Valmont Industries (VMI) 2 May 242024 Q1 Earnings call transcript

Greetings, welcome to Valmont Industries, Inc.

First Quarter 2024 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,

Chief from good outlook Call. to Avner dynamics with our With Executive first summary Francis, and and will morning, Quarter a provide and performance quarter Applbaum, Industries' market priorities XXXX Chief brief Interim Tim This and and Earnings me for Officer; Officer. XXXX. morning. you, This year and Valmont Avner. updated Avner the Welcome of First President indications Financial Thank today quarter remarks followed first current Tim be for closing financial provide strategic results, by will our will our review Q&A. are

valmont.com. will for on available replay website live of webcast will later the the our A this call at and on accompany download the A from is available presentation be or webcast morning. site today's investors

note on disclosure at is the to in be this forward-looking today's call on read statements, presentation, Slide Please is discussion, subject today's call. to of end of X will outlined applies our that and the which full

updated e-mail with for and please releases information, Valmont's news latest up stay investors on sign our alerts to site. Finally,

website. social also channel Valmont and the to investors linked and follow We brands on on other parties our invite interested our media

With our that, call now Executive turn Officer, Applbaum. over to President the I would like to Avner Chief and

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

support area address relieved [indiscernible] we're are is system customers severe weather and irrigation extent but operations infrastructure recent facilities events. U.S., replacements. our I'm our everyone these not like not in to the extend by safe, Nebraska. that repairs We heartfelt to report and disrupted. dealers clear, yet any our Before have concerns and impacted to the to throughout discussing our I'd with The ready damage and local quarter first Central including employees of to the utility undamaged results, been our the are

performance. delivering XXXX, had achievements results. to and to strong expectations with significant our Now commercial a first start results and Slide solid that quarter X operational financial We've exceeded turning and

adaptable the the model, quarter our by and create around a success are and of Valmont Through performance, resilient we operating and market business grew company X%. to values XXX our this earnings dynamic through sales aligned core nearly strong more basis areas, strength we margins XX% conditions. Our decreasing our organization are guided this and focus diluted expanded we demonstrates per share more despite value the points

demand to execution, to operational expenses able This true was profitability Our markets. organization. reduced excellence what profitability. of from some to I us across allowed and effort in execute have commercial ability focus of a team environment I'm encouraged were on improve drive by our very SG&A we end lower and Overall, an proud am accomplish. the

organization, product operational across shared Our capabilities success including excellence. talent reflects and our development the core innovation,

Our legacy leveraging market on broad competencies exposure. build these company was a to built core with a resilient

strength demand The is evident is our balance in segment diversity strength the our Agriculture. as to helping Infrastructure results and in size first quarter of soft of our portfolio

by driven demand transition saw more notably to a multiyear the in and build business quarter grid. our continued strong investments Infrastructure, TD&S needed This in energy resilient

strategic generate Our and higher mix returns. our flexibility favorable drive footprint product to are helping investments to enhance in

continue demand yet also successfully business. funding to For production and in we even business Stable our grew example, IIJA our this benefit Transmission Distribution and has Substation as lighting quarter, but products. of increasing markets the transportation

muted to carrier markets expected, demand network normalize As support in expansion. Telecommunications as remains investments

be stable to Demand North America Turning but our generally line in soft in and to with expectations. continues Agriculture.

prices We resumed and weighing to causing in as compared were quarter be have challenging In quarter. see continue pivots Lower these capital report We that the lower, general in to are second Brazil, for continue them center to investment grower last the due pleased largely certain the crop shipments encouraged compelling we Egypt. and sentiment to muted during spring rates season by on a including to order growers. are to navigated profitability, market equipment. higher trend conditions year softness. of project irrigation gross this shipments effectively investments, defer delays International are selling

Slide shifting near-term X and to from to our long-term Turning view fundamentals. dynamics

both doubling increased growth data by increased manufacturing for Our batteries estimates. and from X to for plans. energy resiliency our chips, enhanced centers of data years as demand last have segment, expansion This XXXX of investment utilities are manage Investments in the year's technology increases in grid products. such several third electric industries megatrends, In needs with vehicles. high-demand set by our the rate infrastructure and by the over are for consumption capital growth demand increasing replacement next infrastructure to U.S. of extensive is electricity end markets their all year, multiyear rising a projections these Requested data driven supporting for Infrastructure drivers. and demand and multiyear transition, aging driving support megatrends for record AI's consecutive

increases timing our project While be agile needs. to customer the flexibility quickly of high footprint and rates movement can have for to in to interest evolving built certain lead rate approval customers, and we adjust

and also ready continued XG respond spending demand of financed Lighting global of is the environments, spectrum driven these telecom this deployment CapEx in demand rates, at following products to and to muted by along expansion. and our to Transmission XXXX markets, megatrends. benefit carrier multiyear the harsh services, projects In protects enduring corrosion with delivered stand all supported expect record funding, quickly compelling continues in We grow years IIJA high to transportation uptick and steel in TD&S from from coating stages customers typically which by latter and year, to by anticipated remain drivers. XXXX. stand

lower grower as Turning weather in impact larger especially Brazil. net crop to all and income and prices North in natural Agriculture. markets plus levels Projected pattern, farm sentiment, variation such America

[indiscernible] term, market XXXX. global change, Climate factors near in and remained remain scarcity, for are global growth key water to both growth for are America key demand favorable drivers the regions poised and sustainability growth our will the population demand soft projected Brazil drive several and While beyond concerns ag business, irrigation consideration to further a conditions in each geographic market long-term trends. irrigation security North bolster products.

pleased that for strong. project Our recently million market. we remains international projects to secured East have I'm new Middle share pipeline over $XX in

expect reducing utilizing of efficiency. inputs, key flood include this drivers dealer crop We in to technology, shipments This The is water footprint resource region well XXXX. from strategic shift to conservation, irrigation. shift agriculture improving Irrigation and seeing increasing and strong an complete for advanced and center most Valley overall productivity manufacturing support pivot these is to land positioned of aspects network. significant projects, our sustainable these specific

our broad diverse you see, with paying revenue in certain softness As off. are even and markets, streams can

We our built exposure have end around market our strategically capabilities. core

markets. us Our and enhancing across single less downturn a susceptible diversification our stability growth growth. strategy the market, makes demand is to in and aligned these This drivers profitability with multiyear any of consistency

to people. ties key our Slide These grounded Turning focus foundation Each last priorities areas. with model, to highlight our the in shared back and year. this like the I'd are for strategic quarter, to are creation. X. to our business priority value which Starting Valmont we

innovation. market quarter's leadership fosters underscore drives we're This accomplishments one high-performance the that and culture building,

on We deliver of towards continuous our live core our excellence. values continue passion, and journey integrity improvement to results as we

extraordinary their thank team to efforts. for our want I

Next is on return capital. invested

competencies highest ROIC. on our to ensures edge, where sharpening the creation. they We core are focus enhance we our for maximum This allocating competitive value maintaining resources are generate returns

can Infrastructure, solution In offer a as last into Finally, the across and to a endure leader conserve our sustainability long customers. we're products innovative climate, is that embedded resources we the in our future. changing markets, our sustainable operations trusted and advancing

XXX-kilowatt distribution low-carbon growing transmission and of with to processes Pole Our operations. It this in our trackers using to support needs Utility facility's this was Facility commitment. to award-winning utility poles Indiana, solar our Concrete their electricity while own solar array fully usage, commitment annual demonstrates the our goals. built Bristol, sustainable sustainability with offset customers highlighting materials aligning produces A and

and the costs. agriculture, increasing reducing enhances on productivity technology by In lab labor efficiency lowering farm inputs,

developed have deliver map a our value to road Our to tech fully exceptional integrated teams customers.

embed technology forefront integration actively progress This edge competitive engaging pleased are future. with smarter with AI capabilities more core the about our delivering enabling products. teams of analytics the our distinct industry, Valley and our strategic by and efficient irrigation our I'm to predictive learning and a We very positions at machine excited engineering into solutions.

To and our value summarize, on despite we positive our have results delivering headwinds continue had to stakeholders I a focus excellence that am drive strong start for markets. impressive to XXXX, operational creation some outcomes. in will confident demand

outlook. for updated over turn it financial an I'll and Now to our review first XXXX quarter Tim

Thank and good everyone. Avner, you, morning,

million per have $XXX.X to expenses and margins first $X.XX XX% our Turning on structure quarter earnings of to having XX.X%. are increased results. income Operating decreased million The year-over-year. $XXX.X taken favorable and of increased meaningfully reduce X% Diluted improved XX% we cost our and steps Slide year-over-year. impact clearly sales to a X Net operating profitability. nearly control share to

Solar, expenses. than decreased utility Operating pricing goods to driven lower Turning were million to demand portfolio improvement continued Higher The significantly segments cost volumes. operating of of strategies, increased successful including TD&S in $XXX.X actions to offset or market income commercial XX. delivered volumes lower Infrastructure and X.X% across sales by by was year-over-year. million pricing Slide sales. execution, of net the $XXX.X Telecommunications SG&A supported in margins the and by on more and strong improve XX.X% sold, favorable

We enabling manufacturing to in of increase us also production strategic facilities, benefits from realized products. our investments higher-margin

acquisition the year. more of backlog. America, the levels XXXX Slide lower selling sales first million backlog of irrigation elevated compared $XXX.X by to Average North year-over-year. delivery Brazil last to XX. In benefited primarily were in of Agriculture the lower decreased quarter as compared were due slightly sales. Moving also first impacting sales International from to driven and prices more Middle decreased East as equipment the system volumes sales or softer SG&A sales normalized ongoing of products and lower partially lower. from XX.X% to lower benefit Operating million income of sales quarter impact to XXXX, the lower than by The sales. offset were $XX of net contribution gross Improvement project the profit the HR soybean in decreased were grower lower margins of prices volumes. XX.X% offset sentiment. expenses

flows Turning XX. Slide on and liquidity to cash

$XXX cash operating cash. we $XX.X million, the approximately ended were quarter quarter First in and with million flows

earnings X.Xx. through debt Total diligent cash growth strong adjusted within was XXXX expect of throughout X.X working flow X.XXx desired to range management. capital EBITDA our and of We to

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

structures. of Turning customer to response demand sites cornerstone performance Slide million. and and in A is the first capital multiple CapEx spending XX in elevating businesses. for rising a $XX for resilience to deployment. was Strategic at quarter transmission increasing Capital distribution standout spending concrete, summary our is of a initiative capacity

of and flexibility our the increased long-term our operations, strategically goals. maintaining These investments improved targeted have performance lines. across leading consistent meeting our our edge to a We competitive product to more underscore financial and dedication

adjacencies Our our our strengthen targeted existing expand this presence focused is to our capabilities sharply that growth. approach our or ensures acquisition year our on sustainable, that portfolio strategy would promote investments natural markets. This profitable market and enhance addressable core

balances capital investments cash with shareholders. approach Our deployment growth returning to

completed we of $XX accelerated million shareholders returned capital the program million the $XXX repurchase quarter, share approximately This of XXXX. and commenced in fourth quarter to through that dividends

updated I Slide on will share XXXX our outlook shown now as XX.

previous down X% flat. to sales improvement an of to up from net down expect X% our to be X.X%, We guidance

Turning to the segments.

market In unchanged lower prices income current for Agriculture, year. volume Our this is farm as expect year softness growth we projections. due Infrastructure continued to grain this mid-single approaching we and expect outlook digits

previous However, prior visibility a to compared segment of on XX% anticipate and better remain pricing and to strategies forecast year, decline. between an be sales of we projects and XX% our now solutions. We improvement international down increasing our adoption into from XX% technology focused targeted have XX% to

of be range Our expects to $XX.XX $XX.XX. share earnings updated to diluted outlook per in the

half also per second slightly this math, during implies share earnings a first the the to results. quarter below year. expect of We lower second this quarter Doing EPS XXXX be quarterly

but the compared to which through full and as gross moving first margins the year to opportunistic Infrastructure, In not XXXX be purchase. quarter, walk me from high steel an as likely favorable full you improved profit anticipate we benefited pieces. product Let mix year

quarter. projects pressure our higher, recur we positive second although half margins is compared by year. experienced Agriculture, the the will higher factors partially first be we mitigated reduced margins, the In level to in assumes international same not this of the mix While are a to last these always year expected of during striving drive at will SG&A expenses to guidance segment

adjusted of quarter the half on second be operating basis. was expect to an We XX.X% fourth segment XXXX, similar margins which to

Our meaningful be to last forward. moving changes will we've outlook percentage management of ensure effective consolidated also assumes SG&A process as reflecting than cost implemented net a sales year, better

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

Thank you, Tim.

highlight in XX. closing, want effectiveness focusing what actively on to We're Turning the navigating we core and the In managing Slide our through market once control current again can of I to dynamics. commercial Valmont team competencies. excellence

We a global across forward our strong to and are demonstrates on and our for not creating operations, footprint positioning level proactively cycles, and previous us our the progress strength across we've portfolio resilience culture sustained that of while growth, support productivity driving success. agriculture achieved maximize This generation. returns flow financial investing taking momentum steps in was down enhance a made in high-performance demonstrating cash

and by markets. we our to to meet our targets Infrastructure shareholders. mega expand actions, lasting to further volumes trying portfolio our value well in diverse are long-term and deliver us positions Supported With telecom in as margins Agriculture, trends these recover and agriculture long-term financial ongoing

will now Renee. back turn call the I to over

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

Our the Instructions] first [Operator Moore with Chris question CJS comes line of Securities. from

start Maybe side. the on ag I'll

'XX. think as an as smaller for Brazil think, to Are roughly, 'XX international was Or might So is estimate 'XX the you What's XX% at be 'XX? anomaly? for looking it reason ag in well? of in I that Brazil fair

right fact one. the for attributed will segment. markets. more it percentage Brazil international outlook we for we'll market This project percentage in Brazil bullish I And we they're is And sales that. prices, for watch the as see we work item overall, Brazil. improve, the is that partially We continue expecting to year that as long-term how But we'd do market. full watching what prices perspective, from a of the don't we're comment to of take the on down for on correlates to we're That's rebound soybean very the there is the the Tim. in main the a XXXX, The that of those as thing that a expect total. to best are typically But expect much us. total

this is Chris, Yes. Avner.

add that Let well. me as to just

into actually, for days Agrishow and we're just in X we're coming that the Brazil, now So -- show. off

the from seeing that So they knowledge a impressed the the and our our And the them. and the there. we're ROI at we expertise are they takeaway team feedback actually that technology -- maybe getting initial and understand indication is that current is lot that the customers the at that new value biggest our encouraging. getting And to the the a of which around this from is booth, feedback we're is with we're customers customers, are of products very lot the getting [indiscernible] offering, getting the to point they're from that

the there the has to pivot in growing long So there's much look land at overall, the when term, opportunity of we by ROI. and great The lot conditions very -- strong pivot There's be we're encouraged a irrigated. Brazil. a

just see soybeans impact So EBITDA the us. very on year on a margins an year based Tim Brazil overall, coming strong has for outlook was will softness backlog. what said, this But off for long-term their we

Got it. we'll Maybe with Very helpful. ag. stay

to So percentage is XX points. in much do you down And ag North expected versus XX be internationally look that How America? different equation? at the to parts parts

along I'll Chris, continue line. this Yes,

the at part then North lower and higher. be America that of I the would the range end say So at international the point, this would would at be the

And market America, market. orders overall, the conversation around pleased in the we're last than are in International, been as at strong to underlying actually stronger the we're see XX%. that said is that, XX%. fundamentals closer So has they've year. North our North North we America And America, overall, to early --

pulse But market. So continue Clearly, by watch to our keep we're watch on at projections. -- keep we that the prices. the we'll crop are and right a is levels, we'll encouraged order the rates the corn now, just lower seeing we'll USDA

Got it.

On revenue? I piece less is than should the revenue, -- parts that is Or overall revenue at the going of -- that? parts on that how look down the the specifically,

the around it's overall, same. that say I'd

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

on purchase the guess I opportunistic versus wondering And favorable if telecom around quarter, how a the pieces the to unpack margin infrastructure sort margin be negative net wondering steel moving the did mix. you in just of guess I segment? positively the mix? could this I'm just impact much Wouldn't weaker a also business that margin

one. Brent, I'll it's take Tim. that

profit first Infrastructure are of the we all, of gross XX.X%. First with quarter very pleased margin

In the terms margin. quarter, items, improvement first that on the of of purchase steel did [indiscernible] most opportunistic as the in the it X have effect to pertains

that terms is saw favorable mix And of work and margins, making last few where and strong factor that to it's resources pleased it of an a right required seeing within the gross of add modify course, drove TD&S. substation facilities. second very really all In pricing profit manufacturing investments to of our processes. shift produce strategic that and product engineering -- we've our be of the to of our structures acceleration some able required demand distribution the in strategy in more years now. I'm flexibility in design some been the teams better the our to We we're is with

more profile is year to help segment. this that the that the we margin what is infrastructure segment you that in would or -- of adjust more our terms favorable is shift history to the first -- right, the are rest for the product margin. up quarter, that expect to of structures distribution in So see saw out here going say second helps line factor we telecommunications of But and total substation

is And this Avner Yes. here.

right able fact look when year-over-year accretive to to against margin. increase at the But when -- that telecom and said, earnings Just kind of down broaden and execute at you today agriculture Valmont these strength is you're your our about -- we've you are of has down portfolio, a said look overall, we is testament exactly earlier Tim able been telecom like our dynamics. what to the it market

with pleased very we're So QX results. our

contingent the could I awards book maybe, pipeline the second better Yes. question the international on be Is secured if Impressive be guess the sure. project new other you Middle [indiscernible]? for winning project opportunities in and awards the would out just outlook you about talk Avner, to East. And the awards you other may back [indiscernible] on pursuing. just Agriculture there new on

Absolutely.

our when a mentioning the there's in need million project project I our always of continue project We're specifically pivot at sustainability when to So our region. just solidifies pleased at shows We But I we've point. quarters, the look or that any focus this award we $XX and bank question, the pipeline. were additional about and been large awards. business. region, strong strong work, which last project, overall, some timing. of over we pushed Egypt your into shipments to the have several and that food could on look And compelling It's factored very with fact course the pleased that of don't at very normal and position security in XXXX But that the we the that in we of the region, be on ROI this into continue that guidance. our on

the to ability to on forecast. our very XX% agriculture with guidance So for confident and comfortable of down execute we're XX% our overall with that

Brian line Blair. from the comes Instructions] William Drab next Our with [Operator of question

what repeat some said. On dynamics or you the a maybe point wondering on -- this put just year. you for margin of finer could I'm the what if

quarter expectation is step XX.X% So it might we're the and that quarter down in the into sounded in down first back slightly then maybe -- like margin gross the second that can in put the half can, on year. a should XX% the the year? you range gross the of extent the To finer margin point for for we what second you expect

one. it's take Yes. Brian, that Tim. I'll

So gross Infrastructure the an in full profit year when to margin to segment compared in its the total, XXXX. we improvement see expect year of full

purchase less opportunistic steel effect quarter. So the is in that of the second doesn't is in the of what we the quarter that first -- that means saw

versus profit for for the gross of margin So margin make the see profit will QX. in slightly we'll math work margin the see And then the is profit a why a the gross better reduced we gross XXXX. second full half year year slightly in reduced to

Okay. you for And What was change idea I think. L&T directional -- or volumes the volume guess, subsegments? L&T some much affected give down, All to I TD&S, to, guess because you at some how extent one on up right. -- L&T. but sorry, how no L&T And TD&S, you us that are And you looking -- was you have gave us commentary then gave didn't willing I'm that the I these of I for tell much pricing L&T. what can

here revenue with So total I what What don't subsegment. do know X% down volume did to for think there? the

Sure.

So was subproduct being focused at and the continue of we chose down some slightly pertains Valmont international small first currency. deselection million won't on some growth. $X that's very unfavorable of profitable But first deselection bit little as to rest exit year. product to of we for really main volume did do very That's of driver the a then markets, very really, the tied some quarter, selective why small as for we flat. We was quarter the of our look is pricing did to it of about have lines. That lines. the L&T, was decrease That for the some

of overall our segments. little Yes, more and color let bit just kind to me a add

specifically, the L&T we're seeing market. trends that So the following it's macro in

market. look So with if transportation that in we're conjunction in strength the spends, seeing the trending and road it's infrastructure at you --

in past. also not that On the We mentioned where the some side, at lighting are we seeing areas level. it's accruing that

of we we has throughout build some year. that. that And expected track and we business, our drivers, overall, the that strong softness in impact expect does and the L&T But Some residential the space.

spending well. by the as Telecommunication, the that soft addressed of large we will CapEx Telecom be some carriers. following

in reduced to QX, and their XX%. just You'll their XX%, spend CapEx in earnings both that listen AT&T Verizon

go our we business. to telecom usual. what to impacting control to going back But going as we're can business That's they're control. So

such increased our We offering. term, telecom continue enhance market -- to with Ericsson, has partners the product work geographic our the again, our it's reach, as very And positive. long

you future. look the XX% of over in stats, expecting XG some of at population to just If the cover the

side. this telecom year be positive So L&T transportation will the soft. on

gives Infrastructure, you color. range So close be. that look overall, that But to additional at is getting expecting when you hopefully, that to mid-single-digit we're where

Our next question line with Jon Kansas comes of Capital. the from Braatz City

Avner, maybe down mentioned you America? or mentioned that bit sense that pricing better was little a irrigation in Tim North a between -- Brazil and trying versus get to in pricing

Okay.

take I'll question. So that

So -- America, in we're that in we're the when I there, actions pricing targeted market maintain our taking doing look maintain strategic. markets at North our to some what very few strategy share it's around very to overall. It's

around the pleased regions, and is is of of like for these I the term pricing America. In continue we're we're projects But said, on you'll order with is markets. long some monitoring. your seeing like get But just less larger approach right in better both on would very now, that very taking there. say, North So the And intake impact overall, pricing mix, scale is we'll could on and And earlier, the both strategic we're in you the the positive dynamics regions what Brazil. I that do I that Brazil, [indiscernible] as us. said more

you buyers the complement pivot? purchase seeing a solutions they -- this tighter. of in purchase current market bit been full the a conditions Avner, when Are technology have maybe little

Yes.

sophisticated suite actually say the to yes. the the -- is selling that we answer would overall, So and our stronger full pivot I see when that, of and The what buyers a and we and value proposition gives dealers is growers, technology. are they tech

SG&A much of from -- Prospera. how cost question. that it saw much goes How you you costs of Okay. And Prospera? took the beyond nicely. controlled been of we last took savings what year last with actions goes because the And that the maybe beyond have actions

this Well, Tim. is

full Let that -- beyond agriculture infrastructure, a touched right? corporates. to that. answer was we me did It and Prospera, program It try realignment was

is that a year cost. savings will was of that. in of So lower way year that about beyond right And we're this on was $XX million basis. be now it What seeing as it sales percentage SG&A SG&A approximately a think another year our is fiscal this to be than consolidated XXXX our will

Yes, the what very another is organization just with And add leaner, been and QX execution, more that. organization that that our execute have -- SG&A important we here long-term we've focused much an did let an but is is to that driving actually, me just and we we able strategy. on and very to our important We're I'll results add. savings, have very it's pleased in -- that is

and So while able also but focused organization, well reduction a get when a get lean we P&L, -- we the and it's double strategy. more get benefit in the we we're execute to our on

from Drab William with Brian the Blair. comes line next question of Our

you just And if up missed ask sales this, can business. TD&S on the favorable I said was as guess, fast one can to take trying notes sorry there. for I'm I if wondering TD&S I was I follow-up and pricing but total Just as X%,

would is businesses expect you up less one XXXX is and Substation also in growing I'm is is I volume business, that this pricing how [indiscernible] -- of doing stronger well. your X%. up, reconcile mentioned So mean this than business to is And quite trying that then I Distribution

be we core insight should get XXXX for structures the So expecting just what volume business trying pricing? into terms and of in Transmission to in some large

Sure.

there. with and also of on pricing the index from shift a saw the of transmission the Brian, steel the the you couple smaller well saw the But right, that. heard. favorable smaller structures, negative to tied that mix mix as things from steel customers. to structures A alliance we on you're what our we distribution pricing pricing So deflation contracts as Because of substation,

still higher to we see So were pricing. steel overcome able deflation and that

the see we see get well. year, increase continue the adjust of rest with able smaller more the As we're And an still were through for demand expect of we through that and structures in TD&S. we in will Again, good transmission to our produced. structures we to pleased year while volumes we the accelerate as quickly the very how

strong to top our the customers and to industry structures, very and that that very product continue steel grow products. And in suite one support basically see going give we're seeing a on and of That that, no been the strong nicely, been utilize focus share So the seeing very I'm about up, and asked for -- well flexibility more Transmission we're there, all you we've and growing there's around our the supporting market, that whole TD&S. demand. bit but for use structures, little on market market. the in us, can is business. also that data concrete do growth excited about market else we're with of growing And to coming of with us area, substations centers what business we're our our our digits. very the in are footprint color distribution, offering high is areas in actually that favorable the all of are that we doing able demand glad that in AI, in that single the And to and our

a there's I of that it moving lot here. just sounded Can parts Okay. ask --

business pricing first structures, conclude? that transmission was the I that larger in for the quarter, but So volume the in to Is up guess was down, structures larger specifically. fair

TD&S break don't that you totality. tell in was up I will We that volume I mean out. in

clear, it pricing and that our I value customers, to reducing the we're pricing the And the to provide make right? want around we that there's We're is not value We're pricing. there. providing for pricing Yes. significant specifically mechanism.

So the is it's around pricing the around [indiscernible]. what's all mechanism

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

today. us you joining Thank for

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

subsidiaries, These services, the that the general the financial performance overall periodic by contain market of other circumstances, new such reports and and availability operating and Private and of uncertainties differ acceptance Securities economic and filed domestic pricing, the risks, conditions, and policy as implied conditions, will governments. from Litigation factors and the other slides company Securities geopolitical company price could and meaning acceptance accompanying with unknown expressed disclosed involve of the availability results discussion factors Such competitive actual changes and international Exchange actions forward-looking of within the and industries of products company's statements served contain oral of results conditions including industry future as such known efficiencies, by integration market its or Reform Act and statements, the of the market materially of to Commission environments, statements and the the affecting economic company the XXXX. acquisitions materials, raw cause and and results, in and well risks foreign domestic product products, and business

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or results The company occurrence unanticipated or these of future of any undertake, that made events obligation statements any reflect anticipated declines the events. reflect to publicly to the circumstances does revisions not the may be date to release and after of specifically forward-looking or statements any to such

disconnect for lines This concludes may this your participation, and you thank you time. today's We teleconference. at your