VMI - Earnings call 3 2023 | Valmont Industries, Inc.

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Operator

Greetings. Welcome to Valmont Industries Third Quarter 2023 Earnings 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 Senior President today Financial Executive Padgett, brief Chief summary are results provide me strategy. third on Avner and Officer. This Officer; President morning, Accounting Avner Eugene of Chief With business a Interim our Applbaum, Chief markets will long-term and Francis, Officer; and quarter our Vice commenting Tim and

this from our Avner. will will our review note subject discussion read is at of will call of at presentation, with our is on morning. current disclosure provide is outlook investors this X the valmont.com. the applies will from call. replay website Tim and XXXX webcast and and for or Please that, outlined available by be A Following closing that accompany to followed to on will site performance statements, remarks This available forward-looking be the today's live be and which Q&A. the on for indications financial Slide end download webcast today's today's of A call full presentation on the later in our

would you news and for be information, notified like when releases up our Valmont e-mail please publishes sign investor through to other alerts site. if Finally,

the our investors that, also We on social like over encourage I Officer, follow our our company channels would Avner to Chief to media Executive Valmont turn website. With in and to listed our call and President others Applbaum. interested the brands and now on

Avner Applbaum

confidence It dynamic they team's environment to our innovation and of how proud future. core culture, is me global success of us. and that and results their you unwavering joining say want Good demand Valmont driving our ultimately navigate and now the I mission to gives demonstrate our into everyone, the Renee. support first and delivering customer-centric values. am morning, a thank you, team as Thank I for

to appreciative I priority had to were our customers, it people as and I have the employees, meet. These quarter all During my hear CEO, dealers am directly and of made opportunity a insightful first conversations and the I shareholders. from valuable

of with and Israel. quarterly our briefly recent of concern. to safe. my wife including like in Valmont families, the safety primary and in has The report escalating and our tragic employees is colleagues as Before in review, violence thankful this out I to our during well-being their our are events comment my I'm of those go staggering this our all family been they moving affected loss forward would to our by on senseless I hearts both innocent own, home all country. tragedy. have lives The and Israel

key return Now let quarter shown on Slide results messages to X. our third me and

quarter delivering third results. a Our market both extremely operating continues per diluted well and significantly demand across perform team segments, is solid that adjusted Valmont Adjusted top line while earnings dynamic navigating pressuring growth. environment improved margins share to year-over-year

and our drivers remains us ability streamline robust announced balanced Valmont markets actions nearly business, have strong end necessary operating experiencing our including about of support finally, for strategy success, more and are sales strong long-term demand expansion value decision-making our cash lower performance improve we in pricing have to our These capital ensured actions position a growth we amid as our and and will capturing moments. The to I margin multiyear of are And cash leadership both in we end and strong. manage say return deployment We market globally markets relatively to allowing also capital, working generated realignment our driving ongoing agriculture remain customers. our an add secular the organizational inflation while program executive changes. to efficiency. team operations and support to improve strategies few fundamentals global global shareholders. Infrastructure we flow as all segments

several markets. demand on X safe Turning spending update infrastructure, secure North Within as the Slide details. Power grid solar CapEx utility an tax funding support anticipated, system. remains America's and demand international IIJA robust continue Meanwhile, for reliable labor to to Grid to a our globally. demand to favorable as increase utilities clarity The business drivers, the from grid some tailwinds policies resiliency to capitalize policy. increase the and continues industry inflation, are load demand than has support and constraints renewable interest to of manufacturing to power energy the reliability, benefiting IRA unfavorable is is including Road expected credit need provide government to remained investment accelerate designed growth, construction the transition. The and strong slower U.S. higher tax delaying and XX-year to global projects. as support credit extension obtained release transportation our been solar on of investment of the rates in due energy

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remains levels some markets lighting experiencing housing interest carrier of declining of Commercial rates, near-term investment. starts. from the as single-family reduced softness muted Telecom and spending, CapEx impacts inflation higher are following record

of faced with near-term several markets are macroeconomic with strong our challenges, drivers. long-term demand remains some broad-based While infrastructure

profitable positions drive Our customers future. our commercial value well to and and the flexible deliver us manufacturing uniquely footprint growth strong into partnership to

projections are reaffirmed agriculture. levels In income USDA latest be Net to that high the expected farm XXXX to American levels. Turning at North markets, historically

While farmer recognized margins the in so coming sentiment XXXX. healthy, substantial that off economics remain were muted profit and XXXX remains

the been to to robust. markets XXXX. expected Brazil and world, experience strategy. summary, we Egypt signs in the and are of level be of increasing part sales fundamentals through seeing levels continues our growth other market large shipments and global for ongoing the of in Brazil are as record year. International of as long-term market of support agriculture trends a expansion order demand production has and to quarter irrigation of strength. this ahead another quarter tracking of acres. relative and year expected achieved it project are We this are still regions, position a leadership agriculture systems the In remains last strong fastest-growing irrigated positive our Ag In remain project key position pipeline of continue is

and Our growth. us up value proposition profitable trends for continued long-term the set demand

Turning align to administrative our each within we actions create we our organization Today, Slide specific our to support the announcing synergies actions segment and to corporate, structure. and X. our to evaluating and better improve structure. strategy have taken are cost After optimize business

the improving strategy take on the our are our actions We don't priorities are these We to us efficiently accountability achieve reporting driving positives success. scale to improve but lines, results. profitability. are net lightly, for necessary across organization and us to visibility that organization focus help drive to they up and set These simplifying long-term

in These I'd a rate the lower charges like Tim will to charges reporting agronomy to the to and much assets intangible technology impairment while details address adoption provide of briefly reflect compared Next, agriculture later unit. in goodwill solutions assumptions. technology call, more Prospera's the original

is is forward, to meeting irrigation ensure of of innovation Going purpose with the our needs approach the our customers. immediate introduced go-to-market

machine and harnessing and As us technologies, the investment we're the market R&D. creates solutions, our and and growers. committed continue evolving to leader investing opportunities, additional in We're deliver growth we'll to advanced irrigation for in partnership management learning of power solutions AI water crop the excited to technology our about

irrigation has strategic our to leadership had Schapper an named team, to update share on Officer, Infrastructure. leadership President and which roles our organization. Moving priorities Slide new executive would now numerous our previously our President, a within expectations. and like Agriculture X. Group served Aaron as been role business for Chief most forward recently I the Strategy is Group of and Aaron

to productivity Aaron Officer, President, develop across our profitability Infrastructure. solution as Larkin was commercial across Operations, and Commercial Strategy lead infrastructure's operational Donahue create Strategy to that will drive our meaningful In will to deliver including product road Business enhancement a Chief backfilled company. Tim Development through Aaron's of has foster As the remains support EVP improvements. capacity for this growth to was our role, Tim Group strategic all and across ESS Growth President value-add technology former strategies the leverage EVP Corporate collaboration growth, segment. Diane businesses and leading ROIC and and opportunities recently role of map previously Global most he the lines excellence. strategy customers

initiatives lead those few started years, common same team leveraging strategic our back prioritizing based drove that respective when leadership our their right CEO meetings processes in last differently us on achieve to objectives. A highlighted into help strategic team from core profitable decisions. was executive achieve ago, strategy I that investment than At as team most investment discuss decision-making few as delivered the weeks we CEO, aspects I leadership, tremendous around areas with to and met I our changes several growth, explore priorities our that will our Investor time, my data wanted and am which of transition a ability us I to are predecessor. in to experienced opportunities. is light At the sharp there outcome focus role. Day, growth our tight important entire The The competitive is the we Our my strategy to the the advantages. remain on certain affirm this confident of intact.

core solutions some pressing looking while market proactively continue and focused challenges that of change. our pace customers' and our prioritizing we on our will cycles. We specifically decisions with lens, ahead, may we initiatives, in remain invest Through businesses most revenue. prioritizing the and discipline of conjunction products While initiatives growth this strengthening make with new high-value solve

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our and outlook. updated it Now financial for to review quarter Tim I'll third over turn

Timothy Francis

Avner, everyone. you, morning, good Thank and

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

infrastructure sold. Diluted R&D goods to XX.X% last of Third credits to $XXX.X of commodity X.X% XX.X%, not linked operating steel regarding profitability, the driven in actions third margins EPS A a Wind tax Despite increased lower agriculture record. usage to costs income divestiture billion business decreased decreased of $X.XX, segment, improve million net comparable operating cost to per quarter and pricing $X.X to for the expenses, increased XXXX foreign share the favorable sales sales benefits Accounting actions legislation delivered in sales, from were earnings to by sales. offset lower Other ongoing X.X% grew quarter reflecting of improvement. reported that the was as improve higher year, Brazil with tax sales recent X.X% drove along and year-over-year. Offshore overall rate generated by to and

cost to expense mentioned drive simplify recovered segment, million. shared $XX in be model. of corporate. through to Approximately These range Avner split estimate initiated evenly the XXXX the we Infrastructure strengthen As operating within recognized within service cash costs $XX be will our between and operating earlier, and remainder XX million the segment cash We lower our an charges structure $XX realignment program expected are organizational Agriculture months. optimization, million to the with

the of the in to cost income $XXX margin goods than of offset Operating TD&S sales the or reduced million $XXX.X improve year, pricing rest pricing improvement. XX.X% segments last solar, steel in higher product to across comparable net volumes by TD&S to associated sales. increased sold of million of the and with and Infrastructure cost to product XX. of Turning more portfolio. driven on the actions higher line lines. telecommunication Slide Lower Delivered volumes, the L&T notably were lower the drove

decreased million and volumes were year-over-year. of a sales higher North due offset quarter growth Moving North the to America elevated Higher America, as were in the more sales product farmer mix. ongoing delivery third international In $XXX.X volumes less project by and lower X.X% Brazil. were International sales of benefited sentiment the higher favorable XX. Agriculture Slide sales slightly from lower of remained somewhat muted EMEA in to and region backlog. XXXX than

steel, to was of were products deflation sales or the $XX.X of in to agriculture similar higher attributed Additionally, XX% net SG&A. in gross profit more cost Operating last sales. year. technology decreased and million partially of by income Improvement services than margins, to offset

operational of other earlier, that testing of technology we projected an projections its growth were the higher rates several The impairment cash leading contributing and impairment mentioned slower are to the our market intangible to unit and the than and during quarter, and decline impairment Significantly Other considers flows financial the the recent agriculture exceeded most grower discount factors resulted attributed annual test carrying goodwill which Agronomy Avner impairment in million. value Technology As $XXX approximately the to assets third interest rates. value, important concluded and performed the after-tax American the North rate. lower factors, Prospera's in reporting of market of modeled. charge much Solutions higher originally a in rate agriculture discount adoption

to cash on Slide Turning flows XX.

in by working million reductions $XX were inventory. Third management, capital quarter flows of operating primarily driven cash diligent

on in we cash. share third XX the year-to-date $XXX Through the $XX with we repurchases, expenditures in strategic shareholder the as continue invest framework, deployment. value. ending Turning are to for million dividends approximately of quarter balanced capital capital third we through $XX quarter, capacity focused expansions. summary to million returned capital quarter, and shareholders enhancing In million Slide to allocation a In were approximately our

Moving X.Xx desired Total X.X EBITDA to debt of of Slide XX. within X.Xx. to adjusted to was range our

ample available to allocation balances, us review liquidity Slide balance as provide with XX. now and shown outlook, updated execute on XXXX credit capital cash our Our strategies. I our sheet flexible would like to

year continued compensation decrease provide our into to we X% margin has between volumes, third with agriculture better I'd asset like as quarter year improvement updated project meaningful lower grown. EPS Given associated to growth last full intangible markets, previous amortization X% and transparency income to expect approximately the We and now Prospera compared near-term to believe adjustments forward going our the technology investors we full timing telecommunications share. also to stock-based sales of $X.XX less Despite disclose year. been and EPS outlook became in they to expect softness note international revisions totaling per expectations. operating shipments has remove separately results adjusted that forward, the and strong to operating carried these year-over-year,

Turning to the segments.

more reduce higher of to expectations year. sales strength sales for shipment lower to international expect year. than to across by projects This as in will our Continued segment North infrastructure profitability from America XXXX agriculture markets this higher benefited offset we fourth In sales be mix sales quarter of elevated as fourth prior support backlog, the slightly international agriculture, compared will higher a quarter compared last year. be

value. With strong back are I that to previously of timing sustainable To As leveraging to the considering adjusted quarter-to-quarter. in predict Avner. generate summarize, will be third and scale shipments tax our to assume we the a shareholder We margins, rate quarter the improve drive can reminder, mentioned. global full hard call from that, the year over turn generation cash tax to now I of international XX% when favorable effective a legislation XX.X% project

Avner Applbaum

proud dynamics. my Tim. Slide XX. while a targets and things quality earnings. to execute ability benefits I of financial strategic to on hit continued innovation. comments fully our remain effective to am the control focused and actions delivering high-value driving navigating results initiatives, organizational of realize with We on our investments our on can a Continuing taking current more solid ongoing improve we strategy, efficient you, through team's enable our controlling market to structure solutions the and We're of focus Thank

turn back positions drivers Renee. portfolio and with confident compelling the focused success into over We and will strategy to Valmont call the for our now our now diversified long-term future. I are

Renee Campbell

operator the up Thank you, At questions. open will for call the time, Avner. this

Operator

Nathan is Stifel. Our first question Instructions] Jones [Operator with from

Nathan Jones

forward. off, made I Avner, guess some at major in going the some, strategy I'll minor start comments changes you if not about least, changes, here

I measured then on So hold? in strategy investments. to can you are? on What of expand bit on are more kinds And targets the a first Valmont sounds out it pace question like some May, those mean, guess changes more the that I details maybe financial do those laid things? the what still the is,

growth maybe higher to So numbers at maybe towards the margin end. the adds realignment the the end, the and margins lower but are

can of Just within us kind give business. any what's more color changing on the you strategically

Avner Applbaum

you, for Thank the question. Nathan, Okay.

Okay.

I with was we our conclusion robust me And strategy. core off Let as -- And our start the strategy we strategy. evaluated mentioned, a have targeted very really is and around competencies.

days the and We support we to the will areas on need maybe companies areas markets solve is have I to them services and drone we One challenging these a is you strong actually could we very agriculture, those segments. If need that to and climbers. services. continue instance, examples, more of some customers' area we to there's us, our continue need and found focus climbers where put both could on shortage telecom, towers, their with that focus both to instance, pressing give -- could a for those needs, supplement in few just to most We growing be and of press have forward our infrastructure release We compelling people. and The right? touch ago. really going really really drone in climb for They to problem. will safe I specific

some fall there really of their clean help their other area. are a back them today when line usually areas We could their the it cool technology not to they focusing the need and of lot pressing drones, on, spend. at O&M them but instance, really Now was we're for polls, and could of look utility the around it's really

overall, ability our or pressing needs after pressing in those going is and either both in them the we on significant Nate, to focus the help solid. strategy confident really their areas in we're solve drive can our We're space to our growth we where go customers' space, this utility could continue telecom So help in to needs. But segments. solve really of how most

to Day that our valid Now and the there. during X-year specifically targets Investor investment your points we provided are

go projections, them at anticipated. years our you weaker look this strategy of is look the right, you a off little market, than X lower. long-term financial and I be as into year starting And into first start point And you As at at today, we the we our to any bit is as course, initiatives. going look

timing and impact cycle, long-term could that the a assume of a of be would we our different course, our could we and little have. But Of growth growth. some

of it specifically, expected. And talked about you as to specifically, try we a the into as outlook, go between Now balance for and growth, forecast Prospera. in high we relates -- as to some every have there as realism in you optimism versus yes, strategic initiatives, not always these to had we be We going plan. our some the it's anywhere

we're And to some And -- how optimistic the on really sure more take to a the supporting core, have again, shareholders. initiatives of side. to we a the customers strongest do measured more going our drive lot our value, these our and of on both we're these approach on to make initiatives, really more focusing to customers and

side. financial we're quality operating [indiscernible] really improvement. on margin, kind the good of feel targets, the that's making good So sales on of progress -- of Very the about our

progress quarter, including show quarter to after in QX. continue We

our So efficiencies, the and focus so on improve ROIC progress margin, on. have driving great we the the making profitability capital making progress on on as operating great

on for value. our strong, So we're high in the next to The years. We markets. our drive and plan drivers out X secular good outlook level, planning tailwinds overall, shareholder very excited got about to at are execute very our a very

Nathan Jones

follow-up to I pricing. going on question guess my is be

back then business. you year, as you at the on there talk the next steel you're some seeing is aggregate pole if lower the in other opportunities up, into way just saw we, utility business? along we'll pass have look it obviously, steel And pricing weaker quarter? where down of and way the the you a a in impact And maybe Do the pricing fourth demand headwinds any bit utility on headwinds seeing Ag the the pricing some business through. here. in in prices? see obviously, pricing to we're pressure in And up still we U.S. on looking contractually the obviously lag You're, so pricing business, as see about catch the with parts you in the Can

Timothy Francis

that one. Nathan, it's Tim. I'll take

don't the are across off. let to me we mechanism pleased pricing contractual business what cost it's terms been in -- we've to tied start indices. do able when that that our have in very We're steel of So with infrastructure businesses

of there, the cost course, But the part, in that to second also as steel, where able to to of up orders market. alluded $XXX continue other could As those there's low Workers to see as the contracts as It's going continue, cost in have kind to quarter. steel. volatility the good in business, we you today, which more volatility but probably strike we to get all steel Auto see of utility that we comment margins we of get we to indices. But And bid there's expect to is then pricing the to, $X,XXX right? try tremendous got like might continued United the be been there. resolved strong the of our we might of that We That to I'd the dynamic in -- been before that mechanism middle is it way not. expect maintain tied

see price. Turning in philosophy agriculture, change leader no to our on a we of being

Avner Applbaum

And add to me Nathan. that, let

out very around proposition, dealers our offering, we value ago, maintain conference value spend no growers. discussion pivot. they went our partnership with with some I pricing. And our our out continue and Idaho our and to get to weeks with Just drive that strong technology dealers to with there. They're Boise, from happy there the happy in time really, dealer out value our help with very several and our -- with of the were They was

forward. situation as our in maintaining market and on move position So evaluate we we the leadership keep that

Operator

from Moore with Chris CJS is Our Securities. question next

Christopher Moore

could start Prospera. we with maybe Yes,

North was Ag. positive terms. So seen softness some in America obviously, very in Already of Day signs Investor discussed

Just as the trying the part that Is time between goodwill to calculations kind frame the it has to and of on heavily then Prospera of weighted figure when understand and perhaps more the is changed it now impairment? doing what you're -- was question analysis. out

Avner Applbaum

Yes.

background Tim then Let of overview Prospera. address just can the to me on some I'd off just kind timing the start and with back the impairment. of But go several -- like years where pivot XXXX. actually crop transform was Prospera really, to the the irrigation partnership we a started in with from And an to -- center management. autonomous vision machine to an

enhance So increased precision, save we course, we can the land optimize usage really of costs, time, could growers' crop and, reduce yields.

Fast there planned. pursuing will really revenue venturing acres was subscription-based strategy tech pan really a forward traditional were as strategy. beyond decision XXXX, that mentioned, a and And from pivot expand we solutions. the didn't agronomy as to recurring our out course, back that going monitor remote to to the we anywhere all how insight. can suite How growers the view provide offer We're of control, original we from of and, the management. irrigation we autonomous use technology agronomic crop optimization They could

learning. about solve some this was them pleased their some as mentioned, problems. really our Now around and extremely machine technology the very we're of help And excited the the I are technology AI to and agronomy the partners I agronomy, some dealers just with biggest of meeting

the most et improve growers' do really, But core yields, with of needs, our business and the immediate core. and help growers Our cetera. solve we're their is The on focus our to excited. dealers less how do going are excited, more we are

and space, we entire up their our suite. in and the expand overall And tech while manage to growers on to will of are build focusing million, take continue have we solving revenue that we we on on $XXX and So keep solutions. greater than that we leaders continue

Timothy Francis

question. in your jump and answer I'll And

I was it the specific on timing. think

So you. I to attention draw one

look in go to were they $X.XX. let's pricing you and that the mid-May, United say, in back see still If at you of, futures or $X strong.compared corn today can the States

we seen the of America time there and North ag have wasn't yet downward at downward market really this indication -- happened Investor what today. of this more a So Day,

As intangible assets, you look required at goodwill certain test them to you're annually. and

end testing annual is the Our date August. of

really tests. we have to our do test impairment annual a So between didn't reason qualitatively, a

We that have test us done was of nothing we we our to of needed this interim year. do quarter third told of course, So in last period There to that would X had third quarter a testing year. qualitatively annual test test do a dates. between a

Christopher Moore

just follow-up for maybe one it. me. Got And

the So to it Avner parcel is decision of of of Is that kind kind was. have this the little said, here were working from decision not and like been This part regardless? a kind that all strategy recurring have new strategy had is -- happened what a would extent the it not sounds at the or you side? focus to management Prospera of the a less on hoping

Avner Applbaum

great recurring revenue, outcome try recurring. strong very like, for We much company, We're like not. that from outcome. Absolutely it's we going to has course, of like a revenue. every It said, and go, we'll on we're We're that. go if But has we of believe not a specifically other I problem I'll the do focused. it we like -- recurring after recurring to keep that margins, going is a benefiting value provide core can proposition. and our our not just solving point If necessarily that to customer drive we're is that and recurring revenue, revenue. is outside out,

Operator

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

Brent Thielman

the structure realignment and complete as effort the to year? an these and initiatives you of in the Avner, Do how that year-end want expect you XXXX? we place. that going next it business to such bills this new cost be to prior putting sort into be Is sort positioned to be largely well you're that into of go

Avner Applbaum

question. the for Thanks Yes.

actions, this continue And decision of answer us we some this forward. And took that drive of visibility we the it stronger, that processes, is of overall, the end by when to realigned much the reducing the going pretty drive team and specifically of with year. move alignment believe, forward. already as do So be it mention drive management likely in this in will management we with forward streamline business. to what kind order done this us quicker really these by helps us to Yes, layers, we've significant our we to we the make be And strategy place focused, really lot to us involved value organization. place. ready helps more really into actions to helps We I need employees, we're really your it's question. A the never but put to realignment, and better taken will get the take I should organization we for

Brent Thielman

then us And can quarter and terms I could the guess, over execute, that next add business Any guess that Or orders? that converting just Egypt. and I the sort term? help 'XX, quarters? fourth the are of business that you the speaking I'm at terms you in in out has of maybe actual in the to changed specifically of there into conversion pipeline that. contribution several to still all be project-based good what of near Appreciate to some Okay. And of prospects remind have opportunities there visibility backlog

Avner Applbaum

Yes.

Okay.

their could of food this security, of is their which today region part overall, large of drive approach Egypt these that -- provides really national which Egypt to So we won, we with food kind help our we project that they as where refer that to lot country security. security, really a

presence move have strong the East we of XXXX. Specifically, in on us forward, this in closely -- about the watching have and proposition our evaluating if in are be continue have and XXXX, projects very with the Dubai. we into value that -- strong anticipation impact continue going would rest can very go of to excited We in Middle conflict we'll the now there the And we that is is has area course, right into we region. and always going believe but any a project

We region. with good that in being relationships strong to driving these disciplined have very manage the continue looking in that pursue And continue we countries. customers our forward around projects to and sales pipeline we

Operator

William is Blair. next Our with question from Brian Drab

Brian Drab

to and domestic make irrigation, do think the you the expect into Just these year? to what next in even pulls are sales you wonder next businesses of range, where from in utility, around if look could going businesses just sales international rough terms you comment a you highway volume be for as various year volume any

Timothy Francis

this that be Brian, very dynamic take as market I'll could question. seen year. a it's high have we it At level, a Tim. environment

So I'll start infrastructure. with

in the improved see In year end piece product the we've backlog, America L&T. to seen year-over-year. year. in XXXX, of order we demand But then backlog do normal this our market historical telecommunication agriculture, see X than commercial global the North expect like the we a and recent although more we saw lines have utility strength lower We muted so in continued rates expect with to in this the

We will in provide, of course, our a earnings. comprehensive on we release when February quarter outlook fourth XXXX

USDA is I will our component of will key farm February. that December. the provide net projections key a be Another That that say, outlook would release do in aspect, income in we

of As projects. Avner just alluded pipeline to, a we solid see do international

Brian Drab

Okay.

high lead in in On are the some times terms some side, mean, supply. be business demand free a next still poles understanding growth There's volume very Are more year, that basically Shouldn't my I XXXX? capacity? in is things that of up than to doing business. in utility infrastructure you the that business

Avner Applbaum

Sure.

little get for strong Let -- -- for product lines a not Absolutely. That course, taken for of actually is specific to the growth a business. me to times this quarter during and add us us which steps but improve different and business decade. have different lead were them the actually able really great on within weeks, next [indiscernible]. XX very and our for And that next below spot we to year only a is We've more that. color to

kind in to it supporting the that So that able where distribution, really of really which to area on seeing If opportunity we that it's are transmission than drop keeps area, anywhere products energy been the growth, below on substations capitalize can our area when a XX have of support steel -- we've the very area this us transition. market. trying very our but strong to of weeks, lead in keep finding lot great main we're being some the in greater in others, to tremendous times and competitive customers,

that the the renewable the with they on we innovation electrification, as So growth, to grid, harden absolutely, our have, products these the support space, load the to utility utilities to have there sources. with look flexible amount about connectivity we the address we're of excited really other going very forward help footprint, the

utility So the about overall, excited very yes, we're space.

Brian Drab

I be get Okay. parts volume I These next trying get again a of not? volatile muted growth because mean business. aren't to terms mean, business year international some that going about the to sales will a mark. that get of growth price are I of I'm nominal up. guess volume grows those to But year is infrastructure, I I'm think next more telecom trying right -- you of have highway Ag, terms in I down just for probably mean is the portfolio Domestic next overall business, commercial be for steel in stuff. year, this what a to in utility, sense think extent. your I the now Ag for huge mind mean, you question or I into

Timothy Francis

I Tim. side, L&T. the the the is be of and say will growth This Yes. on TD&S in would infrastructure piece transportation there

So I expect, growth would the Infrastructure would see based today, that low I you, segment. we tell in XXXX single-digit I what seeing volume in on know would

Avner Applbaum

little farm if elevated. record the the trends just Net now at information I'll of in will earnings broaden was of step agriculture. made looking the a for 'XX. just for agriculture. our the maybe I during really we're were call The into farmers lot we had commodities The mean back, income 'XX, But the at And provide years provide around more levels a money. a conversation outlook a record farmers. the next And we take going we we lot bit year. as

around crop which You've seen the core was the U.S. and for is main X%

XX% XX%, around main years. or was Soy which for had is Brazil. They the crop tremendous

we getting bit lower inflation. higher and rates I'd move year are next because we there's Commodities into farmer into year, interest are the as overall, higher, levels. say this a at little Now squeezed globally, is move that as a little bit

And So they sheets. little really he's are now for continue profits. is, question to going very years. always good compared going They balance future? -- they squeezed. invest to look to Are now They they money. He the prior a muted. overall, good made the being more made strong to have at be But

We seen. have

out increased going the year. by more Brazil. new to we're order how months. encouraged see December. few we're we're rates the they as end very as up see the going USDA -- in but report just very wait We'll We're We'll dynamic to really have QX, the impacts how it's We're environment, in coming been a a FINAME

to we'll really So the we'll of few there's for lot lot does it's and shaping out. good next able analysts how more XXXX, visibility, moving just and a months, a investors give over pieces and our be have feel our a how

Operator

question Connors Northcoast next Ryan from is with Our Research.

Ryan Connors

know partnership. Glad mentioned Wanted a different and family there. sound in bit to a terms safe to went process? that was you of I a are that the the hear and and in of your to What wrong angle was go employees What Prospera talk in process? about back from process. learned

to part valuation what not the I talk [ discovery I process on can what learned And what that assume negotiated improved forward a million deployment? process, and the tell capital can about diligence anything got of just ]. $XXX what be change, valuation. So us going and -- you it was mean due the about can was an the was deal option price you and

Avner Applbaum

for the really Prospera, went some we Ryan, believe exciting assumptions value your regarding we for rate evolving is the pan acquisition. in and back But proposition for when of would comments growth company of was is some space we went amount with partnership in well. that amount say an whole us. it's adoption And of It projections industry, had we technology, as including It us was minimal buy, a like very for tremendous out. and assumptions although didn't a a as diligence to some tech mentioned, your growers new you, there general XXXX. amount tremendous in that that of at agriculture of I acquired very Overall, potential. the into a out. exciting Thank the for the general, you didn't price. in and time we the revenue, there's that with really tremendous question, due and as And a course, purchase And thanks a goes still space pan of potential, well that transformative company made every the of

our fact, at funnel I our that ones companies really offering capacity, capabilities, really strategic -- expand full How not already really started go to as pursue. focused that region, us at we to to And looking are the our we're is can businesses, on tied forward to be what to looking plans our is our or really to look core to is think could we I really acquisitions more expand core our the important that not just that customers, our our core and forward. are looking And but tie through with going in businesses. ones how of companies competencies. expand we're alignment I've to core the going have we

strategic on side. that's the So

and our capital those for X to side, to we criteria will filter specific beating stick have apply and the financial would was On we that criteria of years. overall And criteria cost financial both every we to sure will that filters making strategy as acquisition the companies. while sure our as fits financial value well acquire we customers drive to to shareholders the make our

see going you and -- core. you to at see So going not tied forward, to the a will going that we companies lot be forward. magnitude will They're more this will transformative close

Ryan Connors

it. Got

sometimes Okay. a long time there in ago. minute planning. to or years back discussion very Fair even enough. wanted more And a go transmission to lead I decade And one, or then these electric projects, Obviously, the my second are

this generation slowdown since is happen. in growth renewable spike spike of of a So renewable rates to is your projects impact base the as place those not a gotten XXXX. project utilities going rate rate the But obviously, interest or don't some demolished in took concern absolutely interest near-term some funnel have and

So logically, would that some investment, point, impact at assume. I would transmission

So your on effect on kind be of what that? what lag And line are the thoughts business? transmission time might that

Avner Applbaum

impacted the the inflation, actually, look that higher general, these things: a at are if by was an players we seeing interesting Actually, of cost we one, dynamic. it interesting these now Because question, their rate, EPCs they're what summer. interest X you in had impacting and the income, space. higher in actually actually mild It's an source higher actually

the And some was So rates years. fixed are of the lower. in their several over next fact, income

squeezed So or remains areas. line profit some their in is actually squeezed their top same the gets and

discretion into applying their are work project we So versus to future. on they're the delay actually and where project they deciding seeing now movements want what

Now thankfully, customers the and their flexible push dynamic their process the our orders. to have demand they our capabilities through And ability footprint, is strong. pull strong out as and projects projects support really one where so and go is we really our of planning of

So we are of outside. seeing a to lot movement the

really and have that that. You won't to great because great processes see footprint we address

lot So growth. there's a actually be goes it seamless, work continue behind We're the the of able might scenes. drive but to that to

the the So and supply therefore, really demand going growth. continue driving is outpace we're we to -- will the

a are of definitely interest Now yes, higher specifically you space solar, players the rates, on are that higher financing. lot seeing impacted by the in

to really a in to able play and we of space, to lot we're able it's a business, grow, but that, and very good continue get momentum. seeing high-growth DG are the We we're

We we're are we're globally, currently getting benefits the from so all regions in. that operating

rates labor I'd pieces. whole growth impacts moving and economy, solar. a constraints. the competencies, and our high inflation seeing growth general, really able of drive to say, we're and with TDS through these both So interest strong you lot there's with But markets, are from in navigate the in -- times and

Operator

Our Wright Brian final question MKM. ROTH with from is

Brian Wright

a start start that, -- take kind and on comments North fourth improved from if that based -- should of in American on to be year-over-year, mean, slightly the year-over-year have could on or rates -- then should the order least, revenues couple North that. a quarter Ag. of you I up with to of wanted in follow-up Just deeper as we are should what right America at got indicating stabilize seeing, I've be now even The little you're

Timothy Francis

I'll Tim. question. is This take that

back we North few a had it's right? down little to dynamic agriculture, and years, backlog, America, than we've been for more XXXX. backlog more historical The has such through globally that record meaningfully past like a bit frankly, So norms been that, what the reducing backlog

we perspective from order backlog see improving, it as... are got the think to about the although rates you excited to So also

Avner Applbaum

the months looking the order very and see But as of few is a always good continue very more so add I close order last to very more months really forward. dynamic. It's a It's been one a we're going But take And rate how this increase is we want wait very And year-over-year. going sign. again, are excited. see measured. Brian, kind right? so it's nice let's We've That out that we We're already see And XX being throughout just that a to good excited. not month really right? all point, pans again, seen trend. rate to We're a to up.

cautious short very be kind of that term. how the to going we're in we business at about So look

Brian Wright

in is more level is Okay. profit indication fourth function there's international there's being -- quarter year-over-year. on third And mix than international the of an just follow-up And the in just of the that's my quarter. of then a more typically lower there the an

got profit that the down that comment? Was as fourth operating as to be third that far be a I year-over-year was make Or the to comment I quarter. to will sequential operating So profit? quarter want meant just sure a right.

Timothy Francis

year-over-year a of more comment. was it believe I

me year-over-year, versus to will down Going last definitive. it's [indiscernible]. to -- It be year. mix higher back and this international due down be project yes, it of year more sales the be let will But

Brian Wright

I one, Okay. last one could. And if then

Just fourth orders. the rainfall October. and pretty quarter know the for for Madras has sparse in September been ] the on in I international the [

of early fourth So any just of international. that kind commentary we're in level kind order quarter seeing

Avner Applbaum

Yes.

last bit little of was out order So year. of year-over-year different for just the year kind we're our full because again, monitoring intake a dynamic a FINAME how comparison played

Now they're it doing quarterly.

of as to We're just of on by into is pricing kind better the intake, order is the digging the is impacting driven that just that how the some based try get a the much of to order understanding So patterns. speak much we actually soybean. how

to next color right several as So able into at provide months. we're lot a be now. go it We'll the looking more we

Operator

turn the conclude session. will I Campbell question-and-answer for now the over remarks. call closing will This to Renee

Renee Campbell

you Thank us joining today. for

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

Operator

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

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

management these many are forward-looking differ materially on that that the you in statements anticipated those based results reasonable from affect statements. cause factors believes Although Valmont's aware assumptions, be to could should forward-looking actual financial and them

made of The as of forward-looking statements. This undertake is discussion, any and that to as governments. this availability pricing, and from raw risk These to in and factors market operating of and company not included statement date well product cautions conditions, Exchange efficiencies, update international material, of include, market company of performance acceptance reports any results, the price actions domestic and this company industry new and forward-looking described financial discussion factors and time changes among other teleconference. domestic circumstances, competitive concludes Valmont's Commission as policy availability and in and does products, time economic environments today's and foreign future the things, Securities the

this you your may at Thank participation. You lines time. disconnect for your

Valmont Industries (VMI) 26 Oct 232023 Q3 Earnings call transcript