Valmont Industries reported April 20 financial results for the first quarter ended April 1, 2023.

First Quarter 2023 Highlights

• Achieved record first quarter net sales and operating income
• Net sales of $1.1 billion increased 8.3%; excluding 2022 “Other” segment, net sales increased 10.4%
• Operating Income increased 24.9% to $118.5 million, or 11.1% of net sales (increased 23.4% to $122.1 million or 11.5% adjusted) compared to $94.8 million or 9.7% of net sales ($99 million or 10.1% adjusted); excluding 2022 “Other” segment, operating income growth was similar
• Generated seasonally strong operating cash flows of $21.2 million compared to $2.7 million in 2022
• Secured an $85 million order to provide mechanized irrigation equipment and innovative technology for multiple agriculture development projects in Africa
• Backlog of $1.6 billion, reflecting continued strong market demand across the portfolio

Agriculture Segment (31.1% of Net Sales)

Agriculture sales of $332.2 million increased 8.3% year-over-year, with sales growth led by higher average selling prices of irrigation equipment globally. International sales were significantly higher, led by a record first quarter in Brazil and higher Middle East sales. North America sales were similar to last year despite first quarter 2022 benefiting from the delivery of record year-end backlog. Sales of agriculture technology products and services globally were higher.

Operating Income in the agriculture segment improved to $53.3 million, or 16.1% of net sales ($57 million or 17.2% adjusted) compared to $37.5 million or 12.4% of net sales ($41.6 million or 13.7% adjusted) in first quarter 2022. The benefit of higher average selling prices and additional volume leverage were partially offset by higher SG&A, including incremental R&D expense for technology investments.