VMI - Earnings call transcript Q3 2024 | Valmont Industries, Inc.

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Operator

Greetings, and welcome to the Valmont Industries, Incorporated, Third Quarter 2024 Earnings Conference Call. [Operator Instructions]

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Renee Campbell, Senior Vice President, Investor Relations and Treasurer. Thank you.

begin. may You

Renee Campbell

live President followed good XXXX is and on the Applbaum, from call the Officer. This to A website note Industries will Executive our Valmont and morning. Please our replay quarter site third will Tim download and be on Officer; Thank summary or accompany A the Chief Francis, Call. morning. With investors' of Quarter Vice later Liguori, This this call. financial Tom Q&A. and Earnings today's webcast that Executive Avner Slide provide provide Accounting of webcast Chief outlined me for Third at Financial is for available our Chief is be and read you, be at Officer; Welcome to available today's and valmont.com. today forward-looking of results, in presentation presentation will the disclosure will quarter on to applies will President our third statements, morning, will dynamics, and market today's review Avner subject full outlook year. this current end and call a which our by discussion priorities. Tom X the performance of on are the

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

the you We and channel media social on on follow linked also website. brands to invite our our Valmont

to the over turn With to Avner. that, I now would call like

Avner Applbaum

Thank extending us. thoughts by our and and Hurricanes impacted you, I'd like you Good Renee. to morning, begin by everyone, Milton. to thank joining everyone for Helene

employees and of relieved health this I'm like events I'm always leaders are possible. of our providing our for and local safe, employees. our proud resources assistance and during safety the incredibly all priority top where Our is

we expect the customers quarter. the Although on not a disruption encountered also overall our in We're hurricanes. our our recover do any from fourth to operations brief interruptions, focused of facilities few helping

structures equipment. damaged damaged to and And time. help are are our dealers replace swift of infrastructure local agriculture team proud teams Valley to and assisting during irrigation our needs. I'm assess response needs and Our difficult this restore working compassionate team's future repair to

quarter Now Slide growing margins turning sales. and performance, delivered profit operating year-over-year another to messages operating solid expanding despite X. of We on lower key

were results and Our areas operational pricing our focus structure. effective key reflects fundamentally driven and improved execution, by to return a and commercial enhance This discipline, invested profitability capital. on on cost

trends long-term more To well balance dedication about strong not these global continue. successful million, work laying these I effort I'm to from generated instrumental our for We operating strengthening the our quarter collective growth our on thanks want future excited delivering only positioned drive foundation to $XXX customers team focus success. Building multiyear further that, we've than for With market also of as of cash our core megatrends. business. intentionally competitive employees customer-driven Their the sheet. in XX,XXX innovation, has a outpace growth, but also in for on been advantages extend markets my aligned benefit accomplishments. flows strong secular and positioned with driving their businesses hard a to our are outlook to and and

improvement support creating and driving costs. framework. our to We focus our mindset will through and ROIC. us results, This culture, on allocation solid our on cash This our joined a strategic while opportunities. is we're roles making call, shortly. We're progress more we leadership promotion. priorities. who today's strategic the streamlined to We be productive Tom, on also on executive share go-to-market structurally And continuous more high-return maximize strategy capital to effectively increasing managing This quarter, key team our I and filled includes and efficient details reducing working hires flow high-performance organization internal capital and

While of to strength its and work by leadership be I'm progress I'm confident the team done. encouraged on the energized still advance to made our execution. further there's we've strategy, in our by their ability

market Starting pleased for for with megatrends with growth prior X spending is for and Slide were dynamics meet elevated on growth to very many business. to year sequential we infrastructure basis. current utility, long-term the years. quarter and increased this expected and has expectations Utility to remain CapEx Turning a strong load

to factors upgrade in development combat aging capacity. for same better rapid extreme utilities be expansion time, and centers invest infrastructure the driving of and industrial the electrification, new existing At investing resiliency Key and like the data are prepared weather. to systems are in need

withstood recent the our investments. continued of grid the highlighting of by better Some customers hurricanes the importance challenges proactive posed

business. were Sales to Transportation this Lighting & quarter. lower Turning our

due While we DOT and market decline investments. a our projects, order factors, to was moving the higher timing rates infrastructure some of clear by see opportunities are year-over-year, business forward. improve driven note, trending transportation also for to positive of execution U.S. On

enhanced to further IIJA this by favorable expect continue, We trend funding.

Turning to Lighting.

housing historically business single-family Our starts about XX by months. lags

in while rebound these the business soft and recover market remain So markets with suburban to near continued our expect term, we housing the sprawl.

This pleased this we are ahead quarter. returned to steady Turning levels, Wireless next have spending see more to to demand sales to Telecommunications. as previous above carriers which remain growth expected We signals normalized look cycles. year. to were

more robust term, of more long a XG as advanced will such and network. devices require adoption the connected Over technologies the

to are lower U.S. last we our quarter. certain which We lumpiness changes. growth, the positioned well of projects, also abroad. In to and both We're deselection key we partially Solar, near-term seeing due announced adapt low-margin were for strategy sales market the some markets as in

for ahead, and where in confident solar focused advantages we're solution distributed selling select competitive our generation Looking applications. tracker utility-scale we're our on

business we with GDP serve trends the while production. our Coatings regions aligns supporting internal generally our of Finally,

business. be over the and average decline XX% USDA declined years lower. prices dynamics also updated X which continues Slide are They X Notably, the were XX%, North a show on grower down Turning that sentiment. month, past and forecast weigh lower will for corn for agriculture farm long-term an XXXX. last American soybeans from to have net for crop which sales to income, continues the to year. slightly XXXX current Last released market estimate prices current megatrends than

Center for is International for return a in soybean XX% to our of agricultural opportunities to for the nearly in order on offers irrigation income markets. compared last lower growth expand strategy. Turning Brazil improvement compelling opportunities creating sixfold investment, pivot remains only long-term pressure significant growers under increasing land Brazil's us. in but irrigated potential to due with entry growth industry. growth an the profitability year. prices, unlocking and key encouraged of to Brazil Farm by we're component a Currently, remains

are driving the especially Growing with concerns East robust demand and these well, projects. Egypt projects tensions food progressing security, population a geopolitical in international elevated for about increased Our and have Middle ahead. pipeline

technology Tom Advanced well-regarded has also thought Slide CFO. Group joined finance to excited be Liguori in Officer. I'm to organization I'm as CFO. strategy. Energy, us strategy solutions. ag announce strategy Trimble, Tom to to of for that mechanized working appointed Matthews execute growth, and led invaluable also take a role at Francis to where as as years as we channel dealer with with experience, who is expertise our global and Agriculture. Tim partner the a over pleased key at Turning interim industry-leading together within roles with in in will of announce Chief key to to Darryl finance improved that been irrigation will industry Avnet continue I Darryl additions thank a profitability, His stepping X. our and drove a want agriculture moment increased role Starting to CFO finance advancing Tom where work Accounting capital. successfully Tim including has global he President play leader I'm team. XX our played we leadership markets to leadership brings executive previous our as excited execute management. he for crucial

share to X core of a consistently XX Jennifer leadership promotion lead at experience, Jen President of our Valmont, deep years including strong excited making I'm alignment values, Paisley addition, ideal Senior Vice With the over and Human to as our demonstrated to of HR In her function. Resources. has HR choice years the

of forward. these Valmont right executive, our and the we align in and been long-term to our infrastructure summarize, for strategic ensuring growth intentional to strong. remains place outlook our appointments have the in talent strength team place has our the decision with lead existing culture. To goals both uphold have Each With we and agriculture

a growing infrastructure positioned well strategic are will in we're enable which to margins. further drivers. us demand We expand markets on enduring to focus, capitalize sustained multiyear demand ready with With sharpened

future to about our to In potential growth our addition, and recovers the we our as opportunities agriculture market business optimistic capture delivering value continue remain shareholders. in

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

Unknown Executive

morning, Thank you having of team. you, your everyone. Avner, and as thank me for part Good

Operating the on a more do and with million. once again in this results will is our the growth Overall, expansion. we Cash pricing, hard margin was I operating team pleased know were to exited we the in and this their controlled $XXX in year-over-year Revenues line costs. want We expectations. and congratulate financial margins very quarter. there work healthy on disciplined area. And can as revenue were businesses are flow we lower-margin increased with

we right our that So we the believe financial on path. show results are

$X are adjusted to largely due to solar XX. segment, last basis, primarily nonrecurring to businesses. results markets mostly will sales North utility by increased an My comments X.X%, sales And compared our our our due focus lower compared sales in of in on excluding declined Infrastructure to actual year. International last also decreased billion in in X.X% to Brazil. growth American By sales. sales to Slide our in agriculture telecom and due items. Net lower Turning third which quarter year's on region,

to important for and Our controlling period. Valmont. are costs team international cash this want I businesses during international thank flow And our managing very to

quarter. a XX $X.X XX.X% sales. improved to to the of Operating million Operating in income points margin basis net increased million $XXX.X healthy

the gross margin was lower decline to due SG&A projects, than slightly agriculture lower-margin by more offset our declined costs. While international

the in $X.XX income control tax from per normalized The favorable repurchases a and as benefit Our on our year. onetime share benefits cost count offset impact a more share expenses X.X% lower was rate to of similar losses profitability. Earnings having and improved recognized streamline efforts to team's last by foreign a operating XXXX. structure currency of and by were tax share was

sales largely million operating and in of XX. sales segments solar. offset on grew Significant million. $XXX.X Turning and Infrastructure telecom increased by the $XXX.X in income utility year-over-year, slightly XX.X% L&T growth and Slide to lower to was

to million declined utility prices year-over-year margins. to of are year-over-year. impacted for this and Our Average distribution, to grew transportation utility some higher and the contributed with the lighting, consistent continued exit revenues business project of X/X Revenues quarters. we million selling timing. substation recent structures $XXX.X were operating X.X% in $XXX.X XX% performance softness revenues. Product Overall, towards mix higher strategic transmission trend and were and pleased contributes smaller our with nearly year-over-year products and of market team. Lighting products transportation by of lower-margin now extremely

mentioned, housing market rates the order expect sales Avner in America business international to encouraged North rebounds. Coating Growth revenues offset flat our business in lighting As markets. year-over-year. as by in by and we're relatively was our lower recover higher transportation were

Our grew telecommunications business close year-over-year. to X%

North rose spending in America While modestly. carrier

initiatives Our the customer the ensure at of for have we paying quick off. right are place orders right turnaround to inventory

large Solar that revenues lower-margin our and not declined did international or a year to XX.X% due exit XXXX this in projects. utility-scale million to project decision repeat $XX.X year-over-year

business. go-forward is our team completion a solar product nearing Our for of redesign

basis levels and the $XXX.X growth segment, We steel XXX a expect to in mix and of in revenues the XXXX sales, improvement. most operating or second telecom, XX.X% favorable. were SG&A half. Across the the first point was Infrastructure and solar million current by at markets, and lower This lower improved increased growth pricing remain half to driven pricing utility show expenses in costs. net income through of

selling America, markets, of impact continued sales. XX% or to XX. income XX.X% slightly of during in of partially point sales was in sales the the expenses region soft as million $XX.X to of the basis The decreased million XXX higher year-over-year quarter by income Agricultural offset sales, the demand events SG&A growth product was benefit prices sales of HR and quarter. Average Brazil driven by offset Midwest the equipment lower $XXX.X grain in operating from $XX.X was decreased of volumes a agriculture and million. buying reduced decreased was irrigation Slide impacting completed project the and In result as XX% increase by lower that lower net lower year. prices a decreased in last to This second International acquisition were a decline. mix irrigation decisions. in growers the similar operating EMEA Moving contribution to replacement by North third partially were XXXX. Agriculture as are primarily volumes storm sales the offset

and on flows cash Slide XX. to liquidity Turning

strong million. quarter to We $XXX the quarter cash. approximately Third with ended total $XXX operating cash flows bringing in the were $XXX million, year-to-date million

moderate flows of incurring to our biannual bond is we part expect cash will our the in due, quarter We program. expansion fourth interest and as additional CapEx capacity be payment as

now the borrowings reduced our by line the to net quarter, on we revolving credit million, reduction Net X.Xx. adjusted of to year-to-date bringing million. During total EBITDA is $XXX $XXX debt

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

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

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

to our priorities: on growth. and product contribute opportunities fit is and within strategic expand our strategy market reach acquisition Our earnings that focused

be ROIC and of a our to earnings. Returning to will core selective is M&A very the cash a healthy in ensure capital accretive shareholders We process foundation allocation.

year, $XX shareholders this of capital far we to through returned million and repurchases. So share dividends

Over the million. total months, past XX reaches $XXX the

million $XX remains Board-approved under repurchase available the program. Additionally,

Turning to Slide XX.

year are to compared sales X.X% expected last net decrease outlook and remains unchanged. year. XXXX X.X% Our between to Full

year X.X% Full be sales infrastructure. to expected to year. between up to prior to are net Turning flat compared

be last are second first to are be year aligned XX% pricing the year full between contractual become to Infrastructure prior mentioned to compared half expected the steel this agriculture, quarter, margins with net sales index of to and down expected lower in the half customers. In costs year. than XX% steel our as more As gross

higher in expected the lower margins segment are to quarter, quarter which of of As reduce mix $XX.XX. will to Diluted range margins. mentioned international the per last projects have fourth $XX.XX operating share be earnings

our to lower-margin were line Cash due a Operating exiting flow In businesses with costs. pricing discipline, year-over-year quarter margins controlling very in healthy third summary, our increased expectations. revenues million. was our and $XXX

unchanged. full our our We're about and the revenues XXXX are are performance EPS for Our in year opportunities excited and outlook and ahead. pleased with markets years

take a to performance. history with has moment financial I Lastly, a of to of say Chief want a market be Valmont Officer I leader rich to am strong Financial Valmont. honored being

vital the infrastructure create helped agricultural businesses feed increase Our and to world. productivity

working drive next grow years. I that say revenue business expand can our supporting am and over our the growth industry to secular Avner team look to honestly to I trends the operating growth entire about I in excited opportunity the significantly and our several forward with and margins.

our Omaha, of months I earning will note, many On Our their with on we and predictable for you have I focus our to be company. meeting personal in on wife, our a forward are the sharing community. and healthy ROIC reliable a investment providing relocated coming Christy, shareholders and company. returns enjoying and future of already the to thoroughly look our over the vision and my

back call now over turn to the will Renee? I Renee.

Renee Campbell

questions. the Thanks, At operator, time, for we'll Tom. up open this the call

Operator

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

Christopher Moore

questions. of operating start with couple Maybe margins. we'll A

is margin mid-teen lower the looks over revenue. 'XX and were in structure operating drivers. to the big were the It Margins quite soft longer of the despite approach term. X cost strong the steel like So goal pricing

operating Just if same agriculture you of to benefit need in from no level maintain to steel XXXX, assume meaningful close the XX%? there, you in improvement margins going are to

Avner Applbaum

I'll This take Avner. question. the Chris, is

in goal getting operating performance margins. XXXX mid-teens of our with margins, pleased very operating we're to to closer of our overall, overall So by close expanding achieving

the customers. the many So improvement, value our very to around pricing areas we're continuous we've done with pleased performance our our leadership, in driving

one-time overall, year. some we this tailwinds performance. Yes, great So did have

nature. I of some more mean was benefit it our around the take Some steel pricing, We strategic just did steel. some of are deflation. of purchasing actions in the onetime them

we not So some which onetime have do will in benefit occur XXXX.

to So to what one-timers add more pleased the of bit And want color answer little with Tom, kind done. on your year. we've this point, of a maybe just impact the

Unknown Executive

about costs, forward. cost We're increases SG&A to in the think going capacity feel have SG&A We've have we growth. to expect margins. than growth, our help Yes. fully We're Chris, and will expanding markets. our so operating margins revenue that we controlled in our going good be I our plants. Well, of revenue all, good to first operating less We're our

So their think going And more and factories. with we'll a with going exiting our forward. operating really has efficiencies that that's the discipline businesses to lower-margin margins in our in proud have I better help but they pleased painful have throughput, team we're process, of maybe pricing as well as been

I good we at do this normalized have capital lower what's international a a better steel have forward. costs. quarter, rate, have So understand mix think we're this where we important capital matching a that which projects, are contract get from very less tied feel headwinds deflation. is steel agriculture the do we And near our invested maybe at healthy like of they have we because we yes, feel quarter, And up. pricing And gross and advanced we of margins. to more have going But payment, on return higher there's they is term, --

So on margins forward. operating overall, sentiment going positive

Christopher Moore

Very just weather by helpful. I North appreciate last American sales from that. driven benefited severe Maybe replacement the Ag events. my one.

positive sense to and QX that are you carry a into Is 'XX? trying to much will over. to Or Just impact how going still that from benefit see longer some that? get as

Avner Applbaum

I'll take that well. Yes. as

soon initially overall, ability respond storm year So we're the as get overall, in making we up now can their have possible. dealers they And and perform did they pleased sure as the very -- to to in and and with season in have and our the growers U.S., the quickly a Midwest Southeast. running strong very farms

So some positive overall, benefits. we had

expecting strong normalized overall, yet had year. from next to we're a going some go we in the expect have stores. all a into as the relates storms that. And benefit we seen to year haven't it of to get the as so benefits from Southeast, We year, to more But

Operator

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

Nathan Jones

I deflated. I remarks pricing up covered I the to about from? that see that that steel surprising coming average service wanted the negative pricing about you to start prepared part have to off pleasantly year-over-year, selling TD&S this your master made that would have I comment utility agreements you found given is a have where business, number. Can talk expected prices on wanted ask prices higher positive which XX%. I And the have specifically, in transmission were would negative is quarter. price that had in by assume business of to during

any what just you on can color more where it negative where us the and the growth positive, was? it give So was overall volume of impact pricing, was

Avner Applbaum

Thank one. you, take Nathan. that I'll

So overall, in very be pleased TD&S and with quarter the performance our up XX%.

strong performance aspect. in very that So

it to us demand been our sure as And environment provide specifically pricing, that been we to appropriately. very solutions, sure them And As for price a the to us. actions we come deliberate customers. strong customers help will and to provide our us to relates need we we've taking value make make price we it's to

we what actually, this we a for seen in large quarter, a in we've had had Specifically XXXX, that it -- project years. transmission that project several ended was

benefit we've our distribution, a As pricing seen down seen in them as results. shops. level, we're at that we've going a in lot we're substation those, where higher wound of pricing the our that's And through and XXXX, more

the smaller at structures the priced level. it's products say more higher we've I'd overall, where So a

a more well, probably mix but going more of see a to normal products, larger percentage -- we're more transmission see of transmission of into through all products we'll next overall. going being more our Going year,

on profitability, on an our bit we steel line, color add just next yes, impact aspect. maybe have will year. little of not will Tom, as deflation but So And go that that a into on the impact necessarily us top

Unknown Executive

Yes.

revenue. said, deflation revenue infrastructure X.X% and way That As the Avner revenues with the strong impacts was And is steel now said, about right our really of the it to like steel it percentage. pricing the happy deflation, performance lower there. think like does growth

growth is of like roughly think to of $XX the billion, total how it's So think about steel rate. $X it. Pricing deflation up infrastructure That's impacts but the X.X% million.

when is near affect is points get other our the of XXX in half steel impact cost in line. in steel basis the margin And of half. it that effect The gross we as pricing first does that you compare to gross the margin deflation term, steel the the and approximately second

XXXX. think remains we market I are forward, will going So last line, at the reasonable expect add the strong. second everybody gross for think Infrastructure we thing sales feedback things the is team be margins the into our guess from rates I half in more would to because bid more it's going

that's So positive a for us.

Nathan Jones

while but up? see as while typically a deflating, mean line, to is income it's you the top seeing the Do contracts steel margins, that tailwind tailwind it's I to a catch headwind you're deflation

Unknown Executive

it's the term, sense? Long an Yes. decline, impact it term the Does impact of gross on is an make margin. because near not in on income that

Nathan Jones

Yes.

last TD&S be especially on in, about substation talk with to supposed the capacity guess, in Can are one when you I you Just that is where capacity distribution and online? the capacity expansion. and

Avner Applbaum

overall, flexibility major So our on one of been adding focuses plan. that's to our

can focus already we been on production. some an poles, that significant Mexico, ongoing facilities. substations, sure focus concrete, we doing. both a our process. We've we've of have in it's In made improvements increasing we've do So steel, utility And we're our our distribution, what a our of making big had -- is transmission

to at [ now If our specific the actually our is Tulsa one Brenham example. took could and We you substation. And in and lighting increase ] more if give in on Mexico facility, you I transportation. look just both that actions other

If actually there Fort at our [indiscernible] doubled our you facility Meade in over years. concrete capacity several we look the last out

Lean. we'll to capacity infrastructure could productivity, invest So layout, strong demand your that so increase seeing we markets. And our support the continue we're we continue both in facilities, to just capital typical our in

can very address demand. driving capacity and it's megatrends, our be us we're sure we in, spot good increasing to strong a the So for and flexibility demand make to

Operator

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

Brent Thielman

significant Should order term too that over still that recent that that should curious we improving a market in cautious your does XXXX? into in Ag. quarter this Maybe much Just And or pretty the into rates how even presentation last of thoughts about the headwind revenue we inform trend. year view Brazil You in your that? despite did over short are here? not be read around comment

Avner Applbaum

Overall, Brazil, situation the being it's in $XX. pressured, farmers If soybean look are today, price the I question. that mean, right? at we below the take I'll of

rates. But their condition So still is into we low. but sentiment the to think it's point see that the -- intake being say, should we positive you your profitability would be The should impacted. outlook. expect cautious tough mentioned They're how pleased in We're we our -- remain is the cautious, improving. increased XXXX. going profitable, We're near order on future and I about yes, order very about to

rain We in value space proposition they'll their on with even I not can get The provides mean in to Brazil. it have one. leader we're very pivot get the counting the strong that crops, pivot, the secure the the growers. X that -- a third will they

profitability help will them long term. in it the overall, So drive

So we're have in the But that as Brazil. intake quarter but see we're order very take a for market. bullish about cautionary on would we happy I XXXX. progressed, more We'll details to how see view improving this the outlook

Brent Thielman

demand you sort headwinds that versus just exiting quarter. year? these us just comparisons L&T, this some lower-margin refresh the of Okay. experiencing And exit true could kinds accelerated some from these Maybe of of when you're headwind just you revenue products? if product of And what's of then on the reflective lap this

Avner Applbaum

Yes.

was our plans I to DOT produce a our in the residential pinpoint support look at would timing hoping when L&T, tough our what It to in was were I it mean, was impacted lighting, really projects quarter. had And So performance that produce the X customers. areas it in weakness the we of I we and flexibility L&T. to

magnitude. X we continues think that to XXXX. be into positive continues one-offs. be of Don't drivers, DOT, strong. be That our at you So that repeat to expect those that rate order will positive, And when to had

our a lighting, seen single-family for solid. The at should you we've look 'XX, the in that correlation, starts, housing as our IIJA, And increasing. a impacted XX-month we're XXXX starts typically year And XXXX, at it if encouraged improving our good that flexibility, And the we if seeing with making what us. made add residential be progress. on decline, before to housing into look our lag have residential we're the lighting you the it's and we're seeing business. in You strong single-family lag, will point we about this XXXX, I continue Very XX-month XXXX. see

overall, in outlook L&T is that for year. next the into us for going So business positive

Operator

Our line William of Drab next Blair. with the question from comes Brian

Brian Drab

all? is you how guess give phase environment what's through update in percentage-wise could a million I if and Egypt affecting like specifically we specific if wondering and was on timing, project where the there second I more are that whole happening the and $XX at EMEA the in Egypt project, macro or economic environment

Avner Applbaum

the for Yes. question. you Thank

different and we're seeing talked in growth in Africa. Africa, If talk of population for security, East, strong drivers area kind Middle that and So around some is regions in we're about in the whole irrigation these how food of on. we what very about it's Middle tough we with very It in pleased Brazil. America overall, East, and North so

strong is East and So are Middle well And situation we impacting right very projects. the our not executing now, overall, is on pipeline in these the the business.

perform well, around continue to these continue to projects. ship We

strong reminder, in there's with world. and a progressing. into our these as timing doing -- well, execution timing projects a of pleased pipeline going very is project on part with how XXXX it's now, we Right of always the the that logistics, Now with just based

Brian Drab

on to to for And decline? up X.X% this What's for What the thought XXXX volume for Okay. infrastructure for point then my other infrastructure? the is be updated business question is now flat the you're forecasting growth forecast or for year? the at volume

Avner Applbaum

Yes.

look into our businesses. XXXX, drivers seeing how of And of demand get businesses as But looking go Tom at we're I'll those infrastructure around details. we're kind at Tom into very just kind into of so XXXX. We're kind to looking positive let specifically then those maybe and can

grid in resiliency, as been consumption, should for at that L&T And businesses. And infrastructure. strong. the at area. in be drivers signs seen North Telecom, to see and that talked They're of those It in strong having momentum electrification, all signs strong so XXXX. that we business, XXXX, recovery you we when very you data If go megatrends continues -- demand look our very Lighting creating demand need the into just look the positive for positive in continue. America, area, has on critical around that about well. strong should as Transportation, specifically utility, very I crude

drivers very demand for what you're few kind specifics a positive And maybe are the... of for us just on seeing in the us. overall, add So looking to Tom,

Unknown Executive

Avner. Thanks, our Say the is the is volumes relatively where lower-margin businesses. area and that are down exiting else clearly is flattish. utility TD&S one are solar up. Everything volumes

Operator

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

Jonathan Braatz

their yet capital secondly, next to North this upside are drought if year incremental year year? it's are dry next Avner, way I you the the very do are the their know in, or your American their you finances and we're continues it and drought -- on harvest anything continues from how But you the be continues anything work this very, dealers year-end. some their finishing thinking that they out if -- think to are hearing up about in farmers And that's hearing to Ag and and dry? And got for there that is Midwest. this by about it spending customers given

Avner Applbaum

Thanks at question. If farmer definitely agree, over We the bit right dry for in corn, see look kind little the definitely I Midwest. of at you I look now and the a that. it's very $X. Yes,

at just net just last lowest, the sentiment you that, the the X the it's the farm produced if You look years. sentiment, survey, income, USDA over projections been around the it's look at and

profitability sentiment low. have profitable farmer the We are factors. do and is on lease, they some some own some So based The farmer other the not impacted. farmers is are and

how just Also, of the We're they ratio, end it, And we will that a be because the don't financials, ahead try be the still have the all watching to we'll North I you market. Usually, it want pretty too their yes, now kind some go they equipment. right hard we don't at American to had the plays about a farmers it's I of and at manage high. see to about optimistic see -- do right? look bullish So when difficult want they'll stock-to-use and too out. year. to buy year, as

initial So of there strong. the lot they're far, the there's supply that yield so and a indications are

So too bullish drought about Tom, would point add a be there? like ultimately could now, wouldn't an But to here the the And you right I in environment U.S. have impact.

Unknown Executive

average. year, this mean strong Sure. sales. storm we build were the the team they've telling about if on And you're storm in have 'XX. to that, versus historical on And what sales was been looking I a This Ag just at year double XXXX me

boosts take Avner's to offsets that but difficult is we'll being we North may but comments, So lot seeing growth see sale sentiment ag are the -- And the America predict, maybe to territory. in if in had XXXX, or international. positive a Storm if you down we be America. North XXXX. in down in

Operator

Instructions]. [Operator

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

Thomas Hayes

I a it to if think bit, you I'd the on Avner, bit see telecommunications you in provide little you're be area. little really could a on more interested but what touched color seeing

to the you some getting market of results, but had seeming to people a other mixed talking nice quarter. kind in You're certainly, be

stuff in Just as wondering activity far what project you're like and market that. seeing the as

Avner Applbaum

need that the in on pleased connection question. lot and ultimately, business the about as they're of decade, spend, this X% business our of for population XG we'll in term. a see very to to long We're carrier you back usual. to Thanks And know bullish grew America, out have telecom the when we're North And by kind XX% of very decline. of the the after more estimates have they a the build XG. end that still mark We follow

there's So we -- we'll continue the momentum. believe

pretty anyway carriers our our PIM, all hit and of we grow. XG think concealment. from support floor increasing focusing much expecting building network, I that And as them well system through macro the keep on way to to backbone the small towers we're on our their the are the optimization, positioned we're out our there, the cell to components, the coverage, our

they supports to broad So build there carriers wide a offering the network. a have the -- continue we out that as

that's international where little the the business a telecom pretty point side, out that U.S. good So on that fragmented. feel is more heading. I they're about the behind will bit

more that selected markets in there us for just opportunity there's might bit take So time. a

Operator

you. Thank

We have the over reached Campbell to Renee back for question-and-answer now I'll session. floor the the end of turn comments. closing

Renee Campbell

Thank you today. for joining us

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

Operator

plans, and any as discussion acceptance services; economic including your of risks, and release results you products, forward-looking and industry The the of circumstances you such availability acquisitions efficiencies, not date concludes Act the geopolitical to publicly factors today's availability company meaning lines and of disclosed and such anticipated events. This and acceptance Litigation its company other oral actual forward-looking affecting known Private and the conditions or reports from Exchange circumstances, that periodic the contain financial the the implied general the statements, the market could results served Reform integration industry involve and the XXXX. the the conditions, accompanying within factors uncertainties slides Securities subsidiaries; materially well statements and the of to cause of unknown products overall differ future and other as conditions, company and Securities expressed will and by business and by of Such performance statements company's contain of market in of and filed the with as economic and revisions price and after estimates may results any does or current international such specifically such the We Commission new thank these and of of statements statements materials, pricing, forward-looking and be that disconnect policy be or undertake the operating should domestic unanticipated company future this occurrence events to risks reflect of results, domestic for made declines your or obligation to raw any time. governments. Consequently, environments, product teleconference. and company's to participation, reflect the statements beliefs. changes may at competitive actions regarded market foreign These

Valmont Industries (VMI) 23 Oct 242024 Q3 Earnings call transcript