VMI - Earnings call transcript Q4 2024 | Valmont Industries, Inc.

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Operator

Greetings. Welcome to Valmont Industries, Inc. Fourth Quarter and Full Year 2024 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. begin. may you Campbell,

Renee Campbell

and and Avner for Executive Applbaum, Vice Financial Liguori, everyone, Accounting me Officer; us. today Executive Officer; Chief and are President President Francis, thank morning, Chief joining Officer. you With Tom Tim Good and Chief

morning, our press our release we today's website the Both releases questions. webcast capital and then allocation fourth announcing a with presentation a of valmont.com. results, prepared webcast available A later the on page up and XXXX the and of priorities. at year will this replay Investors along issued for remarks are for separate it this open our quarter Earlier morning. call full announcement today's available on be press We'll begin with

subject Q&A. that will our now that, which of this forward-looking statements, Slide is after outlined and like the Avner. turn presentation call note full on With call is in over disclosure on to X the I'd to read to be Please

Avner Applbaum

Thank highlights joining to few us. a thank start on with you, I'd key you for everyone, Good XXXX, X. like summarized Slide Renee. of and morning,

Our strong creation. value approach performance focused our to reflects

strong full embracing line line We to returning our Overall, core outcomes. leveraged our were with we headwinds, opportunities results Valmont have deliver does capture best. and our and our expectations. prioritized top year in what Despite to strength

in driving and year, this creation, of I commercial Earlier value shared excellence the team operational meaningful delivered and our in ways. importance

relationships, high-return opportunities. deepened teams captured customer commercial pricing drove and excellence Our

to challenges. customer-driven solutions their invested in also We critical innovation, providing

mix. changes to Our product and are operations and adapting teams demand production in

and support to orders structures. and quickly Agriculture, Infrastructure, fulfilled storm dealers created In footprint to increase for capacity distribution in growers. substation In we flexibility we replacement our our

At working management, led expansion, to Our our focus agriculture further through cycles. disciplined financial generated position cash have down we with not sheet. achieve cost capital and on improved something in same outstanding margin operating the time, flow balance did growth, along structure, an we past profitable reinforcing

leaders We committed strengthened our experience-driven strategic our on on delivering objectives. to executive team by bringing

entire change I'm While the into we've areas organizational embrace our proud [ performance improvements. testament accomplished entire sustainable of is Valmont of team. our core team's and a takes what dedication and time, ] focus already and translating incredibly the stronger values financial of collaboration global to

market. our cycles growth expectations. our Turning starting opportunities for share demand, with projects, largest to driven wave. sustainable, X. investment the meet our utility drivers growing infrastructure to critical large global across diverse past Slide XXXX, onetime market by like supporting footprint I'd with catching Unlike We're optimizing objectives and long-term utility to the supporting capacity are today's

new Brenham, share which expansion To in plant. capture customers, of Oklahoma the we're getting and factory just with this end year. great capacity upgrades expected is example across A Texas investing capabilities footprint. of utility also our our is and workflow, these started optimizing opportunities, significant our increasing be Tulsa, efficiency serve to to our in by We're operational

well cycle growth position will that time the objective strengthened growth. us market We've using implementing by We've to in drive developing process while leadership. the forward through down second tools foundation managed is to our for the reinforce improvements Our next and Agriculture this our cycle.

streamline aftermarket platform the e-commerce For late dealers. launched a purchasing example, in our new our we experience to strategy, for advance parts to XXXX

enhance Valley to recover. profitability markets introduced Other and to Irrigation and designed efficiencies agriculture Agsense new will XXX, grower for chain initiatives new creating when recently management a simplify also growth app optimize capital business. for our while working supply and We dealers opportunities improve irrigation further

more efficiently. better the will ways and our finding journey. capital ways resource to smarter cover also approach on focus Tom with to allocation take seeking also we'll This call. This improve and outcomes, later aligns disciplined which means we're Third, allocation advance to to our a priorities, work

taking goals care employees. business starts our achieving of Importantly, our with

people ensuring they at Our center team are safety home Employee commitment, every fundamental the as arrived. just returns member of do. is a everything we

employees in right investment grow, high-performance need success. the skills and innovation our that to talent do. with business Finally, development and they to and for long-term is equips employees culture a is opportunities business our Supporting drives fostering the good thing

our I'm will excited last and into XXXX. year we momentum made progress this team confident about the carry

to done, the value be sustainable ahead positioned opportunities While create our we are there's for stakeholders. still long-term and seize work to well

driven and are the Now, electrification update. energy strong, transition, past Utility efforts distribution remained demand while CapEx turning In are we've that impacts by infrastructure for and also new Valmont transmission, replacement for AI and advanced demand. to products. markets substation our very weather. driving Slide with spending technologies to extreme how years, megatrends aging the energy the supports build-outs like address increased of assisting couple infrastructure elevating market to seen several of an X meet

partner trusted and a innovation. to capitalize utilities, these drivers to well As customer-focused are we on deliver positioned

for For adding all reducing We sourced value example, packaging significant substation optimally streamline components customers. by to costs minimizing and are we designed, our offer construction delays. ensure delivered, and

vandalism, We and enhances also a solutions, that durable provide equipment substation safety unwanted and protection It from security. wildlife protects barrier visibility.

Lighting & to Turning Transportation.

lighting the in supported behind -- North programs. its following At transportation, single-family housing strength by same see lag our beginning is ongoing driven investments, to by state beyond and to DOT starts. America business typical time, federal recover XX-month continue We

will investments. XXXX, connected to to in drive Turning number carrier slow and Growing returned start normalized After spending has more levels. Telecommunications. of consumption data multiyear increasing a devices the

Our positioning about carrier this excited opportunities global programs, sector. us well the differentiated spending various ahead We're technologies growth. in with products for align and

puts and as we takes policies. expect to adjust mix of Solar, government a In evolving markets

land ], others changes solar regulatory driving voltaics use create growth While Europe, for farming land regulations integrates new can are optimize agri use. prospects. demand to introduce In which [ with uncertainty,

near-term focused navigating fluctuations. Our team on while remains long-term growth

a internal demand. business our supporting while markets industrial GDP serves coatings our follows trends variety and typically also and regional of Finally, production

ahead, portfolio position strengths will megatrends multiyear to us demand. and as a We to continue adapt entered infrastructure competitive with drive sustained and XXXX Looking markets our evolve. strong backlog, these broad

extensive Additionally, enables to footprint customer needs. quickly factory us respond to our

Turning The agriculture near conditions North increase in the compared to last update. recently Slide farm relatively remain to USDA term. market market stable projecting America, expected in In are updated an X for an estimate, to its income net XXXX year.

projected opportunities growers, due expansion growth. factors cash to and However, brand network for our lower respectively, will key corn are and X.X%, capital investment Despite These receipts strategic large continue decline and dealer Valley for X.X% sees drivers by and ahead, crop soybeans, expected prices. to days likely our from win decisions farm account continuous this conditions, driven these brighter our year. strong to

remains to pressured lower Shifting markets. soybean international in Farm prices. to Brazil due income

since However, compelling offer per encouraging sign especially have investment stabilizing, opportunity, enter of growers rates America, year multiple the been as growing XXXX. irrigation we solutions in seasons a order increased Much an like our Brazil North irrigation. benefits

markets, of supportive many growth fostering business. is creating our Across environment conditions, new improved more policy opportunities international market a our for

notably we and expected economic ahead. helping to By strong $XX this XXXX. Our a project international food new benefits while in returns. projects sustainable secured to progress, that recently build nations market, are create robust making pipeline long-term the for million Middle a share more delivering I'm completed pleased resilient with be systems, East, in strong we

recovers. solutions play agricultural reduce we With irrigation a grow addressing and also They and trusted growers. a by improve we brand, advanced sustainability global our and positioned investment industry challenges. drive well footprint use, global leadership on and demand in market to Our productivity, eventually role delivering Backed optimize help return water technology, to meet critical yields a the compelling are waste. as

are our staying us. forward to extremely and principles true XXXX year excellent an while that I'm Valmont. In on building of achievements We proud summary, confident Valmont in shaping together. was define future look the the the team for we to

to Tom Now our I'll results, capital XXXX and it outlook review financial allocation turn priorities. to over

Thomas Liguori

Thank Avner. everyone. morning, you, Good

made We financial to the Valmont our we've year. want and for the I are their past the effort. congratulate pleased team over with progress performance

this last an key basis, nonrecurring excited on will and year which highlights. is My results on share comments items. year, quarter still While I'm adjusted fourth work full there excluding comparing results, focus ahead, to some are morning to our

sales underperforming quarter $X.XX increased nearly Turning higher of related increased operations includes income segment. net improved other Earnings small sales. million. driven $X.XX $X.X the in share operating divestiture of Operating XX% expense. nearly by XX%, to reaching X. income billion increased to lower margin X.X%, Slide per The Infrastructure in while and operating $XXX approximately X net of to XXX XX.X% of the Fourth million interest basis expense points, $X.X

was improved grew X.X%, Lighting as contributed largely XX% X.X%, on XX. Fourth growth Higher Turning sales X%. & lower infrastructure to international solar. Slide lower sales increased utility sales operating softness. average to Coatings in Transportation revenues and increased operating market by in as telecom in due nearly to markets. million. segments & products declined America X.X%, prices North and Utility lighting $XXX Growth primarily income to sales offset with the sales offset Transportation well by margins. selling for partially in increased utility quarter Lighting

a carriers growth XX% nearly more return of normalized saw as strong sales Our capital Telecommunications spending. business to

was a or XX%, in sales, lower-margin driven volume by by driven point and XX% income increased growth costs. decision XXXX. utility approximately earlier improvement. by [ to Solar Operating basis sales XXX pricing net largely telecom, steel This million projects lower $XXX and ] reflecting exit declined our in to improved of

increased higher irrigation were XX%, Average the year. of were compared XX. sales impacts. replacement by partially as foreign prices quarter were Fourth lower expenses sales. prior and Brazil. led to Moving slightly selling Slide EMEA XX.X% to agriculture unfavorable lower, or improvement. $XX.X sales contributed by $X.X sales America, continued region nearly slightly to by million North were Operating million strength equipment SG&A offset increased of income gains International for increased slightly In market volumes increased softness. storm the sales to irrigation currency These offset Lower in net X.X%. sales in

full results on XX. Slide Turning year to XXXX

X.X% improved XX.X% increased to income a $XX.XX, driven record of the net sales income Operating a sales. operating net Valmont, count points by improved While increased share reduction share and decreased million. margins share basis to billion, to of to XXX Earnings XX.X% operating in due $X.X nearly per repurchases. $XXX XX%, for

reflects better of expansion, margin value. the agriculture total long-term a strong positioned despite cost on focus $XXX resiliency year to earnings fourth million, more market flows agile our to record our cash a capital, disciplined we're With business. management We full working million. bringing operating delivered challenging $XXX and drive of quarter Delivering and

ended our and net credit cash, million our debt million repay the XXXX, in adjusted year $XXX with is line. We revolving fully to to team X.Xx. During our approximately $XXX EBITDA deployed

to Moving on outlook our Slide XX. XXXX

billion to per The share range and billion. well in $X.X of between imports, expect to the the at includes We be $X.X Diluted announced on to steel aluminum. the net to our be growth range to $XX.XX, sales $XX.XX midpoint is as imported as XXXX. recently estimate projected of earnings X% representing China EPS tariffs compared

Turning of drivers guidance. XX. graphs our major net to with the sales. illustrate XXXX Slide These Starting

growth in growth agriculture with lower of expect volumes, steel in softness in expected projects in from reported translation impact both currency orders XXXX storm to headwind primarily net market revenue in lower late exit utility, in of segments. completed divestitures favorable international products pricing North sales America. by affecting We decline costs, infrastructure revenue the and offset and of utility of fewer our and slight due A and rates strategic X lower-margin volume

in interest share revolver, count due Our have expense, profit, fully is XXXX. EPS and as paid anticipated to during increases due operating growth expected we our a to primarily down in repurchases lower share lower

the announced imports our includes aluminum tariffs, additional XX% steel tariff China as well recently imports. tariff Regarding as on outlook on the and XX%

reciprocal vast not our and potential in We of in manufacturing unknown. imports as X other are products details shipped our from facilities customers, U.S.-based to all the them such mind, Mexico nor those United tariffs, come majority as from of have the for on Always States. many keep XX included tariffs, Canada our

earnings strong cash expect flows, we management. XXXX, capital in growth driven and Finally, disciplined by working operating

in important guidance, that half. business growth our is half note it's second challenging a expected the but to Solar of to faces to first revenue part comparison, As our return

seasonality. Additionally, I lower you quarter normal sales typically infrastructure to that first are due remind

morning, priorities. a capital allocation Slide XX. we press outlining Earlier this our release issued Turning long-term to

Our commitment guided strategy. capital to value remains strong, by allocation balanced a shareholder delivering

to creation. take long-term and allocate value will cash plan investments As part XX% of approach, this we this shareholder of flows operating XX% to a to I'd returns. drive discuss like growth moment how toward strategy to

annual investments our infrastructure for to is manufacturing output, mainly To for to be we're opportunities, increase growth production while equipment which primarily about approximately CapEx on will infrastructure-driven $XXX customers. growth increasing innovation capitalize to CapEx initiatives. of better X/X growth million, driving serve The in

that reinforce the to strategy M&A core, our adjacent and disciplined will our selective, geographies highly products and and markets be new into all to add expand align and Our value targeting opportunities customers. we deliver services, with

Our on will be earning on M&A and a return focus growth invested capital. healthy

key of remain pillar a repurchases capital strategy. Share return our

approved our authorization, current approximately a million buyback of new $XXX Board Our market representing cap. XX%

We a regular when buybacks will with while increasing see follow strong approach repurchases quarterly disciplined we value. opportunistically

increase to anticipate expected first quarterly annual in line typically our Additionally, quarter, earnings We our Board announced with dividend approved in dividend. a XX% growth. longer-term increases, the

for organic an investment-grade rating, inorganic with committed debt below long-term investments. flexibility X.Xx, growth leverage net credit we ensuring and Finally, maintaining remain to

full expectations. and were year results quarter fourth with our summary, line XXXX our in In

of to We diluted are in operating solid EPS. and team's growth market deliver our manage margins proud and efforts headwinds

uncertainties deliver us both profit grow market believe of The we we find year a business path returns. in our to allocation team's of expected another deliver strength EPS our capital our and While XXXX, growth. are performance and business enabled shareholder to will and operating

now We will Renee. to the exciting back over an I turn call future. have

Renee Campbell

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

Operator

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

Christopher Moore

very on great ag. Maybe Congrats nice a on we'll quarter, start year.

America just the it international? go So Or subsegments, to they X that a bigger more X.X%, impact driver? bit decline there versus deeper in is a the from Can is X FX. about or maybe little is North are less X.X%, in bit you just is same certainty meaningful X.X% The range there. range, X.X% of little both talk -- that

Avner Applbaum

which Chris, will markets Tom Brazil, detail. the both more the and I'll their start in profitability. corn off, on by and prices, largest can pressured and North then impact have America Overall, add be some soy

stock-to-use will So farm to net this and based be ratio on we the current us for indication, challenging markets the those income, prices, year. expect

on EMEA and said Having very Africa region. region, North side project in the the activity with we're that, that in pleased

impact food strong maybe and have North all the backlog, a Tom, We strong little by a sale. some drivers business. the add strong on and will want have you -- driven security, that pipeline, very America our bit share around a to the And about

Thomas Liguori

say business. on just the is Yes. team really I would focused their agriculture improving

of cost good return product of position said, do in it of we as And So see a Agsense. really end on cost, investing goes as the this e-commerce operating margins. like that higher 'XX we're pivot. to They're really They're in parts their year. growth, we'll aftermarket spare growth, with a a for services maybe and focused 'XX, doing lot their work on Avner how and

to what they I control. see think We're controlling growth. the pleased they're can international

Christopher Moore

term. mid-teens could Very puts to margin above on to you and 'XX be it. goal margin takes for margin Got my The Maybe a little longer bit. is why is meaningfully started helpful. approach operating side just 'XX? Maybe that follow-up talk just the operating the about

Thomas Liguori

lot aftermarket ag a the margin really of And I our side product cost. gross in mentioned and have opportunity we margins. Well, with in just

I capacity, think you adding infrastructure, we're adding are when automation. but at we look also

So while lower you'll improved over go we depreciation expense do efficiencies up, costs see time. expect and

it revenue. believe of more, In lowering can we SG&A, we as a percent do

us will costs be flat that of And see will headquarter think to all our goal year I mid-teens. get you'll down. of these this help the to

We'll clean. the think the I some mitigation tariffs quarter be at is of in probably margins this year the second QX, We'll have effects know half to will place, have when our look year. important what's our QX. probably that you first relatively through

no would well. you that $X.XX end, At virtually it's insight give it me our little about tariffs, that the -- to midpoint, -- $X.XX guidance. end XX% into high mitigate tariffs At low let in go the time that is a And more meaning assuming $X.XX. -- it's a things sorry, headwind. the be takes at And

I So disruptive. how manage on we're excellent the and have all think XXXX. going goes. see the mitigate. think today margin we And year, steps to through And are Chris, I margin are I taking through upside upside really we'll think that But it, we tariffs good and

Avner Applbaum

point I'll over in SG&A EPS last several a years we're strategies, the core X been and on diluted our is we've our pleased our what very dynamics. on and do focusing the our focus expanding Chris, with we done just reducing just And really growing operations add, operating market what efficiencies, mixed pricing end well. on really We've margins, commercial

goal target. this will we year So our mid-teens achieving of that towards our journey continue

Christopher Moore

there. leave Very helpful, I it will guys.

Operator

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

Nathan Jones

I guess tariffs the on there. everyone. morning, off Good up following start I'll

a on Just U.S. coil prices, in if in you've up guidance. gone at that question you the the approached look XX% already mean how they've I steel

where guidance? it, end the So same how the XX% it market? like can that looks you're about to probably doesn't And higher. for then it your in about sourcing price, really accounted you the on. I tariffs pass know pass from it Is that talk you there's matter still structural going onto to you which up mechanisms moment some at how being

bit pretty will it bit of the determined weak be ag but are harder a infrastructure might the market. might and mean, by businesses a business Some on is strong pricing. generally easier, bit and I to be be pass a

us any give just please. So can there, color you

Avner Applbaum

I'll Nathan, off. start

the around broader So we're just how tariff. addressing

with the aluminum in do the the on and everyone solid changes our best China the Tom the a the that tariffs, on on else, like on import a eye And touched along we're into and handle tariffs. policy. is keeping steel his of we our this have impact So to close trade very guidance, estimate factored remarks,

there's still we potential comes imports Mexico, the it that Canada don't know. a from to lot been on tariffs and when Now

I can main Here's intentional is is you, global tell Mexico. to our serve We've ] [ our on been we how very what build customer. our focus on though, footprint

are our infrastructure in from of customers supplied we're the doing investments U.S. plants. doubling U.S. being are down right that we're And of most here So capacity our our on that. U.S. Most now

And less perspective, of overall is revenue. put just our Mexico to on infrastructure of it production XX% than out the

over team tariffs. dealing well-established manage our it. Now not know, it's we our all the that impacts. that using is potential playbook, we're time first these said, We're And as you how with

pricing we a more we your tariffs at bit So do address bit, of see we're in adjustments. other a up, We steel going make use see and detail course, we well. little steps as And we to and commercial strategies. our working around total the we go looking impact. that, on and how consider when when with point I'll to the mitigate suppliers And financial operational instruments into

our not bottom know, lot dealing look through go need pushback. over that? increases. not customers, been pushback. They specifics don't cost said, other see if in really a already you with, is, the And Tom, markets, There's proposition these a lengths right products. it's to conversations make lot to having to like covering add were team we're our we have any bases. of at of specifics, they're all I and will seen now, you with I it. want have it any They the we And So We've industries. value -- We understand COVID. with great up. than went different no it's Pricing our how these our line they our sure this

Thomas Liguori

there, a use of guidance diversified a yes, we're Nathan, industrial and steel. company, the Regarding lot we

impact. it thought understand very make and we important potential to sure you shareholders the So shareholders to was

cost the the we're of the our and assuming as markets what's future in Friday. of assumptions, guidance it's in So in steel as

And that quantify aluminum and felt you important imports the is it also China the everything from best to So was impact about, talked in guidance. we the the could, our reflected we and then just inputs. steel

handle Nathan, guidance. we good everything the on -- feel we a said, that in you And So we're I is just got think addressed this.

Nathan Jones

I appreciate that.

capital we've guess about to from operating allocation pass in priorities criteria I a just the on the adding M&A? $XXX company How growth and about the I'd to cash big then flow the terms revenue terms financial you're of add guidance. million. up so it opportunities. and step And second in think you of put capacity the for expectation question like in years? Can had I strategic the what under question, allocated far for of first like specifically, $XXX you're the XX% dollars much my will that's CapEx over on. talk into Pretty And next it million I'll that just are what to few capacity? ask

Avner Applbaum

you. Thank

As year this continue across elevating are to our it demand relates these market very time. with next year, to CapEx to have do fortunate take million a portfolio. around opportunity our elevated lot the we're CapEx, spend will be And to strong $XXX we of projects as

them multiyear projects. of Some are

So focused plants. we're America -- our we're on North right now,

our We efficiency, on capacity to have sure different ] they're we're XX our them. could increasing that [ make plants address flexibility in -- our going our increasing top enhance structures. to the around growth, our of demand. our We're capacity. increasing the type poor support of increase We're flexibility we And to supporting

at capacity demand. invest highest to now, going level specifically I'd our are we the we're sure support infrastructures, the mid-single-digit it make investing. growth to have enough that is plus And in, we're to targets long-term where But look

systems. about actually in lean. in R&D investing an to process our we're We're could IT we throughput people, engineering, capital. And have center make talking We're these data plants, of also using we're on But looking sure at Now investing improvement we're to supply chain. all support also course, our we increases. our sure in throughout investing and our better make investing in science

is it invest make X could going achieve So investing capacity. I needs customer to targets. over sure to multifaceted next it's years long-term to to our support the to we a the X in our way our we're see And approach

capital on that's the So side.

we to bring or well, or target to we our our synergies It's at we're going Valmont around on our can be what do linked very areas strategic capability. markets at products, going look where to core focused M&A, the you When much priorities. the be directly very the on

So a it's clear, owner. X. to very areas say, plus we to Valmont going X that X natural be with is like we'd are familiar that Like is

And enduring sure then our look to that well make We growth management team, aligned we companies culture. with have that look drivers. other sure they're We there make look at the we at. are areas want these long-term, at

we So take our Each to a broad look And have Valmont. the it approach these impact acquisitions X a as significant acquisitions. we'll a ideally, aligned at they that have to of with do since financials, will take in meaningful company core. have will to meaningful they're and looks need resources. They synergies,

You to look are by they need X to will they accretive And X. [ be at we ] ROIC, since very year be close capital typically, synergistic. year

So very very will level, of closely acquisitions make and to synergistic these part it's we that and high our core strategy, sure organic our inorganic us. growth, and tied are at a to

Operator

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

Brian Drab

just is, margin it gross margin? let gross You're that in that off And also, And strong in will tariffs, I expectation -- then you basic gross about that a on call and should tariffs just correctly. gross have how know I first on margin to was the question your talk steel mention did wanted sure that And And margin. happens just lower prices make overall you'll despite is, with XXXX. you in that than start me can whatever coming I 'XX that be my higher believe, very here. impact 'XX? heard

Thomas Liguori

SG&A, expect expect Brian, think to you'll to be it XXXX. in down And increasing the out to I as revenues gross from we way slightly bring flat up the see we be quarters, capacity. margin, to view through XXXX. is we

revenues in as year, there's EPS the a more say, Potentially parts year to of take lot now QX because moving relatively our capacity. I'll through the get also tariffs. see more probably opportunity You'll here. have constant later we'll -- this Brian, from

we expect be QX lower For because higher very to slightly SG&A similar but of to -- QX, revenues of we expect higher costs. EPS XXXX,

Brian Drab

should anything that? bringing keep and or there that timing That's the mind respect with as and in And capacity, Okay. margin helpful. to start-up we the is on of costs incremental you're gross costs

Thomas Liguori

will as expect is in half, through it cost effect net And And hopefully, capacity of comes The more time. should we coming over the year, you efficiencies. online, depreciation that on but second improved the the anticipate expense. be lower higher

Operator

[Operator Instructions] line of Braatz with Jon comes Our next question Kansas the from Capital. City

Jon Braatz

mentioned commentary, the your you the terms utility from new idea? capabilities. what maybe in Are previously, bringing in segment, else done give Can an new you new Avner, sector mentioned us different what are online have new you you -- of you services, utilities you products? in is and that

Avner Applbaum

Yes. Yes, to. happy

demand distribution So utility lot of substation, from products distribution, in across strength overall, substation transmission, We about board strong very a seeing all in lot we're the a we're the our area. our solutions. more and talk seeing

is around product Safens well in with specific example and growth Some of gave support to using a nice specifics them. we're the as solutions [ it helps seeing substations the And called that and strong that address looking area. is I we're really ], protect at some to composite where of our to help that

closed it every steel, right and keep additional other a build is The to in costs, create and it can delays not where around example field. And day-to-day site it's we do test every it right? building on part on basis a bring all instead Not on we packaging, innovating, we it environment, and was of could of the substation what it pole.

is may There's every X While of into not. our same, that it seem lot a goes it products. engineering of the

more they make value, to cetera. innovating more provide et sustainable, sure on they're keep we So

excited. yes, So we're

strong We on have at very opportunities to keep a they organization, customers. and looking engineering support our

Jon Braatz

expecting nicely. that pace? that sort ramp Okay. up Are has you an of ramped accelerated continue In to up the telecommunications area, at

Avner Applbaum

the in expected we've quarter, last we the this our Their QX. growth they mentioned continued we flat Overall, to low throughout CapEx, show into carriers single digits. the some When look and business. U.S., the seen large high U.S. supports at carriers, the by and from increase that to X%, year, are that

So it's a more business. back It's rapid growth. normalized say to I wouldn't

build-out. fiber builds all aspects XG solutions of to even product technology and these Our from supports C-band

positioned this So rapid will to wouldn't we're grow. and year. growth. to well in We're more growth we I normalized, expect back see continue telecom to

Operator

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

Brent Thielman

could regard after I about Is couple guess, curious work done on you've capital M&A, looking specifically all at Avner, last size Valmont years? internally to interest the more talk in of in there you an allocation be I'd just at? even the kind that. of around just something transformational the mix, of pursuits the you're potential

Avner Applbaum

We're directly looking this point, at at that to transformational. tie looking we're So businesses not our anything at core.

megatrends. driven this something secular to look it said, We it's by Like to our our If be going really don't multiyear that have strong that in is we'll a have small, specific means a going And I growth. at. has adding supplement us make size business we that capability do drivers organization. significant you meaningful to -- to acquisitions, contribution more to to the ideally, performance, you going EPS -- with opportunities. want have want have meaning you're going sure to But real once provide it's our overall is it's to growth

keep of our helping to of but no value drive targets, our to stakeholders. part So on specific to strategy overall,

Brent Thielman

orders? either about forward-looking this side, domestically in North seeing you're Okay. the of seeing some the you're on kind business? today, volume incoming what American given the pricing on some it a of already, stabilized? environment, there I outlook the Or on apologize maybe appreciate sort still seen And what could answered internationally, and pressure I of got is Is ag pressure the if But you here. talk But you've bit just late.

Avner Applbaum

Tom the pricing not markets are America I course. we're we but and sales more of Brazil, value take U.S., which make industry, pressured, the really to of our seeing North national sure this And mean the came but any briefly proposition. had Overall, in a always here. around lot leaders challenging, focus it's pressure about I touched just in back meeting and being to the we from talk in on But it, specifically. in opportunity leadership dealers the pricing

be is on what strategic on seeing good a optimistic. While they're it's seeing is challenging they're going for accounts. The focus environment, to so focus business, farms, large they're -- more pretty which

on position our much core, meeting over was of But we've new offering. our technology, of around couple focused on a our there as very lot been technology this during last our excitement the strengthening years,

putting controller at Agsense for pivot our Plus ], allowing experience, Middle to irrigation very that ease X product lot providing like new [ that use, to That's were of about them competitive connectivity they think them better another them you areas one drive with a price, we're taking which basically emerging out are is more the the East, other our on coming there's of one, markets. XXX, If excitement. ICON platforms, a -- Africa and support user with

machine pivot proposition, the help this it bringing we're costly to around very sales, running And so that is even machine have it. which to so the is important it to diagnostics. where then when a diagnostics, industry need And if around you

we our offering is we're pricing. proposition So value growers seeing not to are we any the don't to significant, overall, and and feel reduce need

population these course, a growth, proposition. North East strong Middle year But America, future, Challenging overall, in excited the we're our sustainability productivity, into future. secular around there's we of in demands look So all Africa, about strength value the and Brazil. as

Operator

Brian is William Blair. next Drab Our with from follow-up question a

Brian Drab

we about substations in feel, talking about just that line. expansion to ask within your that lately, minute the more the utility in talking utility We're margins the do that? to can that with And another have I And you past. business that segment how that's business in I the part? about margins spend the compare wanted driving data dynamics Is related than just overall? for center product and much

Avner Applbaum

Yes.

thank So you.

a lot are of brings very seeing there substations. very time demand. that strong. business, We're the We're the about the drivers very strong spending are and excited to We on what

time right, or load. every the reduce to substation need increase substations, you a need So you'll

well, a the So centers, of to lot grid. energies data with renewable as course, key are tied as the a you it to which need to connect we also driver

of at substations, It need lighting provides our are data centers, centers, data strong us they when aspects, it's in and you these for is of but also fact, It related and to at solutions. also data There very And distribution a around So in you lot centers, we're but into due It business a utility, aspects right? -- telecom. it of poles. galvanizing seeing growing. only many look part data for centers our business. not supports the of all lot data demand It substation. transmission look really helps it that and a centers It's goes smaller still strong to our margins very is has the based then the can it companies can do the And that significant. and that value we sizes many not on do. And is which price we complexity. complexity do provide, we'll that we

about this thing excited it's growing, can we're So go. where and

Brian Drab

your a work? in or you of that EMEA of then you're about anything of have Avner, is lot done is that I can region opportunity? the million, lot ask whether area project, can a a doing new work this And already say or country $XX a Or Okay.

Avner Applbaum

a been country is It work we a doing quite have for while. that

Operator

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

Renee Campbell

We Thank to our replay the you again by website playback quarter. this for of for X us will be for speaking and next forward A phone you look today. on joining days. call available next with

Operator

that these some are Valmont's current important involve of relevant Private other to within performance future which statements This are on its of beyond in future historical trends, the made the considering perceptions risks, Securities Litigation They operates, statements Act and based results. guarantees release conditions, of It uncertainties, statements the meaning assumptions management Valmont is of of factors. are developments Reform contains industry not These expected where XXXX. and by assumptions. or control experience note forward-looking

to numerous Commission, reports and from performance materials, acceptance actions foreign availability market environments, operational domestic price financial and circumstances, policy risks geopolitical and and and economic believes described results the of Securities to forward-looking competitive raw are assumptions, pricing, risks materially other in industry differ actual those SEC, future management conditions, include, cash things, market based by While anticipated. on among income, could These changes Valmont's statements availability of results, flows company Exchange the products, net cause and reasonable and governments. factors and actual factors company's these domestic and and efficiencies, new international product

any The of required date not made company release except forward-looking law. to does are undertake its this statements as these that publication by cautions update statements, as in and

today's conclude Ladies does teleconference. and this gentlemen,

You Thank day. wonderful have and at you may time. lines this a participation, your your disconnect for

Valmont Industries (VMI) 18 Feb 252024 Q4 Earnings call transcript