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VMI Q3 Earnings Beat Estimates on Utility Strength, Sales Miss
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Key Takeaways
Valmont's Q3 earnings rose 25.3% to $6.24 per share, beating estimates, while revenues grew 5.5% to $1.1B.
Infrastructure sales climbed 9.1%, driven by 23% growth in North America Utility and 13.8% in Coatings.
VMI raised its 2026 EPS outlook to $22.75-$23.75 while reaffirming its $4.3-$4.45 billion sales forecast.
Valmont Industries, Inc. (VMI - Free Report) reported third-quarter 2026 earnings of $6.24 per share, up 25.3% from $4.98 a year ago. The figure beat the Zacks Consensus Estimate of $5.70 by 9.5%.
Revenues increased 5.5% year over year to $1.1 billion but missed the consensus mark of $1.12 billion by 1.2%. Strong North America Utility and Coatings sales supported growth, while weakness in Agriculture and Telecommunications weighed on performance. The company ended the quarter with a total backlog of $2.01 billion.
Gross profit increased 4.1% year over year to $331.4 million. However, gross margin contracted to 30% from 30.4% in the year-ago quarter. Higher steel and zinc costs remained a headwind despite favorable pricing and stronger volumes in key infrastructure businesses.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Infrastructure revenues increased 9.1% year over year to $882.1 million, beating our estimate of $880.1 million and accounting for 79.7% of total sales. North America Utility sales rose 23%, driven by higher pricing and volumes amid strong market demand. North America Coatings sales improved 13.8%, supported by broader infrastructure demand.
Agriculture revenues declined 6.4% year over year to $226 million, lagging our estimate of $229.4 million. North America sales increased 15.8%, supported by higher volumes, including storm replacement activity, and favorable pricing. The improvement came despite continued softness in the broader agricultural market.
Valmont's Financial Position and Cash Flow
Valmont ended the quarter with cash and cash equivalents of $122 million compared with $187.1 million at the end of 2025. Cash provided by operating activities totaled $100.5 million during the quarter. The company's net leverage ratio stood at approximately 0.9 times, reflecting its debt position relative to adjusted earnings before interest, taxes, depreciation and amortization.
The company returned $97.2 million to shareholders during the quarter, including $82.3 million through share repurchases and $14.9 million in dividends. Capital expenditures totaled $45.6 million, primarily supporting growth-related capacity expansion in North America Utility.
VMI Raises 2026 Earnings Outlook
VMI raised its full-year 2026 adjusted earnings guidance to $22.75-$23.75 per share from the earlier projection of $22.25-$23.5. The company reaffirmed its net sales outlook of $4.3-$4.45 billion, supported by continued infrastructure demand.
Infrastructure revenues are projected at $3.4-$3.5 billion, while Agriculture sales are expected between $900 million and $950 million. Capital expenditures remain forecast at $170-$200 million, with the adjusted effective tax rate estimated at approximately 26%.
VMI’s Price Performance
Shares of VMI have gained 4.3% over the past year compared with the 44.1% rise in its industry.
Image Source: Zacks Investment Research
VMI’s Zacks Rank & Other Key Picks
VMIcurrently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Avient Corporation (AVNT - Free Report) .
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RS shares have gained 50.6% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.
The Zacks Consensus Estimate for AVNT’s 2026 earnings is pegged at $3.2 per share, indicating a year-over-year rise of 13.48%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%.
View the Zacks #1 Rank List
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VMI Q3 Earnings Beat Estimates on Utility Strength, Sales Miss
Key Takeaways
Valmont Industries, Inc. (VMI - Free Report) reported third-quarter 2026 earnings of $6.24 per share, up 25.3% from $4.98 a year ago. The figure beat the Zacks Consensus Estimate of $5.70 by 9.5%.
Revenues increased 5.5% year over year to $1.1 billion but missed the consensus mark of $1.12 billion by 1.2%. Strong North America Utility and Coatings sales supported growth, while weakness in Agriculture and Telecommunications weighed on performance. The company ended the quarter with a total backlog of $2.01 billion.
Gross profit increased 4.1% year over year to $331.4 million. However, gross margin contracted to 30% from 30.4% in the year-ago quarter. Higher steel and zinc costs remained a headwind despite favorable pricing and stronger volumes in key infrastructure businesses.
Valmont Industries, Inc. Price, Consensus and EPS Surprise
Valmont Industries, Inc. price-consensus-eps-surprise-chart | Valmont Industries, Inc. Quote
Valmont's Performance in Q3
Infrastructure revenues increased 9.1% year over year to $882.1 million, beating our estimate of $880.1 million and accounting for 79.7% of total sales. North America Utility sales rose 23%, driven by higher pricing and volumes amid strong market demand. North America Coatings sales improved 13.8%, supported by broader infrastructure demand.
Agriculture revenues declined 6.4% year over year to $226 million, lagging our estimate of $229.4 million. North America sales increased 15.8%, supported by higher volumes, including storm replacement activity, and favorable pricing. The improvement came despite continued softness in the broader agricultural market.
Valmont's Financial Position and Cash Flow
Valmont ended the quarter with cash and cash equivalents of $122 million compared with $187.1 million at the end of 2025. Cash provided by operating activities totaled $100.5 million during the quarter. The company's net leverage ratio stood at approximately 0.9 times, reflecting its debt position relative to adjusted earnings before interest, taxes, depreciation and amortization.
The company returned $97.2 million to shareholders during the quarter, including $82.3 million through share repurchases and $14.9 million in dividends. Capital expenditures totaled $45.6 million, primarily supporting growth-related capacity expansion in North America Utility.
VMI Raises 2026 Earnings Outlook
VMI raised its full-year 2026 adjusted earnings guidance to $22.75-$23.75 per share from the earlier projection of $22.25-$23.5. The company reaffirmed its net sales outlook of $4.3-$4.45 billion, supported by continued infrastructure demand.
Infrastructure revenues are projected at $3.4-$3.5 billion, while Agriculture sales are expected between $900 million and $950 million. Capital expenditures remain forecast at $170-$200 million, with the adjusted effective tax rate estimated at approximately 26%.
VMI’s Price Performance
Shares of VMI have gained 4.3% over the past year compared with the 44.1% rise in its industry.
Image Source: Zacks Investment Research
VMI’s Zacks Rank & Other Key Picks
VMIcurrently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Avient Corporation (AVNT - Free Report) .
RS currently sports a Zacks Rank #1 (Strong Buy), while ASM and AVNT carry a Zacks Rank #2 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 $23.70 per share, indicating a 66.2% year-over-year surge. RS shares have gained 50.6% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.
The Zacks Consensus Estimate for AVNT’s 2026 earnings is pegged at $3.2 per share, indicating a year-over-year rise of 13.48%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%.