JBT Marel : Q4 2024 Earnings Presentation

Published: 2025-03-31 07:49:04 ET JBTM

Q4 and Full-Year 2024 Earnings Presentation

February 18, 2025

Disclosure Regarding Forward-Looking Statements

These slides (and the accompanying oral discussion) contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions made by management, considering its experience in the industries where Valmont operates, perceptions of historical trends, current conditions, expected future developments, and other relevant factors. It is important to note that these statements are not guarantees of future performance or results. They involve risks, uncertainties (some of which are beyond Valmont's control), and assumptions. While management believes these forward-looking statements are based on reasonable assumptions, numerous factors could cause actual results to differ materially from those anticipated. These factors include, among other things, risks described in Valmont's reports to the Securities and Exchange Commission ("SEC"), the Company's actual cash flows and net income, future economic and market circumstances, industry conditions, company performance and financial results, operational efficiencies, availability and price of raw materials, availability and market acceptance of new products, product pricing, domestic and international competitive environments, geopolitical risks, and actions and policy changes by domestic and foreign governments. The Company cautions that any forward-looking statements in this release are made as of its publication date and does not undertake to update

these statements, except as required by law.

CEO Opening Comments

Avner Applbaum, President & CEO

Full-Year 2024 Key Highlights

Focusing on Our Core: The global team's strong performance was driven by focusing on our core strengths and prioritizing what Valmont does best

Commercial and Operational Excellence Driving Value Creation:

− Commercial teams deepened customer relationships, drove pricing excellence, and captured high-return opportunities

− We invested in customer-driven innovation to solve their challenges

− Operations and production teams adapted to changes in demand and product mix

Profitable Growth: We streamlined our organization, structurally reducing costs while improving agility and effectiveness in driving high-return growth

Leadership & Culture: We strengthened our executive team with experienced leaders who are committed to delivering on our strategic objectives and the entire team is embracing our core values

NET SALES $4.08B -2.4%

OPERATING MARGIN1 12.9%

+160 BPS OPERATING CASH FLOWS

$573 MILLION +86.7%

1 FY 2023 GAAP Operating Margin of 7.0%; please see Reg G reconciliation to GAAP measures at end of document.

2025 Critical Objectives to Build on Past Success

Catch the Infrastructure Wave Position Agriculture for Growth Disciplined Resource Allocation World-Class Safety Talent Development

• Investing in new capabilities and capacity across our footprint to meet growing demand

• Capitalizing on the largest opportunities in our Utility business

• Demonstrating resiliency and market leadership during macro-driven headwinds

• Implementing the tools that will drive us forward in the next growth cycle

• Finding better ways to work smarter and more efficiently

• Aligning capital allocation priorities with our strategic growth plans

• Our people are at the center of everything we do

• Employee safety is a fundamental commitment

• Equipping our employees with the skills and opportunities to grow

• Fostering a high-performance culture that drives innovation and long-term success

Seizing opportunities to create long-term, sustainable stakeholder value

Infrastructure Market Drivers

Steady-to-improving near-term demand across our markets, supported by positive long-term growth drivers

Near-Term Demand

• Utility: Sustained and elevated capital expenditures to support power load growth, the energy transition, and grid hardening initiatives

• Lighting and Transportation: Ongoing U.S. DOT investments, supported by state and federal programs; North America lighting is starting to recover, as demand lags single-family housing starts

• Telecommunications: Wireless carriers have resumed normalized capital expenditures, supported by global growth in data consumption and connected devices

• Solar: Navigating near-term geopolitical uncertainty with focus on strategic differentiators to grow globally; reduced volumes due to the strategic deselection of low-margin projects

• Coatings: Aligned with industrial production and regional GDP trends, also supports internal demand

Global Megatrends

Multi-Year Energy Transition

The transition to more diverse energy consumption, including renewables, will require innovative, engineered structures to connect in new ways.

Aging Infrastructure & Resilience

Stronger, more reliable infrastructure is needed to rebuild aging structures to withstand greater climate stress and extend their useful life.

Technology & Data Consumption

The growth of advanced technologies like AI is driving the demand for data, which will require infrastructure to support both connectivity and the increased grid capacity needed to provide reliable energy.

Agriculture Market Drivers

Outlook for sustained long-term growth remains robust, despite short-term demand headwinds

Near-Term Demand

• North America: Stabilizing market conditions, although expected declines in corn and soybean cash receipts likely to impact capital investment decisions; our strong Valley brand and compelling ROI provides continued opportunities

• International:

Brazil: Farm income remains pressured from lower soybean prices, however, order rates have been stabilizing; Brazil remains a critical component of our long-term strategy, with significant market potential due to size and multiple growing seasons

Projects: Projects are progressing as planned; strong project pipeline, particularly in EMEA1; recently secured $45M project with expected 2025 completion

1 Europe, Middle East, and Africa

Global Megatrends

Food Security

Technology and advanced equipment will play a critical role as nations worldwide enhance food security.

Sustainability & Productivity

Precision, tech-enabled equipment will help farmers do more with less, getting the most from our available resources.

Population Growth

A growing population will require farmers to grow more food, focusing on improved productivity to get the most from our existing resources.

Financial Results and Outlook

Tom Liguori, EVP & CFO

Q4 2024 Financial Summary

Dollars in millions, except per-share amounts

Net Sales +2.1% Operating Income +19.7%

$1,015.5

Diluted EPS +20.8%

$120.0

$1,037.3

2023

$100.2

$3.84

$3.18

9.9%

2024

Adj1 2023

11.6%

2024

Adj1 2023

2024

1 Q4 2023 GAAP Operating Income $63.5M, Operating Margin 6.3%, and Diluted EPS of $1.38; please see Reg G reconciliation to GAAP measures at end of document.

• Operating margin expanded due to strategic pricing, improved operational efficiencies, and disciplined cost management

• Diluted EPS improved due to higher operating income and lower interest expense

• Earnings gains were partially offset by Other Expense related to two small divestitures

Q4 2024 Results | Infrastructure

Dollars in millions

Sales

+2.1%

Operating Income

+23.6%

$748.3

$763.6

$122.0

$98.7

13.2%

16.0%

2023

2024

Adj1 2023

2024

2023

2024

Utility

Lighting and Transportation ("L&T")

Coatings

$331.3

$221.6

$84.1

$350.7

$216.1

$87.0

+5.9% -2.5% +3.4%

Telecommunications

Solar

1 Q4 2023 GAAP Infrastructure Operating Income $82.6M and Operating Margin 11.1%; please see Reg G reconciliation to GAAP measures at end of document.

$56.7

$54.6

$74.1

$35.7

+30.8% -34.7%

• Utility: growth was driven by pricing excellence and a favorable product mix, with higher distribution and substation volumes

• L&T: sales declined primarily due to lighting market softness

• Coatings: growth in North America partially offset by lower international sales

• Telecom: volumes rose as carrier spending increased to more normalized levels

• Solar: sales decreased following strategic exit of low-margin projects

• Operating income improved due to growth in Utility and Telecom, improved pricing and lower steel costs

Disclaimer

JBT Marel Corporation published this content on March 31, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on March 31, 2025 at 11:48 UTC.