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Valmont lifted 2026 EPS guidance to $22.25-$23.50 as pricing and productivity support margins.
Valmont Industries, Inc.’s (VMI - Free Report) shares have rallied 18.6% in the past six months. The company has also outperformed the Zacks Steel - Pipe and Tube industry’s 6.3% growth over the same time frame. Valmont’s share price surge is driven by robust utility demand, grid modernization, capacity expansion, pricing discipline and productivity initiatives that are supporting revenue growth and margin expansion.
Image Source: Zacks Investment Research
Let’s take a look at the factors that are driving VMI stock.
VMI’s price appreciation has been supported by strong utility demand, capacity expansion and operational improvement initiatives. The company is benefiting from a multiyear utility investment cycle including grid modernization, rising power demand, data centers and electrification. The robust growth prompted management to raise its 2026 Infrastructure sales guidance to $3.4-$3.5 billion.
Investments in capacity and improvements in process are further strengthening the growth outlook, with the company deploying $55 million in capital expenditures toward North America Infrastructure in the first half of 2026. Its 2025-2029 framework anticipates approximately $1 billion in incremental sales from utility partnerships and capacity and throughput expansion.
Valmont is also strengthening profitability through pricing measures, productivity actions and cost management. Infrastructure operating margin improved to 17.6% in the second quarter from 16.3% a year earlier on an adjusted basis, while unallocated corporate expenses declined to $49 million in the first half of 2026 from $57.8 million. Investments in aftermarket offerings and the acquisition of the remaining stake in RMDS Innovation are supporting business diversification. The company raised its 2026 earnings guidance range to $22.25-$23.50 per share.
VMI’s Zacks Rank & Key Picks
VMI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Avient Corporation (AVNT - Free Report) .
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $22.23 per share, indicating a 55.89% year-over-year increase. RS’shares have gained 37.1% over the past year.
The Zacks Consensus Estimate for KRO’s fiscal 2026 earnings is pegged at 35 cents per share, indicating a rise of 136.46% year over year. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing it in the rest, with an average surprise of 33.99%.
The Zacks Consensus Estimate for AVNT’s current-year earnings is pinned at $3.2 per share, indicating a 13.48% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%. AVNT’sshares have gained 12.6% over the past year.
View the Zacks #1 Rank List
Image: Bigstock
Valmont Industries Shares Rise 19% in 6 Months: Here's Why
Key Takeaways
Valmont Industries, Inc.’s (VMI - Free Report) shares have rallied 18.6% in the past six months. The company has also outperformed the Zacks Steel - Pipe and Tube industry’s 6.3% growth over the same time frame. Valmont’s share price surge is driven by robust utility demand, grid modernization, capacity expansion, pricing discipline and productivity initiatives that are supporting revenue growth and margin expansion.
Image Source: Zacks Investment Research
Let’s take a look at the factors that are driving VMI stock.
Utility Investments, Capacity Expansion & Productivity Boost VMI
VMI’s price appreciation has been supported by strong utility demand, capacity expansion and operational improvement initiatives. The company is benefiting from a multiyear utility investment cycle including grid modernization, rising power demand, data centers and electrification. The robust growth prompted management to raise its 2026 Infrastructure sales guidance to $3.4-$3.5 billion.
Investments in capacity and improvements in process are further strengthening the growth outlook, with the company deploying $55 million in capital expenditures toward North America Infrastructure in the first half of 2026. Its 2025-2029 framework anticipates approximately $1 billion in incremental sales from utility partnerships and capacity and throughput expansion.
Valmont is also strengthening profitability through pricing measures, productivity actions and cost management. Infrastructure operating margin improved to 17.6% in the second quarter from 16.3% a year earlier on an adjusted basis, while unallocated corporate expenses declined to $49 million in the first half of 2026 from $57.8 million. Investments in aftermarket offerings and the acquisition of the remaining stake in RMDS Innovation are supporting business diversification. The company raised its 2026 earnings guidance range to $22.25-$23.50 per share.
VMI’s Zacks Rank & Key Picks
VMI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Avient Corporation (AVNT - Free Report) .
While RS currently sports a Zacks Rank #1 (Strong Buy), KRO and AVNT carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $22.23 per share, indicating a 55.89% year-over-year increase. RS’shares have gained 37.1% over the past year.
The Zacks Consensus Estimate for KRO’s fiscal 2026 earnings is pegged at 35 cents per share, indicating a rise of 136.46% year over year. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing it in the rest, with an average surprise of 33.99%.
The Zacks Consensus Estimate for AVNT’s current-year earnings is pinned at $3.2 per share, indicating a 13.48% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%. AVNT’sshares have gained 12.6% over the past year.