Key Takeaways
- Valmont Industries (NYSE: VMI) reported fourth-quarter net sales of $1.04 billion, a 2.1% increase year-over-year.
- Full-year 2024 net sales totaled $4.08 billion, reflecting a 2.4% decrease compared to 2023.
- Operating income rose to $524.6 million, up from $291.6 million in 2023, driven by pricing strategies and operational efficiencies.
- Diluted earnings per share (EPS) increased to $17.19 for the full year, compared to $6.78 in 2023.
- Moody’s Ratings upgraded Valmont’s credit rating to Baa2, reflecting improved financial performance.
- 2025 financial outlook projects net sales between $4.0 to $4.2 billion, with diluted EPS expected to range from $17.20 to $18.80.
Strong Performance in Fourth Quarter and Full-Year 2024
Valmont Industries, Inc. (NYSE: VMI), a global provider of infrastructure and agricultural productivity solutions, reported financial results for the fourth quarter and fiscal year ended December 28, 2024.
“The fourth quarter capped off an outstanding year for Valmont as we continued executing our strategy. Both our Infrastructure and Agriculture segments achieved sales growth, and we expanded consolidated operating profit margins year-over-year.” — Avner M. Applbaum, President & CEO, Valmont Industries
Despite a slight decline in full-year net sales, the company saw strong improvements in operating income and cash flows, supported by strategic pricing, cost management, and operational efficiencies.
Q4 2024 Financial Highlights
Compared to Q4 2023:
- Net sales increased 2.1% to $1.04 billion.
- Operating income rose to $120.0 million (11.6% of net sales), compared to $63.5 million (6.3%) in Q4 2023.
- Diluted EPS grew to $3.84, compared to $1.38 ($3.18 adjusted).
- Operating cash flows increased 66.9% to $193.4 million.
- Capital expenditures totaled $25.6 million, with $27.0 million returned to shareholders through share repurchases and dividends.
Full-Year 2024 Financial Highlights
Compared to 2023:
- Net sales declined 2.4% to $4.08 billion.
- Operating income rose to $524.6 million (12.9% of net sales), compared to $291.6 million (7.0%) in 2023.
- Diluted EPS increased to $17.19, up from $6.78 ($14.98 adjusted).
- Operating cash flows surged 86.7% to $572.7 million, driven by strong earnings and working capital management.
- Free cash flow increased 134.9% to $493.2 million, with $118.4 million returned to shareholders.
- Debt repayment of $393.0 million led to a net leverage ratio of 1.0.
Segment Performance in Q4 2024
Infrastructure Segment (73.3% of Net Sales)
- Net sales increased 2.1% to $763.6 million.
- Utility sales grew 5.9%, offsetting declines in the solar segment due to Valmont’s strategic exit from low-margin projects.
- Operating income rose to $122.0 million (16.0% of net sales), compared to $82.6 million (11.1%) in Q4 2023.
Agriculture Segment (26.7% of Net Sales)
- Net sales increased 2.3% to $278.0 million, despite a 2.3% unfavorable foreign currency impact.
- International sales grew, driven by strong demand in the EMEA region.
- Operating income increased to $28.5 million (10.3% of net sales), compared to $13.9 million (5.2%) in Q4 2023.
“Looking ahead to 2025, demand for our Infrastructure products and solutions will drive continued sales growth. In Agriculture, international sales, particularly large-scale projects, will help offset expected market softness in North America.” — Avner M. Applbaum, President & CEO, Valmont Industries
2025 Financial Outlook
Full-Year Projections
- Net sales: $4.0 to $4.2 billion (~ -2% to +3% YoY).
- Infrastructure net sales: $3.02 to $3.16 billion (~ +1% to +5.5%).
- Agriculture net sales: $0.98 to $1.04 billion (~ -9.5% to -3.5%).
- Diluted EPS: $17.20 to $18.80.
- Capital expenditures: $140 to $160 million.
Read the complete financial results here.
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