Valmont Raises 2026 EPS Outlook as Utility Demand Lifts Q3 Results

Valmont Industries Inc. (NYSE: VMI) increased its full-year 2026 adjusted diluted earnings outlook after third-quarter profit grew faster than revenue, supported by strong North American utility and coatings demand and improved Agriculture profitability.

The company now expects adjusted diluted earnings per share of $22.75 to $23.75, compared with its previous range of $22.25 to $23.50. Valmont maintained its net sales forecast of $4.3 billion to $4.45 billion, representing year-over-year growth of 5% to 8.5%.

Third-quarter net sales rose 5.5% to $1.10 billion from $1.05 billion a year earlier. Operating income increased 22.2% to $173 million, while operating margin expanded 220 basis points to 15.7%. Diluted EPS climbed 25.3% to $6.24 from $4.98.

Utility and coatings demand supports Infrastructure growth

Infrastructure sales increased 9.1% to $882 million, led by North America Utility, where revenue rose 23% to $469.6 million. Valmont attributed the performance to favorable market conditions, pricing and higher volumes as customers continued investing in grid modernization and capacity to meet rising power demand.

North America Coatings sales grew 13.8% to $69.7 million, supported by infrastructure and data-center construction. International Infrastructure and Solar revenue increased 5.5% to $160.4 million, reflecting pricing actions and favorable foreign-exchange effects.

Those gains were partly offset by weaker results elsewhere in the portfolio. North America Lighting and Transportation sales declined 2.2% to $127.5 million on lower volumes, with lighting demand affected by softer residential and commercial construction. North America Telecommunications revenue fell 33.8% to $54.9 million as carrier spending declined following peak 5G deployment.

Infrastructure operating income rose 8% to $155 million, though operating margin narrowed to 17.6% from 17.8%. Pricing and volume leverage in Utility and Coatings helped offset higher material costs, expenses associated with expanding Utility capacity and a lower contribution from Telecommunications.

Agriculture profit rises despite lower international sales

Agriculture sales decreased 6.4% to $226 million as weakness in international markets outweighed a 15.8% increase in North American revenue to $128.9 million. North American results benefited from higher pricing and volumes, led by storm-related replacement orders.

International Agriculture sales fell 25.3% to $97.1 million, reflecting lower volumes in Brazil and the Middle East. Tight credit continued to constrain Brazilian demand, while regional conflict delayed certain Middle Eastern customer projects. Valmont also disclosed a new $100 million project award supporting food security in North Africa.

Agriculture operating income increased 73.1% to $40 million, and operating margin expanded to 17.9% from 9.7%. Valmont said lower credit losses, certain recoveries in Brazil and higher North American volumes more than offset part of the impact from weaker international volumes.

Sales outlook maintained, capital spending focused on Utility

Valmont continues to expect 2026 Infrastructure sales of $3.4 billion to $3.5 billion, up 9.5% to 13%, and Agriculture sales of $900 million to $950 million, down 6% to 11%. The company expects capital expenditures of $170 million to $200 million and an effective tax rate of about 26%.

The outlook incorporates steel prices, foreign-exchange rates and tariffs in effect as of October 16, 2026, and assumes no material change in the trade or tariff environment. Valmont noted that Utility is particularly exposed to steel-cost movements because of contractual pricing mechanisms and its strong backlog.

During the quarter, Valmont generated $100.5 million of operating cash flow and ended with $122 million in cash. It invested $46 million, primarily in North American Utility capacity expansion, repurchased $82 million of shares and paid $15 million in dividends. Net debt was approximately 0.9 times adjusted EBITDA.

Management said its longer-term strategy targets $5.4 billion in revenue and $35 in EPS in 2029, supported by utility growth, operational improvements and disciplined capital allocation. Key uncertainties include raw-material availability and pricing, tariffs, geopolitical conditions, constrained agricultural credit, project delays, utility permitting and labor availability.