Valmont raises 2026 EPS outlook as third-quarter earnings reach $6.24 per share

Valmont Industries, Inc. (VMI) said on Tuesday that third-quarter net sales rose 5.5% to $1.10 billion and that it raised its 2026 adjusted diluted earnings per share outlook. The results cover the fiscal quarter ended Sept. 26 and were released in a press release filed with a Form 8-K.

Diluted earnings per share were $6.24, up 25.3% from $4.98 a year earlier. Operating income rose 22.2% to $172.8 million, lifting the operating margin to 15.7% of net sales from 13.5%.

Here's how the company did:

• Revenue: $1.10 billion vs. $1.05 billion a year earlier
• Diluted earnings per share: $6.24 vs. $4.98 a year earlier
• Operating income: $172.8 million vs. $141.5 million a year earlier
• Net earnings attributable to Valmont Industries, Inc.: $121.1 million vs. $99.0 million a year earlier

Gross profit rose 4.1% to $331.4 million, but gross margin slipped to 30.0% of net sales from 30.4%. Selling, general and administrative expenses fell to $158.6 million from $176.8 million. The company recorded no impairment or realignment charges in the quarter.

For the first nine months, net sales rose 6.1% to $3.25 billion from $3.07 billion. Operating income was $494.6 million, up 65.4% from $299.0 million, a comparison that included $91.3 million of impairment of long-lived assets in 2025.

The company reaffirmed its 2026 net sales outlook of $4.3 billion to $4.45 billion. It raised its adjusted diluted EPS outlook to $22.75 to $23.75 from $22.25 to $23.50.

The outlook for Infrastructure net sales of $3.4 billion to $3.5 billion, Agriculture net sales of $0.9 billion to $0.95 billion, capital expenditures of $170 million to $200 million, and an adjusted effective tax rate of about 26.0% did not change. The outlook uses steel costs and currency rates as of Oct. 16 and includes current tariffs, assuming no material change in the trade environment.

“We delivered another quarter of sales and earnings growth,” President and Chief Executive Officer Avner M. Applbaum said. “Higher sales in North America Utility and Coatings reinforce our confidence in the strength and durability of the infrastructure market.”

The company is taking pricing actions and applying contractual pass-throughs to recover higher steel and zinc costs. “The pace of margin expansion depends in part on how quickly input costs stabilize,” Applbaum said.

Infrastructure sales rose 9.1% to $882.1 million from $808.3 million. Operating income was $154.8 million, or 17.6% of net sales, compared with $143.4 million, or 17.8%, a year earlier.

Higher pricing and volumes in North America Utility and Coatings were partly offset by higher steel and zinc costs, costs of ramping Utility capacity, and lower North America Telecommunications volumes.

North America Utility sales rose 23.0% to $469.6 million from $381.7 million, driven by higher pricing and volumes. North America Coatings sales grew 13.8%. North America Telecommunications sales fell to $54.9 million from $82.9 million, reflecting lower carrier spend as customers shifted capital allocation priorities, the filing said.

Agriculture sales fell 6.4% to $226.0 million from $241.3 million. North America sales rose 15.8% on higher volumes, including storm replacement activity, and favorable pricing, while International sales dropped 25.3% on lower volumes in the Middle East and Brazil.

Agriculture operating income was $40.1 million, or 17.9% of net sales, compared with $23.2 million, or 9.7%, a year earlier. Lower credit losses in Brazil and higher North America volumes contributed, partly offset by lower international volumes.

Operating cash flow was $100.5 million in the quarter, and capital expenditures were $45.6 million, mainly to support growth-related capacity in North America Utility. Cash and cash equivalents stood at $122.0 million, and the net leverage ratio was about 0.9 times.

The company returned $97.2 million to shareholders in the quarter, including $82.3 million in share repurchases and $14.9 million in dividends. Cash dividends were $0.77 per share, up from $0.68 a year earlier.

Total backlog was $2.01 billion, up from $1.65 billion a year earlier. Infrastructure backlog was $1.81 billion against $1.55 billion, and Agriculture backlog was $199.6 million against $105.4 million.

“Strong customer demand in Utility and Coatings, together with our investments and operating improvements across Infrastructure and Agriculture, support our confidence in the objectives presented at our 2026 Investor Day,” Applbaum said.