Valmont Industries (VMI) investor relations material

Executive summary

• Net sales grew 2.5% year-over-year to $1.05 billion in Q3 2025, driven by strong Utility and Telecom demand, offset by declines in Agriculture and Solar.

• Operating income rose 12.5% to $141.5 million (13.5% margin), and diluted EPS increased 21.2% to $4.98, prompting a raise in full-year adjusted EPS guidance to $18.70–$19.50.

• Strategic focus on portfolio simplification, operational efficiency, and innovation is driving performance and positioning for sustained growth.

• Returned $39.2 million to shareholders via share repurchases and dividends; invested $41.9 million in strategic capital expenditures.

• Backlog increased 20.4% since year-end 2024, primarily due to Utility market strength.

Financial highlights

• Q3 2025 net sales: $1.05 billion (+2.5% YoY); gross profit: $318.2 million (+5.5% YoY, 30.4% margin); operating income: $141.5 million (13.5% margin).

• Diluted EPS was $4.98, a 21.2% increase year-over-year; net earnings: $99.0 million (+19.2% YoY).

• Interest expense and net debt leverage declined; tax rate fell to 23.1%.

• SG&A expenses were $177 million, flat year-over-year; corporate expense declined 6.4% to $25.1 million.

• Cash and equivalents at quarter end: $226.1 million; operating cash flow for the quarter: $112.5 million.

Outlook and guidance

• Full-year adjusted diluted EPS guidance raised to $18.70–$19.50, midpoint $19.10.

• Net sales for 2025 projected at approximately $4.1 billion (Infrastructure: ~$3.1 billion, Agriculture: ~$1.0 billion).

• Capital expenditures guidance unchanged at $140–$160 million; adjusted effective tax rate expected at ~25.0%.

• Utility and infrastructure demand expected to remain strong, with continued investment in capacity and efficiency.

• Agriculture margins expected to recover after Q4, with double-digit margins anticipated in Q1 2026.