Valmont Industries has reported financial results for the first quarter ended March 26, 2022.

First Quarter 2022 Highlights

• First Quarter Record Net Sales increased 26.6% to $980.8 million.
• Operating Income increased to $94.8 million, or 9.7% of net sales ($99 million or 10.1% adjusted) compared to $77.2 million or 10% of net sales
• Record backlog of $1.8 billion, reflecting improved pricing and continued strong market demand across the portfolio
• Realigned financial reporting from four reportable segments to two: Infrastructure and Agriculture
  • Infrastructure includes the previous segments of Utility Support Structures, Engineered Support Structures and Coatings
  • Agriculture is a renaming of the previous Irrigation segment
  • Elevates the focus on capital allocation, technology development and market growth strategies

"We delivered strong financial results in our first quarter, exceeding our expectations and achieving another quarter of record sales," said Stephen G. Kaniewski, president and chief executive officer. "I am very pleased with our relentless focus on price management, operational excellence and the realization of increasing strong demand across the portfolio. Through these actions, we achieved first-quarter adjusted operating margins of 10.1% and record first-quarter adjusted earnings per share of $3.07. We are seeing strong demand across global infrastructure markets, especially in our key growth businesses including products and solutions for utility and telecommunications markets. Agricultural market conditions continue to be very favorable, which is leading to increasing demand for irrigation equipment and technology solutions globally. I want to recognize our Valmont teams around the world as they continue to drive our momentum and success. We continue executing on our strategy of creating sustainable growth initiatives across our businesses and long-term value for our shareholders."

First Quarter 2022 Segment Review

Agriculture (30.9% of Net Sales)

Sales of $306.6 million increased 33.5% year-over-year. Sales growth was led by higher average selling prices of irrigation equipment globally, higher volumes in North American markets and higher technology sales, partially offset by lower international project sales.

Operating Income was $37.5 million, or 12.2% of sales ($41.6 million or 13.7% adjusted) compared to $38.7 million or 16.9% of sales in 2021. The benefit of higher average selling prices during the quarter was more than offset by higher SG&A, including incremental SG&A from the Prospera acquisition.

Balance Sheet, Liquidity and Capital Allocation

First quarter cash flows from operations were $2.7 million, primarily reflecting higher net working capital levels compared to year-end 2021, in support of strong customer demand. At the end of the first quarter, cash and cash equivalents were $149.7 million. During the quarter, Moody's reaffirmed the Company's Baa3/Stable credit rating.

Updating Full Year 2022 Financial Outlook and Key Assumptions

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 key assumptions for the year.