On this page of StockholderLetter.com we present the latest annual shareholder letter from VALMONT INDUSTRIES INC — ticker symbol VMI. Reading current and past VMI letters to shareholders can bring important insights into the investment thesis.

 •  3/12/2025 Letter Continued (Full PDF)
 •  3/14/2023 VMI Stockholder Letter
 •  3/25/2024 VMI Stockholder Letter
 •  More "Construction Materials & Machinery" Category Stockholder Letters
 •  VMI Benford's Law Stock Score = 81

VMI Shareholder/Stockholder Letter Transcript:

2024 Annual Report
& Form 10-K
FOR THE FISCAL YEAR
ENDING DECEMBER 28, 2024

A MESSAGE FROM OUR PRESIDENT & CEO
Dear shareholders,
Last year when I wrote you, I was in my first six months as CEO at Valmont. At that
time, I shared that our priority would be returning to our core, focusing on what
Valmont does best to deliver strong financial results and exceptional value for our
shareholders. Over the past year, we made great strides toward this goal, delivering
a solid financial performance and creating value.
Financial highlights
In fiscal 2024, Valmont achieved full-year net sales of $4.1 billion, slightly below 2023.
We sustained Infrastructure revenues, in line with our expectations, despite steel
index deflation, which was more than offset by challenges in the agriculture market.
Despite topline pressure, our team improved margins and operating profit, generating
strong cash flows. These results were driven by pricing discipline, strategic
deselection of underperforming product lines, and a streamlined cost structure.
Additionally, we grew diluted earnings per share by nearly 15%   to $17.19, reflecting
both our progress on profitability and our commitment to share buybacks as part
of our capital allocation strategy. We are energized by the opportunities ahead and
remain committed to continuous improvement     one of our core values     as we build
on this success.
AVNER M. APPLBAUM
President & Chief Executive Officer
OPERATING INCOME ($M) & OPERATING MARGIN
GAAP
Adjusted1
RETURN ON INVESTED CAPITAL
Base
Adjusted1
16.4%
$525
$433
$473
$450
13.3%
11.7%
$334
$268
10.3%
$292
$287
12.9%
10.1%
$226
7.8%
14.0%
8.7%
9.3%
2020
8.2%
9.5%
11.3%
10.0% 10.3%
7.2%
12.9%
7.0%
2021
2022
$17.19
2023
2024
2020
2021
2022
2023
2024
Diluted earnings per share up nearly 15%   over 2023
   Fiscal 2023 GAAP operating income included the impairment of goodwill and other intangible assets of $140.8 million (pre-tax), realignment charges of $35.2 million (pre-tax), and non-recurring charges associated
with major scope changes for two strategic projects initiated by departed senior leadership of $5.6 million (pre-tax). On an adjusted basis, operating income was $473.2 million. Fiscal 2022 GAAP operating income
included stock-based compensation for Prospera of $9.9 million (pre-tax) and intangible amortization for Prospera of $6.6 million (pre-tax). On an adjusted basis, operating income was $449.7 million. Fiscal 2021
GAAP operating income included impairment costs of long-lived assets of $27.9 million (pre-tax), intangible amortization and stock-based compensation for Prospera of $8.6 million (pre-tax), receivable write-off of
$5.5 million (pre-tax), acquisition diligence expense of $1.1 million (pre-tax), and severance expense of $4.1 million (pre-tax). On an adjusted basis operating income was $334.0 million. Fiscal 2020 GAAP operating
income included the impairment of long-lived assets of $16.6 million (pre-tax) and restructuring and related asset impairment costs of $25.9 million (pre-tax). On an adjusted basis, operating income was
$268.5 million.
   Fiscal 2023 GAAP diluted earnings per share were $6.78, and, as adjusted, $14.98. Fiscal 2023 GAAP net earnings included the impairment of long-lived assets of $136.5 million after-tax ($6.45 per share),
realignment charges of $26.5 million after-tax ($1.25 per share), nonrecurring charges associated with major scope changes for two strategic projects initiated by departed senior leadership of $4.2 million after-tax
($0.20 per share), loss from Argentine peso hyperinflation attributable to Valmont Industries, Inc. of $2.5 million after-tax ($0.12 per share), and non-recurring tax benefit items of $3.6 million ($0.17 per share).
Fiscal 2022 GAAP net earnings included the loss from divestiture of the offshore wind energy structures business of $33.3 million after-tax ($1.54 per share), intangible asset amortization for Prospera of
$6.6 million after-tax ($0.30 per share), and stock-based compensation for Prospera of $7.4 million after-tax ($0.35 per share). Fiscal 2021 GAAP net earnings included impairment costs of long-lived offshore
structures assets of $21.7 million after-tax ($1.01 per share), intangible amortization and stock-based compensation for Prospera of $6.6 million after-tax ($0.31 per share), receivable write-off of $4.2 million
after-tax ($0.20 per share), acquisition diligence expense of $0.9 million after-tax ($0.04 per share), severance expense of $3.1 million after-tax ($0.14 per share), impact of UK tax rate change of $2.8 million
($0.13 per share), and valuation allowance against deferred tax asset of $5.1 million ($0.24 per share). Fiscal 2020 GAAP net earnings included the impairment of long-lived assets of $16.2 million ($0.76 per share)
and restructuring and related asset impairment costs of $18.2 million after-tax ($0.85 per share).
1

Disciplined resource allocation
We   ve focused our go-to-market strategy on high-return opportunities. Our capital investments in manufacturing expansion,
supported by investments in our people, will enhance our capacity and capabilities to meet growing demand. These
investments are a key component of our capital allocation strategy, focused on long-term growth and delivering a strong
return on invested capital. I   m proud of the work our Valmont team has done to identify and execute strategic investments
that will drive the business forward. We also demonstrated our ongoing commitment to returning capital to shareholders in
2024, distributing more than $118 million through dividends and share repurchases.
Our markets
The long-term outlook for our businesses is strong, and we   ve intentionally aligned with customers and markets that will
benefit from multi-year megatrends.
In Infrastructure, we saw growth in Utility, driven by ongoing demand strength, and stabilization in the Telecommunications
market as carrier spending increased. This growth was offset by lower sales in Lighting and Transportation (   L&T   ) and Solar.
Looking ahead, we are focused on capturing growth, which we expect will be driven primarily by increased energy demands
and the need to modernize aging infrastructure. As electrification continues and AI-driven data generation and consumption
accelerate, global electricity demand will increase. This increased power consumption, combined with efforts to reinforce
infrastructure against intensifying weather conditions, will drive demand for our engineered structures.
While the agriculture market remained soft in 2024, we are leveraging our industry leadership to build a foundation for future
growth. Our team delivered timely customer support during storm recovery efforts, ensuring our customers had the resources
they needed during a crucial time. Looking ahead, precision irrigation will continue to play a significant role in global food
production as farmers increasingly must grow more with fewer resources. By putting farmers and their unique challenges at
the center of our innovation, we will continue to lead the precision irrigation market.
To drive our market leadership, we welcomed Darryl Matthews as Group President, Agriculture. Darryl   s extensive experience
aligns well with our irrigation business, and I know that his perspective as an industry veteran, combined with the expertise of
our Valmont team, will position the Ag business for future growth.
Setting a path for growth
We also welcomed Thomas Liguori as our Chief Financial Officer and promoted Jennifer Paisley to the role of Senior Vice
President of Human Resources. Tom is a seasoned finance executive, and Valmont is already benefiting from his perspective
and leadership. Jennifer has built a distinguished career in human resources, including seven years at Valmont, where she   s
demonstrated her leadership and her alignment with Valmont   s core values. With the executive hires and promotions we
made in 2024, we   ve assembled a leadership team with the depth and breadth of experience to guide Valmont into the future.
To drive results and align our global Valmont team around our most critical priorities, we established our Strategic Path
Forward, reinforcing our long-term growth plan and defining each team member   s role in shaping our company   s legacy. I am
confident we have the right people to achieve our growth plans.
Looking ahead to 2025 and beyond, our diverse exposure to infrastructure and agriculture markets enables us to navigate
market cycles effectively. By leveraging innovation to meet our customers    evolving needs, maintaining operational and
commercial excellence, and making strategic growth investments, we are well-positioned for the future. We are focused on
delivering lasting and meaningful shareholder returns by executing against growth opportunities, maintaining a disciplined
focus on margin expansion and taking a balanced approach to capital allocation.
Thank you for being a Valmont shareholder. I look forward to continuing to create lasting value, delivering on Valmont   s
purpose: Conserving Resources. Improving Life.  
Sincerely,
Avner M. Applbaum
President & Chief Executive Officer
2

2024 PERFORMANCE
$4.1B
in net sales
100+
21
countries
of operation
countries with
Valmont facilities
83
manufacturing
facilities worldwide  
~11,000
global employees
2024 Net Sales by Geography
71%
USA &
7%
LATIN
CANADA
AMERICA
10%
EMEA
12%
APAC
5-YEAR CUMULATIVE TOTAL RETURN
Valmont Compared to S&P MidCap 400 Index and S&P 400 Industrial Machinery & Supplies & Components Index
250
200
150
100
50
0
Dec 19
Valmont Industries, Inc.
Dec 20
Dec 21
S&P MidCap 400 Index
Dec 22
Dec 23
Dec 24
S&P 400 Industrial Machinery & Supplies & Components Index
S&P
400
Industrial
Machinery
& Supplies
& Components
This graph compares the yearly change in the cumulative total shareholder
return
on the
Company   s common
stock with
the cumulative
total returns of theIndex
S&P MidCap 400 Index and the S&P
400 Industrial Machinery & Supplies & Components Index for the five-year period ending December 28, 2024. The Company was added to these indexes in 2009 by S&P Global Ratings. The graph
assumes that the beginning value of the investment in Valmont Common Stock and each index was $100 and that all dividends were reinvested.
1
As of December 28, 2024.
S&P MidCap 400 Index
3
Valmont Industries, Inc.

GAAP
$4,345
$4,175
$4,075
Adjusted1
$17.19
$524.6
525.00 525.00
525.00
$449.7
$473.2
$13.82
$14.98
$433.2
$11.62
$291.6
$6.78
2022
2023
2024
0.00
0.000.00
NET SALES
2022
2023
2024
OPERATING INCOME
Dollars in millions; except per-share amounts
2022
2023
2024
DILUTED EARNINGS PER SHARE
2024
2023
2022
4,075.0
4,174.6
4,354.2
Operating income
524.6
291.6
433.2
Net earnings  
348.3
150.8
250.9
Diluted earnings per share
17.19
6.78
11.62
Dividends per share
2.40
2.40
2.20
Total shareholders' equity
1,542.1
1,354.3
1,580.8
Invested capital3
2,279.4
2,513.5
2,495.5
Gross profit as a % of net sales
30.5%
29.6%
25.9%
Operating income as a % of net sales
12.9%
7.0%
10.0%
Adjusted operating income as a % of net sales  
12.9%
11.3%
10.3%
Net earnings   as a % of net sales
8.5%
3.6%
5.8%
Adjusted net earnings   as a % of net sales  
8.5%
7.6%
6.9%
Return on invested capital3
16.4%
7.2%
12.9%
Adjusted return on invested capital3
16.4%
14.0%
13.3%
Diluted weighted average shares outstanding (000s)
20,261
21,159
21,580
Approximate number of shareholders
98,900
57,128
36,163
Number of employees
10,986
11,125
11,364
OPERATING RESULTS
Net sales
FINANCIAL POSITION
OPERATING PROFITS
YEAR-END DATA
   See reconciliations provided on page 1 of this report.
   Net earnings attributable to Valmont Industries, Inc.
   See Part II, Item 7, Selected Financial Measures, in the Company   s attached Form 10-K for calculation of invested capital, return on invested capital, and adjusted return on invested capital.
For more information on the footnotes above and the reasons why we believe the non-GAAP measures are useful, please see Part II, Item 7 and Item 8 of the attached 2024 Form 10-K.
4



 3/12/2025 Letter Continued (Full PDF)