Valmont Industries, Inc. has reported financial results for the second quarter ended June 25, 2022.

Second Quarter 2022 Highlights

  • Record Net Sales of $1.1 billion increased 26.9%
  • Operating Income increased to $118.7 million, or 10.5% of net sales ($122.9 million or 10.8% adjusted) compared to $82.6 million or 9.2% of net sales ($90.9 million or 10.2% adjusted)
  • Record Diluted Earnings per Share (EPS) of $3.53 ($3.70 adjusted) compared to $2.89 ($3.06 adjusted)
  • Benefited from strong market demand across the portfolio, leading to a record backlog of $2 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

"We delivered record quarterly revenue, an increase of 27% year-over-year, and record adjusted earnings per share that increased 21%," said Stephen G. Kaniewski, president and chief executive officer. "Operating margin improvement was driven by our ability to successfully execute on pricing strategies, higher volumes, and better fixed-cost leverage. We continue to prioritize actions to better serve our customers by leveraging our global manufacturing footprint, strategically expanding capacity in key growth markets, and implementing sourcing strategies to help mitigate continuing supply chain volatility. We are seeing strong demand for our products and solutions across global infrastructure and agriculture markets and our Valmont teams around the world are doing an excellent job of delivering value to our customers every day. We are executing consistently on our strategy of creating sustainable growth across our businesses and long-term value for our shareholders."

Valmont increased its full year 2022 net sales growth outlook from 11-17% to 20-21%.

Agriculture Segment

Second quarter agriculture sales of $377.8 million increased 34% year-over-year, led by higher average selling prices of irrigation equipment globally and higher volumes, notably in North America and Brazil. In Brazil, revenues grew more than $40 million year-over-year, demonstrating robust market demand for irrigation equipment and ag solar products.

Operating Income was $58 million, or 15.5% of net sales ($62.2 million or 16.6% adjusted) compared to $42 million or 15% of net sales ($42.9 million or 15.3% adjusted) in 2021. The benefit of higher average selling prices and additional volume leverage was partially offset by higher SG&A, including incremental R&D expense for technology investments.