Key Takeaways:
- Valmont Industries’ Net sales rose 1% to $1.05 billion, led by strength in Utility, Telecom, and International Agriculture
- Reported GAAP loss due to $112.1 million in one-time charges tied to restructuring and impairments
- Adjusted EPS of $4.88; full-year adjusted EPS guidance raised to $17.50–$19.50
- Operating cash flow increased 28% to $167.6 million; $113.6 million returned to shareholders
- Realignment completed, expected to reduce annual SG&A by $22 million starting in 2026
Operational Realignment and Sector Growth Mark Q2 for Valmont Industries
Valmont Industries, Inc. (NYSE: VMI) has released its financial results for the second quarter ended June 28, 2025, reporting modest growth and the completion of a strategic realignment initiative. Net sales totaled $1.05 billion, a 1% increase over the same quarter last year, with key contributions from the Utility, Telecommunications, and International Agriculture segments.
President and CEO Avner M. Applbaum stated the company had delivered a “solid quarter operationally,” pointing to volume gains in strategic markets and continued execution on long-term growth initiatives. However, the quarter also included a $112.1 million charge from organizational restructuring, which impacted GAAP earnings.
Infrastructure Segment Sees Telecom Gains, Solar Weakness
Valmont Industries’ Infrastructure segment, which represents 72.6% of its net sales, posted revenue of $765.5 million, largely unchanged from the previous year. Telecommunications saw meaningful growth due to positioning within carrier capital expenditure plans. Utility sales also rose, offsetting price pressure from declining steel prices.
Conversely, Solar-related sales dropped significantly. An $89.4 million asset impairment—mostly related to Solar and Access Systems—contributed to a decline in GAAP operating income to $25.9 million. On an adjusted basis, segment margins were down, driven by lower profitability in international markets.
Agriculture Segment Driven by EMEA and Brazil
Agriculture sales grew 2.7% to $289.4 million, bolstered by strong international demand, particularly in the Europe, Middle East, and Africa region and improving conditions in Brazil. These gains offset weaker sales in North America, which faced lower demand for replacement irrigation equipment and general softness in ag markets.
Adjusted operating income in the segment rose to $44.8 million. GAAP results included charges totaling $8.8 million related to organizational adjustments and the ag solar business.
Updated Outlook and Future Strategy
The company raised its full-year 2025 adjusted earnings per share guidance to a range of $17.50 to $19.50, citing anticipated cost savings and improved performance from realignment efforts. Steel cost projections are aligned with futures markets, and the company expects to remain profit neutral despite tariff impacts.
Valmont’s backlog increased by nearly 10% since the end of 2024, driven largely by infrastructure demand. Cash and cash equivalents stood at $208.5 million, and the company’s net leverage ratio was approximately 1.0x. Capital expenditures reached $32 million, supporting strategic growth plans.
Shareholder Returns and Strategic Focus For Valmont Industries
During the quarter, Valmont Industries’ returned $113.6 million to shareholders through $100 million in stock repurchases and $13.6 million in dividends. The company also published its 2025 Sustainability Report, highlighting progress in environmental and social impact across its product lines.
Looking ahead, Applbaum emphasized scaling innovation, increasing efficiency, and focusing on higher-return opportunities. “With these changes, we’re operating with greater clarity and speed,” he said. “I’m incredibly proud of how our teams continue to live our core values and deliver meaningful results for our shareholders.”
Valmont Industries
Valmont®, the parent company of Valley Irrigation, provides products and solutions to support global infrastructure and improve agricultural productivity. The company has a longstanding focus on innovation and customer-centric technologies.
Operating across two main segments—agriculture and infrastructure—Valmont serves seven distinct markets: Utility, Lighting and Transportation, Telecom, Solar, Coatings, Irrigation, and AgTech. With 84 manufacturing facilities on six continents and operations in 21 countries, Valmont maintains a broad international presence.
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