Valmont Industries (VMI) 27 Jul 232023 Q2 Earnings call transcript

Greetings, and welcome to the Valmont Industries Q2, 2023 Earnings Conference Call. [Operator Instructions].

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

Financial good Avner Call. to long-term on Avner strategy. With Executive of Accounting quarter Interim and and Vice second Padgett, Quarter and our provide President Applbaum, Industries markets a XXXX our business Chief Chief Chief Francis, Tim Earnings me This Officer; commenting and morning. you, and Eugene Valmont Senior morning, Welcome Officer. Second President Officer; will Thank results, today summary are brief

our performance This closing and review followed current will and indications with our Q&A. Tim XXXX outlook remarks that, Following financial by will provide for Avner. from be

will full that today's of note applies of presentation be webcast which our call available later website morning. Slide webcast live is to on today's on available X on Please accompany in download subject this the the this A replay forward-looking today's or will the call disclosure statements, at on and call. be presentation is will site the at discussion our the and from end investors for outlined A of valmont.com. is to read

Finally, and information, sign if when for be to investors up our alerts other e-mail through please news publishes you site. would Valmont like releases notified

like Executive investors and others turn channels President encourage now on Applbaum. the that, the in listed With our to our social Avner call to Chief on company to Valmont also We and would I media and interested over follow our brands Officer, our website.

and Thank thank for Good you, you Renee. morning, joining everyone, us.

appointment. minutes on would and market CEO I few to of like spend quarter the discussing recent a results current the Before my dynamics,

products Valmont. CEO great that to company is you extremely their customers challenges. humbled I'm and First, our solutions a addressing to pressing be most This and solve need today the as of honored delivers

dedicated to united achieve values core to is by our Our and purpose our our goals. team global

our be the could one outstanding part are be develop more Valmont at joined with worked to and I of closely executive over around and entire and of journey are years, to proud past strategy understand company. implement role. not The company leading Directors Board team. the technology in is aligned Having team becoming industrial of towards I primary XXXX, our I accelerate a people of required reasons to the team The leadership the X-plus our strategy what long-term this this

strategic minutes is right approach This long-term in we few continuing path built our targets. achieving will to clear the I framework, which provides and financial a discuss have a momentum to the

the advanced drive goals data I using CFO, with to to organization better to As led the across technology value. an achieve our ROIC. focus analytics This and data, transformation disciplined business the of decisions a in and processes and on organization led using finance approach emphasis more financial has

we several leading I our while on past have the driving path the look for over remaining CEO, strong forward our strategic years, to along As journey. company financial and shareholders, sustainability committed performance Valmont to been the

executive the a Finally, to to am I stepping team of finance his Francis prepared into ability I role we permanent Tim to interim CFO. until are our organization leadership and for to confident CFO. the name lead want thank in contribute

Slide to of for messages. key second Turning quarter financials a and X review

accomplished. we very from share of achieving earnings XX.X%. were am this a growth diluted results the strong, have to on our Our grew building in Adjusted quarter adjusted proud and the pleased XXXX entire the momentum year. quarter Valmont margin what and $X.XX, this profitability with I operating in per team record of of to first

hardening. Infrastructure benefiting investments demand long-term from secular several ongoing globally robust, grid transition including growth drivers, the energy and remains global in

will of market all farmer nearly outcome shortly. North which this influenced sentiment is pending seeing America our We fundamentals I markets. being agriculture muted across as in the on Global are by expand year's are strong harvest, demand uncertainty

continue to ability and growers technology growth excited improves the transform with about to disruptive enables agriculture land our We that long-term potential of less. to be industry productivity do and the with more

In we expansion the capturing both our we has amid and to which driven add and margin pricing inflation. segments, are customers, strategic value has lower our ongoing ensured discipline sales

Wrapping up our key messages.

excellent We are run, a HR expands outlined our our strong agreement we transform strategic Investor drive balance expansion. our strategic capabilities recent framework further our example executing that international bolt-on month, harnessing and an to part Day. we is initiatives. that aftermarket acquire at Earlier this This irrigation to growth, sheet Products, our announced of an strategic

markets. CapEx market conditions, utility capacity and Moving to XX electricity starting to Slide industry an Utilities as demand their times X in grid for on infrastructure increased Transmission outpacing support evolving by initiatives exceed market indicated that weeks. generation with spending lead current and is have portfolio. update an hardening

see softness IIA inflation, strategically to the to rates telecom of than being to we demand record is is be predicted we adding previous by street in carriers leading of strong of the At lighting muted some trends spending single-family activity this wireless experiences. are coding higher the to rapid meet and the buildout impacts historical product markets, more to investment. rollout aligned is market We reality, supported proving In investments interest demand. lighting be housing seeing funding. to In transportation, and demand capacity XG, to similar level multiyear and in to timing related road increased and transportation CapEx construction more globally Commercial by onset continue following due commercial construction past increasing are with generations. markets. In industry

wireless to commitments Major over $XXX coverage having and carriers spent CapEx pauses capacity continue invest network billion spectrum. nationwide in on XG As spending after during are meet common in networks to expansions. will

meet demand. communication Our remains positioned this business components structures and well to wireless

near-term transportation Our Coatings production business tracks and and utility have seen industrial levels markets. strength from

provide niche Italy guidelines the attractive manufacturing to supporting strong those Valmont been expected for accretive to have clarity is are to though IRA markets prioritized market the market, Even due a related rates the tailwinds details, in quality next regions. support Turning and in Globally, growth market distributed to tax years. demand -- Brazil awaiting reduction on inflation advantage renewable solar. solar and is investments the domestic has earnings. its released. industry that Act generation competitive of the and credit in such we energy as several

with -- industry North Demand agriculture. than and was to the Turning quarter anticipated. this starting originally and America. less robust we

will the net level to U.S. farm While years. third highest income past is decline it year-over-year, income projected represent still over the XX

for recent Additionally, rain conditions much key across growing improving suggests data needed regions. USDA drought

year's This tailwinds recent which Purdue many maintained purchasing or highlight uncertainties extreme remain around prices. growing positive, supported of University but severe drought interest these believe outcome may higher We and the rates However, weigh through year. the continue year's uncertainties patterns and a We is have this volatile farmer for of harvest of sentiment the by country reports, order provide remainder view expect areas on approach in season these more the to market on decisions. commodity to clarity as growers at levels. wait-and-see this

markets. to Moving international

continue available funding with support in We by government the late an program announced X.X in XX% see of billion to demonstrated markets their year, supported in irrigation with was increase financing approximately over of last that nearly strong agriculture June. strength Brazil, to growers. BRL The Brazilian

pipeline attractive the to our food demand this extremely security which trade and by lower program The demand remains continued goods other not were has and making but the this an technology reduce also a help irrigation produce ability terms resource support ongoing these the further for driven of been In year. enhance region favorable, can robust, option products quarter fluctuations. developed concerns, loans our to productivity more for In conservation catalyst international imbalances investment. currency to regions, Project for to are in solutions. only last sales compared project increased and export, markets, EMEA

We Egypt project expected million previously quarter. announced the of begin second in to shipments $XX

However, continue delay the month, project we there into was anticipate will a slight XXXX. began this shipping and shipments

with quarter exposure have any infrastructure second portfolio, us proud end and diverse entire end pleased am softness team's our strategically and across international market financial X results. consistent in of built markets and We pipeline better growing This our I helps performance delivering agriculture a manage intentionally projects. the to achievement. of more to

you allocation, us is will Exchange earlier. on Moving our Stock either to like minutes as New of guides market. Day. would few evolve I time of end one the higher in and move May, quality at strategic This It run more dependent grow less dynamic many person a forward our that framework our Investor In capital, joined new elaborate mentioned to our York Slide and resources, we take cycle value us or I into framework for delivering to X. shareholder any virtually on effort. transform organization,

confirmed drive well for built the solid even cycles Our to and growth deliver when that This framework operate the us volatile which to a are begins is foundation results idea with uncertain. and sustainable outperformance. are proven ability allows run, we economic profitable by

model excellence can growth business rates. to critical foundation, established continuous operational run With across maintaining we improvement an run. to businesses market development growth and our mindset exceed commitment drive Our the expected that the are

while commitment large -- to investments X. products through creating of entry growth Australian-based we a making customers serve summarized reputation, When disruptor revenue expansion, serve irrigation sure capital best-in-class expansion supplier products recurring We where where projects while on with this our announcement good more to key creating trusted ROI base. enabling recurring, optimizing high-value with being and acquire and markets. is to this HR long be the our to our barriers transform our parts high-value that Slide demonstrated customer to a we market align technologies the base be to innovative we in our networks, strategy We robust delivering international geographic agriculture geographic to on better region, our additional in machine we can or mindset through making markets in focused stewards including growing global are great proven points perfectly with This position, of company customers. or achieved month, irrigation bring wholesale and streams, an have economy, our are of industry-leading our our leveraging Earlier it's stream that our extensive offering. revenue footprint It to provides term. this to high a stable path aligned through we look revenue as customers such With objectives. expanded through transform, speak irrigation touch in operate stable, distribution pipeline grow our distribution by installed to we channel our us

turn outlook. and and We business quarter call close to review financial quarter now for third forward the in great this transaction portfolio. will With to second over the our updated expect our the I that, look Tim to joining

and Avner, morning, you, good Thank everyone.

I have excitement Before and of working to way express the appreciation I years. with Avner with By background, to for been begin, my like rest team. I the be and Valmont of Valmont X over would

and the First recently Senior Controller; Global as most Vice Corporate Operations. the President and as Partner Business Finance

leadership During time, of I of segment Committee. worked that lines all closely and Audit our our with business,

global finance transition We have this team, and an period. to I'm this excellent during serve honored role in

comments results as adjusted Turning Reg quarter in to second focus outlined in in disclosure release and Slide results. appendix. and G the will the XX the the press on presentation My the

& Operating The pricing to optimization segments. X.X% XX. margin and both volumes lines a XX.X% $XXX.X sales sales globally decreased long-term in in efficiencies segments earnings Second path year-over-year. improvement $XXX.X quarter than partially lower Despite more Infrastructure was in our the One XX% cost operating and business billion $X.XX. sales of of on offset fab the goal value-based by sales -- to from favorable Accounting to reflects $X previous sales. of of TD continued solar to Diluted long-term benefits our acquisition, infrastructure margin per income offset with grew as increasing X.X% the the and S surpassing of the and million XX.X% due in telecommunications. X.X% volumes turning XX% agriculture segments, conceal and grew in the reported new pricing from to lower net sales, other to XXXX share record XX%. grew on operational by decreased year-over-year operating divestiture the product higher target lower Slide for million, sales Offshore growth

cost Operating of operating margin income million the in of favorable sold margin increased of net mix to sales, and drove XX.X% improvement. $XXX a delivered to improve resulting goods sales strong actions

of $XXX.X The by XX.X% globally Agriculture was XX. selling of benefit volumes. more Slide decreased to prices of equipment than million average Moving year-over-year. higher the irrigation offset lower sales

decline the investment lower EMEA as the was sales lower sales of a from backlog leading and were The services, sales irrigation region. than Brazil America, delays equipment benefited ongoing project North XXXX XXXX. of in by technology growth In growers quarter year-end and sales to delivery as decisions the offset of more record were spring lower delayed in second in of the agriculture year-over-year. volume International affected products capital of

or Higher operating XX.X% goods expansion cost net income and Operating improve $XX.X sales. decreased to prices sales. of activities million to margin average sold focused despite of selling drove lower

on XX. the Slide cash flows to Turning

quarter cash diligent by Second driven strong $XX.X operating were earnings flows management. working million of capital and

Turning to Slide XX.

For was capital million in as ending the to shareholders In capacity second $XX with a quarter, continue quarter deployment our through capital cash. expansions. the of invest $XXX approximately share deployment, million balanced $XX framework, are and second summary strategic shareholder we focused enhancing on to repurchases, value. dividends million CapEx quarter we in returned Through we

X.Xx. Total adjusted of XX. EBITDA our to debt Moving to range within X.Xx to desired X.X of Slide

liquidity balance strategy. our credit cash and to ample Our available execute with sheet provide allocation us capital balance, flexible

like our outlook, updated now XXXX XX. shown review I as would Slide to on

and second of expect results to agriculture, markets, North X%. we in Given growth continued near-term sales and America softness our telecommunication quarter X% now

improved XXXX, given continuous certain margin operating markets expect improvement ongoing in We our initiatives. year-over-year strategies, our in pricing and strength

maintaining earnings Strong with while results, operating second quarter per outlook. full updating the an sales range share the year margin improved supports combined

strength continued year. expectation infrastructure segments, supports our the this for sales to markets across Turning higher

compared for of The income We more is during reduce half strong expect telecommunications the segment the rest across year the steel than second the sales by months year spike operating offset the to of results. infrastructure sales portfolio. second to quarter to X the be first expected costs of lower, slightly our margin in the higher

to agriculture. Turning

in North America modestly to lower compared expect half be year We as half. first second to of the sales the the

have the compared North the is quarter their crop lower of clarity a rest year. and assumption continue to they Our sales delay quarter more is to that growers third investment reminder until that yields on commodity prices. capital overall decisions America typically the A

than stronger America in growth North Brazil However, led to we expect offset much international by higher seasonality impact. and more sales sales project sales the

A third projects year. last mix compared segment in international of to higher reduce will profitability agriculture as quarter

To not diluted summarize, earnings our expectation share for has growth changed. per

markets portfolio, confident in are that believe our and position strength it in of We strong our end and most marketplace. trends of the the favorable across demonstrates outlook our our competitive

We and enabling targets are scale growth value. leveraging achieve our our generation, margins long-term financial to improve and drive sustainable strong our driving global strategies us to shareholder cash support

the Avner. now With call turn that, to I will back over

Thank you, have on my us built XX. comments we Slide on agriculture. Tim. The and that competitive -- advantages to the Continuing position uniquely win an infrastructure

us partner competitive will in markets to megatrends only customers demand face. agriculture that the solve always a have have making footprint trusted optimizing of flexible also do drivers. the to have well that Together, chain need our customers that And of great extend future. We allows contribute efficiently us Belmont, supply challenges with product Infrastructure disruptions. manufacture to which strong avoid choice. expanding, breadth unnecessary products and we our our and offering, factors the is we to are multiyear broad while into these global various both our Not enables advantages,

to We expectations. trends these are in proactively a great capitalize growth and position exceed on market

XX. Turning to Slide

Investor to on transform announced financial market Day, committed the to we established X-year goals. targets based we frame As a positive and our new execute outlook achieving growth remain during end on financial run our these Today, ability

to drive some ability our in results execute of navigating strong near-term while softness team's I'm summary, extremely proud In our strategy and markets.

our through focus we technology control. positioned on While allocation. that remain disciplined markets investments we to accelerate success, by on innovation in and encouraged focused we demand challenges, I'm and confident are capital recognizing strength for continue with the growth a can macroeconomic things and broad we ongoing are across end

business acted building call We to the I half decisively the our drive position will to beyond. stakeholder long-term and for XXXX value to through growth, momentum back have second Renee. of over turn now

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

Instructions]. [Operator

Our first with Blair. question Drab William comes from Brian

think. end. minor the error But is cut high says a this with Slide question that is I [indiscernible] EPS guidance paste XX, and The first one, a on the

think That's the I right, to guidance, . there's change correct. EPS? for no

guidance. the to change No

Okay.

on slide, right? an So the that's error . just

be must it Yes, Yes.

Yes.

Okay.

taking. just So was gross a it about through . actions in feel talk you a the how and pricing that going coming why above lot half sustainable other should back that like what were margin, I XXX can of But the -- it like the know be given above is more, about points XX% Street year? was is the of you're little discussed basis margin? expecting. that And we gross into I

is and question. take Tim, that this Brian, I'll

result with taken margins. operational a very actions First activities. the was pricing pleased off, for are -- excellent by teams the of and third we It quarter our value-based

the historical margins. gross an will improvement long profit drive term, Over to these activities our average

these operational such been our Some and leveraging as well the on activities from which spend size efficiencies, those of expect as our getting focused [indiscernible] activities the with really as automation as consolidated overhead better has cost group of were Valmont professionalizing benefits our on sourcing we and investments as labor well starting management.

the projects a overall the is of meaningful segment, that in a a in expect saw we as reasons. international year, lower primary gross sales XX% prepared steel, not profitability see talked agriculture the half of second profit that to really remarks, about typically coil. we're year, -- mix the And X do With to going months we in said, increase the hot-rolled segment. secondarily, specifically in a cost in sustain X our of towards profile and more One, at the it's then margin for the to we first

steel of the during second lag, the With of be saw will through half statement, that quarter. the year the we second goes cost in than cost average what our of meaning income steel how timing our higher

add our we improvement with right happening goal track just Avner. really now that. XX%. be profit. And And line never stated on from the what's to linear to about it's we'll with We're on QX, gross really get that. to to Brian, XX%, but that, pleased a this QX in is our I'll are up The going happy

really So linear, but overall, about to going in be improvement seeing excited it's never margins. that our we're

Avner I over mean, job few managing this, you gross talked a have the has lot steel and done -- in guys like at can high through was expect the margin stable quarter an XX% years comment, and Or really should prices first quarter? the and obviously, you margin more you've last the like incredible we've is Yes. first moving the up. all? Like second gross about we . And possible? also. half, volatility been of unusually

approaching Yes, Brian. XX%, answer I it. That's how

the half. . For second

Thielman Our D.A. next Brent with Davidson. question comes from

Great. similarly has just perspectives what for I Just any move just last philosophy you different on you? the that, the should role, over focus internally maybe view the of Avner, company business love from I different And in just few you done your completed the on of view relative sort last the new a on over Valmont the think years. pursued relative do things few to in to investing has question as focused years? and you from company any some be the a terms with what guess, allocation maybe you of broader take capital in get M&A, to on

philosophy with remain leadership really Well, Well, of last Directors changed. that drive same been closely and strategy. you really with really And team years, could has working part establishing allocation Sure. the an the of the Board will capital for the how our and value integral thank portfolio, ROIC we invest large seeing on we X the over That shareholders. shared not we're significant that. our and the business. to opportunities our markets business X operations the example. that invest as pole Investor And the strong still to in in #X some our to we with is during we shared the of Day, have was the highest across I've where

invest continue business. will we the So to in

areas same companies a we bring I we Actually, with and have do background to continue -- relates prior approach. private worked of my with the that Now area as strong in I experience a equity. it that will very lot from public M&A in to pipeline.

be -- goals. acquisitions, and X our which be will continue really years will growth. on emphasis our there support So be overall of cost propel capital strategic help to within can There strong a will

continued So short expecting any as on through well. is but driving changes answer acquisitions focus not value

I like mixed relative It just, in some second the through understand my costs the Maybe experiencing seems trends segment, feels flowing the a you're seeing just a utility are transportation, of subverticals? the implications that bit steel these solar, some Okay. in in kind et implications from of I of short-term year. a as at a kind telecommunications, half of respects, lighting contributions guess, segment sort maybe it least little basis, second of the demand margins infrastructure a like bit to cetera. question, for within softer little of you're What on business to shift kind --

This one. -- The that take is you I'll Tim. Yes, are correct.

good Our in in sales his reduction segment. and Avner telecommunications still that muted. for commercial margins forecast remarks, prepared a Infrastructure said, as But said a the expects lighting -- with bit is

closer We be near first saw we to second the we expect the quarter results what the saw in quarter. record them versus in to

And that strength I'll of portfolio. our add the overall, is, to

commercial business. demand on we while we X the TD&S strong like see in have lighting, softness So might very in -- some mentioned, you area the

So support our continue helps busy plants strong and business, to driving has we're able that capacity use had to our us which business margins. our very keeping plants

As the of -- weeks. we mentioned, XX backlog a had our over of businesses lot

portfolio manage business we our our as proactively drive make to high-margin to able we're customers, support sure both but So well.

continue improvement. So see keep in to margin will those overall, businesses driving strength on and we

Wright next from comes Brian question Ross with MKS. Our

First of all, Avner. congratulations

on . not been Secondly, point having things, kind cost a are be that coming might of up the CFO final are vantage but have until opportunities your there but just off think areas wanted improvement from the like member, value any right, now? held being -- to of in coming there say table -- that from about the position, that

Thanks for question. your

a Board been with with several here a Day towards presented which strategy, during we've team, Investor So moving leadership our years, those lockstep goals. really the we financial over the last as

I put to the as role, a the it's and finance our area. a organization drive coming So I'm we can really improvements additional to very we the from larger together, the strategy -- finance value. Focused and use both customers. data, of to framework -- analytics, technology so lot together bring a drive lot I'll internally the CFO drive that revenue and

So overall, we and quality driving as earnings. XX%. we've continue in of of year the these on improvement working couple this continuing And quarters, in seen to our goal of

is So every shareholders, processes, quality to our something is for drive ultimately of at and and earnings that for continue and the us we'll improve of value. highly shareholder streamline profitability looking opportunity company important overall the

So on be is, they'll the for the to continue answer company. profitability yes, driving focused

And beyond was EMEA. color anything more rebound Is Or that project I pretty and July? wanted coming the you're get kind Eco much little on else of the expecting then just on there to there? reference a Is that? to in that that Great. the the

out That other vast It's not projects is and surprising wasn't have June It the any typical so to than moved majority just it projects. -- July. necessarily. of from different movements

shipping started in reform. is have We pipeline And already. strong very that our

on region going we're specifically. to the that all that in strength expect continued region that drivers market long-term So see to support based

Great. one, And if just X could. I last

that. that fourth the a to postulated in if could of that comes be on quarter what expected has just peers we've doesn't in kind here kind similar view the -- conceptually North out forecast how your side America. with I of of the is the irrigation to of kind ordering strong know But tax seen, fourth One make harvest sense it that? the And of quarter. quarter, you just advantages would given

Yes.

on a which our lot the closer as market the a yields, of is have So it lot more will the and is to cetera. September always actually we strong. see to harvest, drivers case, we And et are The will that actual depend expectation. get visibility

their X%, to the If the we've farm income, prices look years, X.X% at to and the we tax trying financials capital. the and of the at look years, third are be in as corn their last the in support XX will our to opportunities have you to high at at ROI planning, they seen as pivots going mentioned, do the net growers will it kind end at highest of highest -- they ROI. look invest X of and

is So But QX, again, on yield the have know, will or and see patterns to that we'll very wait as we've in predict. that the in the order be difficult there to as -- the that's just prior cycles. seen plays And for typical how expectation impossible you a out.

just we're to plays all So seeing how out. that going

Our next . from Nathan Stifel. comes with Jones question

start Farley wanted for agricultural Adam Nathan is I on This Jones. to on the margins.

steel You showed revenue possible margin lower running mainly -- really to strong expansion so P&L? prices declines? margins these are headwind how it just volume Is despite the the the given .

change an thirdly, doing in in better the pricing And less we we the operational on focused margin. multifaceted, you about efficiency. Tim. talk see are This contributing really is our helped quarter. And it's on in projects job I stronger right? the how is tell I'll continue we're quarter. good remarks, take to that talked the a to would you, projects second about, question. Less overall see I That income As us our prepared in in then margins international that about sales. second we operating deck talked

lot masked that I'll a came taking just the over productivity the operational all right? excellence the COVID. We're our we're getting better of last by done. several plan initiatives -- better that we've labor through we've as much but utilization, just years, out, add been we

multifaceted So mentioned, I continue it's to excellence the the as will pricing, operational with drive stronger margin.

any demand? mainly American market. lower would Is react the And given the pricing there if within And Have is, within pricing then gross North to industry? in up on any the pricing that? the of Okay. evidence how in agriculture, there following you to risk Valmont seen

you a is provide continue all has to kind on no proposition. same the ROI to no we take to and There's the a around reducing know industry leadership. reason we the really now based very pricing provide our by value And And And the And of very when it's pricing. it there's of think following strong strong I growers. Well, reduce pad. philosophy on value value kind in intention pricing. pricing we

So an expectation be on there should pricing. reducing not

from with Kansas comes City John question next Our Braatz Capital.

Avner, market but period there could in the mean, the quarter? you I -- in second was it in characterize -- was it of volume the a -- second of . was slowness picked of sort and sales up the -- in was the growth financing as of there half quarter the Brazil, weak said and second Brazilian half has first the quarter farmers You awaited the quarter?

Yes.

So that thanks for question.

Going into that as we also additional lot tailwinds half. But is the into the provides backlog of first that the our year, a we quarter, we throughout comes going -- for business. which financing through, going year, the the had supported significant had into the sales factor

very As loan. are. is some some And repay there other benefits of instance, mentioned, are for this -- actually program, favorable compared the we before back interest of you a of rate what these the to other couple options years

strong growth and So of is economy And on of population term, right? really important It The strong. very would overall land cetera. the is market very I with GDP and again, et focus we productivity, strong long And tailwinds. will all those part market the demands provide Brazil. Brazilian a

our about long-term goals. really and see do we're our strength excited continued So we to support Brazil to market, expect

vanilla? sorry, they whistles? Or all Do the the and plain -- bells more technology in Brazil typically come sales are with

adoption our they're at to if adding younger. irrigation Actually, age look journey we their They're growers high. the most look technology, more they're the overall, of you open and -- in -- rate part, overall actually sales. actually adopting they're I at Brazil, were to technology pretty is the the actually really for -- in profile, When

remote as continue expecting of irrigation see adding a the So of to agronomic pretty about monitoring the productivity we're with journey we grower suite Brazil control, level really insights. kind level to When our I'm you adoption. optimization, of we're there's excited the look market, pretty providing, good there. the And and of at that adoption

our we're expect products. beginning irrigation of to we'll do I technology journey, -- add at So the suite that to and the other our continue

in HR that for that other acquisition of similar domestically globally, is that looking business? The Okay. that you it elsewhere countries? business whether something type Is can Australia, they're type or -- One that last that be you're in, of question. is

growers we can we information a Day. of about has part a It cyclicality some is I And could shared also and irrigation the part well. we more we and the offset to recurring it's is overall. some like a What base which provide complementary on it our has margin during aftermarket Investor of Overall, other like high dealers aftermarket nature, strategy where Valmont. the overall big business, our that actually as for our profile. to more

So aftermarket both we're excited really about opportunities our actually of across segments.

We business well. have very strong and part telecom as a

we'll about part as really we're strategy. overall So I -- aftermarket and of our say of acquisition, would this on excited overall, focusing kind continue

Chris Our next question from Moore is Securities. with CJS

quarter. . end you the of was on did can maybe know don't I where directionally, give And the it backlog QX. quarterly after second talk at always a just you basis, you about

Yes.

-- did So back the put the.... at log Actually, $X.X we was it on in billion.

I -- got . missed it. it

strong So Majority TD&S strong our seeing really in demand. is of overall, we're infrastructure seeing in of has businesses. we're kind very part market see right, supporting and mostly business. the the market kind which portfolio, in drivers the that of what part And strong of backlog our of what .

just for that XX% growth the maybe my -- second, previously now, looking obviously, And the Helpful. on you're range. telecom, that it. in talked Got

down. Now the carriers are slowing

little thoughts bit there. a Just longer-term

XX of XX just to down thinking next get flat, feel it You be expect for what kind to slightly over you're the there. months, perhaps a

really basis, of and next real at look at and you increased data see when look years or expecting specifically X, macro consumption a you the didn't world -- level, we're to XG at -- kind it on be global drivers right? Yes. the we look the you If to the network the -- see change, over Well, covered so. continue by XG of population XX% long-term X

you a network, be to So same yes, -- we consumer, They're pause. much rollout going they adopt out initially, turns thought this a take there to reported different. is It their to and which this when they're spectrum little large earlier look they the impacted It by that we pretty they're at the build pausing. after how at look carriers. going a out. didn't that, interest well some just rate. at And the as of and and that of inflation continue always the would on to week, the actually We was impact be it Verizon the supports ROI, they and earnings, had kind will look exactly AT&T network

they to get now They spend their on money spectrum ROI. need the

densification. will continue invest to on they So

that growth thought. a of more several next slower to back of start will of little a cadence, kind the a seeing than So Expecting it go double-digit and we'll years. over more normal we

bit the on very positive, it a little but about a hiccup overall, fact they telecom little just down will and bit, kind really slow that growing. So continue a of of how excited there

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

Thank you today. joining us for

phone quarter. you next will speaking available be morning on next seven As again mentioned, or this our today's look later the forward for for playback by with call to website We days.