Valmont’s second quarter saw modest sales growth, with management attributing the positive market reaction to strength in utility, telecom, and international agriculture markets. CEO Avner Applbaum emphasized that “sales grew modestly, driven by strength in utility, telecom, and international agriculture,” while also noting the completion of a comprehensive business realignment. This included exiting unprofitable parts of the solar segment and restructuring operations, which led to significant nonrecurring charges but positioned the company for improved focus and execution. Management pointed to strong demand in utility and infrastructure as key contributors to the quarter’s performance.
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Valmont (VMI) Q2 CY2025 Highlights:
- Revenue: $1.05 billion vs analyst estimates of $1.03 billion (1% year-on-year growth, 1.7% beat)
- Adjusted EPS: $4.88 vs analyst estimates of $4.78 (2.1% beat)
- Adjusted EBITDA: $163.6 million vs analyst estimates of $162.7 million (15.6% margin, 0.6% beat)
- The company reconfirmed its revenue guidance for the full year of $4.1 billion at the midpoint
- Adjusted EPS guidance for the full year is $18 at the midpoint, missing analyst estimates by 0.9%
- Operating Margin: 2.8%, down from 14.2% in the same quarter last year
- Backlog: $1.58 billion at quarter end
- Organic Revenue rose 1.3% year on year (-0.9% in the same quarter last year)
- Market Capitalization: $7.18 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Valmont’s Q2 Earnings Call
- Adam Farley (Stifel): Asked about the rationale for exiting North American solar and its impact on earnings. CEO Avner Applbaum explained that regulatory uncertainty and poor returns drove the exit, while CFO Tom Liguori confirmed the move should benefit profitability in the second half of the year.
- Chris Moore (CJS Securities): Inquired if management’s long-term growth targets are back-end loaded or gradual. Liguori stressed improvements are expected to begin in Q4, with a steady ramp rather than a late surge.
- Moore (CJS Securities): Sought clarity on international agriculture margins. Liguori stated margins have improved in Brazil and EMEA, with parity expected between Brazil and North America over time.
- Jean Velez (D.A. Davidson): Asked about telecom segment visibility and product alignment. Applbaum cited ongoing carrier spending and Valmont’s broad product range as reasons for anticipated continued strength.
- Brian Drab (William Blair): Requested tangible evidence for the utility “demand wave.” Applbaum pointed to direct customer conversations, a sizable backlog, and industry-wide capacity constraints as support for their confidence.
Catalysts in Upcoming Quarters
Looking forward, we will monitor (1) the pace at which utility capacity investments and backlog convert to revenue, (2) the success of international agriculture initiatives, particularly in EMEA and Brazil, and (3) the impact of cost savings and automation on margins and execution. We are also tracking any signs of recovery in North American agriculture and lighting as key indicators for broader segment health.
Valmont currently trades at $357.83, up from $332.19 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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