Loading...
•
Jun 26, 2021
Valmont Q2 2021 Earnings Report
Valmont's Q2 2021 results were reported, showcasing record sales and increased full-year guidance.
Key Takeaways
Valmont Industries reported record second-quarter sales of $894.6 million, a 29.9% increase year-over-year. The company's operating income improved to $82.6 million, and diluted earnings per share (EPS) rose to $2.89. Valmont also increased its full-year net sales growth guidance from 9-14% to 16-19% and GAAP diluted EPS to $9.90-$10.60.
Record Net Sales of $894.6 million, an increase of 29.9% with growth in all segments.
Operating Income improved to $82.6 million, or 9.2% of sales.
Diluted Earnings per Share (EPS) improved to $2.89.
Record global backlog of more than $1.34 billion, an increase of 17.5% since the end of fiscal 2020.
Valmont
Valmont
Forward Guidance
Valmont is updating its full-year outlook and providing key assumptions for the remainder of 2021. Valmont now expects full-year Net Sales to increase 16% to 19%, and Irrigation segment sales to increase 45% to 50%. GAAP diluted EPS is expected to be $9.90 to $10.60 and adjusted diluted EPS is expected to be $10.40 to $11.10
Positive Outlook
- Favorable foreign currency translation impact of approximately 2.0% of Net Sales
- Strong market drivers across businesses.
- Meaningful sequential margin improvement expected in Utility Support Structures segment in the second half of 2021.
- Increasing demand in wireless communications markets as 5G build-outs continue to ramp.
- Favorable market trends globally providing strong momentum well into 2022 for Irrigation.
Challenges Ahead
- Second half 2021 tax rate of approximately 25.0% as benefits from favorable tax planning strategies will not continue in second half 2021; assumes no tax law changes
- Capital expenditures to be in the range of $110 - $120 million to support strategic growth and Industry 4.0 advanced manufacturing initiatives
- Continued efforts to elevate ESG across the company
- Unprecedented inflationary environment
- No closures of large manufacturing facilities, workforce disruptions, or significant supply chain interruptions