Valmont Industries Reports Slight Increase in Net Sales but Significant Profit Decline in Q2 2025

Valmont Industries, Inc. reported its financial results for the second quarter and first half of fiscal 2025, revealing a slight increase in net sales but a significant decline in profitability compared to the previous year. For the thirteen weeks ended June 28, 2025, the company recorded net sales of $1,050.5 million, a 1% increase from $1,039.7 million in the same period last year. However, net earnings attributable to Valmont Industries fell to a loss of $4.0 million, or $(1.53) per diluted share, compared to a profit of $99.7 million, or $4.91 per diluted share, in the prior year. The decline in profitability was attributed to impairment charges of $91.3 million related to long-lived assets and realignment charges of $8.9 million.

In terms of segment performance, the Infrastructure segment saw net sales of $763.1 million, a marginal increase from $760.4 million, while the Agriculture segment reported a 2.7% increase in sales to $287.5 million. The Infrastructure segment's operating income, however, plummeted by 80.6% to $25.9 million, primarily due to the aforementioned impairment charges and increased selling, general, and administrative expenses. The Agriculture segment's operating income also decreased by 9.8% to $36.1 million, reflecting lower sales volumes in North America.

Valmont's operational metrics indicated a mixed performance across its geographic markets. While North American sales in the Agriculture segment declined due to lower storm-related replacement sales and reduced irrigation equipment demand, international sales in the same segment increased by 22% driven by stronger project volumes in the EMEA region. The company also noted a strategic exit from the agriculture solar market in Brazil, which contributed to a $3.2 million write-off.

Looking ahead, Valmont Industries is focused on enhancing its portfolio through strategic acquisitions and divestitures, as evidenced by its recent divestiture of George Industries and its extractive business. The company plans to allocate approximately 50% of its operating cash flow to growth opportunities, including capital expenditures and acquisitions, while the remaining 50% will be directed towards shareholder returns through dividends and share repurchases. The company maintains a strong liquidity position with $208.5 million in cash and no outstanding borrowings under its revolving credit facility as of June 28, 2025.