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Apr 01, 2023
Valmont Q1 2023 Earnings Report
Valmont achieved record results driven by strong market demand and disciplined pricing strategies and raised full-year guidance.
Key Takeaways
Valmont Industries reported record first-quarter results, with net sales reaching $1.1 billion, an 8.3% increase year-over-year. Operating income increased by 24.9% to $118.5 million, and diluted EPS grew to $3.47. The company also raised its full-year earnings guidance, reflecting confidence in continued growth and market demand.
Net sales increased by 8.3% to $1.1 billion, with a 10.4% increase excluding the 2022 "Other" segment.
Operating income rose by 24.9% to $118.5 million, representing 11.1% of net sales.
Diluted EPS increased to $3.47, compared to $2.90 in the first quarter of 2022.
The company secured an $85 million order for mechanized irrigation equipment in Africa.
Valmont
Valmont
Forward Guidance
Valmont is raising its full-year diluted earnings per share outlook from the previous indications that were communicated last quarter and is providing updated key assumptions for the year.
Positive Outlook
- Strong market drivers across businesses.
- Proven track record of execution.
- Backlog of $1.6 billion.
- Long-term need for critical infrastructure investment globally.
- Favorable global agriculture market trends.
Challenges Ahead
- Difficult sales comparisons expected in the Agriculture segment due to international project timing.
- Last year’s ongoing delivery of considerable levels of backlog.
- Continued elevated inflation.
- Raw material costs aligned with current price projections.
- Ongoing R&D investments