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Here are 1-3 brief analogies to describe Valmont Industries (VMI):

• John Deere for large-scale farm irrigation systems.
• A specialized Siemens or ABB for utility poles and essential physical infrastructure.

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• Utility Structures: Manufactures steel structures for utility transmission, distribution, and substations.
• Lighting & Traffic Structures: Produces poles and structures for street lighting, traffic control, and municipal applications.
• Communication Structures: Designs and fabricates communication towers and poles for wireless networks.
• Irrigation Equipment: Manufactures mechanized irrigation systems, primarily center pivot and linear move systems, for agriculture under the Valley brand.
• Coatings: Provides galvanizing and other coating services to protect steel and metal products from corrosion.

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Valmont Industries (VMI) primarily sells its engineered products and services to other companies and governmental entities (Business-to-Business, or B2B).

The company's 2023 Annual Report on Form 10-K states that no single customer accounted for more than 10% of its net sales in 2023, 2022, or 2021. This indicates that Valmont has a diversified customer base and does not rely on a few dominant major customers, and therefore does not publicly disclose individual customer names.

However, based on its product segments, Valmont's customer base typically includes the following categories of companies:

• Electric Utilities and Infrastructure Providers: Companies that own and operate power transmission and distribution networks, or develop large-scale infrastructure projects. These are significant purchasers of Valmont's utility structures, poles, and related components.
  • Examples of major public companies typically found in this customer category:
    • Duke Energy Corporation (DUK)
    • Southern Company (SO)
    • American Electric Power Company, Inc. (AEP)
• Telecommunication Companies: Providers of wireless and wireline communication services that utilize Valmont's communication structures and towers for network expansion and maintenance.
  • Examples of major public companies typically found in this customer category:
    • AT&T Inc. (T)
    • Verizon Communications Inc. (VZ)
    • T-Mobile US, Inc. (TMUS)
• Agricultural Equipment Dealers and Large Growers: Independent dealers who distribute Valmont's irrigation systems to farmers, and large-scale agricultural enterprises that purchase directly. These customers are primarily private companies or agricultural cooperatives, and specific names of major customers in this category are not publicly available.
• Original Equipment Manufacturers (OEMs), Industrial, and Construction Companies: Businesses across various industries that incorporate Valmont's tubing, fabricated tube products, and coated materials (e.g., galvanized components) into their own products, infrastructure, or construction projects. This is a very broad category, and specific public companies are not publicly identified as major customers by Valmont.

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Avner M. Applbaum, President & Chief Executive Officer

Avner M. Applbaum became President and Chief Executive Officer of Valmont in 2023, after joining the company in 2020 as Executive Vice President and Chief Financial Officer. Prior to Valmont, Mr. Applbaum held multiple CFO roles at private-equity-backed companies and also spent over 15 years in senior financial and operational positions at publicly traded manufacturers, including Ametek, Belden, and TE Connectivity (formerly Tyco Electronics). He began his career at Ernst & Young.

Thomas Liguori, Executive Vice President, Chief Financial Officer

Thomas Liguori joined Valmont as Executive Vice President and Chief Financial Officer in 2024, overseeing the company's global finance and accounting functions. He brings over three decades of financial leadership experience in public companies, having served as CFO for six public companies, including Avnet, a Fortune 200 semiconductor distributor. Before Valmont, he was also the CFO of Fortna LLC, a private-equity-backed company.

Darryl Matthews, Group President, Agriculture

Darryl Matthews is the Group President of Agriculture at Valmont, where he is responsible for leading the strategic direction of the company's Agriculture segment. His role involves advancing the Valley Irrigation brand, fostering strong dealer and customer partnerships, and integrating technology to drive agricultural productivity.

Chris Colwell, President, Infrastructure

Chris Colwell serves as the President of Infrastructure at Valmont.

Greg Turi, President, Infrastructure

Greg Turi is the President of Infrastructure at Valmont, leading the company's Telecom and international infrastructure businesses. He joined Valmont in 2010 and has since held various commercial and operational leadership positions within the company, including General Manager and Vice President roles in sales and international utility.

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Volatility in Raw Material Prices

Cyclical Nature of End Markets and Intense Industry Competition

Global Market Dependence and Geopolitical Risks

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Valmont Industries (VMI) operates in two main segments: Infrastructure and Agriculture, each with several key product and service areas. The addressable markets for these offerings are detailed below:

Infrastructure Segment

• Utility Structures (for electrical transmission, substation, and distribution):
  • The global utility poles market was valued at approximately USD 43.75 billion in 2024 and is projected to reach USD 65.86 billion by 2033, growing at a compound annual growth rate (CAGR) of 4.65% from 2025 to 2033. North America is the highest shareholder in this market.
  • The North America utility poles market generated USD 12,152.9 million in revenue in 2023 and is expected to reach US$ 14,395.9 million by 2030, with a CAGR of 2.4% from 2024 to 2030.
  • The North America utility transmission pole market was valued at USD 2.86 billion in 2024 and is projected to grow to USD 4.15 billion by 2032, exhibiting a CAGR of 4.65%.
  • The North America Energy and Utilities Construction market size was estimated at USD 54,098.08 million in 2024, representing over 40% of the global revenue, and is projected to grow at a CAGR of 6.1% from 2024 to 2031.
• Lighting and Transportation Structures (lighting poles, traffic signals, area lighting):
  • The global lighting street pole market size was approximately USD 10 billion in 2023 and is projected to reach USD 16 billion by 2032, with a CAGR of 5.5%.
• Telecommunications Structures (towers, small cell structures):
  • The global telecom tower market size was valued at USD 79.97 billion in 2024 and is projected to reach USD 231.02 billion by 2032, growing at a CAGR of 14.18%. North America is the largest market, holding approximately 40% of the global market share in 2024.
  • The global telecom network infrastructure market was estimated at USD 99.48 billion in 2023 and is projected to reach USD 182.1 billion by 2033, exhibiting a CAGR of 6.23% from 2024 to 2033. North America held a dominant market position in 2023, capturing over 38% market share with revenues totaling USD 37.8 billion.
• Solar Structures (solar single-axis tracker products):
  • The global solar tracker market size was valued at USD 50.1 billion in 2024 and is anticipated to grow to USD 111.4 billion in 2034, at a CAGR of 8.5%. North America dominates this market, holding over 32.0% market share in 2024.
• Coatings Services (galvanizing, anodizing, painting, and powder coating):
  • The global industrial coatings market size was estimated at USD 93.63 billion in 2024 and is projected to reach USD 116.68 billion by 2030, growing at a CAGR of 3.8%. Asia Pacific dominated this market with the largest revenue share of 41.9% in 2024.
  • The global protective coatings market was valued at USD 16.04 billion in 2024 and is projected to reach USD 28.12 billion by 2032, exhibiting a CAGR of 7.3%. Asia Pacific dominated the protective coatings market with a 44.38% share in 2023.

Agriculture Segment

• Irrigation Equipment (center pivot and linear irrigation equipment, components):
  • The global irrigation equipment market size is projected to grow from USD 7.31 billion in 2024 to USD 11.44 billion in 2029, at a CAGR of 9.3%. North America was the largest region in the irrigation equipment market in 2024.
  • The global irrigation equipment market is projected to reach $15.75 billion by 2031, at a CAGR of 9.3% from 2024 to 2031.
• Ag Tech / Precision Agriculture (technology solutions for precision agriculture, irrigation automation):
  • The global precision irrigation market is projected to expand from USD 4.18 billion in 2024 to reach USD 6.29 billion by 2029, at a CAGR of 8.5%. The Asia Pacific region is expected to witness the fastest growth rate in this market.
  • The global irrigation automation market size was estimated at USD 5,524.8 million in 2024 and is projected to reach USD 17,674.6 million by 2030, growing at a CAGR of 21.9%. Asia Pacific dominated this market with a revenue share of 28.9% in 2024.

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Valmont Industries (VMI) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Robust U.S. Utility Investment Cycle and Grid Modernization: Valmont is strategically positioned to benefit from a multi-year investment cycle in the U.S. utility sector. This growth is fueled by the need for increased grid resiliency and reliability, rising power load demands from electrification (including electric vehicles and data centers), and favorable government policies supporting the energy transition. The company is actively expanding its capacity, particularly in North America, to meet the sustained demand for engineered structures in transmission, distribution, and substations.
2. Strong 5G Telecommunications Infrastructure Build-out: The ongoing deployment of 5G networks and fixed wireless rollouts by major carriers is a significant driver for Valmont's Infrastructure segment. The company has seen strong sales growth in its telecommunications business due to its well-aligned products and increased carrier spending in a stabilizing North American market.
3. International Agriculture Market Strength and Technology Adoption: Despite some softness in the North American agriculture market, Valmont anticipates growth in its international agriculture segment, especially in regions like EMEA (Europe, Middle East, and Africa) and Brazil. This growth is driven by the global need for food security amidst population growth. Additionally, Valmont is leveraging technology, such as its e-commerce platform for aftermarket parts sales and the AgSense 365 app, to enhance irrigation management and drive growth in this segment.
4. Strategic Capacity Expansion and Operational Efficiency: Valmont is making strategic capital investments to expand its utility production capacity and improve factory throughput. These investments, including projects at facilities in Brenham, Texas, and Tulsa, Oklahoma, are aimed at meeting customer demand, enhancing operational efficiency, and supporting future volume growth in revenue. The company is also focusing on improving its global cost structure and leveraging pricing discipline and a favorable product mix.

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Share Repurchases

• Valmont Industries authorized a new share repurchase program of up to $700 million in February 2025, adding to approximately $66 million remaining from a prior authorization as of December 28, 2024.
• In 2024, the company returned approximately $118 million to shareholders through dividends and share repurchases, including the completion of a $120 million Accelerated Share Repurchase (ASR) program initiated in late 2023.
• Since February 28, 2023, Valmont Industries repurchased approximately $399.97 million worth of shares.

Share Issuance

• Valmont Industries' policy is to issue shares upon the exercise of stock options or the vesting of restricted stock units from treasury shares held by the company.

Outbound Investments

• In August 2023, Valmont acquired HR Products, a leading wholesale supplier of irrigation parts in Australia, for approximately $36.465 million in cash.
• In June 2022, the company acquired approximately 51% of ConcealFab, Inc. for $39.287 million in cash, aiming to integrate innovative 5G infrastructure and passive intermodulation mitigation solutions.
• In fiscal 2021, Valmont acquired Prospera Technologies, Ltd., a provider of artificial intelligence and machine learning solutions for agronomic monitoring, to expand its technology capabilities for irrigation optimization and predictive analytics.

Capital Expenditures

• Valmont Industries invested approximately $79 million in capital expenditures in 2024, primarily focused on enhancing capacity and manufacturing capabilities in its Infrastructure business.
• For fiscal year 2025, the company's capital expenditures guidance is projected to be between $140 million and $160 million.
• Capital expenditures totaled $96.8 million in fiscal 2023 and $93.3 million in fiscal 2022.