Valmont Raises 2026 Adjusted EPS After Utility Sales Jump

The Tip Desk · October 22, 2026 · 3 min read

The company lifted its full-year adjusted diluted earnings outlook to $22.75–$23.75 a share after third-quarter sales of $1.10 billion and diluted earnings of $6.24 a share.

Valmont Industries (VMI), a global supplier of infrastructure products and agricultural equipment, raised its full-year 2026 adjusted diluted earnings outlook to $22.75 to $23.75 a share from $22.25 to $23.50 after another quarter of sales and earnings growth, and it reaffirmed net sales of $4.3 billion to $4.45 billion.

For the third quarter ended September 26, 2026, net sales rose 5.5% to $1.10 billion from $1.05 billion a year earlier, a slower year-over-year pace than the 6.5% increase to $1.12 billion in the second quarter. Operating income increased 22.2% to $172.8 million, or 15.7% of net sales, from $141.5 million or 13.5%. Diluted earnings per share increased 25.3% to $6.24 from $4.98.

Gross profit rose 4.1% to $331.4 million. Gross margin compressed to 30.0% of net sales from 30.4%.

Infrastructure, 79.7% of net sales, was the engine. Segment sales increased 9.1% to $882.1 million from $808.3 million. North America Utility sales increased 23.0% to $469.6 million from $381.7 million, which the company said was driven by higher pricing and volumes supported by strong market demand. North America Coatings sales grew 13.8% to $69.7 million from $61.3 million. International sales increased primarily on pricing and favorable foreign currency.

Those gains were partially offset by significantly lower volumes in North America Telecommunications, which fell to $54.9 million from $82.9 million as carriers shifted capital allocation. Infrastructure operating income increased to $154.8 million, or 17.6% of net sales, from $143.4 million or 17.8%. The company said higher Utility and Coatings pricing and volumes were offset by higher material costs, primarily steel and zinc, associated with ramping Utility capacity, and by lower Telecom volumes.

Agriculture, 20.3% of net sales, moved the other way on the top line. Segment sales decreased 6.4% to $226.0 million from $241.3 million. North America sales increased 15.8% on higher volumes, including storm replacement activity and favorable pricing. International sales decreased 25.3%, primarily on lower volumes in the Middle East and Brazil.

Agriculture operating income increased to $40.1 million, or 17.9% of net sales, from $23.2 million or 9.7%. The company said lower credit losses in Brazil and higher North America volumes contributed to the year-over-year increase, partially offset by lower international volumes.

President and Chief Executive Officer Avner M. Applbaum said higher sales in North America Utility and Coatings reinforce confidence in the infrastructure market, and that the company is focused on increasing capacity and improving throughput. He said the company is taking pricing actions and applying contractual pass-throughs to recover higher steel and zinc costs, and that the pace of margin expansion depends in part on how quickly input costs stabilize.

The company generated operating cash flow of $100.5 million in the quarter. It returned $97.2 million to shareholders through $82.3 million in share repurchases and $14.9 million in dividends. Capital expenditures were $45.6 million, primarily to support growth-related capacity expansion in North America Utility. Cash and cash equivalents were $122.0 million and the net leverage ratio was about 0.9 times.

The updated outlook assumes steel costs aligned with markets as of October 16, 2026, foreign-exchange rates as of that date, and current tariffs with no material change to the trade environment. Infrastructure net sales remain $3.4 billion to $3.5 billion and Agriculture net sales $0.9 billion to $0.95 billion. Capital expenditures remain $170 million to $200 million.