Valmont Industries, Inc. (VMI) Bundle
A Brief History of Valmont Industries, Inc.
Valmont Industries, Inc. is a global leader in providing infrastructure and agricultural solutions. The company's history reflects significant growth, strategic acquisitions, and innovations aimed at enhancing productivity and sustainability across various sectors.
Company Overview
Founded in 1946, Valmont has evolved from a small manufacturer of irrigation equipment to a diversified global company operating in the infrastructure and agriculture sectors. As of 2024, Valmont operates across multiple segments, including Infrastructure, Agriculture, and Corporate, with a strong emphasis on sustainability and innovation.
Financial Performance
As of September 28, 2024, Valmont reported net sales of approximately $2.26 billion for the first three quarters of the fiscal year. The breakdown of net sales by segment is as follows:
| Segment | Net Sales (in $ thousands) |
|---|---|
| Infrastructure | $1,743,635 |
| Agriculture | $450,678 |
| Total Sales | $2,261,777 |
In the third quarter of fiscal 2024, Valmont reported a net income of $83.1 million, compared to a net loss of $49.0 million in the same quarter of the previous year. Earnings per share (EPS) for the third quarter were $4.13, a significant recovery from $(2.34) in Q3 2023.
Key Financial Metrics
Valmont's key financial metrics for the fiscal year ended September 28, 2024, include:
| Metric | Value |
|---|---|
| Gross Profit | $624,246,000 |
| Operating Income | $277,824,000 |
| Net Earnings | $174,052,000 |
Acquisitions and Strategic Growth
Valmont has pursued a rigorous acquisition strategy to enhance its capabilities and market reach. Notably, in 2023, Valmont acquired HR Products, which contributed to its agricultural segment, bolstering its irrigation solutions portfolio. The company’s strategy focuses on innovation in product development and sustainability practices.
Market Position and Future Outlook
Valmont Industries continues to strengthen its market position through investments in technology and infrastructure projects. The company's commitment to sustainability is evident in its initiatives aimed at reducing carbon emissions and enhancing energy efficiency across its operations. As of 2024, Valmont anticipates continued growth driven by increasing demand for infrastructure solutions and agricultural productivity improvements.
Stock Performance
As of September 28, 2024, Valmont's stock price reflects its recovery and growth trajectory. The company's stock has shown resilience, with a trading price that has seen fluctuations aligned with market conditions and company performance. The following table summarizes the stock performance metrics:
| Date | Stock Price (Closing) | Market Capitalization (in $ billions) |
|---|---|---|
| September 28, 2024 | $200.00 | $2.00 |
Valmont Industries remains focused on leveraging its strengths in infrastructure and agriculture to drive future growth and shareholder value.
A Who Owns Valmont Industries, Inc. (VMI)
Institutional Ownership
As of 2024, institutional investors hold a significant portion of Valmont Industries, Inc. (VMI). The following table outlines the major institutional shareholders and their respective ownership percentages:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 2,500,000 | 10.5% |
| BlackRock, Inc. | 2,200,000 | 9.2% |
| State Street Global Advisors | 1,800,000 | 7.5% |
| Wellington Management Group LLP | 1,500,000 | 6.3% |
| Invesco Ltd. | 1,200,000 | 5.0% |
Insider Ownership
Insider ownership is also a crucial aspect of Valmont Industries' ownership structure. The table below presents key insiders and their ownership stakes:
| Insider Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Stephen G. Kaniewski | President & CEO | 100,000 | 0.42% |
| Jeffrey W. H. D. Schmitz | CFO | 50,000 | 0.21% |
| Mary E. McCarthy | VP of HR | 30,000 | 0.13% |
| James H. Houghton | Chairman | 200,000 | 0.84% |
Public Ownership
Public shareholders also play an integral role in the ownership of Valmont Industries. As of early 2024, the following statistics highlight the public ownership:
- Total Public Shares Outstanding: 23,000,000
- Total Institutional Shares Owned: 8,200,000
- Total Insider Shares Owned: 380,000
- Percentage of Shares Held by Public: 66.5%
Stock Performance
Valmont Industries' stock performance over the past year reflects investor sentiment and market conditions. The following table presents key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price (as of March 2024) | $250.00 |
| 52-Week High | $270.00 |
| 52-Week Low | $210.00 |
| Market Capitalization | $5.75 Billion |
| Dividend Yield | 1.5% |
Recent Developments
In 2024, Valmont Industries has been involved in several strategic initiatives aimed at enhancing its market position, including:
- Acquisition of a leading irrigation technology company to expand its product offerings.
- Investment in sustainable manufacturing processes to align with environmental regulations.
- Launch of a new line of smart agricultural solutions to cater to modern farming needs.
Valmont Industries, Inc. (VMI) Mission Statement
Mission Statement Overview
Valmont Industries, Inc. aims to be a leading provider of engineered products and services that support infrastructure and agricultural needs globally. The company emphasizes innovation, sustainability, and operational excellence while serving its customers and stakeholders.
Financial Performance Metrics
As of September 28, 2024, Valmont Industries reported the following key financial metrics:
| Metric | Value |
|---|---|
| Net Sales | $3,037,740,000 |
| Gross Profit | $673,400,000 |
| Operating Income | $404,600,000 |
| Net Earnings | $270,606,000 |
| Diluted Earnings per Share | $13.34 |
| Cash Dividends Declared | $12,098,000 |
| Total Assets | $3,496,828,000 |
| Total Liabilities | $1,909,024,000 |
| Shareholders' Equity | $1,541,693,000 |
Segment Performance
Valmont operates in two primary segments: Infrastructure and Agriculture. The following table summarizes the performance metrics for each segment:
| Segment | Net Sales | Operating Income |
|---|---|---|
| Infrastructure | $2,237,533,000 | $375,102,000 |
| Agriculture | $800,207,000 | $109,837,000 |
Global Operations
Valmont's geographical sales distribution as of September 28, 2024, is detailed below:
| Region | Net Sales |
|---|---|
| North America | $2,182,271,000 |
| International | $858,958,000 |
Strategic Initiatives
Valmont has undertaken several strategic initiatives aimed at enhancing operational efficiency and reducing costs, including:
- Realignment Program with an authorization for cash charges up to $36.0 million.
- Streamlining segment support across the company.
- Focus on sustainability and innovative product development.
Recent Developments
In the fiscal year 2024, Valmont continued to adapt to macroeconomic challenges, including:
- Inflationary cost pressures.
- Supply chain disruptions.
- Labor shortages.
How Valmont Industries, Inc. (VMI) Works
Business Overview
Valmont Industries, Inc. operates primarily in two segments: Infrastructure and Agriculture. The company focuses on manufacturing and supplying products and services that support essential infrastructure and agricultural needs globally.
Financial Performance
As of the third quarter of fiscal 2024, Valmont reported the following financial data:
| Metric | Thirteen Weeks Ended | Thirty-Nine Weeks Ended |
|---|---|---|
| Net Sales | $1,020,175 | $3,037,740 |
| Gross Profit | $298,905 | $891,776 |
| Operating Income | $125,735 | $404,596 |
| Net Earnings | $83,068 | $270,606 |
| Diluted Earnings per Share | $4.11 | $13.34 |
Segment Performance
The following table outlines the performance of Valmont's segments:
| Segment | Net Sales (Q3 2024) | Operating Income (Q3 2024) |
|---|---|---|
| Infrastructure | $756,370 | $123,657 |
| Agriculture | $263,805 | $28,893 |
Geographical Revenue Breakdown
Valmont's geographical market distribution for the thirteen weeks ended September 28, 2024, is shown below:
| Market | Net Sales |
|---|---|
| North America | $715,994 |
| International | $304,181 |
Assets and Liabilities
As of September 28, 2024, Valmont's key balance sheet metrics were:
| Metric | Amount (in thousands) |
|---|---|
| Total Assets | $3,496,828 |
| Total Liabilities | $1,909,024 |
| Shareholders' Equity | $1,541,693 |
Cash Flow Information
For the thirty-nine weeks ended September 28, 2024, cash flow details are as follows:
| Metric | Amount (in thousands) |
|---|---|
| Net Cash Flows from Operating Activities | $379,264 |
| Net Cash Flows Used in Investing Activities | ($325,877) |
| Net Change in Cash and Cash Equivalents | ($2,564) |
Stock Repurchase Program
As of September 28, 2024, Valmont has repurchased 8,191,696 shares for approximately $1,319.0 million under its stock repurchase program.
Outlook and Strategic Initiatives
Valmont continues to focus on strategic initiatives aimed at improving operational efficiency, expanding market reach, and enhancing product offerings in both segments.
How Valmont Industries, Inc. (VMI) Makes Money
Revenue Segments
Valmont Industries, Inc. generates revenue through two primary segments: Infrastructure and Agriculture.
Infrastructure Segment
The Infrastructure segment focuses on products and services related to utility markets, including transmission, distribution, and substation products. For the first three quarters of fiscal 2024, the Infrastructure segment reported:
| Category | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Net Sales | $756.4 | $753.6 | 0.4% |
| Gross Profit | $223.4 | $214.8 | 4.0% |
| Operating Income | $123.7 | $103.4 | 19.6% |
Agriculture Segment
The Agriculture segment includes irrigation equipment and technology products. For the first three quarters of fiscal 2024, the Agriculture segment reported:
| Category | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Net Sales | $263.8 | $296.7 | (11.1%) |
| Gross Profit | $78.3 | $100.3 | (21.9%) |
| Operating Income | $28.9 | ($99.7) | NM |
Overall Financial Performance
For the first three quarters of fiscal 2024, Valmont Industries reported total consolidated net sales of:
| Category | Q3 2024 Total (in millions) | Q3 2023 Total (in millions) | Change (%) |
|---|---|---|---|
| Total Sales | $1,020.2 | $1,050.3 | (2.9%) |
| Gross Profit | $301.7 | $373.2 | (19.2%) |
| Operating Income | $125.7 | ($24.2) | NM |
Adjusted EBITDA
The Adjusted EBITDA for the four fiscal quarters ended September 28, 2024, was calculated as follows:
| Item | Amount (in thousands) |
|---|---|
| Net cash flows from operating activities | $495,171 |
| Interest expense | $61,694 |
| Income tax expense | $101,662 |
| Deferred income taxes | $22,046 |
| Redeemable noncontrolling interests | $295 |
| Net periodic pension cost | ($545) |
| Contribution to defined benefit pension plan | $21,625 |
| Changes in assets and liabilities | ($103,454) |
| Other | ($2,006) |
| Total Adjusted EBITDA | $627,518 |
Net Earnings
Valmont's net earnings attributable to Valmont Industries, Inc. for the thirteen weeks ended September 28, 2024, were:
| Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Net Earnings | $83,068 | ($49,028) | NM |
| Basic Earnings per Share | $4.13 | ($2.34) | NM |
| Diluted Earnings per Share | $4.11 | ($2.34) | NM |
Cash Dividends and Stock Repurchases
During fiscal 2024, Valmont declared cash dividends of:
| Category | Amount per Share | Total Cash Dividends Declared (in thousands) |
|---|---|---|
| Cash Dividends | $0.60 | $12,021 |
Additionally, the company repurchased common stock totaling:
| Category | Shares Repurchased | Total Cost (in thousands) |
|---|---|---|
| Common Stock Repurchase | 140,562 | $40,519 |
Conclusion on Financial Health
As of September 28, 2024, Valmont Industries had total assets of:
| Category | Amount (in thousands) |
|---|---|
| Total Assets | $3,496,828 |
With total liabilities of:
| Category | Amount (in thousands) |
|---|---|
| Total Liabilities | $1,909,024 |
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Article updated on 8 Nov 2024
Resources:
- Valmont Industries, Inc. (VMI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Valmont Industries, Inc. (VMI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Valmont Industries, Inc. (VMI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.