Valmont Raises Outlook as Infrastructure Growth Accelerates
Second-quarter net sales reached $1.119 billion, up 6.5% from a year earlier.
Valmont Industries (VMI), the infrastructure and agriculture equipment maker, raised its full-year outlook after stronger utility and coatings demand drove second-quarter growth.
Sales growth accelerated slightly to 6.5% from 6.2% in the first quarter, while revenue increased 8.7% sequentially. The sales mix shifted further toward Infrastructure, which accounted for 78.4% of the quarter’s sales.
Revenue rose to $1.119 billion from a year earlier. Diluted earnings increased to $6.14 a share, up 25.8% from adjusted earnings of $4.88 a share in the year-earlier period.
Infrastructure sales climbed 14.8% to $878.9 million, accelerating from 14.1% growth in the first quarter. North America Utility sales rose 33.9%, helped by favorable pricing and higher volumes, while North America Telecommunications remained under pressure from moderating carrier spending.
Agriculture sales fell 15.8% to $243.7 million as international sales dropped 28.9% amid disruptions tied to the Middle East conflict. Favorable pricing and lower costs helped the segment’s operating margin reach 16.5% despite the volume decline.
Companywide gross margin slipped to 30.5% from 30.8% in the first quarter. Adjusted operating margin was 14.8%, an expansion of 130 basis points from a year earlier, as pricing and volume gains partly absorbed higher material costs.
Valmont now expects 2026 sales of $4.30 billion to $4.45 billion, compared with its previous forecast of $4.20 billion to $4.40 billion. Infrastructure revenue is projected at $3.40 billion to $3.50 billion, while the Agriculture forecast remains $900 million to $950 million.
The company expects full-year earnings of $22.25 to $23.50 a share, lifting the bottom of its prior range by 75 cents and maintaining the upper end.
Valmont returned $74.9 million to shareholders during the quarter, including $60.0 million through repurchases. Total backlog increased 1.3% to $1.675 billion, with a larger Infrastructure backlog offsetting a decline in Agriculture orders.