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Jun 25, 2022
Valmont Q2 2022 Earnings Report
Achieved record sales and earnings per share.
Key Takeaways
Valmont Industries reported record second-quarter results, with net sales reaching $1.1 billion, a 26.9% increase year-over-year, and diluted earnings per share of $3.53, compared to $2.89 in the same quarter last year. The company's strong performance led to an increased full-year financial outlook.
Record Net Sales of $1.1 billion increased 26.9%
Operating Income increased to $118.7 million, or 10.5% of net sales compared to $82.6 million or 9.2% of net sales
Record Diluted Earnings per Share (EPS) of $3.53 compared to $2.89
Benefited from strong market demand across the portfolio, leading to a record backlog of $2.0 billion, an increase of 24.7% since the end of fiscal 2021, and an increase of 13.4% since the end of first quarter 2022
Forward Guidance
The Company is increasing its 2022 full-year net sales and 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
- Revised net sales growth is primarily due to favorable pricing to offset continued broad-based inflation
- Capital expenditures continue to be in the range of $110.0 - $120.0 million to support strategic growth and Industry 4.0 advanced manufacturing initiatives
- Record backlog of $2.0 billion
- Broad-based market strength for infrastructure products and solutions
- Favorable agricultural market fundamentals and continued heightened concerns over food security
Challenges Ahead
- Now expecting a full-year tax rate of ~27.5% due to the geographic mix of earnings
- Now expecting a ~2.0% unfavorable foreign currency translation impact on net sales vs. prior year
- Inflation
Historical Earnings Impact
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Avg. Return Before/After Earnings
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