Valmont Industries (VMI) 25th Annual Diversified Industrials & Services Conference summary

Company Overview, Strategic Positioning, and History

• Celebrating over 80 years, with origins in mechanized irrigation and expansion into infrastructure and agriculture via organic growth and acquisitions.

• Diversified business model with a strong competitive moat in irrigation and infrastructure, serving specialized markets with enduring demand drivers.

• North America generates 75% of revenue, benefiting from strong utility investment cycles.

• Core strengths include deep industry expertise, engineering for demanding applications, large-scale manufacturing, and a global dealer network.

• Diversified portfolio and integrated manufacturing support resilience and position for secular growth drivers like electrification and connectivity.

Market Opportunities, Growth Drivers, and Industry Trends

• Utility market is the primary growth engine, with North America utility sales targeted to reach $2.5 billion by 2029, a 13% CAGR.

• $1.4 trillion in expected U.S. utility investment through 2030, with a $6.7 billion visible pipeline for 2026–2029.

• Over 70% of the U.S. grid infrastructure is more than 25 years old, driving demand for upgrades and resilience.

• Infrastructure segment includes lighting, transportation, telecom, and international businesses, supporting diversification.

• Addressing global challenges such as rising energy demand, aging infrastructure, and resource efficiency with engineered, technology-enhanced solutions.

Financial Outlook, Targets, and Performance

• 2025 net sales projected at $4.1 billion, growing to $5.4 billion by 2029 at a 7.1% CAGR.

• Diluted EPS expected to rise from $19.09 in 2025 to $35.00 in 2029, with a 16.4% EPS CAGR from 2025.

• Operating margins expected to improve from 13.1% in 2025 to 17% by 2029; ROIC to increase from 17.6% to 21%.

• Growth assumptions include robust utility market expansion and continued softness in agriculture, with no major M&A or regulatory changes factored in.

• Utility and infrastructure account for 75% of 2025 sales, agriculture 25%.