Source: Valmont Industries news release
OMAHA, Neb.-- Valmont Industries, Inc. (NYSE: VMI), a global leader that provides products and solutions to support vital infrastructure and advance agricultural productivity, today reported financial results for the first quarter ended March 29, 2025.
President and Chief Executive Officer Avner M. Applbaum commented, "Most of our end markets are showing resilience against the current backdrop of economic uncertainty, driving growth in key parts of our business. We're seeing continued strength in Infrastructure, particularly Utility and Telecommunications, as well as solid demand trends in International Agriculture. Our infrastructure capacity investments are beginning to ramp up and are expected to contribute to sales growth as the year progresses.
"In Agriculture, strong international performance, especially from large-scale projects, is offsetting softness in the North American market. Our first-quarter results reflect disciplined execution and steady progress on our strategic priorities, which help us remain agile while navigating dynamic conditions, including tariff impacts.
"Across the organization, we're executing well and remain confident in our full-year outlook, while also being alert to the rapidly-evolving environment in which we operate, as we deliver value for our customers and shareholders."
First Quarter 2025 Highlights(all metrics compared to First Quarter 2024 unless otherwise noted)
*Net sales decreased 0.9% to $969.3 million, compared to $977.8 million (increased 0.5% in constant currency1); sales growth in Telecommunications, Utility, and International Agriculture was offset by lower sales in Solar and North America Agriculture
*Operating income was $128.3 million or 13.2% of net sales, compared to $131.6 million or 13.5% of net sales
Diluted earnings per share ("EPS") of $4.32, same as the prior year
*Operating cash flows increased to $65.1 million, compared to $23.3 million; cash and cash equivalents were $184.4 million and net leverage ratio was ~1.0x
*Invested $30.3 million in capital expenditures as the Company invests in future growth
*Returned $12.0 million to shareholders in dividends and increased the quarterly dividend by 13% to $0.68 per diluted share ($2.72 per diluted share annualized)
Agriculture (27.4% of Net Sales)
Center pivot and linear irrigation equipment components for agricultural markets, including aftermarket parts and tubular products, and advanced technology solutions for precision agriculture
Sales increased 3.3% to $267.3 million, compared to $258.7 million.
In North America, irrigation equipment sales were lower due to continued agriculture market softness. Internationally, sales increased significantly, driven by strong growth in the Europe, Middle East, and Africa ("EMEA") region and higher volumes in Brazil, supported by a stabilizing market environment there.
Operating income decreased 11.6% to $36.2 million or 13.6% of net sales, compared to $41.0 million or 15.9% of net sales. Lower SG&A expense was offset by the impact of volume declines in North America and a higher mix of international projects.
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