good and everyone.

Slide in to comments quarter Turning focus adjusted the G results in third appendix. press outlined X the as and My results. presentation release disclosure on will the and Reg in the

to income, in higher offset million XX% higher $XXX.X earnings strategy. Diluted of the XX.X%, tax expense a leverage, reflecting of income Operating to share and a margins earnings to grew by per operating geographic sales last higher cost XX% and XX%, improved of continued disciplined execution due $X.XX grew to change volume, with fixed of mix increasing year. our partially compared to growth pricing operating attributable

Turning to and XX.X% volume by income for Slide the sales million driven favorable of segment growth. to Infrastructure pricing increased or Operating $XX.X X.

$XX.X Slide selling for additional prices offset were increased sales. higher SG&A, Agriculture segment leverage and operating The to investments. volume of average by income or expense R&D XX.X% incremental XX. Moving benefits of including to technology higher million partially

of flow capital inventory. sequential management, improvement Year-to-date working by flow in reduction on reflects a to diligent million including a Slide driven XX. meaningful Turning free cash cash $XXX

full cash in year flow operating with net expect to XXXX. We earnings be in line

a for XX Slide of to capital summary Turning deployment.

continue to while maintain balanced to capital enables our and to We organically which businesses, shareholders. approach a allocation, grow reinvesting us returning cash in or inorganically to

to million, with we and of $XX million repurchases $XX share through $XXX returned the spending quarter and dividends quarter cash. ending million and shareholders Third approximately capital was

adjusted X.Xx. $XX our EBITDA total shown million desired to cash generation XX. this quarter balance now range I XX. Total us X.Xx debt like sheet. X.X updated to Slide outlook by to strong within Slide to borrowing remains to would strengthening on XXXX of further approximately our Moving The of reduce review our as allowed

We billion, $X.X of expected impact full quarter which an growth are approximately now sales third approximately XXXX strong increasing expect includes due foreign results. to year our We grow unfavorable to to currency XX% sales net X%.

the range also share per to $XX.XX We're $XX. and tightening expected of adjusted earnings

earnings based and robust in backlog, to businesses outlook pipeline. be our A changes and impact hard strong may for a many the pronounced of and that our that project balance We rate. operations, confident geographic of on have execution effective are of on mix timing of year the tax reminder in a our our project can the more our predict,

XX. to Turning Slide

of and global we assumes discipline updating continued raw growth Building market pricing inflation expectation global our comment to stabilized regarding on are in in bank maintaining providing steady investments. costs, for demand Steve's R&D expect EPS and central XXXX XX%. addition guidance indicative outlook, with XX% trends line X% and growth year-over-year earlier This to to sales growth demand, XXXX. our material XXXX we In X% preliminary of

provided slide. are on assumptions the Other

support chain global call targets our sustainable improve Steve. margins the enabling leverage mitigate to our challenges. is and us I on cash drive to back path financial now achieve turn shareholder continue Strong putting We over generation and allocation to our us scale will the long-term supply footprint framework and that, to capital value. With to

Stephen Kaniewski

Thank Avner. you,

Looking XX, providing us continue, several drivers set future fundamental appear trends that at to the growth the Slide segments our supported on market quarters the opportunities. over for last have

this demand. We due delivering ability robust to are to our output meet demand to results and increase drivers great

growing market we that less economy. these our factors. drivers acknowledge is Demand creating of sectors While for remain headwinds economic to uncertainty is sensitive certain general products end the for economic strong,

in confidence our revenue solidifies backlog projections. Our our

and We in our technologies better goals. to are capabilities, improvements on deliver enable long-term investing us to strategic capacity

and have customers. our of solutions unique to Slide innovation Turning In demonstrated XX. grow to complex to summary, an sales needs the ability bringing execution, we through solve

to us invest excellence doing a our technology. by are advancing across strong this employees supported by and and in footprint, enabling We global financial flexible operational our foundation,

Our creation will that making the in to well, allocation and we long-term capital has committed we disciplined remain achievement served for result to greater of believe value facilitate us approach investments goals, to shareholders. our strategic our

I will call Renee. now the over back to turn

Renee Campbell

call Steve. open At you, operator, Thank time, we'll for up questions. this the the

Operator

is Securities. Moore Chris [Operator with Instructions] question from first CJS Our

Christopher Moore

A couple of questions.

XXXX, impacted Just think about likely a when rates further interest in you or for which by least subsegments modest recession? rise are visibility

Stephen Kaniewski

range. all at, shape. X% rates, interest utility this your kind across our about about the was in X.X across Chris, months obviously, not that good are macros And a to is any very model really the X% maybe markets just this of interest rate looking end to month, all that's point of and Steve. We've ago them CapEx been growth the in to point susceptible increases, announced of at

Inflation independent and You moving year. their traffic Lighting out all next commentary of into general or kind know And last recession AT&T of that's forward. reaffirmed of the agriculture Act We and two in and is and the both Act. Investment the of week the in CEO's Infrastructure Jobs heard telecom really that's CapEx transportation the is there. Verizon Reduction

the coatings supports fact markets So there's being it there, a own growth tends The and of up, the such, the is as see we drivers follow with all business. too. should lot across And really general markets to GDP. strong with our that talk even recession

at that kind any really time susceptible this that's not out there. the So of general to slowdown

Christopher Moore

I CapEx being Got just telecom in know, QX, that $XX.X sales -- helpful. very strong, it. is Telco follow-up, about Very as And my million I reaffirmed. were talked you don't the there's growth know Or a likely coming but or be down so? that level? sustainable a over up it of to is there, is kind big lumpy, year obviously and next

Stephen Kaniewski

other It investment extremely was had down. telecom when lumpy. be up, priorities. it But be say, carrier up, would that down. would I It would Historically, be would was be

towards plus coverage to money may to satellite the we don't If off. They you with move see that cut impetus taking mandates ebbs some we AT&T will there past, that and even going it think a it the they kind smoother now won't nobody be but teach may out the cut for the of in rollout a is turn and massive say their in telecom, cable, that forward. consensus recession, of general kind so phones quarter-to-quarter, to of putting are Not from think satellite, any anticipate we pullback. flows, is

Operator

Our next question Thielman from Brent D.A. Davidson. with comes

Brent Thielman

on product just Avner, question your considering you're lines some with do going of pretty to would demand strong to to able I pushback see be -- strong. Steve, prices customers, across especially you quarter. just first expect I from is Congrats a environment steel hold on price? to guess you all or guess, the quicker my do where be And guess first think I recalibrating, the kind Steve where

Avner Applbaum

Avner. Yes. off. start This I'll is

overall, So here. couple of A things

call all, First top actually stayed moderation yes, in et many elevated. mostly other the and use at But the energy inflation you the seeing and some Steve areas. mentioned are part, we and on of reduction that steel that, do of labor, and On seeing earlier much a we we broad-based right, them lot really add are plate, the of and board you HRC. very right, if in cetera. look across in

So broad-based we our are inflation, price we are and seeing maintaining discipline.

not or appropriate, backlog. pricing, by and to have needed strong continue evident demand raise We pricing strong reduce our to where really

this I'd don't we say pricing to that and pricing at we holding are approach see need pricing. any discipline, our indications So point, that our lower

Stephen Kaniewski

mechanisms any kind that reductions give I already utility, would to And Yes. add, in Brent, materials. you as of increases back in there's or know, raw

in as accounted so And forward. we projections been our look that's for

biggest the to area be probably it. that's would So susceptible that

that value supply headline that. we're close at like of to continue have some there's things and making of other market environment move, costs outputs have looking and are Again, fundamentals, we'll just we hit And of what rates not and demand, have to a in factory sure elevate. kind our they bring the that keep that that one costs because or

Brent Thielman

And Inflation and businesses you any positive your beginning then remarks, that. would your Appreciate Okay. Steve, Infrastructure Act your follow-up on to influence and have on on today? it the on the implications my opening any of is be, timing touched maybe but just in of the Reduction thoughts the whether just Bill various business the also

Stephen Kaniewski

Yes.

earlier it least So I'll said start bill with the Infrastructure we start Bill. That through, of that take at seeing anything. until end was approved to really would the the came XXXX

quoting now. We We're are. jobs

gotten and states on areas. of highway Some the the have lighting the appropriations work to through

see starting And factor demand say, so that year. of to, now into we profile really some the into next is

energy. there's Act, favorables good Reduction lot particularly there, Inflation the With a of around in

the through it for in nice kind of benefits whether So see it's it the But terms in quickly. get that, financials kind there's XXXX, the at some pretty start later it like for the again, point. of early us, solar sector, project good tailwinds real look it changes and of 'XX appropriations we'll provides markets solar really of as that event, in some at like developers for or be XXXX things will transmission we us, but because to

Operator

Nathan from is question next with Jones Stifel. Our

Nathan Jones

inventory have see in don't corrections you? be clear. where impact of I channel much just exist places or to might you that you might for see that have that about start from that, for talk inventory the might there what their and distributors. doesn't much that an out you a from exist But We lot companies kind impact that and need to started is of and of don't have -- sitting to imagine can any

Stephen Kaniewski

there's agriculture Yes, we overhang months, the as have And say, no, in there. so very summer in inventory Nathan, with really they only the inventory network. actually the have our place gone let's we've any where had through channel or dealer is correction low levels

if overhang. a carry to rep and no Pro not, little particularly inventory. utilities components Site they the telecom, take through don't and at trying X but We're look transportation of direct-to-customer, our demand you goes there. typically you meet inventory, there's lighting area, our If bit with organizations,

would the correction, kind to in there's inventory an I of of so So say industries serve. much speak, not we

Nathan Jones

has to fallen. when supply a what it's at. figured. talk want that's And generate margins pricing the when better and guys little I not and pricing pricing That's and able demand. value been I to to strategic that and more margins bit margins you and looked Historically, have you've been about tight, sustainability correlated have

a to and cyclical in where tight and don't cycle, for early of you Do your can pricing now there's even Can think where is be years and tend a it be anyway lot you so some you you. with might down is those is demand and favorable a talk few of business in guys balance that which obviously, businesses cycles. not a power. supply correlate we pricing the track you So have you think an maintain difference, the about may environment, that

Stephen Kaniewski

Nathan, would at develop so that more we looking I muscle, had it we're true say Yes, to pricing much regularly. a

That's analyze have had a day, in trait it not that the We every analyst past. week. we every

is it. with to so a supply also embedded past. from a that's you our push get a plate more basis us now executives the we say to to visibility coming operational counsel, There's on so copper, organizations. I'll zinc, materials senior would to lot regular what's real us everything within sales to we in name hot-rolled that than see have together the and at a kind look Valmont confidence chain what excellence And hold that on of gives team it building at in

positions what we are and should what look at do. it we look and We our at

part be problem so lot our our believe discipline we with lastly, sure think niche, lot serve, overcapacity. the as past the how capacity are things getting maybe we'll being we're was and make ups we far of past than in say, capital in out. we that more And a I that from skis, to help not moderated we're additions go so diligent keep in to And maintain can able think much perspective, better which that's the really a of I'll our ahead fairly a markets to allocation pricing the I And some And more too in downs. speak. of

Nathan Jones

to had business business. a ag history bit chunk little the the one million more. wanted I more of agriculture that the I it. I to talk of getting about of pretty $XXX just out significant is a solar and up mean

you that's think I that don't for have can about very growth years been historically. potential talk the kind Now of the been you've rates where be? a a growth of what long owned think few and rate might business you what

Stephen Kaniewski

maybe XXXX Brazil-based really only at how it. in together all XXXX, Yes. it a would we team could be and scale. We we on we effective, a the November started where and around We really couple put to it bought of looked go-to-market dollars, as million many through projects had went do

year it's And off. really and so XXXX a was build, kind to of paid

give to metering. better Brazil, lucky, retail where particularly they in be changed legislation it's Sometimes to net

operations gold was to of the a flung as a to agriculture caused for us sort I good solar profile. of are, [ far could environment And mini around so think be what they specifically we rush needed with as good market saw and their And driver many that's cost stewards a solar go as of there. ]

produce to scale, buy the have We to ability scale. at at

them. the obviously against go electrical beat contractor, can we we local when So

it's we quickly pretty of And expect have today. They market, XX% having monitoring custom how can kind it's This erect with growth that producing. of equipment, can it's point. they help the know-how can dealer And the see then at network much kind so would and solar and rate -- run same that's what's they a them have line there why things, they at as they in to this it underserved the XX% our the they customers of do with thing and has. exact accelerated is software, our through. And least so as advantage the our power,

So we distributed solar the growth in place feel about piece. the the good energy and ag very trajectory both

Operator

Brian Our from next question William Drab is with Blair.

Brian Drab

expecting $X XX% potentially that be of business wouldn't you Steve, term, in thing X.X longer to Could First, XXXX very is XX% solar, growth 'XX. again low like this in ag years, million to but $XXX wondering, question, on basically in end double just last disappointing grew for just it. I'm you're XX% the this from what

Stephen Kaniewski

as to that, We're CAGRs looking look market It out. just definitely we Brian. do the has potential at

capital course, Of out. further looking we allocate

can -- the now, off the So but you'll law as gets pretty rolling quickly. yes, scale. it's small numbers. it We see, and Right gets of it it's ground double building

be caution that the engineering our in there up the sales would our strong. build so supply teams, is build it's And only Brazil, teams, to chain

the of in still and Bulgaria and good will parts great there. the other have globe, the in a We've But a Middle delivered we're team build time strategy. further got But process fundamentals, say, in that. to projects it's take go-to-market some building East, we of those

Brian Drab

that next for Great. to that reason able potentially I is in important of course, I'll points is question year mean, of add The kind just popped the revenue is that couple of ask your one just for more million, last if a nowhere now. an from that business this I you're $XXX out accounts of question, growth for organic another Yes. think year. But of up

expectation? for of for more from wondering growth there could granularity revenue for any what there? acquisitions a contribution year. guidance is little next your for What's You expectation pricing? us potentially in the you Is I'm FX in if terms give volume, expectation gave that in

Avner Applbaum

that take I'll one. sure. Yes,

of to normalized volume. Pricing, nearly a we we a provide see very growth cetera. year. basis. gets level, next continue and anything a go to this like the quarter to our will It through et mid-single-digit process, we high as at and additional into budget more we finish expect in had course, not So data, historical we're should But going

how about roll baking on now, On seeing impact. we're kind this point, X% the into we at to much numbers. And new the X% a negative of that's any acquisitions pretty right X%. And those in to we're out FX, currency, not

Brian Drab

Pricing be you're pricing. positive, just assuming to clear,

Avner Applbaum

That's right, yes.

Operator

question Next Northcoast. with Connors is Ryan from

Ryan Connors

of but to clarify a I new, don't wanted things I earlier. really from just have anything couple

when cost questions So basically is when talked price the back. little already the few dive detriment not that case the you really about benefit their about that already that raw a across where cake, Steve, to And into for really orders talked in Or you little backlog? component everything there's things escalation, the that's bit and there around? backlog? move. any that that I can But you materials Is pure the in are move door mean any baked can deflator, the no or about, the of exposed on a further in you're is risk?

Stephen Kaniewski

we plate, when variation that No. can are are The as a can. positions and take much take you ton an take one on with And energy, definitely over things is positions on a fuel on still reasons plate think of around positions have them. areas it's markets move see we can hot-rolled, example, $X,XXX too they $XXX why can ton. too hot-rolled we thin, the around, There can and we

raw So has bring to be it's right to in good management. has double. There, it to It materials. the inventory timing be

of number were plate year quarter, to because this the of in And averages the pinched where high and second kind first still of being a we so little drop hot-roll. were the earlier stubbornly starting because in

some we of saw that. so And

lot in a that stabilization of been material. there's Now raw

it the better first we at we've not again, worrying hard And to it, literally much marketplace. supply. even about get was buy had to gotten it in When

the margins can it as cetera. markets, we're a of of bit, So gets year. to occurred, out if now of year would tremendously have kind it kind disruptions knowing we help we we how kind at just backlog billion at go and as what in get But where the further potential the been half that us better look right concern. of tight we into out supply But we particularly ago, where of with a will overdid labor have next of that always are et that can little the $X backlog we place. When compared a first chain perform you a the all is it,

Ryan Connors

helpful. for telecom had And a ag you then I was, in the like transmission. of it and That's market particular, is not one mean other in and irrigation on Okay. ag pricing very is the I bidding in issue

there's more of year. I a sort uncertain price game to as pricing some of around going So I head pricing price. there? selling a [indiscernible] type we some way different how the on I to know there's indicators and bit and like next a strategy strategy? looks in into guys the sort the environment big about it about intent such uncertainty talk leader of a next out an be your to of a tractor theory for are position what early because about the for lot your I approach of just of mean, coming players the mean, let's is the farmer. season mean is what your

Stephen Kaniewski

chain. very things and at to levels, have Yes. of leader, during and a price looking costs, you you and last There available a than that, which is are were, This the to a easily. do production We've maintain peak in supply 'XX. different could environment. much lot pretty say, let's outsource is always we're different been service In input they 'XX,

value-based maintain make that sure we that. to very hold of pricing and we So for can effort will all kind

out X% that now of prices where are with where maybe say irrigation, talk the to harvest, income under Ultimately, they'll to this went bushels land. we weeks are, of ago a dry couple price crop all or think XXX of anyone at I and XX of the they there. just between increase So and in with you end projections got the environment, kind out a factors year, looking net in farm corn under are, they XXX they XX just if

the want time, So you more get a strong and water And you get for in. crop. a crop, very to we to is them proposition over need value put

product Insights the Prospera from bundle to starting the we're So pivots. with

this we've so over the of launched course that And quarter.

the with of we'll more maintain part put and bring pricing. the more up things that pivot to and So value

Operator

Our Partners. Wright Capital next question with comes from Brian ROTH

Brian Wright

about Can the Ian but build us maybe? Or impact that about too over backlog hurricane you could how how the think backlog give potential to just the of to maybe early, how coming the think quarters on next that's for quarter?

Stephen Kaniewski

a question. it's good Brian,

large what to where natural redo we typically a have backlog is is space to ship. we utility kind the see the in So going when there's of disaster

the of that emergency orders in So you create utilities the have different pull would will the fourth for come in in kind openings to quarter Florida. from some of

first we some existing so then of push of And out the the next year. part into orders have to

So the the you'll of may see. It the that's be the change through mix factories. of doesn't just changes immediate to kind that whipsaw speak. coming kind of really so It that products volume,

it just Katrina settles The there. The really they the So in as utility that grid. little leadership see it of it's kind all is how replaced now harden bit government PUC, around and turmoil, be going take you'll they is to done they a to effect compared then Florida what back a with with structure and the follow-up real as all see with got and reinforces to assessment storm, then and what orders the they that quickly sized South down. was utilities hardening longer-term the to have grid what book up leadership, of

demand a so just strong becomes good, And long-term drivers. it

it in that as a some the will inventory spikes inventory had that. they spike. but there's because strong on year But demand, 'XX had massive just be a could be look They like there We we ground. never little So typically of at take.

Brian Wright

Great.

one also, so to up on thing. I wanted And follow more

in low about of With in ag, success forward about to M&A but the M&A, is think your the kind position to kind how here of your at just of terms solar capital given not of given adjusted activity. kind the and end kind any of just of that debt kind to put and how specific where you think areas of especially going and interest, EBITDA that range of total the

Avner Applbaum

that question. I'll Avner. take is This

and quarter to powder in really all, fact So we good generate of really strengthen our first with been really which lot space. the sheet a cash over balance we're we're now, of and have we last dry believe pleased able that the

Our capital of strong lot do our a of have actually et in changed, cetera. invest in capital and opportunities And has to we very a internally portfolio right? we So acquisitions. strategy automation, not pipeline allocation have

looking really are like strong, at to really the Steve could that area. said, the done solar talked where we markets areas like you are continue add, We in some add last these quarter, of concealed about growth, we've

areas synergies So could where and we ultimately, drive strong targeting are we really ROIC. growth

then, that, which after And put sheet continue we're So through shareholders return do share course, of dividends, cash use. buybacks, opportunistic we to to going of we to that balance and course.

Operator

next Braatz Capital. is Jon from with Our Kansas City question

Jon Braatz

on commentary on interest in that utility in Steve, Valmont mentioned diminishing focusing Is part you your you're Solar, that scale projects? a your on there energy. distributed

Stephen Kaniewski

No.

of disciplined fact, scale, of material occur we operating U.S. In income to spent attractive, perspective the utility perspective, from just inflation the raw but modules the on there projects were a restricted, have volume years looked up but out for around the we about kinds a very couple really handle been a be from the would team building there particularly were that, very jobs last and our that disaster to want basis, When steel us. take. we

take do be. the for growth a it able of right that scale, for market on kind utility out us, value enough based there's we'll whoever there developer and but So be to the happens utility to we'll

large-scale will you those from money in risk make we time the as us we and terms around orders. can So we orders to some But bids, lock have take do U.S. the our see time, those in in of believe

Jon Braatz

Okay.

additional but the East. And additional secondly, here for for some had projects Africa Middle -- what I irrigation know the in the is and there? you've how large-scale -- Okay. recently, look do going does business prospects the prospects how then maybe forward, that

Stephen Kaniewski

we that Yes. There's projects large in Egypt North they had there, the is so or number a earlier. that the Africa out to of East, scale likes of Middle still whether of are

there's a of And pipeline the kind so a to $XX there when of number $XX range million projects you And is about of strong that talk real million those. exist. then

all less stability of And more more again, markets fluctuations, that same growing factors. to by COVID, desires food, reaffirmed and after create food kind in the Food to of susceptible driven security, currency it's of effects country's their the locally, way.

and the whole industry, a driver it's frankly. good driver pivot for us, a good So for

Operator

turn any question-and-answer the We have to like session. for Renee our I to Campbell now over reached end of call would the closing remarks.

Renee Campbell

Thank you us for today. joining

mentioned, with next phone again quarter. days, speaking by you call we and to will website today's seven forward As be the available playback or for next on look for our

Operator

perceptions forward-looking of in factors well management's the believed management are Valmont which discussion of Litigation made are conditions, appropriate in as These of future as within industries on assumptions the be light XXXX. developments in based forward-looking to experience of Private and Included trends, expected statements other the historical under meaning circumstances. has Reform this statements current Act in Securities the operates that

to Valmont's that results. As of and They performance not risks, assumptions. some these of control consider are and you guarantees you listen involve these uncertainties, statements or should beyond are understand comments, which

any are be factors assumptions, should actual economy continuing customers on from cause other developing management effects many and that aware the and the Although and reports forward-looking including the COVID-XX, in suppliers. Risk and described believes outbreak statements of and the business, of materially that These on the them that things, its Valmont's could anticipated differ the on the those economic these of domestic results company to of raw and date products, industry foreign and and discussion changes the material, and of and forward-looking new Securities as of as policy price and efficiencies, economic acceptance any statement circumstances, is statement. governments. conditions, does actions the Exchange company future of international well in undertake update performance company availability product financial operating availability forward-looking market not discussion, cautions and The market and this to competitive results, the pricing, made included factors among general effects Commission include, specific affect that domestic reasonable based of time to from company's and time effects to factors environments financial and forward-looking you statements. this in as Valmont's

Valmont Industries (VMI) 27 Oct 222022 Q3 Earnings call transcript