Valmont Industries, Inc. (NYSE: VMI) has reported its financial results for the first quarter ended March 29, 2025.
The company's net sales for the first quarter of 2025 decreased by 0.9% to $969.3 million compared to $977.8 million in the first quarter of 2024. However, when considering constant currency, there was a 0.5% increase in sales.
Operating income for the first quarter of 2025 was $128.3 million, representing 13.2% of net sales, compared to $131.6 million, or 13.5% of net sales in the same period in 2024.
Despite the decrease in net sales, the company saw a significant increase in operating cash flows, reaching $65.1 million compared to $23.3 million in the first quarter of 2024. Valmont also invested $30.3 million in capital expenditures, demonstrating a commitment to future growth.
In terms of shareholder returns, the company returned $12.0 million to shareholders in dividends and increased the quarterly dividend by 13% to $0.68 per diluted share ($2.72 per diluted share annualized).
Looking at the segment performance, the Infrastructure segment, representing 72.6% of net sales, saw a 2.4% decrease in sales to $706.2 million compared to $723.6 million in the first quarter of 2024. However, the Utility and Telecommunications sectors experienced growth, while Solar sales declined due to the company's strategic decision to exit certain low-margin projects in the previous year.
The Agriculture segment, accounting for 27.4% of net sales, reported a 3.3% increase in sales to $267.3 million in the first quarter of 2025 compared to $258.7 million in the same period in 2024. The growth was mainly driven by strong international performance, particularly in the Europe, Middle East, and Africa (EMEA) region, partially offset by lower sales in North America.
The company reaffirmed its full-year 2025 financial outlook, projecting net sales between $4.0 to $4.2 billion and diluted earnings per share in the range of $17.20 to $18.80. Additionally, Valmont updated key assumptions for the year, including capital expenditures and effective tax rate.
The company also addressed its current plans and actions to mitigate the direct impacts of various U.S. import tariffs and reciprocal tariffs, as well as retaliatory tariffs from other countries, on its fiscal 2025 outlook. Valmont believes its mitigation plans will enable it to be cost-neutral on a dollar basis for the year.
Valmont Industries, Inc. will be hosting a live audio discussion to provide further insights into its first-quarter results and outlook. As a result of these announcements, the company's shares have moved 3.0% on the market, and are now trading at a price of $277.53. If you want to know more, read the company's complete 8-K report here.
