Valmont announces executive separation agreements

Valmont Industries, Inc. (NYSE:VMI), a $6.4 billion market cap company with a "GREAT" financial health rating according to InvestingPro, has finalized separation agreements with two former executives, as disclosed in an 8-K filing with the Securities and Exchange Commission today. The agreements outline the terms for the departures of John T. Donahue and Diane M. Larkin, whose executive roles were previously eliminated on April 29, 2025.

Under the terms of the agreement, Mr. Donahue will remain employed with Valmont until December 27, 2025, in a non-executive advisory capacity. He will continue to receive his base salary and health benefits until the end of his employment. With a strong current ratio of 2.26 and liquid assets exceeding short-term obligations, the company is well-positioned to meet these commitments. Additionally, he is entitled to a cash severance according to Valmont’s policy, continued vesting of previously awarded restricted stock units and stock options, and participation in short-term and prorated long-term incentive plans, with potential payouts by March 15, 2026. Any unvested stock units and options as of December 27, 2025, will be forfeited.

Similarly, Ms. Larkin’s agreement stipulates that she will also remain employed until December 27, 2025, receiving the same benefits as Mr. Donahue, including base salary, health benefits, cash severance, and participation in incentive plans. Her severance includes 20 weeks of her base salary plus an additional week for each year of service (5 weeks).

The agreements include standard confidentiality and cooperation clauses, and the executives have agreed to certain restrictive covenants. The detailed terms of these agreements are included in Exhibits 10.1 and 10.2 of the filing.

This filing follows Valmont Industries’ corporate restructuring, which led to the elimination of certain executive positions. The company, known for its fabricated structural metal products, is based in Omaha, Nebraska, and is incorporated in Delaware.

The information provided is based on Valmont Industries’ SEC filing and reflects the company’s commitment to transparency during corporate transitions.

In other recent news, Valmont Industries reported its Q1 2025 earnings, which showed a slight miss in both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $4.32, just below the expected $4.35, and revenue of $969.3 million, which fell short of the anticipated $976.04 million. Despite this, Valmont maintains a strong backlog of $1.5 billion, with significant growth in the telecom sector, driven by a 30% surge due to 5G upgrades. Stifel analysts have raised their price target for Valmont to $345, maintaining a Buy rating, citing the company’s resilience and strategic initiatives in managing tariff impacts.

William Blair analysts upgraded Valmont’s stock to Outperform from Market Perform, reflecting confidence in the company’s ability to handle tariff-related challenges. Valmont management clarified during an earnings call that products manufactured in Mexico using U.S.-sourced steel would not be subject to a 25% tariff, alleviating some concerns. The company has projected that the impact of tariffs on 2025 earnings will be minimal, thanks to strategic efforts to mitigate these effects.

Valmont’s international agriculture projects are performing strongly, helping to counterbalance challenges in the North American agricultural market. The company is also focusing on long-term trends and cost optimization initiatives to drive future growth, projecting full-year net sales of $4.0 to $4.2 billion and EPS guidance ranging from $17.20 to $18.80. These developments reflect Valmont’s strategic positioning and proactive measures to navigate market complexities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.