Valmont Industries Inc (VMI) 2024 Q4 法說會逐字稿

Greetings. Welcome to Valmont Industries Inc. fourth quarter and full year 2024 earnings conference call. (Operator Instructions) Please note this conference is being recorded.

問候。歡迎參加 Valmont Industries Inc. 2024 年第四季和全年財報電話會議。（操作員指示）請注意，本次會議正在錄音。

I will now turn the conference over to your host Renee Campbell, Senior Vice President, Investor Relations and Treasurer. Ms. Campbell, you may begin.

現在，我將會議交給主持人、投資者關係高級副總裁兼財務主管 Renee Campbell。坎貝爾女士，您可以開始啦。

Good morning, everyone and thank you for joining us. With me today are Avner Applbaum, President and Chief Executive Officer; Thomas Liguori, Executive Vice President and Chief Financial Officer; and Tim Francis, Chief Accounting Officer.

大家早安，感謝大家的參與。今天與我在一起的有總裁兼執行長 Avner Applbaum；湯瑪斯‧利古里 (Thomas Liguori)，執行副總裁兼財務長；以及首席會計官蒂姆·弗朗西斯（Tim Francis）。

Earlier this morning, we issued a press release announcing our fourth quarter and full year 2024 results, along with a separate announcement on our capital allocation priority. Both press releases and the presentation for today's webcast are available on the investors page of our website at Valmont.com. A replay of the webcast will be available later this morning.

今天早些時候，我們發布了一份新聞稿，宣布了我們的第四季度和 2024 年全年業績，同時也單獨宣布了我們的資本配置重點。新聞稿和今天網路廣播的簡報均可在我們網站 Valmont.com 的投資者頁面上找到。網路直播的重播將於今天上午晚些時候提供。

We'll begin today's call with prepared remarks and then open it up for questions. Please note that this call is subject to our disclosure on forward-looking statements, which is outlined on slide 2 of the presentation and will be read in full after Q&A.

我們將以準備好的發言開始今天的電話會議，然後接受提問。請注意，本次電話會議受我們對前瞻性陳述的披露影響，該披露已在演示文稿的第 2 張幻燈片中概述，並將在問答環節後完整宣讀。

With that, I'd now like to turn the call over to Avner.

說完這些，我現在想把電話轉給阿夫納。

Thank you, Renee. Good morning, everyone, and thank you for joining us. I'd like to start with a few key highlights of 2024 summarized on slide 4. Our strong performance reflects our focused approach to value creation. We have prioritized returning to our core and embracing what Valmont does best.

謝謝你，蕾妮。大家早安，感謝大家的收看。我想先介紹一下投影片 4 中總結的 2024 年的一些主要亮點。我們的強勁表現體現了我們專注於創造價值的方法。我們的首要任務是回歸我們的核心並擁抱 Valmont 最擅長的領域。

Overall, our full year results were in line with our expectations. Despite topline and headwinds, we leveraged our strength to capture opportunities and deliver strong outcomes. Earlier this year, I shared the importance of commercial and operational excellence in driving value creation and our team delivered in meaningful ways.

整體而言，我們的全年業績符合我們的預期。儘管面臨營收與阻力，我們仍利用自身優勢抓住機遇，取得強勁成果。今年早些時候，我分享了商業和卓越營運對於推動價值創造的重要性，我們的團隊以有意義的方式實現了這一目標。

Our commercial teams deepened customer relationships, drove pricing excellence, and captured high return opportunities. We also invested in customer driven innovation, providing solutions to their critical challenges. Our operations and production teams are adapting to changes in demand and product mix. In infrastructure, we created flexibility in our footprint to increase capacity for distribution and substation structures.

我們的商業團隊加深了客戶關係、推動了卓越定價並抓住了高回報機會。我們也投資於客戶驅動的創新，為他們面臨的關鍵挑戰提供解決方案。我們的營運和生產團隊正在適應需求和產品組合的變化。在基礎設施方面，我們在佈局上創造了靈活性，以增加配電和變電站結構的容量。

In agriculture, we quickly fulfilled storm replacement orders to support our dealers and growers. Our focus on profitable growth, along with an improved cost structure have led to margin expansion, something we did not achieve in past agriculture down cycles. At the same time, we generated outstanding operating cash flow through discipline, working capital management, further reinforcing our financial position and balance sheet.

在農業方面，我們迅速完成了風暴更換訂單，以支持我們的經銷商和種植者。我們注重獲利性成長，同時改善成本結構，從而實現了利潤率的提高，這是我們在過去的農業低迷週期中所未能實現的。同時，我們透過嚴格的營運資本管理產生了出色的營運現金流，進一步鞏固了我們的財務狀況和資產負債表。

We strengthen our executive team by bringing on experience driven leaders committed to delivering on our strategic objectives. While organizational [change] takes time, the entire team's embrace of our core values and focus areas is already translating into stronger financial performance and sustainable improvements. I'm incredibly proud of what we've accomplished, a testament to the dedication and collaboration of our entire global Valmont team.

我們引進經驗豐富的領導者，致力於實現我們的策略目標，從而加強我們的執行團隊。雖然組織[變革]需要時間，但整個團隊對我們的核心價值和重點領域的接受已經轉化為更強勁的財務表現和可持續的改進。我為我們所取得的成就感到無比自豪，這證明了我們整個全球 Valmont 團隊的奉獻精神和合作精神。

Turning to 5, I'd like to share our critical objectives for 2025, starting with catching the global infrastructure wave. We're optimizing capacity across our footprint to meet growing demand with our largest opportunities supporting the utility market. Unlike past investment cycles driven by large one-time utility projects, today's market drivers are diverse and sustainable, supporting long-term growth expectations.

談到第五點，我想分享我們 2025 年的關鍵目標，首先是趕上全球基礎設施浪潮。我們正在優化整個業務範圍的產能，以滿足不斷增長的需求，並將最大的機會用於支援公用事業市場。與過去由大型一次性公用事業項目驅動的投資週期不同，當今的市場驅動力多樣化且可持續，支持長期成長預期。

To capture our share of these opportunities, we're investing in new capabilities and capacity across our footprint. A great example is our Brennan Texas factory expansion to serve utility customers, which is expected to be operational by the end of this year. We're also increasing efficiency and optimizing workflow with significant upgrades just getting started in our Tulsa, Oklahoma plants.

為了抓住這些機遇，我們正在整個業務範圍內投資新的能力和產能。一個很好的例子就是我們位於德克薩斯州布倫南的工廠擴建，為公用事業客戶提供服務，預計今年年底投入營運。我們也透過對俄克拉荷馬州塔爾薩工廠剛開始的重大升級來提高效率和優化工作流程。

Our second objective is to position agriculture for growth. We've managed the down cycle well by using this time to reinforce our market leadership. We strengthen our foundation through process improvements while developing and implementing the tools that will drive us forward in the next growth cycle. For example, to advance our aftermarket parts strategy, we launched a new e-commerce platform in late 2024 to streamline the purchasing experience for our dealers.

我們的第二個目標是促進農業成長。我們利用這段時間鞏固了我們的市場領導地位，從而很好地應對了經濟下行週期。我們透過流程改善來加強我們的基礎，同時開發和實施推動我們在下一個成長週期前進的工具。例如，為了推動我們的售後零件策略，我們在 2024 年底推出了一個新的電子商務平台，以簡化經銷商的購買體驗。

We also recently introduced AgSense 365, a new app designed to simplify irrigation management for grower and dealers while creating new growth opportunities and efficiencies for a valley irrigation business. Other initiatives to optimize our supply chain and improve working capital will further enhance profitability when agriculture markets recover.

我們最近還推出了 AgSense 365，這是一款新應用程序，旨在簡化種植者和經銷商的灌溉管理，同時為山谷灌溉業務創造新的成長機會和效率。當農業市場復甦時，優化供應鏈和改善營運資本的其他措施將進一步提高獲利能力。

Third, we're also seeking ways to improve outcomes, and we'll take a disciplined approach to resource allocation to advance our journey. This means finding better ways to work smarter and more efficiently. This focus also aligns with our capital allocation priorities which Tom, will cover later on the call. Importantly, achieving our business goals starts with taking care of our employees.

第三，我們也在尋求改善成果的方法，並將採取嚴謹的資源分配方式來推動我們的旅程。這意味著要找到更好的方法來更聰明、更有效地工作。這一重點也與我們的資本配置優先事項一致，湯姆將在稍後的電話會議上討論。重要的是，實現我們的業務目標始於照顧我們的員工。

Our people are at the center of everything we do. Employee safety is a fundamental commitment, ensuring every team member returns home just as they arrive. Finally, our investment in talent development. Equips employees with the skills and opportunities they need to grow, fostering a high-performance culture that drives innovation and long-term business success.

我們的員工是我們一切工作的核心。員工安全是一項基本承諾，確保每個團隊成員都能準時回家。最後，我們對人才發展的投資。為員工提供成長所需的技能和機會，培養推動創新和長期業務成功的高績效文化。

Supporting our employees is good for business and is the right thing to do.

支持我們的員工對企業有利，也是正確的做法。

I'm excited about the progress we made last year and confident our team will carry this momentum into 2025. While there's still work to be done, we're well positioned to seize the opportunities ahead and create long-term sustainable value for our stakeholders. Now turning to slide 6 for an infrastructure market update. Utility markets remain very strong, driven by several mega trends that are elevating cap spending to meet increased energy demand.

我對我們去年的進展感到非常興奮，並相信我們的團隊將把這種勢頭延續到 2025 年。儘管仍有工作要做，但我們已準備好抓住未來的機遇，為利害關係人創造長期可持續的價值。現在前往投影片 6 以了解基礎設施市場的最新動態。公用事業市場仍然保持強勁，這受到幾個趨勢的推動，這些趨勢正在提高上限支出以滿足日益增長的能源需求。

In the past couple of years, we've seen how the energy transition, electrification, and advanced technologies like AI are driving demand for our transmission, distribution, and substation products. Zalman supports new buildouts while also assisting with replacement efforts to address aging infrastructure and the impacts of extreme weather. As a trusted partner to utilities, we are well positioned to capitalize on these drivers and deliver customer focused innovation.

在過去的幾年裡，我們看到能源轉型、電氣化和人工智慧等先進技術如何推動我們的輸電、配電和變電站產品的需求。扎爾曼支持新建工程，同時也協助更換工程，以解決老化的基礎設施和極端天氣的影響。作為公用事業公司值得信賴的合作夥伴，我們有能力利用這些驅動因素並提供以客戶為中心的創新。

For example, we offer substation packaging to streamline construction for our customers. We ensure all components are optimally designed, sourced, and delivered, adding significant value by reducing costs and minimizing delays. We also provide substation protection solutions, a durable barrier that enhances safety and security. It protects equipment from vandalism wildlife and unwanted disability.

例如，我們提供變電站包裝，以簡化客戶的施工。我們確保所有組件都經過最佳設計、採購和交付，透過降低成本和減少延誤來增加顯著的價值。我們還提供變電站保護解決方案，這是一種增強安全性的耐用屏障。它可以保護設備免受野生動物的破壞和不必要的損壞。

Turning to lighting and transportation, we continue to see strength in transportation driven by ongoing DOT investments supported by state and federal programs. At the same time, our North America lighting business is beginning to recover following its typical 12-month lag behind single-family housing starts. Turning to telecommunications after a slow start in 2024, carrier spending has returned to more normalized levels.

談到照明和交通運輸，我們繼續看到交通運輸領域的強勁成長，這得益於交通部持續投資以及州和聯邦政府計畫的支持。同時，我們的北美照明業務開始復甦，此前該業務通常比獨棟住宅開工滯後 12 個月。在 2024 年電信業起步緩慢之後，營運商支出已恢復到更正常的水平。

Growing data consumption and the increasing number of connected devices will drive multi-year investments. Our differentiated products and technologies align well with various carrier spending programs positioning us for growth. We're excited about the global opportunities ahead in this sector. In solar, we expect a mix of puts and takes as the markets adjust to evolving government policies.

不斷增長的數據消耗和連網設備數量將推動多年投資。我們的差異化產品和技術與各種營運商支出計畫高度契合，為我們的成長奠定了基礎。我們對這一領域未來的全球機會感到非常興奮。在太陽能領域，隨著市場適應不斷變化的政府政策，我們預計會出現賣出和賣出混合的情況。

While regulatory changes can introduce uncertainty, others create new growth prospects. In Europe, land use regulations are driving demand for agrovoltaics, which integrate solar with farming to optimize land use. Our team remains focused on long-term growth while navigating near-term fluctuations. Finally, our [coating] business serves a variety of markets and typically follows industrial production and regional GDP trends while also supporting our internal demand.

儘管監管變化可能帶來不確定性，但其他變化也會創造新的成長前景。在歐洲，土地使用法規正在推動對農業光伏發電的需求，這種發電方式將太陽能與農業相結合以優化土地利用。我們的團隊在應對短期波動的同時，仍將重點放在長期成長。最後，我們的[塗料]業務服務於各種市場，通常遵循工業生產和區域 GDP 趨勢，同時也支持我們的內部需求。

Looking ahead, these multi-year infrastructure megatrends will continue to drive sustained demand. We enter 2025 with a strong backlog and our broad portfolio and competitive strengths position us to adapt as markets evolve. Additionally, our extensive factory footprint enables us to respond quickly to customer needs. Turn it to slide 7 for an agriculture market update.

展望未來，這些多年的基礎設施大趨勢將繼續推動持續的需求。我們將帶著強勁的訂單積壓進入 2025 年，而我們廣泛的產品組合和競爭優勢使我們能夠適應市場的發展。此外，我們廣泛的工廠足跡使我們能夠快速回應客戶需求。前往投影片 7 查看農業市場的最新動態。

In North America, market conditions are expected to remain relatively stable in the near term. The USDA recently updated its net farm income estimate, projecting an increase in 2025 compared to last year. However, cash receipts for corn and soybeans, key drivers for our growers, are projected to decline 4.3% and 6.6% respectively, due to lower expected crop prices. These factors will likely continue to end capital investment decisions this year.

在北美，預計短期內市場狀況將保持相對穩定。美國農業部最近更新了其農場淨收入預測，預計2025年的農場淨收入將比去年增加。然而，由於預期農作物價格下降，玉米和大豆（我們種植者的主要驅動力）的現金收入預計將分別下降 4.3％ 和 6.6％。這些因素可能會持續影響今年的資本投資決策。

Despite these conditions, our Valley dealer network sees brighter days ahead, driven by a strong brand and continuous opportunities from large farm expansion and strategic account growth. Shifting to international markets, farm income in Brazil remains pressured due to lower soybean prices. However, border rates have been stabilizing and encouraging sign as we enter 2025.

儘管存在這些條件，但在強大品牌和大型農場擴張與策略客戶成長帶來的持續機會的推動下，我們的山谷經銷商網路前景更加光明。轉向國際市場，由於大豆價格下跌，巴西的農場收入仍面臨壓力。然而，隨著我們進入2025年，邊境稅率已經趨於穩定，並出現了令人鼓舞的跡象。

Much like in North America, our irrigation solutions offer growers a compelling investment opportunity, especially since Brazil, multiple growing seasons per year increase the benefits of irrigation. Across many of our international markets, a more supportive policy environment is fostering improved market conditions, creating new growth opportunities for our business.

與北美類似，我們的灌溉解決方案為種植者提供了極具吸引力的投資機會，尤其是在巴西，每年多個生長季節增加了灌溉效益。在我們的許多國際市場中，更支持的政策環境正在促進市場條件的改善，為我們的業務創造新的成長機會。

Our international projects are making strong progress, notably in the Middle East with a robust pipeline ahead. I'm pleased to share that we recently secured a new $45 million project for this market expected to be completed in 2025. By helping nations build more sustainable and resilient food systems, we create long-term economic benefits while delivering strong returns.

我們的國際專案正在取得強勁進展，特別是在中東地區，我們有大量的專案正在籌備中。我很高興地告訴大家，我們最近為這個市場贏得了一個價值 4500 萬美元的新項目，預計將於 2025 年完工。透過幫助各國建立更永續、更具彈性的糧食體系，我們在獲得豐厚回報的同時創造了長期的經濟效益。

Our irrigation solutions play a critical role in addressing global agricultural challenges with our global footprint and advanced technology, we help growth optimize water use, improve yields, and reduce waste. They also drive sustainability and productivity, delivering a compelling return on investment to growers. Backed by industry leadership and a trusted brand, we are well positioned to meet demand as the market eventually recovers.

我們的灌溉解決方案憑藉全球影響力和先進技術，在應對全球農業挑戰中發揮關鍵作用，我們幫助成長優化用水、提高產量並減少浪費。它們還推動永續性和生產力，為種植者帶來豐厚的投資回報。在行業領導地位和值得信賴的品牌的支持下，我們有能力滿足市場最終復甦的需求。

In summary, 2024 was an excellent year for Valmont. We look forward to building on our achievements while staying true to the principles that define us. I'm extremely proud of the Valmont team and confident in the future we are shaping together.

總而言之，2024 年對 Valmont 來說是極好的一年。我們期待在堅守我們既定原則的同時，繼續鞏固所取得的成就。我為 Valmont 團隊感到非常自豪，並對我們共同塑造的未來充滿信心。

Now, I'll turn it over to Tom to review our financial results, 2025 outlook, and capital allocation priorities.

現在，我將讓湯姆來回顧我們的財務表現、2025 年展望和資本配置重點。

Thank you, Avner. Good morning, everyone. We are pleased with our financial performance and the progress we've made over the past year. I want to congratulate the Valmont team for their effort. While there is still work ahead, I'm excited to share some key highlights. My comments this morning will focus on our fourth quarter and full year results. Comparing results to last year, which are on an adjusted basis excluding non-recurring items.

謝謝你，阿夫納。大家早安。我們對我們的財務表現和過去一年所取得的進展感到滿意。我要對 Valmont 團隊的努力表示祝賀。儘管還有很多工作要做，但我很高興與大家分享一些關鍵的亮點。我今天早上的評論將集中於我們的第四季度和全年業績。與去年相比，結果已根據調整後的基礎剔除非經常性項目。

Turning to slide 9, fourth quarter net sales of $1.0 billion increased 2.1%. While operating income increased nearly 20% to $120 million. Operating margin increased 170 basis points, reaching 11.6% of net sales. Earnings per share of $3.84 improved nearly 21%. Driven by higher operating income and lower interest expense. The $3.84 includes approximately $4.5 million in other expense. Related to the divestiture of two small underperforming operations in the infrastructure segment.

第 9 頁，第四季淨銷售額為 10 億美元，成長 2.1%。而營業收入成長近20%，達到1.2億美元。營業利益率增加了170個基點，達到淨銷售額的11.6％。每股收益 3.84 美元，成長近 21%。受營業收入增加和利息支出減少的推動。這 384 萬美元中包括約 450 萬美元的其他費用。與基礎設施領域兩個表現不佳的小型業務的剝離有關。

Turning to the segments of slide 10. Fourth quarter infrastructure sales increased 2.1% and operating income grew 24% to $122 million. Growth in utility and telecom was largely offset by lower sales and lighting and transportation as well as solar. Utility sales increased 6%. Higher average selling prices for utility products contributed to improved operating margins.

轉到投影片 10 的各部分。第四季基礎設施銷售額成長 2.1%，營業收入成長 24%，達到 1.22 億美元。公用事業和電信業務的成長在很大程度上被照明、運輸和太陽能業務的銷售下降所抵消。公用事業銷售額成長了 6%。實用產品平均售價的提高促進了營業利潤率的提高。

Lighting and transportation revenues declined 2.5%, primarily due to lighting market softness. Coating sales increased 3.4%. With growth in North America, partially offset by lower sales in international markets. Our telecommunications business saw strong sales growth of nearly 31% as carriers returned to more normalized capital spending.

照明和運輸收入下降 2.5%，主要原因是照明市場疲軟。塗料銷售額成長3.4%。北美市場的成長部分抵消了國際市場銷售額的下降。隨著營運商恢復更正常的資本支出，我們的電信業務銷售額強勁成長近 31%。

Solar sales declined by approximately 35%, largely driven by our decision to actually lower margin projects earlier in 2024. Operating income increased to $122 million or 16% of net sales. Reflecting a 280-basis point improvement. This was driven by volume growth in utility and telecom. Improved pricing and lower steel cost.

太陽能銷售額下降了約 35%，這主要是因為我們決定在 2024 年初降低專案的利潤率。營業收入增至 1.22 億美元，佔淨銷售額的 16%。反映出280個基點的改善。這是由公用事業和電信業銷售的成長所推動的。改善定價並降低鋼材成本。

Moving to slide 11. Fourth quarter agriculture sales increased 2.3%. In North America, irrigation equipment volumes were slightly lower. As increased sales for store replacement were offset by continued market softness. Average irrigation selling prices were slightly lower compared to prior year. International sales increased nearly 10%. Led by strength in the EMEA region and slightly higher sales in Brazil.

移至第 11 張投影片。第四季農業銷售額成長2.3%。在北美，灌溉設備的銷量略有下降。由於門市更換帶來的銷售成長被持續的市場疲軟所抵消。平均灌溉銷售價格與去年相比略有下降。國際銷售額成長近10%。受歐洲、中東和非洲 (EMEA) 地區強勁表現和巴西銷售額小幅上漲的推動。

These sales gains were partially offset by $6.3 million of unfavorable foreign currency impacts. Operating income increased to $28.5 million or 10.3% of net sales. Lower SG&A expenses contributed to the improvement. Turning to 2024 full year results on slide 12.

這些銷售收益被 630 萬美元的不利外匯影響部分抵銷。營業收入增加至 2,850 萬美元，佔淨銷售額的 10.3%。較低的銷售、一般及行政開支促進了業績的改善。請參閱第 12 張投影片，以了解 2024 年全年業績。

Well, net sales decreased 2.4% to $4.1 billion. Operating income increased 10.9% to $525 million. Operating margins increased 160 basis points to 12.9% of net sales. Earnings per share of $17.19 a record for Valmont, improved nearly 15%, driven by improved operating income and a reduction in the share count due to share repurchases. Delivering record earnings despite a challenging agriculture market reflects resiliency of our business with margin expansion, disciplined cost management, and a focus on working capital, we're more agile and better positions to drive long-term value.

淨銷售額下降 2.4% 至 41 億美元。營業收入成長10.9%至5.25億美元。營業利益率增加160個基點，達到淨銷售額的12.9％。瓦爾蒙特每股收益創歷史新高至 17.19 美元，成長近 15%，這得益於營業收入的成長和股票回購導致的股票數量減少。儘管農業市場充滿挑戰，我們仍實現創紀錄的盈利，這反映了我們業務的彈性：利潤率擴大、嚴格的成本管理、以及對營運資本的關注，我們更加靈活，更有能力推動長期價值。

We delivered strong fourth quarter operating cash flows of $193 million. Bringing our full year total to $573 million. During 2024, our team deployed $393 million to fully repay a revolving credit line. We ended the year with approximately $164 million in cash, and our net debt to adjusted EBITDA is 1.0 times.

我們第四季的營運現金流強勁，達到 1.93 億美元。使我們的全年總額達到 5.73 億美元。2024 年，我們的團隊部署了 3.93 億美元來全額償還循環信用額度。我們截至年底的現金餘額約為 1.64 億美元，淨債務與調整後 EBITDA 比率為 1.0 倍。

Moving to our 2025 outlook as slide 13. We expect that sale to be between $4.0 billion to $4.2 billion. Diluted earnings per share is projected to be in the range of $17.20 to $18.80 representing 5% growth at the midpoint compared to 2024. The EPS range includes our estimate of the recently announced tariffs on China imports, as well as imported steel and aluminum.

前往第 13 張投影片，了解我們的 2025 年展望。我們預計銷售額將在 40 億美元至 42 億美元之間。預計每股攤薄收益將在 17.20 美元至 18.80 美元之間，與 2024 年相比中位數成長 5%。EPS 範圍包括我們對最近宣布的中國進口產品以及進口鋼鐵和鋁關稅的估計。

Turning to slide 14, these graphs illustrate the major drivers of our 2025 guidance. Starting with net sales. We expect growth in infrastructure volumes, primarily in utility, lower pricing of utility products due to expected lower steel cost. A net volume decline in agriculture, with international sales growth offset by market softness and fewer storm orders in North America.

轉到第 14 張投影片，這些圖表說明了我們 2025 年指引的主要驅動因素。從淨銷售額開始。我們預計基礎設施數量將成長，主要是公用事業，由於預計鋼鐵成本下降，公用事業產品價格將會下降。農業淨銷售量下降，國際銷售成長被市場疲軟和北美風暴訂單減少所抵銷。

A slight revenue headwind from our strategic exit of lower margin projects and the impact of two divestitures completed in late 2024. And unfavorable currency translation rates affecting reported revenue in both segments. Our anticipated growth in EPS is primarily due to increases in operating profit, lower interest expense as we have fully paid down our revolver, and a lower share count due to expected share repurchases during 2025.

由於我們策略性地退出利潤率較低的項目，以及 2024 年底完成的兩次資產剝離的影響，收入略有下降。不利的貨幣匯率影響了兩個部門的報告收入。我們預期每股盈餘的成長主要歸因於營業利潤的增加、利息支出的降低（因為我們已經完全償還了循環信貸），以及由於預期 2025 年期間的股票回購導致的股票數量減少。

Regarding tariffs, our outlook includes the recently announced additional 10% tariff on China imports. As well as the 25% tariff on steel and aluminum imports. We have not included other potential tariffs, such as those on all imports from Mexico and Canada, nor reciprocal tariffs, as many details are unknown. Always keep in mind, for our US based customer, the vast majority of our products shipped to them come from one of our '24 manufacturing facilities in the United States.

關於關稅，我們的展望包括最近宣布的對中國進口產品徵收額外 10% 的關稅。以及對鋼鐵和鋁進口徵收25%的關稅。我們沒有包括其他潛在關稅，例如針對所有從墨西哥和加拿大進口的商品的關稅，也沒有包括互惠關稅，因為許多細節尚不清楚。永遠記住，對於我們位於美國的客戶，我們運送給他們的絕大多數產品都來自我們位於美國的 24 家製造工廠之一。

Finally, in 2025, we expect strong operating cash flows driven by earnings growth and disciplined working capital management. As part of our guidance, it's important to note that our solar business faces a challenging first half revenue comparison but is expected to return to growth in the second half. Additionally, a reminder that 1st quarter infrastructure sales are typically lower due to normal seasonality.

最後，我們預計到 2025 年，在獲利成長和嚴格的營運資本管理的推動下，營運現金流將強勁。作為我們指導的一部分，值得注意的是，我們的太陽能業務面臨上半年收入比較的挑戰，但預計下半年將恢復成長。此外，需要提醒的是，由於正常的季節性，第一季的基礎設施銷售額通常較低。

Turning to 15. Earlier this morning, we issued a press release outlining our long-term capital allocation priorities. Our commitment to delivering shareholder value remains strong guided by a balanced capital allocation strategy. As part of this approach, we plan to allocate 50% of operating cash flows toward growth investments and 50% to shareholder returns.

轉到 15。今天早些時候，我們發布了一份新聞稿，概述了我們的長期資本配置優先事項。在平衡的資本配置策略的指導下，我們始終致力於實現股東價值。作為這種方法的一部分，我們計劃將 50% 的營運現金流分配給成長投資，50% 分配給股東回報。

I'd like to take a moment to discuss how this strategy will drive long-term value creation. To capitalize on infrastructure-driven growth opportunities. We're increasing our annual cap backs to approximately $150 million of which about 2/3 is for growth initiatives. The growth investments will mainly be [CapEx] for production equipment to increase manufacturing output, primarily in infrastructure while driving innovation to better serve customers.

我想花點時間討論一下這項策略將如何推動長期價值創造。利用基礎設施驅動的成長機會。我們將年度上限提高到約 1.5 億美元，其中約 2/3 用於成長計畫。成長投資將主要用於生產設備的資本支出，以提高製造產量，主要用於基礎設施，同時推動創新，更好地服務客戶。

Our M&A strategy will be disciplined and highly selected. Targeting opportunities that align with our core, expand into adjacent markets and geographies, and add new products and services. All to reinforce the value we deliver to our customers. Our M&A focus will be on growth and earning a healthy return on invested capital. Share repurchases remain a key pillar of our capital return strategy.

我們的併購策略將是嚴謹的、經過嚴格篩選的。瞄準與我們的核心相符的機會，擴展到相鄰的市場和地區，並增加新的產品和服務。所有這些都是為了增強我們向客戶提供的價值。我們的併購重點將放在成長和獲得健康的投資資本回報。股票回購仍然是我們資本回報策略的重要支柱。

Our board approved a new $700 million buyback authorization representing approximately 10% of our current market cap. We will follow a disciplined approach with regular quarterly repurchases while opportunistically increasing buybacks when we see strong value. Additionally, our board approved a 13% increase to our quarterly dividend.

我們的董事會批准了一項新的 7 億美元回購授權，約占我們目前市值的 10%。我們將採取嚴謹的方法，定期進行季度回購，同時在看到強勁價值時抓住機會增加回購。此外，我們的董事會批准將季度股息提高 13%。

We anticipate annual dividend increases, typically announced in the first quarter, in line with expected longer-term earnings growth. Finally, we remain committed to maintaining an investment grade credit rating, with long-term net debt leverage below 2.5 times. Insurance flexibility for organic and inorganic growth investments. In summary, our fourth quarter and full year 2024 results were in line with our expectations.

我們預計年度股息將會增加，通常會在第一季宣布，與預期的長期獲利成長保持一致。最後，我們仍然致力於維持投資等級信用評級，長期淨債務槓桿率低於 2.5 倍。為有機和無機成長投資提供保險靈活性。總而言之，我們的第四季和 2024 年全年業績符合我們的預期。

We are proud of our team's efforts to manage market headwinds and deliver solid growth in operating margins and diluted EPS. While market uncertainties are expected in 2025, we believe we will deliver another year of operating profit and EPS growth. The strength of our business and our team's performance enabled us to find a capital allocation path to both grow our business and deliver shareholder returns. We have an exciting future.

我們為團隊應對市場逆風並實現營業利潤率和稀釋每股收益穩健成長的努力感到自豪。儘管預計 2025 年市場存在不確定性，但我們相信我們將再實現一年的營業利潤和每股收益成長。我們業務的實力和團隊的表現使我們能夠找到一條資本配置途徑，既能發展業務，又能為股東帶來回報。我們擁有令人興奮的未來。

I will now turn the call back over to Renee.

我現在將電話轉回給 Renee。

Thank you, Tom. At this time, the operator will open up the call for questions.

謝謝你，湯姆。此時，接線員將打開電話並回答問題。

(Operator Instructions)

（操作員指令）

Christopher Moore, CJS Securities.

克里斯托弗·摩爾（Christopher Moore），CJS 證券。

Hey, good morning, guys. Congrats on a very nice quarter, great year. Maybe we'll start on nag so maybe just go a little bit deeper there. The decline is, 9.5% to 3.5% meaningful impact from FX. Can you just talk a little bit more about, North America versus International or, is there less certainty in one of the sub segments, that that 9.5%,3.5% range is it are they both in that same range or is one the bigger driver?

嘿，大家早安。恭喜您度過了一個非常愉快的季度和非常出色的一年。也許我們應該從嘮叨開始，這樣也許可以更深入一點。降幅為 9.5%，其中 3.5% 受到外匯的重大影響。您能否再多談一下北美與國際的情況，或者在某個子細分市場中是否不太確定，9.5%、3.5% 的範圍是否都在同一範圍內，或者其中一個是更大的驅動因素？

Hi, good morning, Chris. I'll start off and then Tom, can add some more detail. Overall, the markets both in North America and Brazil will be pressured by corn and soy prices, which have the largest impact on their profitability. So based on the current indication, the prices, stock to use ratio, and that farm income, we will expect those markets to be, challenging for us this year.

嗨，早上好，克里斯。我先開始，然後湯姆可以補充一些細節。總體來看，北美和巴西市場都將受到玉米和大豆價格的壓力，這對它們的獲利能力影響最大。因此，根據目前的跡象、價格、庫存使用率以及農場收入，我們預計這些市場今年對我們來說將充滿挑戰。

Having said that, on the project side in the North Africa and EMEA region, we're very pleased with our, activity in that region. We have a very strong backlog, strong pipeline all driven by the drivers around food security and that will have a strong impact on our business. And Tom, maybe you want to add some share a little bit about the North America.

話雖如此，就北非和歐洲、中東和非洲地區的專案方面而言，我們對在該地區開展的活動感到非常滿意。我們擁有非常強勁的積壓訂單和強大的產品線，所有這些都是由食品安全驅動因素推動的，這將對我們的業務產生強烈影響。湯姆，也許你想補充一些關於北美的內容。

Yes, I would just say, the agriculture team is really focused on improving their business. So as we do return to growth maybe end of '25, '26 that were in a really good position for higher operating margins, they're doing a lot of work on their product cost, the cost of a pivot.

是的，我只想說，農業團隊確實專注於改善他們的業務。因此，當我們可能在 25 年末或 26 年末恢復成長時，我們的營業利潤率會處於非常有利的位置，他們在產品成本、轉型成本方面做了很多工作。

They're really focused on investing in their aftermarket growth, as Avner said, with spare parts and services like e-commerce and accents and, we'll see how it goes this year. I think they're controlling what they can't control. We're pleased to see the international growth.

正如阿夫納所說，他們真正專注於投資售後市場的成長，包括備件和電子商務、配件等服務，我們將看看今年的發展。我認為他們正在控制他們無法控制的事情。我們很高興看到國際業務的成長。

Got it very helpful. Maybe just my follow up is, on the operating margin side that you started talking about a little bit, the goals to approach Mid-Tenns margin longer term, maybe just the puts and takes for FY 25 operating margin could be, meaningfully above '24.

非常有幫助。也許我的後續問題是，關於您開始談論的營業利潤率方面，長期目標是接近田納西州中部的利潤率，也許 25 財年的營業利潤率可能會顯著高於 24 財年。

Well, we have a lot of opportunity in our margins, and I just mentioned, a really in the gross margin side with aftermarket and product cost. I think when you look at infrastructure, we are adding capacity, but we're also adding automation. So while you'll see depreciation expenses go up, we do expect improved efficiencies and lower costs over time.

嗯，我們的利潤空間很大，我剛才提到過，毛利率方面確實有售後市場和產品成本的問題。我認為，當你看基礎設施時，我們正在增加容量，但我們也在增加自動化。因此，雖然您會看到折舊費用上升，但我們確實預計隨著時間的推移效率會提高、成本會降低。

In SG&A, we believe we can do more, lowering it as a percent of revenue. I think you'll see this year that our headquarter costs will be flat to down, and all of these will help us get to the goal of Mid-Teens. I think what's important to know when you look at our margins through the year, is that, -- this first quarter will be relatively clean, we'll have some tariffs, probably Q2, Q3, will probably have our mitigation effects in place the second half of the year, and let me give you a little insight into the tariffs in our guidance.

在銷售、一般及行政開支方面，我們相信我們可以做得更多，降低其收入的百分比。我想你會看到今年我們總部的成本將持平甚至下降，所有這些都將幫助我們達到十幾歲的目標。我認為，當您查看我們全年的利潤率時，重要的是要知道——第一季將相對乾淨，我們會有一些關稅，可能在第二季度、第三季度，我們的緩解效應可能會在下半年顯現出來，讓我給您一些關於我們指引中的關稅的見解。

At midpoint, it's a 20%, sorry, -- $0.20 headwind. at the low end, spent $0.40 and that would be assuming that it takes more time to mitigate at the high end is virtually no tariffs, meaning that things go well. So Chris, -- I think we have good margin upside through the year, excellent margin upside going through 2026, and terrorists are disruptive, and we'll see how that goes, but I think we're on it and I think we're taking all the steps today to really manage and mitigate.

在中間點，這是一個 20%，抱歉，--0.20 美元的逆風。低端花費 0.40 美元，這是假設需要更多時間來緩解高端幾乎沒有關稅，這意味著事情進展順利。所以克里斯，我認為我們今年的利潤率有很好的上升空間，到 2026 年利潤率有極好的上升空間，而且恐怖分子具有破壞性，我們會看看情況如何，但我認為我們已經在努力，我認為我們今天正在採取一切措施來真正管理和緩解影響。

And Chris, I'll just add, one point is we're really pleased with what we've done over the last several years, expanding our operating margins, growing our diluted EPS in a mixed and market dynamics. We've really been focusing on our commercial pricing strategies, operations efficiencies, reducing our SG& and just focus on the core of what we do very well. So we will continue that journey this year, towards our goal of achieving our mid-teens targets.

克里斯，我只想補充一點，我們對過去幾年所做的事情感到非常滿意，擴大了我們的營業利潤率，在混合和市場動態中增加了我們的攤薄每股收益。我們一直專注於我們的商業定價策略、營運效率、降低我們的銷售成本和費用，並只專注於我們擅長的核心業務。因此，我們今年將繼續這一旅程，朝著實現青少年中期目標的目標邁進。

Very helpful guys. I will leave it there thank you.

非常有幫助的人。我會把它留在那裡謝謝。

Nathan Jones, Stifel.

內森瓊斯（Nathan Jones），斯蒂費爾（Stifel）。

Good morning, everyone. I guess I'll start off following up on the tariffs there. Just a question on how you've approached that in the guidance. I mean, if you look at coil steel prices, they're already gone up 25%, in the US. So it probably doesn't really matter where you're sourcing it from. It's still going to end up being the same price, which at the moment looks like about 25% higher.

大家早安。我想我將開始關注那裡的關稅。我只是想問一下您在指導中是如何處理這個問題的。我的意思是，如果你看看卷鋼價格，在美國它們已經上漲了 25%。因此，你從哪裡獲取資訊可能並不重要。最終價格仍將保持不變，目前看來，價格上漲了約 25%。

Is that how you accounted for tariffs in your guidance? And then, can you talk about how you pass that on to the market? I know there's some structural mechanisms to pass it on. Some of it will be determined by the market. I think infrastructure businesses are generally pretty strong and might be a bit easier, but the ag business is a bit weak and might be a bit harder to pass on pricing. So just any color you can give us there, please.

您在指導意見中就是這樣考慮關稅的嗎？然後，您能談談如何將其傳遞給市場嗎？我知道有一些結構機制可以傳遞它。其中一些將由市場決定。我認為基礎設施業務總體上相當強大，可能會容易一些，但農業業務有點弱，可能更難以轉嫁定價。所以只要您能提供給我們任何顏色就好。

Nathan, I'll start off. So just broader around how we're addressing the tariffs. So like everyone else, we're keeping a very close eye on the changes to the trade policy, and Tom, touched on this, in his remarks, we do have a solid handle on the impact of the China tariffs, and that is factored into our guidance along with our best estimate on the steel and the aluminum import tariffs.

內森，我先走了。所以更廣泛地說，我們如何解決關稅問題。因此，與其他人一樣，我們也在密切關注貿易政策的變化，湯姆在他的演講中談到了這一點，我們確實對中國關稅的影響有充分的了解，並且這與我們對鋼鐵和鋁進口關稅的最佳估計一起計入了我們的指導中。

Now when it comes to the potential tariffs on imports from Canada and Mexico, there's still a lot that we don't know. Here's what I can tell you though, is our main focus is on Mexico. We, we've been very intentional on how we built our global footprint to serve as our customer. So most of our US customers are being supplied from our US plans.

現在談到對來自加拿大和墨西哥的進口產品可能徵收的關稅，我們仍有許多不知道的地方。不過我可以告訴你的是，我們的重點是墨西哥。我們一直非常注重如何建立我們的全球影響力來為我們的客戶提供服務。因此，我們的大多數美國客戶都是透過我們的美國計劃進行供貨的。

And we're doubling down on that most of our infrastructure capacity investments that we're doing right now are here in the US. And just to put it all in perspective, the production out of Mexico, it's less than 10% of our overall infrastructure revenue. Now that said, our team is all over it. We're using our well-established playbook, how we manage these potential impacts, and -- as it's not the first time that we're dealing with tariffs.

我們正在加倍努力，目前我們大部分的基礎設施容量投資都在美國。綜上所述，墨西哥的產量還不到我們整體基礎建設收入的 10%。話雖如此，我們的團隊已經全力以赴。我們正在使用我們完善的劇本來管理這些潛在的影響，而且——這不是我們第一次處理關稅問題。

So we're looking at pricing and commercial strategies and your point around, when we see the tariffs and when we see steel going up. We address that and I'll go into a little bit more details in a bit, we're working with our suppliers and, how do we make operational adjustments. We use financial instruments as well, and of course we consider other steps to mitigate the total impact. So the bottom line is, our team will go over great lengths to make sure we're covering all our bases.

因此，當我們看到關稅和鋼鐵價格上漲時，我們正在研究定價和商業策略以及您的觀點。我們正在解決這個問題，稍後我會詳細介紹，我們正在與供應商合作，以及如何進行營運調整。我們也使用金融工具，當然也會考慮其他措施來減輕整體影響。因此，最重要的是，我們的團隊將竭盡全力確保我們涵蓋所有基礎。

And now, specifics, how we look at these markets, it's no different than any other cost increases. We've seen this through COVID. Pricing went up. We were already having conversations with our customers and they understand it, there's really not a lot of pushbacks. They need our products, they see the value proposition we have in these industries, in these industries, and right now it's been.

現在，具體來說，我們如何看待這些市場，它與任何其他成本增加沒有什麼不同。我們已經透過 COVID 看到了這一點。價格上漲了。我們已經與客戶進行了對話，他們也理解這一點，因此確實沒有太多的反對意見。他們需要我們的產品，他們看到了我們在這些產業中的價值主張，現在就是這樣。

They're dealing with it, with, like I said, not a lot of pushbacks, I don't, Tom, if you have any specifics you want to want to add to that.

他們正在處理這個問題，就像我說的，沒有遇到太多阻力，湯姆，如果你還有什麼具體資訊需要補充的話，我不知道。

Regarding the guidance that Nathan, we're a diversified industrial company and we use a lot of steel, so we thought it was very important to shareholders and potential shareholders to make sure you understand the impact. So in the guidance, and it's in our assumptions, we're assuming the steel cost has of what's in the future markets as of Friday, so everything you just talked about that is reflected in our guidance.

關於內森的指導，我們是一家多元化工業公司，我們使用大量鋼鐵，因此我們認為確保股東和潛在股東了解其影響非常重要。因此，在指引中以及在我們的假設中，我們假設鋼鐵成本與週五的未來市場情況相同，因此您剛才談到的一切都反映在我們的指引中。

And then we also felt it was important to quantify the best we could, the impact on the China imports and the steel and aluminum inputs. So we feel good that we're, I think we got a handle on this and everything you just said, Nathan, is addressed in the guidance.

然後我們也認為盡可能量化對中國進口以及鋼鐵和鋁投入的影響非常重要。因此，我們感覺很好，我想我們已經掌握了這個問題，而且內森，你剛才說的一切都在指南中得到了解決。

Appreciate that. I think you're about the first company we've had so far that's put it into the guidance. I guess my second question, I I'd like to ask a question on the capital allocation priorities and specifically the 50% of operating cash flow allocated to growth opportunities. Pretty big step up in the expectation for CapEx from, just under $100 million to like $150 million. Can you talk about what you're adding in terms of capacity? How much capacity that will add, just in terms of revenue dollars, over the next few years? And then what the financial and strategic criteria are for M&A, and I'll pass it on. Thanks very much.

非常感謝。我認為你們是我們迄今為止第一家將其納入指導的公司。我想問我的第二個問題，關於資本配置優先事項，特別是將 50% 的營運現金流分配給成長機會。資本支出預期大幅提升，從未到 1 億美元增加到 1.5 億美元左右。您能談談您在容量方面增加了哪些內容嗎？僅從收入角度來看，未來幾年將增加多少產能？然後我會傳達併購的財務和策略標準是什麼。非常感謝。

Thank you. As it relates to CapEx, we're fortunate to have the opportunity with very strong market demands across our portfolio, and we are elevating our CapEx spend to, around $150 million this year. We'll continue to be elevated next year as a lot of these projects do take time, some of them are multiyear project, so we're right now we're focused on our North America, plans. We have around 13 core plans that we're increasing our capacity in them.

謝謝。就資本支出而言，我們很幸運能夠有機會應對我們整個投資組合中非常強勁的市場需求，今年我們將把資本支出提高到 1.5 億美元左右。明年我們將繼續提升，因為許多項目確實需要時間，其中一些是多年期項目，所以我們現在專注於我們的北美計劃。我們有大約 13 個核心計劃，我們正在增加這些計劃的容量。

We're increasing our capacity, we're increasing our flexibility to address different type of structures. And on top of the, supporting our growth, they're going to enhance our efficiency, increase our flexibility, to make sure we could support the demand, but the highest level I'd look at it is our long term targets are, the mid-single digit plus growth in, specifically now infrastructures where we're investing and we're going to invest to make sure we have enough capacity to support that demand now. We're talking about capital, but of course we're also investing in people, process improvements in lian.

我們正在提高我們的能力，我們正在提高我們的靈活性以解決不同類型的結構問題。除了支持我們的成長之外，他們還將提高我們的效率，增加我們的靈活性，以確保我們能夠滿足需求，但我認為最高水平的是，我們的長期目標是實現中等個位數以上的成長，特別是現在我們正在投資的基礎設施，我們將進行投資，以確保我們有足夠的能力來滿足現在的需求。我們談論的是資本，但當然我們也在投資人才和流程改善。

We're actually investing in an R&D center to make sure we could support all these increases and we're also looking at investing in our engineering in our IT systems, -- we're using data science to make sure we have better throughput throughout our plans, investing in our supply chain. So it's a multifaceted approach to investing in our capacity and the way I see it is we're going to invest to make sure we could support our customer needs over the next 3 years to 5 years to achieve our long-term targets. So that's on the capital side, when you look at the at the M&A.

我們實際上正在投資一個研發中心，以確保我們能夠支援所有這些成長，我們也在考慮投資我們的 IT 系統工程——我們正在使用數據科學來確保我們整個計劃的吞吐量更高，並投資於我們的供應鏈。因此，這是對我們產能進行多方面投資的方法，我的看法是，我們將進行投資以確保能夠在未來 3 至 5 年內滿足客戶需求，從而實現我們的長期目標。因此，當您查看併購時，這就是從資本方面來看的。

We're going to very much be focused on the core on what we do at Valmont very well, linked directly to our strategic priorities. It's going to be areas where we or the target, can bring synergies around our products, our markets for capability. So it's going to be areas that we are very familiar with that Valmont is a clear natural owner, like we like to say, 1+1 is 3, and then there are other areas that we look at, we want to make sure the companies that we look at have long-term enduring growth drivers.

我們將重點放在 Valmont 的核心業務，這與我們的策略重點直接相關。這將是我們或目標能夠圍繞我們的產品、我們的市場產生協同效應的領域。因此，在我們非常熟悉的領域，Valmont 顯然是天然的所有者，就像我們說的，1+1 等於 3，然後我們也會關注其他領域，我們希望確保我們關注的公司擁有長期持久的成長動力。

We look at the management team, make sure they're aligned well with our culture. So we take a broad approach to acquisition and as it looks in the financials, ideally, we'll get a company that will have a meaningful impact to Valmont, each one of these acquisitions to take significant resources. They need to have meaningful synergies, and they will have, since they're aligned with our core.

我們審視管理團隊，確保他們與我們的文化一致。因此，我們採取廣泛的收購方式，從財務角度來看，理想情況下，我們會得到一家對 Valmont 產生重大影響的公司，每一次收購都會耗費大量資源。他們需要有有意義的協同作用，而且他們會有，因為他們與我們的核心一致。

You look at ROIC needs we need to be the cost of capital by year three and typically they will be a creative year one since they are very synergistic. So at a very high level it's part of our strategy, organic and inorganic growth, and we will make sure that these acquisitions are tied very closely to our core and synergistic to us.

你看一下 ROIC 需求，我們需要在第三年實現資本成本，而且通常它們會是第一年的創意，因為它們具有很強的協同作用。因此，從高層次來看，這是我們策略的一部分，即有機和無機成長，我們將確保這些收購與我們的核心業務緊密相關並產生協同效應。

Thanks for taking my questions.

感謝您回答我的問題。

Thank you.

謝謝。

Brian Drab, William Blair.

布萊恩·德拉布，威廉·布萊爾。

Hi, thanks for taking my questions. I just wanted to first start on gross margin, and you did mention on the call that despite tariffs and whatever happens with tariffs, your expectation is, I believe that you'll have overall lower steel prices in 2025.

你好，謝謝你回答我的問題。我首先想談談毛利率，您在電話會議上提到，儘管有關稅，無論關稅發生什麼，您的預期是，我相信 2025 年鋼鐵價格整體會下降。

And can you just make sure that you just let me know that I heard that correctly and then also talk about how that will impact gross margin you're coming off a very strong gross margin here, and I, my basic question is, could, should gross margin be higher in '25 than it was in '24?

您能否確保我所聽到的是正確的，然後談談這將如何影響毛利率，您這裡的毛利率非常高，我的基本問題是，25 年的毛利率是否應該高於 24 年？

Right, gross margin, we expect to be flat to slightly up in 2025. SG&A, we expect to be down from 2025, and I think the way to view it is through the quarters you'll see revenues increasing as we bring out capacity. You'll probably see, EPS relatively constant through the year, as later in the year we'll get more revenues from capacity, potentially have more tariffs.

是的，我們預計到 2025 年毛利率將保持穩定或略有上升。我們預計銷售、一般及行政開支將從 2025 年開始下降，我認為從各個季度來看，隨著我們產能的提升，您會看到收入增加。您可能會看到，每股盈餘在全年相對穩定，因為今年稍後我們將從產能中獲得更多收入，可能會有更多的關稅。

I'll take this opportunity now to also say, Brian, our Q1, because there's a lot of moving parts here, or Q1, we expect revenues to be very similar to Q1 of 2024, but we expect higher, -- slightly higher EPS because of lower SG&A cost.

我現在要藉此機會說一下，布萊恩，由於這裡有很多變動因素，我們預計第一季的收入將與 2024 年第一季非常相似，但由於銷售、一般及行政管理成本較低，我們預計每股收益會略高。

Okay, that's helpful. As you're bringing down the capacity, is there anything that we should keep in mind with respect to gross margin and incremental cost or startup costs and the timing of that?

好的，這很有幫助。當你們降低產能時，我們應該注意毛利率、增量成本或啟動成本以及時間安排方面的問題嗎？

Capacity will be coming on through the year, but more in the second half, you should expect higher depreciation expense, and as it comes online, we anticipate improved efficiencies and hopefully the net effect of that is lower cost over time.

產能將在今年內不斷增加，但在下半年，你應該預期折舊費用會更高，並且隨著產能的上線，我們預計效率會提高，並且希望其淨效應是隨著時間的推移成本會降低。

Okay, I'll get back in line for now. Thank you very much.

好的，我現在要回去排隊了。非常感謝。

(Operator Instructions) Jon Braatz, Kansas City Capital Associates.

(操作員指示) 喬恩‧布拉茲 (Jon Braatz)，堪薩斯市資本協會。

Morning everyone. Avner, in your commentary you mentioned, in terms of the utilities segment you mentioned new capabilities. Are you, -- what else are you bringing online in the utility sector that maybe is new and different from what you have done previously, new services, new products, can you give us an idea?

大家早安。Avner，您在評論中提到了在公用事業部分方面的新功能。您是否還在公用事業領域推出了哪些新的、與您以前做過的事情不同的新服務、新產品，能為我們介紹一下嗎？

Yes, happy to. So overall, we're seeing a very strong demand in utility across the board from all of our, products and solutions. We talk a lot about our transmission distribution substation we're seeing a lot more strength in the substation and distribution area, some of the specifics that I address that that we're looking at is, using some of our composite solutions as well to help with a specific example I gave I gave is around a product called Safeness where it really helps to support the substations and to protect them. And we're seeing, we're seeing nice and strong growth in that area.

是的，很高興。總體而言，我們看到我們所有產品和解決方案在實用性方面都有非常強勁的需求。我們討論了很多關於我們的輸電配電變電站的問題，我們看到變電站和配電區域的實力大大增強，我要提到的一些具體內容是，我們正在研究使用我們的一些複合解決方案來幫助實現我給出的一個具體例子，我給出的是一種名為 Safeness 的產品，它確實有助於支持變電站並保護它們。我們看到，該地區正在實現良好而強勁的成長。

The other example was around substation packaging where, instead of building it on site and it could create delays and additional costs, we can build it all in a closed environment, test it and bring it right to the field and you know it's part of what we do on a day-to-day basis is we keep on innovating, right? Not every steel, not.

另一個例子是變電站封裝，我們不需要在現場建造，因為這可能會造成延誤和額外成本，而是可以在封閉的環境中建造一切，進行測試並將其直接帶到現場，你知道這是我們日常工作的一部分，我們不斷創新，對吧？但不是每種鋼材都這樣。

Every poll, while it may seem the same, it is not. There's a lot of engineering that goes into every one of our products, so we keep on innovating to make sure they're more sustainable, they provide more value, etc. So yeah, we're excited, we have a very strong engineering organization, and they keep on looking at opportunities to support.

儘管每項民調看起來都一樣，但事實並非如此。我們的每一款產品都融入了大量的工程設計，因此我們不斷創新，以確保它們更具可持續性、提供更多價值等等。

Okay, thank you, Avner, in the telecommunications area that is ramped up nicely. Are you expecting that ramp up to continue at sort of accelerated pace?

好的，謝謝你，阿夫納，電信領域的發展非常順利。您是否預計這種成長將以某種加速的速度持續下去？

Overall, even we mentioned this last quarter, we've seen the increase by the carriers, and that continued into Q1. When we look at the large US carriers in the US, they are expected to show some growth, throughout the year, low single digits, their CapEx, from flat to a high 5%, and that supports our. I wouldn't say it's a rapid growth. It's more back to normalized business.

總體而言，即使我們在上個季度提到了這一點，我們也看到了營運商數量的成長，並且這種趨勢一直持續到第一季。當我們觀察美國的大型營運商時，預計它們全年將呈現一定增長，低個位數，其資本支出將從持平到高達 5%，這為我們提供了支持。我不會說這是一種快速增長。這更像是回歸正常業務。

Our technologies, solutions, products support all aspects of these bills from 5G to C-Band and even fiber build out. So we're well positioned to continue to growth. I wouldn't expect rapid growth. We're back to normalize and we will see growth in in telecom this year.

我們的技術、解決方案和產品支援這些法案的各個方面，從 5G 到 C 波段甚至光纖建設。因此，我們已做好準備繼續增長。我不期望快速增長。我們已經恢復正常，今年電信業將成長。

Avner, thank you.

阿夫納，謝謝你。

Brent Thielman, DA Davidson.

布倫特·蒂爾曼、DA 戴維森。

Hey, thanks, good morning. Abner, just in regard to the capital allocation mix I guess specifically on M&A. Could you talk about the potential size of pursuits you're looking at? Is there even an interest in in something more transformational down on after all the kind of the work you've done internally the last couple of years? I'd just be curious around that.

嘿，謝謝，早安。阿布納，就資本配置組合而言，我猜具體是針對併購。您能談談您正在考慮的追求的潛在規模嗎？在過去幾年裡，您在內部完成了這麼多工作之後，是否還對一些更具變革性的事情感興趣？我只是對此感到好奇。

Yes, so at this point, we're not looking at anything transformational. We're looking at businesses that tie directly to our core. We have strong drivers in our business, driven by multi-year secular mega trends, and this is really going to be something that is going to supplement our growth. Like I said, we don't have a specific size we'll look at.

是的，所以目前我們還沒有考慮任何變革。我們正在尋找與我們的核心直接相關的業務。我們的業務擁有強大的驅動力，受到多年長期大趨勢的推動，這確實會促進我們的成長。就像我說的，我們並沒有考慮特定的尺寸。

If it's small, that means it has a real significant capability that it's adding to the organization, but ideally once you're going to do acquisition, you want to have, you want to make sure it's going to have meaningful EPS, meaningful contribution to our overall, performance, provide us with more growth opportunities. So no specific targets, but overall, a part of our strategy to keep on helping to drive, a value to our stakeholders.

如果規模很小，那就意味著它具有真正重要的能力，可以為組織增添力量，但理想情況下，一旦你要進行收購，你就希望確保它能帶來有意義的每股收益，對我們的整體業績做出有意義的貢獻，為我們提供更多的成長機會。因此沒有具體的目標，但總的來說，這是我們策略的一部分，繼續幫助推動為我們的利害關係人創造價值。

Okay, and I apologize if you've answered this already. I got on a bit late, but on the Agg side appreciate kind of the forward-looking outlook here but could you talk about maybe just the pricing environment either domestically and internationally? what you're seeing today, what you're seeing on sort of incoming orders, is it stabilized or is there some pressure still given some of the volume pressure scene on the North American business.

好的，如果您已經回答了這個問題，我很抱歉。我來得有點晚了，但 Agg 方面很欣賞這種前瞻性的展望，但您能談談國內和國際的定價環境嗎？您今天看到的情況，就訂單量來看，情況是否已經穩定下來，還是仍然存在一些壓力，因為北美業務面臨一些數量壓力。

Overall, in the markets in North America and Brazil, which are pressured, but we're not seeing any pressure around pricing specifically. I mean, it's always more challenging, of course, but being the leaders in this industry, we make sure we take pricing leadership and really focus on the value proposition and Tom. touch briefly about it, but you know I just came back from the national sales meeting in the US, had an opportunity to talk to a lot of our dealers here.

總體而言，北美和巴西市場面臨壓力，但我們沒有看到任何具體的價格壓力。我的意思是，當然，這總是更具挑戰性，但作為這個行業的領導者，我們確保我們佔據定價領導地位，並真正專注於價值主張和湯姆。簡單談一下，但你知道我剛從美國全國銷售會議回來，有機會和這裡的許多經銷商進行了交談。

It's going to be a challenging environment, they're pretty optimistic. They, what they're seeing is they're seeing, more focus on large farms, which is good for business, a focus on strategic accounts, but as we've been over the last couple of years. Very much focused on our core strengthening our position on our technology. There was a lot of excitement during this meeting around our new technology offering.

這將是充滿挑戰的環境，他們非常樂觀。他們看到的是，他們看到人們更加關注大型農場，這對企業有利，關注戰略帳戶，但正如我們過去幾年所經歷的那樣。高度重視我們的核心，加強我們在技術上的地位。這次會議圍繞著我們的新技術產品展開，引起了很大的轟動。

If you think about our AgSense 365, taking four platforms, putting them on one, ease of use, better user experience, providing them with our other new product we're coming out with Icon Plus, which is basically the irrigation controller for the pivot at a very competitive price. Allowing them to drive more connectivity to support areas like Middle East Africa and emerging markets. That's another one that they were that there's a lot of excitement and even around the machine diagnostics which we're bringing to this industry where it is so important to have the pivot running when you need it.

如果您想想我們的 AgSense 365，它將四個平台放在一個平台上，易於使用，提供更好的用戶體驗，並為他們提供我們即將推出的另一款新產品 Icon Plus，它基本上是樞軸灌溉控制器，價格非常有競爭力。使他們能夠推動更多的連結性來支持中東、非洲和新興市場等地區。這是他們非常興奮的另一個原因，甚至圍繞著我們為這個行業帶來的機器診斷，在需要的時候讓樞軸運作非常重要。

And if it fails then that is a very costly proposition so to help around machine diagnostics. So overall, the value proposition we are offering to our growers is significant and we don't feel and we're not seeing any need to reduce pricing, so overall there's strong values. Opposition challenging cha challenging year in North America, Brazil, but as we look into the future, all these secular demands around population growth, productivity, sustainability, and of course our strength in Middle East Africa, we're excited about the future.

如果失敗了那麼這將是一項非常昂貴的任務，因此需要對機器進行診斷。因此，整體而言，我們為種植者提供的價值主張非常重要，我們並不認為有必要降低價格，因此整體而言，我們具有很高的價值。反對派在北美和巴西的挑戰一年又一年，但展望未來，所有這些圍繞著人口增長、生產力、可持續性的長期需求，當然還有我們在中東非洲的實力，都讓我們對未來感到興奮。

Okay, thank you.

好的，謝謝。

Brian Drab, William Blair .

布萊恩·德拉布，威廉·布萊爾。

Hi, thanks. I just wanted to ask about the substations, within the utility segment in that in that product line. We're talking much more about that lately, I feel than we have in the past, and can you just spend another minute, talking about the dynamics that's driving that? Is that related to data center expansion in part and how do your margins in that business compare with margins for the utility business overall? Thanks.

嗨，謝謝。我只是想詢問有關該產品線中公用事業部門的變電站的情況。我感覺我們最近談論這個話題比過去多了很多，您能否再花一分鐘時間談談推動這一問題的動力？這是否與資料中心擴展有一定關係？ 該業務的利潤率與整個公用事業業務的利潤率相比如何？謝謝。

Yeah, so thank you. We are spending a lot of time on the substations. We are very excited about what that brings to the business and the drivers there are very strong, we're seeing very strong demand. So substations, right, you'll need a substation every time you need to increase or reduce the load. So we tie a lot to the data centers, of course, with renewable energies as well.

是的，謝謝你。我們在變電站上花了大量的時間。我們對這對業務帶來的影響感到非常興奮，而且其驅動力非常強勁，我們看到了非常強勁的需求。所以變電站，對的，每次你需要增加或減少負載時就需要一個變電站。因此我們將許多資源與資料中心緊密結合起來，當然也包括再生能源。

Which are also a key driver as you need to connect it to the grid. So in many aspects, but a lot of it is related to data centers, and we're seeing very strong demand around data centers for substations. And in fact when you look at data centers, it's not only our substations, right? It provides business for also our transmission and distribution poles. It also helps us, you look at these data centers, they need lighting solutions. There are a lot of galvanizing that goes into the data centers and telecom. It really supports all aspects of our business.

由於您需要將其連接到電網，因此這也是一個關鍵驅動因素。因此在很多方面，但許多都與資料中心有關，我們看到資料中心對變電站的需求非常強勁。事實上，當你查看資料中心時，它不僅僅是我們的變電站，對嗎？它還為我們的輸電和配電桿提供業務。它也幫助我們，看看這些資料中心，它們需要照明解決方案。資料中心和電信業需要大量的鍍鋅。它確實支持我們業務的各個方面。

It's still a smaller part of utility, but it is growing. It has very strong margins due to the complexity and not many companies can do the sizes that we can do and the complexity that we do, and then we'll price it based on the value that we provide, which is significant. So it's growing and we're excited about where this thing can go.

它仍然是實用工具中較小的一部分，但它正在成長。由於其複雜性，它的利潤率非常高，而且沒有多少公司可以達到我們所能達到的規模和複雜性，然後我們會根據我們提供的價值來定價，這是很重要的。所以它正在成長，我們對於它的未來發展感到很興奮。

Okay, and then Avner, can I ask your EMEA project, the $45 million, is, can you say anything about whether that is in a region or country that you're already doing a lot of work or have done a lot of work, or is this a new area of opportunity?

好的，然後 Avner，我可以問一下您的 EMEA 項目，4500 萬美元，您能否說一下這個地區或國家是否是您已在做大量工作或已經做了很多工作的地區或國家，或者這是一個新的機遇領域？

It is a country that we have been doing work for quite a while.

我們已經在這個國家開展工作很長一段時間了。

Got it. Okay. Thank you very much.

知道了。好的。非常感謝。

We have reached the end of the question-and-answer session. I will now turn the floor back over to Renee Campbell, for closing remarks.

問答環節已經結束。現在我將把發言權交還給蕾妮·坎貝爾，請她作最後發言。

Thank you for joining us today. A replay of this call will be available for playback on our website and by phone for the next seven days. We look forward to speaking with you again next quarter.

感謝您今天加入我們。本次通話的重播將在接下來的七天內在我們的網站和電話上提供。我們期待下個季度再次與您交談。

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1,995. These statements are based on assumptions made by management considering its experience in the industry where Valmont operates, perceptions of historical trends, current conditions, expected future developments, and other relevant factors.

本新聞稿包含 1995 年私人證券訴訟改革法案所定義的前瞻性陳述。這些聲明是基於管理層根據其在 Valmont 所在行業的經驗、對歷史趨勢的看法、當前狀況、預期未來發展和其他相關因素而做出的假設。

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.

值得注意的是，這些聲明並不能保證未來的表現或結果。它們涉及風險、不確定性（其中一些超出了 Valmont 的控制範圍）和假設。儘管管理階層認為這些前瞻性陳述是基於合理的假設，但多種因素可能導致實際結果與預期結果有重大差異。

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.

這些因素包括 Valmont 向美國證券交易委員會 (SEC) 提交的報告中所述的風險、公司的實際現金流量和淨收入等。未來的經濟和市場狀況、行業狀況、公司業績和財務結果、營運效率、原材料的可用性和價格、新產品的可用性和市場接受度、產品定價、國內和國際競爭環境、地緣政治風險和行動以及國內外政府的政策變化。

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.

該公司警告稱，本新聞稿中的任何前瞻性陳述均截至其發布之日為止，並且不承諾更新這些陳述，除非法律要求。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

女士們、先生們，今天的電話會議到此結束。現在您可以斷開您的線路。感謝您的參與並祝您有美好的一天。