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Valmont's Q2 EPS rose 25.8% to $6.14, while revenues climbed 6.5% to $1.12 billion.
Infrastructure sales jumped 14.8% on North America Utility and Coatings strength, offsetting telecom weakness.
VMI raised 2026 sales guidance to $4.3-$4.45 billion and lifted the EPS floor to $22.25.
Valmont Industries, Inc. (VMI - Free Report) reported second-quarter 2026 earnings of $6.14 per share, up 25.8% from adjusted earnings of $4.88 a year ago. The figure beat the Zacks Consensus Estimate of $5.41.
Revenues increased 6.5% year over year to $1.12 billion and surpassed the consensus mark of $1.09 billion by 2.3%. Strong North America Utility and Coatings sales more than offset continued weakness in Agriculture.
The company ended the quarter with a total backlog of $1.67 billion. Gross profit rose 6.1% year over year to $340.8 million. Selling, general and administrative expenses declined to $174.7 million from $191.7 million, supporting the improvement in operating profitability.
Infrastructure revenues increased 14.8% year over year to $878.9 million, beating our estimate of $808.2 million and accounting for 78.4% of total sales. Growth reflected favorable pricing and higher volumes in North America Utility and Coatings, along with positive foreign-currency effects on international sales. Lower North America Telecommunications volumes, caused by moderating carrier spending, partly offset these gains.
Agriculture revenues fell 15.8% to $243.7 million, lagging our estimate of $284.2 million. North America irrigation sales declined 2.3% because of lower volumes amid persistent agricultural market softness, partly offset by favorable pricing. International Agriculture sales decreased 28.9%, primarily due to disruptions associated with the Middle East conflict.
VMI's Financials
Valmont ended the quarter with cash and cash equivalents of $139.1 million. Cash provided by operating activities totaled $148.1 million during the quarter. The company returned $74.9 million to its shareholders during the quarter, including $60 million through share repurchases and $14.9 million in dividends. Capital expenditures totaled $35.9 million, primarily supporting capacity investments in North America Utility.
Valmont's Outlook for 2026
VMI raised its full-year 2026 net sales outlook to $4.3-$4.45 billion from the earlier $4.2-$4.4 billion. Infrastructure revenues are now projected at $3.4-$3.5 billion, up from the prior forecast of $3.3-$3.45 billion. The Agriculture sales outlook remains unchanged at $900-$950 million.
The company lifted the lower end of its earnings guidance to $22.25 per share from $21.50 while retaining the upper end at $23.50. Capital expenditures are still expected between $170 million and $200 million. The effective tax rate is projected at approximately 26%.
VMI’s Stock Price Performance
VMI’s shares have gained 41% in the past year compared with the industry’s growth of 45.7%.
Image Source: Zacks Investment Research
VMI’s Zacks Rank & Key Picks
VMI currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) ,Kronos Worldwide, Inc. (KRO - Free Report) and Avient Corporation (AVNT - Free Report) .
Carpenter Technology is slated to report fourth-quarter 2026 results on July 30. The Zacks Consensus Estimate for earnings is pegged at $10.58 per share, indicating 41.44% year-over-year growth. CRS sports a Zacks Rank #1 (Strong Buy) at present. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Kronos is scheduled to report second-quarter fiscal 2026 results on Aug. 5. The Zacks Consensus Estimate for KRO’s second-quarter loss per share is pegged at 33 cents, indicating 65.63% year-over-year growth. KRO flaunts a Zacks Rank #1 at present.
Avient is slated to report second-quarter 2026 results on Aug. 6. The consensus estimate for AVNT’s earnings per share is pegged at $3.08. AVNT presently carries a Zacks Rank #2 (Buy).
View the Zacks #1 Rank List
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VMI Q2 Earnings Beat Estimates on Utility Strength, FY26 View Raised
Key Takeaways
Valmont Industries, Inc. (VMI - Free Report) reported second-quarter 2026 earnings of $6.14 per share, up 25.8% from adjusted earnings of $4.88 a year ago. The figure beat the Zacks Consensus Estimate of $5.41.
Revenues increased 6.5% year over year to $1.12 billion and surpassed the consensus mark of $1.09 billion by 2.3%. Strong North America Utility and Coatings sales more than offset continued weakness in Agriculture.
The company ended the quarter with a total backlog of $1.67 billion. Gross profit rose 6.1% year over year to $340.8 million. Selling, general and administrative expenses declined to $174.7 million from $191.7 million, supporting the improvement in operating profitability.
Valmont Industries, Inc. Price and Consensus
Valmont Industries, Inc. price-consensus-chart | Valmont Industries, Inc. Quote
VMI's Segment Performance in Q2
Infrastructure revenues increased 14.8% year over year to $878.9 million, beating our estimate of $808.2 million and accounting for 78.4% of total sales. Growth reflected favorable pricing and higher volumes in North America Utility and Coatings, along with positive foreign-currency effects on international sales. Lower North America Telecommunications volumes, caused by moderating carrier spending, partly offset these gains.
Agriculture revenues fell 15.8% to $243.7 million, lagging our estimate of $284.2 million. North America irrigation sales declined 2.3% because of lower volumes amid persistent agricultural market softness, partly offset by favorable pricing. International Agriculture sales decreased 28.9%, primarily due to disruptions associated with the Middle East conflict.
VMI's Financials
Valmont ended the quarter with cash and cash equivalents of $139.1 million. Cash provided by operating activities totaled $148.1 million during the quarter. The company returned $74.9 million to its shareholders during the quarter, including $60 million through share repurchases and $14.9 million in dividends. Capital expenditures totaled $35.9 million, primarily supporting capacity investments in North America Utility.
Valmont's Outlook for 2026
VMI raised its full-year 2026 net sales outlook to $4.3-$4.45 billion from the earlier $4.2-$4.4 billion. Infrastructure revenues are now projected at $3.4-$3.5 billion, up from the prior forecast of $3.3-$3.45 billion. The Agriculture sales outlook remains unchanged at $900-$950 million.
The company lifted the lower end of its earnings guidance to $22.25 per share from $21.50 while retaining the upper end at $23.50. Capital expenditures are still expected between $170 million and $200 million. The effective tax rate is projected at approximately 26%.
VMI’s Stock Price Performance
VMI’s shares have gained 41% in the past year compared with the industry’s growth of 45.7%.
VMI’s Zacks Rank & Key Picks
VMI currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) ,Kronos Worldwide, Inc. (KRO - Free Report) and Avient Corporation (AVNT - Free Report) .
Carpenter Technology is slated to report fourth-quarter 2026 results on July 30. The Zacks Consensus Estimate for earnings is pegged at $10.58 per share, indicating 41.44% year-over-year growth. CRS sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kronos is scheduled to report second-quarter fiscal 2026 results on Aug. 5. The Zacks Consensus Estimate for KRO’s second-quarter loss per share is pegged at 33 cents, indicating 65.63% year-over-year growth. KRO flaunts a Zacks Rank #1 at present.
Avient is slated to report second-quarter 2026 results on Aug. 6. The consensus estimate for AVNT’s earnings per share is pegged at $3.08. AVNT presently carries a Zacks Rank #2 (Buy).