Valmont Announces Capital Allocation Priorities
Valmont Industries (NYSE: VMI) has announced significant updates to its capital allocation strategy, focusing on growth acceleration and increased shareholder returns. The company's Board has approved a $700 million share repurchase authorization and a 13% increase in quarterly dividend to $0.68 per share ($2.72 annualized), payable April 15, 2025.
The company plans to allocate approximately 50% of operating cash flow to high-return growth opportunities, including strategic capacity expansion in the Infrastructure segment and strategic acquisitions. The remaining 50% will be directed to shareholder returns through repurchases and dividends. Valmont intends to maintain its Investment Grade credit rating with a long-term target for net leverage of 2.5X or less.
The new share repurchase program, representing about 10% of current market capitalization, has no expiration date and will be added to the existing authorization, which had approximately $66 million remaining as of December 28, 2024.
Valmont Industries (NYSE: VMI) ha annunciato importanti aggiornamenti alla sua strategia di allocazione del capitale, concentrandosi sull'accelerazione della crescita e sul miglioramento dei ritorni per gli azionisti. Il Consiglio di Amministrazione dell'azienda ha approvato un autorizzazione al riacquisto di azioni da 700 milioni di dollari e un incremento del 13% del dividendo trimestrale a 0,68 dollari per azione (2,72 dollari annualizzati), pagabile il 15 aprile 2025.
L'azienda prevede di allocare circa il 50% del flusso di cassa operativo a opportunità di crescita ad alto rendimento, comprese espansioni strategiche della capacità nel segmento delle Infrastrutture e acquisizioni strategiche. Il restante 50% sarà destinato ai ritorni per gli azionisti attraverso riacquisti e dividendi. Valmont intende mantenere il proprio rating creditizio di Investment Grade con un obiettivo a lungo termine per il leverage netto di 2,5 volte o meno.
Il nuovo programma di riacquisto di azioni, che rappresenta circa il 10% della capitalizzazione di mercato attuale, non ha una data di scadenza e sarà aggiunto all'autorizzazione esistente, che aveva circa 66 milioni di dollari rimanenti al 28 dicembre 2024.
Valmont Industries (NYSE: VMI) ha anunciado actualizaciones significativas en su estrategia de asignación de capital, enfocándose en la aceleración del crecimiento y el aumento de los retornos para los accionistas. La Junta de la compañía ha aprobado una autorización de recompra de acciones por 700 millones de dólares y un aumento del 13% en el dividendo trimestral a 0,68 dólares por acción (2,72 dólares anualizados), pagadero el 15 de abril de 2025.
La empresa planea asignar aproximadamente el 50% del flujo de efectivo operativo a oportunidades de crecimiento de alto rendimiento, incluidas expansiones estratégicas de capacidad en el segmento de Infraestructura y adquisiciones estratégicas. El 50% restante se destinará a los retornos para los accionistas a través de recompras y dividendos. Valmont tiene la intención de mantener su calificación crediticia de grado de inversión con un objetivo a largo plazo de apalancamiento neto de 2.5X o menos.
El nuevo programa de recompra de acciones, que representa aproximadamente el 10% de la capitalización de mercado actual, no tiene fecha de caducidad y se añadirá a la autorización existente, que tenía aproximadamente 66 millones de dólares restantes al 28 de diciembre de 2024.
Valmont Industries (NYSE: VMI)는 성장 가속화와 주주 수익 증가에 중점을 둔 자본 할당 전략에 대한 중요한 업데이트를 발표했습니다. 회사 이사회는 7억 달러 규모의 자사주 매입 승인과 분기 배당금을 주당 0.68달러로 13% 인상하기로 승인했습니다 (연간 2.72달러), 지급일은 2025년 4월 15일입니다.
회사는 운영 현금 흐름의 약 50%를 인프라 부문에서의 전략적 용량 확장 및 전략적 인수와 같은 높은 수익의 성장 기회에 할당할 계획입니다. 나머지 50%는 자사주 매입 및 배당금을 통해 주주 수익으로 돌아갈 것입니다. Valmont는 2.5배 이하의 순 레버리지라는 장기 목표를 가지고 투자 등급 신용 등급을 유지할 계획입니다.
현재 시장 자본금의 약 10%에 해당하는 새로운 자사주 매입 프로그램은 만료일이 없으며, 2024년 12월 28일 기준으로 약 6,600만 달러가 남아 있는 기존 승인에 추가될 것입니다.
Valmont Industries (NYSE: VMI) a annoncé d'importantes mises à jour de sa stratégie d'allocation de capital, axées sur l'accélération de la croissance et l'augmentation des rendements pour les actionnaires. Le Conseil d'administration de la société a approuvé une autorisation de rachat d'actions de 700 millions de dollars et une augmentation de 13 % du dividende trimestriel à 0,68 $ par action (2,72 $ annualisés), payable le 15 avril 2025.
La société prévoit d'allouer environ 50 % de son flux de trésorerie d'exploitation à des opportunités de croissance à fort rendement, y compris des expansions de capacité stratégiques dans le segment des infrastructures et des acquisitions stratégiques. Les 50 % restants seront dirigés vers les rendements des actionnaires par le biais de rachats et de dividendes. Valmont entend maintenir sa notation de crédit Investment Grade avec un objectif à long terme de levier net de 2,5x ou moins.
Le nouveau programme de rachat d'actions, représentant environ 10 % de la capitalisation boursière actuelle, n'a pas de date d'expiration et sera ajouté à l'autorisation existante, qui avait environ 66 millions de dollars restants au 28 décembre 2024.
Valmont Industries (NYSE: VMI) hat bedeutende Aktualisierungen seiner Kapitalallokationsstrategie angekündigt, die sich auf Wachstumsbeschleunigung und erhöhte Aktionärsrenditen konzentriert. Der Vorstand des Unternehmens hat eine Genehmigung zum Rückkauf von Aktien in Höhe von 700 Millionen US-Dollar und eine Erhöhung der vierteljährlichen Dividende um 13% auf 0,68 US-Dollar pro Aktie (2,72 US-Dollar annualisiert) genehmigt, zahlbar am 15. April 2025.
Das Unternehmen plant, etwa 50% des operativen Cashflows in wachstumsstarke Möglichkeiten mit hoher Rendite zu investieren, einschließlich strategischer Kapazitätserweiterungen im Infrastruktursegment und strategischer Akquisitionen. Die verbleibenden 50% werden den Aktionärsrenditen durch Rückkäufe und Dividenden zugewiesen. Valmont beabsichtigt, sein Investment-Grade-Rating aufrechtzuerhalten, mit einem langfristigen Ziel für die Nettoverschuldung von 2,5x oder weniger.
Das neue Rückkaufprogramm, das etwa 10% der aktuellen Marktkapitalisierung ausmacht, hat kein Ablaufdatum und wird der bestehenden Genehmigung hinzugefügt, die zum 28. Dezember 2024 noch etwa 66 Millionen US-Dollar hatte.
- New $700 million share repurchase authorization approved
- 13% increase in quarterly dividend to $0.68 per share
- 50% of operating cash flow allocated to growth opportunities
- 50% of operating cash flow dedicated to shareholder returns
- Commitment to maintain Investment Grade credit rating
- None.
Insights
This comprehensive capital allocation strategy represents a significant shift in Valmont's approach to shareholder returns and growth investment. The $700 million share repurchase authorization is particularly notable, representing approximately
The balanced 50/50 split between growth investments and shareholder returns is strategically sound. The growth-focused portion prioritizes the Infrastructure segment's capacity expansion, which is important given the potential tailwinds from increased infrastructure spending and grid modernization initiatives. This positions Valmont to capitalize on secular growth trends while maintaining operational efficiency.
The commitment to maintaining an Investment Grade credit rating while targeting a 2.5X or lower leverage ratio provides important financial flexibility. This conservative approach to leverage, while still allowing for temporary increases for strategic opportunities, demonstrates prudent balance sheet management. The flexibility to pursue larger, high-impact acquisitions without compromising financial stability is particularly valuable in the current market environment.
The new authorization's open-ended timeline and flexible implementation through various purchase methods (open-market, Rule 10b5-1 plans, private transactions) provides management with tactical advantages in execution. The addition to the existing
This capital allocation framework effectively balances growth investment with shareholder returns while maintaining financial discipline. The strategy's success will largely depend on the company's ability to generate projected cash flows and execute on growth initiatives, particularly in the Infrastructure segment where capacity expansion investments are planned.
New
Increase of Quarterly Dividend to
“Valmont anticipates generating significant cash flow in the coming years as we execute our strategic growth and margin expansion initiatives. We are pleased that our Board has approved a
The capital allocation priorities are intended to present a balanced approach to maintaining disciplined investments in organic and inorganic growth opportunities while delivering meaningful capital returns to shareholders over the next three to five years. These priorities are expected to be supported by the Company’s projected cash flow generation.
Key features include the following:
-
Approximately
50% of operating cash flow allocated to high-return growth opportunities, focused on:- Capital expenditures for strategic capacity expansion, primarily in the Infrastructure segment, to maintain and increase manufacturing output and efficiency while driving innovation to better serve customers
- Acquisitions that strategically augment the Company’s competitive position, with a focus on sustainable growth and premium returns on invested capital (ROIC)
-
Approximately
50% of operating cash flows will be allocated to shareholder returns through the form of share repurchases and dividends. The Board of Directors has approved the following steps to enable this goal:-
A new
$700 million 10% of the Company’s current market capitalization -
A
13% increase in the quarterly dividend to$0.68 $2.72
-
A new
- As part of its capital allocation framework, the Company intends to maintain its Investment Grade credit rating, with a long-term target for net leverage of 2.5X or less, while capable of temporarily flexing leverage higher if the opportunity for exceptionally impactful, larger transactions arises
The Company is authorized to repurchase up to
The Company’s goal of returning
About Valmont Industries, Inc.
For nearly 80 years, Valmont has been a global leader that provides products and solutions to support vital infrastructure and advance agricultural productivity. We are committed to customer-focused innovation that delivers lasting value. Learn more about how we’re Conserving Resources. Improving Life.® at valmont.com.
Concerning Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions made by management, considering its experience in the industries where Valmont operates, perceptions of historical trends, current conditions, expected future developments, and other relevant factors. It is important to note that these statements are not guarantees of future performance or results. They involve risks, uncertainties (some of which are beyond Valmont’s control), and assumptions. While management believes these forward-looking statements are based on reasonable assumptions, numerous factors could cause actual results to differ materially from those anticipated. These factors include, among other things, risks described in Valmont’s reports to the Securities and Exchange Commission (“SEC”), the Company’s actual cash flows and net income, future economic and market circumstances, industry conditions, company performance and financial results, operational efficiencies, availability and price of raw materials, availability and market acceptance of new products, product pricing, domestic and international competitive environments, geopolitical risks, and actions and policy changes by domestic and foreign governments. The Company cautions that any forward-looking statements in this release are made as of its publication date and does not undertake to update these statements, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250218834640/en/
Renee Campbell
renee.campbell@valmont.com
February 18, 2025
Source: Valmont Industries, Inc.
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