VMI - Earnings call transcript Q2 2024 | Valmont Industries, Inc.

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Operator

Greetings, and welcome to the Valmont Industries Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Renee Campbell, Senior Vice President, Investor Relations and Treasurer. Thank you.

You may begin.

Renee Campbell

morning. good and you, Thank Welcome to Earnings Quarter Industries Second XXXX Call. Valmont President today Chief Executive are me and Financial Avner Interim With Francis, Applbaum, Chief Tim Officer; Officer. and

results, is summary morning, closing followed will Tim by remarks year, outlook site second and accompany our Q&A. A live for This and the webcast of provide the performance will and replay our dynamics at will a from financial our investors will be second strategic Avner. webcast today's Avner review quarter with provide current quarter priorities. be indications our market and presentation or call morning. available will this the available A of updated the from download on This on later website valmont.com. for

this in our statements, to end that at note X disclosure discussion, outlined subject read is applies of which call. the on call be full forward-looking of will is Slide today's to the today's and on presentation Please

Valmont's and Finally, updated news alerts our Investor information, for up to e-mail with please site. sign on stay latest releases

to the you to invite on our turn brands would on media call that, channels Valmont linked the over and also to our like follow website. With We social I Avner.

Avner Applbaum

you Good for Renee. and X. us. morning, you, Slide everyone, Beginning on Thank joining thank

to Our fostered dedication and exceptional customer employees the dynamic profitability satisfaction, value cost second quarter excellence has service. commitment in delivering enhanced relentless results operational XX,XXX worldwide market through and to reflect of our The innovation, management resilience quality conditions. and

$X.XX. with progress operating even delivering diluted per basis over on in with points sales. we pleased stronger earnings result, XXX the expanded to growing comparable last a to margins making results up XX.X%, As we're share year I'm

greater the of transmission, substation, with customers. year-over-year, to index of volumes shift, to and sales sales and mix accommodate quarter lower telecom while a we price, a our distribution effect are higher. volumes Infrastructure steel refer lower We substation were on this impacted and distribution solar produced and products in as utility This which lower segment along growth.

line top capital. in factory profitability we focusing to steadily and aim While market always the on leveraging invested our on to meet the given and evolving and quarter, expanding growth we are any adjusting By demand, affect output customer needs. change mix enhance footprint flexibility strong can return

Additionally, we capture continue for events the we North America, this to storm replacement In were strategic segment slightly and value pricing strong in primarily sales June, actions May Southern demand quarter. provide. Agriculture equipment. drove the U.S. and Midwest severe in higher

shown outstanding During in when pressured with build precisely this East our international it responsiveness summer the drive has an strong of pipeline growers receive growth quickly the business growing most. Brazil ability continued need in they momentum to and In critical multiyear and dealer team profitability. deliver markets, to equipment project market ensures exceptionally support Alternatively, execute our during good Middle essential by This severe this in I'm seeing region. Overall, weather, our and encouraged we're softness ability quarter. a our season.

the Valmont demonstrates across capabilities model. potential the by business and creation shared success organization Our value core enabled strong our the

connecting play in load business. Turning multiyear a dynamics renewable beginning for transition Industry long-term Starting more remains grid to products X by for supplying energy Valmont spending sources crucial to the marked megatrends utility. address a the of role We're and Slide energy Infrastructure significant electricity CapEx to and at and energy elevated. growth. current market changes consumption generation. with both in

expand and our infrastructure steel, increasing the aging outlook to concrete demand remains to by driven greater national for critical upgrades require create priority strong, for and products. The hybrid transportation resiliency, a infrastructure. Additionally, upgrade

expected lighting for solid project a Commercial with funding but markets despite build-outs in near single-family project delays to provide starts. years are tailwind come financing the to slowing and term. housing recover funding to labor to remain IIJA expect muted We shortages

As following technology are and to record spending and widespread period likely previously network maintain to requires devices investment. carriers of have infrastructure. more and levels discussed, connected robust normalized due plans for we've a advanced data a CapEx their The scaled telecom increasing demand

remains market this attractive solar, with strong In demand drivers.

the energy energy be to solution continues lowest Solar renewable cost supporting objectives.

of made adjustments have to the enhance the to commercial strategy We our will in call. business, highlight which I profitability this later

supporting by driving with Finally, GDP continues our demand are corrosion infrastructure also for business internal providing production. Coatings the to our megatrends zinc align galvanizing. trends multiyear These superior while protection

for agriculture dynamics market and X for megatrends current business. long-term Slide to the Turning

U.S. expected grower rates American year events, muted trend this in order North the the in and due farm the the remains to prices. storm this downward net recent in sentiment decline While trended higher to grain quarter due income

we seeing government market financing pressured are renewal income Brazil, irrigation growers. favorable soft Brazilian is remains demand the recent mixed. loans for with farm as [ prices. support demand by The ] continued program the to lower In of grain reaffirms agriculture tsunami International

the softness region's for our Brazil provides remains multiyear line of of pivot investment the and in market a growth potential The key part we return strategy. a long-term growing project a compelling season. The international even strong provides continued term, remains by While stronger sight. near third on anticipate made pipeline

footprint, projects, With growing Our can challenge the geopolitical we on advanced in projects strong with security is food essential our growth rising strategy. manufacturing are intensified ensure There current a solutions, demand project global populations globally, which we our and East network to technology Egypt remain announced these and dealer track. $XX last to million conflicts. on deliver Middle in and a large quarter

input labor such market Valmont's products optimizing on solutions and the as and improved productivity water, leading technology resources other costs. by farm

We successfully track on meeting record proven are build of needs. our growers' well-positioned to

our a both our short-term growth. some despite markets. demand long-term headwinds in multi-year To and remains sustained demand strong for in of drive segments, solid outlook future growth for summarize, megatrends foundation These provide

We capitalize while positioning shareholder Valmont these trends are long-term to value. delivering on

served our core customer stepping upholding into strengthens business while our last year, competencies. Slide to the providing taking enhance team creation. see role Valmont strategic By to approach we're I've beginning areas worked best refine model CEO to confidence defines core focusing our maximize our our Turning values our in of value returns the growth aim The X. focus our outperform the with our to these support. We're Executing markets. Since while align my areas and to and that this strategy on team needs, value benefit align to concentrate and refined actions on we with to strategy the accordingly. ability

to and the fall, example, structure efficient to we create more For a steps last streamline reducing effective while costs. took organization

are make decisions better to while our nimble We more and operations. now able supporting

and return. drive team from and commercial phrases, next is is The our and this greatest as the the deliver quarter By substation a enhancing accommodating further utility we by greater that execution our customers. the strategy. of structures, This expect mix excellence. captured this produced team resources refocus in We distribution refocusing highest margins advance allocating achieve more operational efficiencies saw effectively, while as and operational the commercial opportunities the value to step and we benefits

actions Another our great example we're the business. taking in solar is

low-margin We as capital. and projects enhancing are certain we profitability on focus return solar exiting on invested

approach competitiveness drive this targets. year, towards impact and we our our it further enhances believe While this growth profitability sustained will growth revenue

a generation, our We in on structure. business. By we by strong solar success building expansion global are future supported about excited are organizational distributed of driving geographic the our

meet industry needs. solutions are to our continue customer dedicated investing advancing and to we'll We standards, that deliver innovative

of of in is to who we Sustainability month, Report. Slide a promise Last our is resources lives. our and element are core Turning we and Xth embodied conserving published Sustainability X. improving

practices. core our our engaged externally of have safety, stated addressing report safe customers. We goals risk creates showcasing ESG cost It our XXXX also in focus strong priorities. To and am targets. by a remains XXXX of fundamental ESG highest several results. to business our workforce as manages improves of global summarize, innovative these features dedication our ours case challenges notable The our studies our innovation. I'm We've metrics been recognized resource demonstrated a pleased proud team's to view initiative, report solutions, our as I that we our X and commitment environmental fosters is for it our and surpassing safety to product demonstrate savings, good efficiency priority. X for improvement to as

to profitable We managing have enhance we competitive and and are ambitious growth. plans drive our what can position

and in cash strategy. supporting stronger capital good generation our allocation is sheet earnings resulted working balance Our management have capital as

culture positive Our a our we is as build high-performance supports growth that objectives. sustainable outlook

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

Timothy Francis

Avner, and everyone. you, Thank morning, good

to Turning quarter to XX.X% to to increased improved second similar net of results. and billion Slide XX and Net of were sales. income sales last margins $XXX.X operating million, Operating $X XX.X% year.

implemented to carryforward per share our a cost of have a the a XX.X% approximately expenses tax $X reduce structure favorable earnings a subsidiary. and of share in million per continue Diluted year-over-year. foreign or of tax reduction on to loss due we $X.XX on includes steps benefit The impact a This allowance $X.XX our valuation control increased profitability. to

Slide decreased slightly secured substation from at mix Through quarter of pricing commercial We for our were deflation. impact utility were index as XX. utility structures. Also, steel projects contractual offset sales products even that pleased shifted volumes the higher Turning year-over-year. in prices higher $XXX.X more to Infrastructure average levels the to selling segments and team this excellence, pricing the price million X% on distribution with year-over-year.

were expect further sales Telecommunications rest of lower telecom not decline do quarter this the for volumes but year. year-over-year in we any the

improvement million due due lower of increased or Solar $XXX.X costs sales. cost net execution, sold to pricing improved SG&A reduced margin also to steel income expenses. driven was including by volumes declining strategies, were timing. Operating goods of project lower and commercial Operating XX.X% to

investments increase products. higher-margin benefits of in to have to enabling We production manufacturing strategic begun the facilities, from us realize our

severe backlog HR sales. or of buying lower $XX and benefit of in expenses actions. International sales normalizing Products and of acquisition. lower higher in the impacting net a decreased North prices lower lower Moving year-over-year. grew were prices impacts. equipment America, in significantly growers' behavior. driven to sales year, offset sales to levels was by projects weather the impact to primarily replacement last primarily to Brazil. and driven from Average pricing Operating East volumes contribution than SG&A slightly partially Middle Slide by Brazil significantly compared lower offset income volumes increase irrigation The due reduced due to were The large XX. due higher targeted by pricing sales regional selling of sales Agriculture million by grain to In irrigation million $XXX.X XX.X% more were decreased

and Turning liquidity flows to Slide XX. on cash

$XXX.X Second approximately the ended nearly million $XXX with quarter operating flows the XX% cash. XXXX, and of were in second we than higher million, quarter cash quarter

expect through We cash strong management. capital growth earnings throughout working flows XXXX and diligent

revolving During X.Xx. reduced of our the by to borrowings million, and desired is on adjusted X.Xx X.Xx total EBITDA credit quarter, to debt within line of our of we $XX range

us flexible execute credit available and balances, to sheet capital cash allocation balance Our our provide ample strategy. liquidity

capital Year-to-date was deployment. Turning to $XX.X capital spending XX a Slide for summary of million.

team operations is approved progress infrastructure Our expand projects on our production capacity. to capital steadily making

strategy focused or acquisition Our our our sharply core expand would addressable is adjacencies to our portfolio capabilities on markets. enhance that natural

returning Our approach and we $XX capital deployment to million balances growth share investments repurchases. with cash returned to shareholders. approximately capital shareholders dividends through of Year-to-date,

have share Over accelerated million year, $XXX including dividends repurchase repurchases. through $XXX program, to the and past shareholders our we approximately million returned

now XX. will updated XXXX I as on outlook Slide shown share our

X.X% full our We between has X.X% total strategic year solar of minimal adjustment that decline profitability line revising are sales making net reflects are commercial will on a This segment. prior a our the impact but effect in the we from outlook year. a sales sales, to to product

adjust utility to assumptions. contractual us price in from outlook downward index increase previous expected Additionally, deflation impact the our leading sales steel from is

sales to outlook to prior remains between we unchanged the As to be down improvement now compared up X be a year. In income sales between an North X.X% in farm these outlook with grain XX% to projections infrastructure prices. recent America, this to our expect current and year. sales full prior are year downward of segment flat to Agriculture, In this due trends year XX% factors, in do compared and result quarter, not expected our sales despite expected U.S. additional storm-related

our the our with diluted Brazil. in range increasing on and outlook focused We pricing revision $XX.XX expect softness to projection, We $XX.XX. of for excellence per we are to of sales adoption share our technology continued increasing downward market earnings solutions. Even to also a remain

that. half second results. also be the moment expand first below on a like take and XXXX to half We expect share to earnings per for I'd of

this Infrastructure, pricing year In although compared not gross margins steel the half costs improve XXXX, aligned to the anticipate of index customers. the more be may seen reach they with profit to to levels full our in because we contractual first year steel will

of half the we international segment a Agriculture, mix will In margins. that pressure second expect of the projects higher year during

offset partially be will by impact reduced this SG&A last However, to expenses year. compared

basis. quarter last XX.X% similar to we fourth on segment margins of which As we be quarter, to an the noted adjusted second half XXXX, expect were operating

We be the process net sales over implemented. With to expect I full last reflecting to call of year, turn percentage the meaningful now year compared a Avner. consolidated SG&A smaller will we've to that, back improvements

Avner Applbaum

you, Thank Tim.

thanking Turning we what across to close to key Slide and operational excellence, functions our commercial by value. shareholder administrative organization. and enhancing can sustainable XX. has margins our global Streamlining driving productivity team. creating by is actively I'd managing like and We're improved strengths operating leveraging the

to our making targets. is our company and long-term steady our positioning Today, strategic financial achieve more us resilient on progress initiatives,

Our value vital our confident our megatrends. for address I'm to to stakeholders. markets delivering team that is customers our solutions innovative delivering growing continue in in ability

I over turn the Renee. back will now call to

Renee Campbell

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

Operator

first CJS question comes Our line the Moore from of Securities. Chris with [Operator Instructions]

Christopher Moore

maybe of on solar, deeper strategic just was hoping little a kind adjustments. I on go the we bit

to some impacts you trying in and be better terms 'XX. the Just just beyond strategy projects a of exiting going overall are little bit to understand kind how of of the that

Avner Applbaum

road products that can our engineering strategic we just were into we this decision really to we exit We initially we looked our value, we add But made we look one targets. customers. When hit more we that our expertise. solar as commoditized, our it's started business at add supporting cannot can are business, financial of not a it, a along when

can are drive and value focusing mostly So space. what it's in financial areas we that -- we on we're where we're And doing drive the DG results. the where is

the on DG them improving space, margins we where are So our -- year-over-year.

We pretty large, player in much are stable a a underserved market.

our there the knowledge expertise what and countries So we that we is in the table to bring deep play. local

tracker provides XX low so, it that well record suits a have solution itself, low providing maintenance or We our operational into the costs. track costs, years a good fields. very going Actually, smaller

products DG in install fits to shapes flexibility. odd have That's our that and these Some labor fields for easy allows of area. very well and

doing utility that We're So when our with We're very well we're that area. providing we that look at additional products. around support XX% with able space, in our space revenue year-over-year. increased very to result. the customers the DG space, We've pleased actually in them in

growth. to So That every drive year. on market to focused highly we're going area that is growing can X% be where we XX% strong

road. that going and to So we're market serving keep on that continue on

Christopher Moore

the follow-up. Got sales. it. And North ag appreciate quarter just It's it. maybe strong helpful. America didn't this for of was my I out year replacement The guide for change.

between versus Just the the to decline at XX% mix trying if same? that the though is America understand to XX% even decline of international, the overall changing North stays all

Avner Applbaum

Chris. Yes.

a point I and these and Let a is we overall, to did they me for life Tim a start can with have would get like emergency not business. with in. very then quarter utilize you up that network. dealer give stock, able critical way grower We the We're for But with hit point background, get some strong them. and of to off, our storms. with supply strong ready to it's we reality storms. unfortunate we're where chain farmers out, jump the in want it a out, quickly there a I given time that our just get

that least at -- the quarter even did strong at so, to very quarter, to look seeing, closer macros, have going what $X.XX last corn we in lower. more crop mean it's grains $X. is quarter. When or pricing globally look we and are the quarter, a the since of was into is and closer some themselves, $X I last So now we this

it over soy, was $XX. look You at

little Now below bit it's $XX. a

there's And and won't putting now, right pressure that yields indication good no ratio really be the So the on pretty farmer. high. stock-to-use still additional is is it

North when factor Brazil. to So a you have and kind we're challenging of those in year expecting in, both in globally, America

And Tim, want that. add if to some you I around don't know color

Timothy Francis

than job. would moderating our year. half have here for sales changes, second America digits. be And a Yes. the approaching decrease give year replacement then current decrease would But the Chris, specifics, the mid-single for the international the XX%. America for sales outlook the additional slightly will And in be and a to But To summarize it's little bit on we more more full that did North Brazil outlook, both our for volumes really, Avner the did are North of for we just reason QX. nice the Tim. the

Operator

next of Stifel. question line Jones with Our comes from the Nathan

Nathan Jones

price a with on, I cost and pricing to versus I questions as few well. start want guess, off on

and You have about in declines pass-throughs guys utility. contractual agriculture talked price areas price specific some for in the

and part You steel softening come prices other of lot. business, down in haven't any the talked about prices have a

I'm that and to input whether be. you on on whether then you lower views your other your some that what areas, back have input give net some to interested hear on in to can the would So views hold pricing costs, of cost

you and So accretive pricing? do to seeing that accretive expect to to income, you're lower even some if margins be

Avner Applbaum

our about start environment then details. I'll pricing Tim strategies. off, can into Nathan, just talk and Perfect. the go

So we're our and about with utility talked We these leadership. solutions we're the going demand strong. is area, our strong end we and lot to there's continue going The customers to provide our space, pricing solutions market to we valuable provide of the In demand to our customers. markets, price transportation accordingly. a maintain

take any specific approach, pricing. we're areas. I our a we making actions the that pricing reason see agriculture, our expectation would now, take to pricing, our see we right every don't to areas is And reduce pricing we maintaining specific that very also adjusting reductions, we're that. I overall, no market But reason don't share. sure for going it's in any is there We So mentioned and are maintain surgical why will broad-based to in even any

Timothy Francis

it's Nathan, Tim.

I'll going Agriculture. about about TD&S I'm bit. talk and little a expand to talk me Let

in of utility sale XX% expect progresses. And we return about is drives, lots go the there TD&S, a in of a are cost pieces to as you of then alliance seeing index are contracts agriculture, control that of index year the There we customer and the are steel. that contractual steel there of are aligning the electronics, And the there to when deflation we're center turn the there tires, to steel do For contractual panel. structure steel to into cost have pivot. components a are our the

different the And on a of all are So very as a because remarks, cost. price we've pricing versus regional with what's we see see in being said that we we dislocation our of we components don't the actions going pivot, targeted in on opening taken.

Nathan Jones

guess I business Infrastructure and question total on my the there. follow-up is margins the

your have the last you that. the the those margins back businesses view and of moment. What's the XX been of XX we're most percent, competing the down Just sustainability of combined For give low kind to averages to all area, any years, has above XX-ish been? of on of pushing where mid-teens at us on versus infrastructure that long-term those market thoughts can double-digit

Avner Applbaum

we there if and I'll takes, specifically, Nathan, just more that look puts at are so the and it did you look at mention Yes, quarter, broadly.

once-in-a-lifetime We the it's load driven mean are internally more a the bringing by we last grid, -- lot decades strong et decade. of environment, seeing megatrends, growth cetera. to first it's the more the in some electrification over of than and I and a of of time market for seeing demand plans We're all, transition. first U.S. these different energy are been

is with, market off a very start strong I'll continue. it environment -- to expecting is that and it So

the capacity. out improvement, taken make on and out adding also we in That well. We're cost, specifically more from closely continuous can And through that and We we our keep much cost, goes driving over we're years which do took helpful. benefit the make on products our and a substation, and and manage the of now more get is but portion Now do actions capacity year to concrete. the SG&A to so organization driving our have as our very we're and distribution sure We our now utility. sure we we internally we year maximize business efficient. We've bigger streamlined effective profitability. we've we

specific continue overall margins increasing those expansion what some So examples our over just working to market time. on of long-term our are goals we're to of drive achieve and -- overall

overall, So seeing we keep I on say improving. margins would should

Operator

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

Brent Thielman

within year. you. It's in been comments I just question guess Telecom here regards It Infrastructure I you're area a business. Any customers? to inflect? maybe some is starting your just confidence for maybe in what kind to the what the gives seeing insights you're from that a stabilization the Tim, the difficult business segment. suggesting obviously second And of those sounds of the into like you caught half

Avner Applbaum

and Overall, the if absolutely. take a step look back just we question. Telecom Yes, take I'll that at business.

last spent monetize investments, telecom significant -- a as And interest on So the and pressure they which or spectrum. CapEx rates, trying several both CapEx of their higher put the some amount they over in on then to years, they're cash the with the providers, carrier. hit got

the area. But and So We're we've in are spending, last spending cautiously the intake stabilization this point. that better seen, we optimistic. not less slowed several to see starting some what But from carriers, order years, are seeing over we're they're we at down more seeing on add on the focused on initially the urban suburban actually on thought case. increasing would they mid-band customers. CapEx additional can areas them we a of and the densification, which be lot seeing so now operating the resource more We're specifically and space, capacity,

on working still balance sheet. strengthening they're their So

that, yesterday investing about XG talking well. they're AT&T and heard just space the heavily in as You

that usual. we're it business as So more way. seeing I'd call

can we should is And on. of PIM fits our so in second in some offering, product specifically mid-cell, business, for positive space, telecom, Our should be, absolutely what when our around some see half on well us. at that and offer component that which we with we product look our growth

the seeing expecting see So stabilization overall, we're more area. and signs, in say we're positive I'd to telecom

Brent Thielman

in kind you a agriculture, like tough and visibility have And you those projects for Very especially ag some project-based the Okay. business talk offset, visibility you this market pipeline it good, if, climate seems sorts segment. Could -- of -- of overall does for that. would spending those? that is on lend Avner. in And what sort persists? giving fact, potentially you weaker appreciate then guess, about ag I notwithstanding I you into that of the XXXX,

Avner Applbaum

Yes.

when we -- you about activity drivers our talked is North good that specifically than different seeing look has in So security, before America think scarcity East, Brazil. et it area, water which that Africa, When North and by you area, driven Middle food and very about at cetera.

We are doing well well. to on pipeline this the point. in pretty projects hand. that we active we with our a customers dealers And with currently space, very have directly And have the continue working strong in at as be we

the one to hard each determine of had always but And some years, of last projects. of the several when over projects you back, kind the it's some look to we exactly we large these look of very Now a weakness timing areas. more is And lot and the offsetting it's that pre-COVID. it in on and lot active, very today, end favorable a it more other activity looks

that definitely the long term a and aware labor availability, we're drivers say on going would North for and which other America based to of. the very us know until all we I bright water be is Brazil, scarcity, So us these is sustainability markets, strong spot that for

pipeline I in So on pretty our that would positive overall, area. say we're

Operator

of line the from comes question next King. Hayes CL with Tom Our

Thomas Hayes

I wondering, question irrigation follow-up to was the maybe Nathan's pricing, on a just specifically business. just the on

pricing targeted some took you quarter, the in actions. that indicated You

onetime? of review that is were far a if an And kind kind that Or actions? maybe as as have of could of those wondering more those quantify pricing ongoing magnitude you you kind the market? that in your Just of

Avner Applbaum

some region this to pivot do But region to is in him pivot Pricing the a a had -- value Yes. the for. his is is basically you're very every not very our And could optimize you're for. specific different could go help cost. are every every for share proposition the really, back is we and different. has we going at could areas. small He he's every specific yields market looking be some yield in It I'd to looking ensure strong have strategy different, us. irrigation he dynamics. Overall, offering protecting Without our that grower, able for is adjustments case, grower. gets pivot, It and get the overall,

that strong make will our dealer our So we offering, can sure we these utilize network, to needs. address

pricing it's like said, I very expect We in -- irrigation. broad-based to specific areas. reductions it's again, shouldn't us see specific So in

Thomas Hayes

on I M&A that. the allocation that targeting environment plans. you the Maybe forward. your Maybe on a where just appreciate capital follow-up and going be thoughts maybe could

Avner Applbaum

the our capital is allocation part M&A So of strategy.

financial we actually streamlined the Our number at not acquisitions taking pipeline CapEx, very look to don't go that a and and of they pipeline strategic is either and right our strategic took acquisitions. into that I are size hard our reduced one or the then criteria by hit our out us criteria.

the to that to could to So we competencies, appealing are us. the our really we're customers, that add strong, value, geographies to core our they tied markets

the than and So And that more to build focusing right we look pipeline. continuing others. acquisitions. now, took there's a we're hard no we're streamline or segment And We're area our the areas very of TD&S in as that looking a space, are others. closely we strong on we the looking drive at synergies. opportunities lot well There are which as can growth

us the next strategy. when acquisitions happen. work. to be over time overall, part more strong as building our that earnings, very of strong the these you'll be and generating on So to several going hearing pipeline. we're quarters cash that to we is going will put from difficult flows, keep But It's to We're

Operator

Drab of from with Blair. question next Brian William Our the Instructions] line [Operator comes

Unknown Analyst

on is This for Tyler Brian.

you sales? year-over-year higher the of how can Pricing all, elaborate of a on for segment. was mix distribution First greater negatively impact just and sales substation

So understand different the mix. trying of I'm and flows just to ebbs the

Timothy Francis

that take I'll Tim. is This Sure. one.

if bit think So cost I'll go sales XX% comments of about my of sale steel. TD&S, little of you the back is the to about that a

are to structures, revenue. as less we have So we transmission large going make less

with ability about of revenue being have the all commercial of XX% going customer to have. accommodate of are capacity But distribution substation cost team structure, structures less the more to smaller our the to we and demand. operations excited our steel, equal, our Now, the the the increased being cost we're and again, make else its the to

Unknown Analyst

Got just straightforward. up being negative to was is pricing mostly just that's transmission it. that still wanted Yes, pretty down. impact and I that confirm the with

And my are follow-up question mentioned facilities? the on examples that in to wanted call. just higher-margin manufacturing those. is, You of producing I give strategic due can you you your some just of to the products investments the get examples

Timothy Francis

Sure. It product substation back and to be distribution lines. would the

orders So of alliance find to taking our that balance every from orders year, out versus we customers try in taking market. bid the

in margin to what bid was we were we and take distribution those orders profile of we at for an saw pleased more available market, the orders. substation, the the at As looked and opportunity

Avner Applbaum

let and step jump with We're these demand. just very strong a areas markets what all And of we're seeing take substation. We're at. take pleased just distribution, in transmission, a in me Yes. to growth, in look and seeing back strong

quarters specifically, we're they mixes. customers were and focus have broad wouldn't exactly needed I to will able this movements, with product quarter, be offering, we our And In also of what will some and address have -- movement different and a always there to we support able that.

for market. transmission, cetera. all we of concrete, quality areas, offer to able our some areas focus that a we're as high that anywhere wood. a looking in substations, go you earnings. But been are pleased solutions dominated of from customers small has around which But very could distribution, We're into the et very I strong hardening, distribution, us. while support steel by part It's we're to growth up of driving at mean, all So

demand, to it's at very mean, that our overall, our and looking strong, to drive So in pleased we're area. backlog, continue very with going performance, growth I at looking the

Operator

the Our Braatz with Jon next line comes Oppenheimer. question of from

Jon Braatz

made some major now your took -- are irrigation in wondering Prospera. organizational terms add the of to longer-term year, the Prospera's point this goals what changes And to I'm Avner, Prospera you you where sits the And at forward? Prospera new last for agriculture, and from technology business? plans to ability

Avner Applbaum

strong focused I'd very value. do our been on our our where highest provide through be organization. the and growers how going we're off on irrigated into a that focusing now to offering. integrated we're the core pivot under value and acres, business And more Prospera offering to has provide start into the tech we our can more we're we how on -- we are with, lot

the to areas. can doesn't pivot things I into have So remotely. we're those which lot data effective, We're go more Prospera into say, And he of to embed more learning going the developing tech, many farmer should the or science do keep pivot, in more we data to on makes is embedding pivot. machine the out a science, the more, he as helping aspects

anything So helping power, input address from costs, getting just to more their more pivot see we cost, the effective. the being will effective, smarter, all their way them

great making just progress we're that more a in So focused. area we're being where lot

manufacturing the engineering they in Now can top strong help the opportunities that on other infrastructure side. help and side, of AI on very they on we're the exploring How talent end, of including has us how business, commercial in us they brought end, Prospera could the on on side. and ML on that, aspects the the

they other we continue So talent specifically that areas. add the as that on there's lot got a pivot and to of value as well great the organization, to will

productive. the So Prospera being their part problems, for some about us to the opportunities pressing overall, helping of is be grower And pretty of to a going helping excited growers value I'm more that proposition. key solve the most

Operator

have to comments. you to over We I'd like turn back Campbell, at the this further Ms. for floor questions no closing time.

Renee Campbell

you Thank today. joining for us

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

Operator

in differ These the the of Such oral forward-looking of statements other and cause will statements, the factors to and of expressed results company Reform slides results Litigation company general market meaning accompanying Act within the materially the that from overall and by business and could uncertainties contain such subsidiaries, by Private conditions known or implied involve the XXXX. including contain served affecting unknown discussion risks, and the its actual the industries the Securities market economic disclosed statements periodic company conditions, performance and Exchange the domestic products pricing, international the with actions policy and of and of and economic availability environments, of financial changes governments. competitive and results, products, materials, geopolitical acceptance operating availability domestic new product market acceptance risks reports circumstances, filed other of and company's foreign efficiencies, integration Commission price and services, of the conditions, and well factors and as industry future as and and Securities such acquisitions raw

after company's of estimates statements declines teleconference. The any future may your thank events. This release as the plans, should occurrence date forward-looking specifically your such made of to beliefs. any concludes be for events you undertake at does may reflect Consequently, to the current of results publicly and today's the participation, these unanticipated lines disconnect such company and regarded or not forward-looking anticipated time. be obligation to revisions any circumstances We statements that and you this to statements the or reflect or

Valmont Industries (VMI) 25 Jul 242024 Q2 Earnings call transcript