Valmont Industries Reports $4.075 Billion in Net Sales, Operating Income Up 79.9%

Valmont Industries, Inc. reported a consolidated net sales of $4.075 billion for the fiscal year ending December 28, 2024, a decrease of 2.4% compared to $4.175 billion in the previous fiscal year. The company's gross profit remained relatively stable, increasing slightly to $1.241 billion, up from $1.236 billion, resulting in a gross profit margin of 30.5%. Operating income saw a significant increase of 79.9%, reaching $524.6 million, compared to $291.6 million in fiscal 2023. This improvement was attributed to lower selling, general, and administrative expenses, which decreased by 6.7% to $716.6 million, and a more favorable product mix in the Infrastructure segment.

The Infrastructure segment reported net sales of $2.998 billion, nearly unchanged from the previous year, while the Agriculture segment experienced a decline of 8.4%, with sales totaling $1.077 billion. The decrease in the Agriculture segment was primarily driven by lower sales volumes in international markets, particularly Brazil, where reduced grain prices impacted purchasing decisions. Despite these challenges, the Agriculture segment's operating income surged to $138.3 million, a 721% increase from the prior year, largely due to the absence of significant impairment charges that had affected fiscal 2023 results.

Strategically, Valmont continued to refine its portfolio through acquisitions and divestitures. In fiscal 2024, the company acquired an additional 9% of ConcealFab, Inc., enhancing its capabilities in 5G infrastructure, and completed the acquisition of the remaining 25% of Valmont Substations, LLC. The company also divested its extractive business and George Industries, resulting in minor losses recorded in other income. These strategic moves are part of Valmont's ongoing efforts to focus on core competencies and drive value within its segments.

Operationally, Valmont reported a backlog of orders totaling $1.437 billion as of December 28, 2024, a slight decrease from $1.466 billion the previous year. The company employed approximately 10,986 individuals, with a focus on maintaining a skilled workforce to support its manufacturing and operational needs. The company’s effective tax rate for the fiscal year was 25.2%, a significant decrease from 38.1% in the prior year, reflecting changes in the geographical mix of earnings and the absence of non-deductible impairment charges.

Looking ahead, Valmont Industries anticipates continued challenges in the Agriculture segment due to fluctuating commodity prices and market conditions. However, the company remains optimistic about growth opportunities in the Infrastructure segment, driven by ongoing investments in utility infrastructure and government funding initiatives. The company plans to allocate approximately 50% of its operating cash flow to growth opportunities, including capital expenditures and strategic acquisitions, while maintaining a commitment to returning value to shareholders through dividends and share repurchases.