Valmont Industries Reports Mixed Results, Turnaround in Operating Income and Net Earnings

Valmont Industries, Inc. reported its financial results for the thirteen and thirty-nine weeks ended September 28, 2024, showing a mixed performance in terms of revenue and profitability compared to the previous fiscal period.

For the thirteen weeks ended September 28, 2024, net sales totaled $1,020.2 million, a decrease of 2.9% from $1,050.3 million in the same period of 2023. Gross profit also declined to $301.7 million, down 4.3% from $315.1 million. However, the company achieved a significant turnaround in operating income, reporting $125.7 million compared to an operating loss of $24.2 million in the prior year. This improvement was driven by a recovery in net earnings, which reached $82.6 million, recovering from a loss of $50.3 million in the same quarter of 2023. Basic and diluted earnings per share for this period were $4.13 and $4.11, respectively, compared to losses of $2.34 in the previous year.

For the thirty-nine weeks ended September 28, 2024, net sales were $3,037.7 million, down 3.8% from $3,159.1 million in the same period of 2023. Gross profit for this period decreased to $928.2 million from $953.1 million. Operating income improved to $404.6 million, up from $228.0 million, while net earnings increased significantly to $272.2 million from $110.8 million in the prior year. Basic and diluted earnings per share for the thirty-nine weeks were $13.43 and $13.34, respectively, compared to $5.45 and $5.40 in 2023.

The Infrastructure segment reported stable performance, with net sales of $758.5 million for the thirteen weeks, a slight increase from $755.1 million in 2023. The Agriculture segment, however, saw a decline in sales to $265.3 million, down 11.1% from $298.5 million, although it reported a substantial increase in operating income to $28.9 million from a loss of $99.7 million.

Strategically, Valmont completed the acquisition of HR Products, enhancing its presence in the Australian agriculture market, and divested Torrent Engineering and Equipment Company. The company also initiated a Realignment Program aimed at streamlining operations, which contributed to reduced selling, general, and administrative expenses. Additionally, Valmont has been active in share repurchase programs, having acquired approximately 8.2 million shares for about $1.3 billion under its ongoing repurchase authorization.

As of September 28, 2024, Valmont's total assets increased to $3,496.8 million, while total liabilities decreased to $1,909.0 million. The company reported total shareholders’ equity of $1,541.7 million, reflecting a solid financial position.