VMI

Valmont Industries, Inc. VMI 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-consensus-chart | Valmont Industries, Inc. Quote 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. 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. 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 shares have gained 41% in the past year compared with the industry’s growth of 45.7%. Image Source: Zacks Investment Research VMI currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS,Kronos Worldwide, Inc. KRO and Avient Corporation AVNT. 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). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Valmont Industries, Inc. (VMI) : Free Stock Analysis Report Carpenter Technology Corporation (CRS) : Free Stock Analysis Report Kronos Worldwide Inc (KRO) : Free Stock Analysis Report Avient Corporation (AVNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

OMAHA, Neb., July 21, 2026--(BUSINESS WIRE)--Valmont® Industries, Inc. (NYSE: VMI), a global leader that provides products and solutions to support vital infrastructure and advance agricultural productivity, today reported financial results for the second quarter ended June 27, 2026. President and Chief Executive Officer Avner M. Applbaum commented, "Valmont delivered solid second quarter results, demonstrating the execution of our strategy and the strength of our market-leading businesses. In North America Utility and Coatings, commercial excellence, pricing discipline, and ongoing investments in capacity and operations drove another quarter of strong performance. Building on this momentum, we will continue strengthening our operations while leveraging our competitive advantages to capture the significant opportunities ahead. In Agriculture, we continue to navigate challenging market conditions through pricing discipline, operational execution, and cost management while investing in aftermarket solutions and technologies that improve grower productivity and reinforce our competitive advantage. These investments position the business to accelerate growth as market conditions improve. "During the quarter, we hosted our Investor Day and outlined a clear roadmap for profitable growth, margin expansion, disciplined resource allocation, and higher returns on invested capital. The progress we’ve made this quarter reinforces our confidence in that path and our ability to deliver sustainable long-term value for our shareholders." Second Quarter 2026 Highlights (all metrics compared to Second Quarter 2025 unless otherwise noted) Net sales increased 6.5% to $1.12 billion, compared to $1.05 billion Operating income increased to $166.1 million or 14.8% of net sales, compared to $29.3 million or 2.8% of net sales ($141.4 million or 13.5% adjusted1) Diluted earnings (loss) per share increased to $6.14, compared to ($1.53) or $4.88 adjusted1 Generated operating cash flow of $148.1 million; cash and cash equivalents were $139.1 million and net leverage ratio1 was ~1.0x Returned $74.9 million to shareholders through $60.0 million in share repurchases and $14.9 million in dividends Invested $35.9 million in capital expenditures to primarily support capacity investments for the North America Utility product line Second Quarter 2026 Segment Review (all metrics compared to Second Quarter 2025 unless otherwise noted) Infrastructure (78.4% of Net Sales) Products and solutions to serve the infrastructure markets of utility, lighting, transportation, and telecommunications, along with coatings services to protect metal products Sales increased 14.8% to $878.9 million, compared to $765.5 million. Infrastructure end markets remained strong, supporting sales growth of 33.9% in North America Utility and 16.6% in North America Coatings, driven by favorable pricing and higher volumes. International sales increased primarily due to favorable foreign currency impacts. These increases were partially offset by lower volumes in North America Telecommunications due to moderating carrier spend. Operating income increased to $154.4 million or 17.6% of net sales, compared to $25.9 million or 3.4% of net sales ($124.6 million or 16.3% adjusted1). The improvement compared to prior-year GAAP results primarily reflects the absence of impairment and realignment charges recorded in the prior year. Excluding those items, the increase compared to adjusted1 operating income was primarily driven by favorable pricing and higher volumes, partially offset by increased input costs, primarily materials. Agriculture (21.6% of Net Sales) Center pivot and linear irrigation equipment components for agricultural markets, including aftermarket parts and tubular products, and advanced technology solutions for precision agriculture Sales decreased 15.8% to $243.7 million, compared to $289.4 million. In North America, irrigation sales decreased 2.3% due to lower volumes amid continued agriculture market softness, partially offset by favorable pricing. International sales decreased 28.9% driven primarily by disruptions associated with the ongoing Middle East conflict. Operating income increased to $39.9 million or 16.5% of net sales, compared to $36.1 million or 12.5% of net sales ($44.8 million or 15.6% adjusted1). Compared to prior-year adjusted1 operating income, the results were impacted by lower volumes, partially offset by favorable pricing and reduced costs. Full-Year 2026 Financial Outlook and Key Assumptions The Company is raising its full-year 2026 net sales and diluted EPS outlook and updating its key assumptions. Key Assumptions Steel cost assumptions are aligned with futures markets as of July 17, 2026 Foreign currency assumptions based on FX rates as of July 17, 2026 This outlook includes the current tariffs as of July 17, 2026 and assumes no material change to the current trade or tariff environment A live audio discussion with Avner M. Applbaum, President and Chief Executive Officer, and John Schwietz, Executive Vice President and Chief Financial Officer, will take place on Tuesday, July 21, 2026 at 8:00 a.m. CT. The discussion can be accessed by telephone at +1 877.407.6184 or +1 201.389.0877 (no Conference ID needed) or via webcast at the following link: Valmont Industries 2Q 2026 Earnings Conference Call. A slide presentation will be available for download on the Investors page of valmont.com during the webcast. A replay of the event will be accessible three hours after the call at the above link or by telephone at +1 877.660.6853 or +1 201.612.7415 using access code 13756345. The replay will be available until 10:59 p.m. CT on Tuesday, July 28, 2026. About Valmont Industries, Inc. For more than 80 years, Valmont has been a global leader that provides products and solutions to support vital infrastructure and advance agricultural productivity. We are committed to customer-focused innovation that delivers lasting value. Learn more about how we’re Conserving Resources. Improving Life.® at valmont.com. Concerning Forward-Looking Statements This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions made by management, considering its experience in the industries where Valmont operates, perceptions of historical trends, current conditions, expected future developments, and other relevant factors. It is important to note that these statements are not guarantees of future performance or results. They involve risks, uncertainties (some of which are beyond Valmont’s control), and assumptions. Forward-looking statements may be accompanied by words such as "opportunities," "estimate," "outlook," "clear path," "target," "expect," "plan" and similar expressions. While management believes these forward-looking statements are based on reasonable assumptions as of the date made, numerous factors could cause actual results to differ materially from those anticipated. These factors include, among other things, risks described in Valmont’s reports to the Securities and Exchange Commission ("SEC"), the Company’s actual cash flows and net income, future economic and market circumstances, industry conditions, company performance and financial results, operational efficiencies, availability and price of raw materials, availability and market acceptance of new products, product pricing, domestic and international competitive environments, geopolitical risks, and actions and policy changes by domestic and foreign governments, including tariffs. The Company cautions that any forward-looking statements in this release are made as of its publication date and does not undertake to update these statements, except as required by law. The Company may provide certain non-GAAP financial measures (adjusted diluted earnings per share and adjusted effective tax rate) on a forward-looking basis from time to time. These measures are typically calculated by excluding the impact of items such as foreign exchange, acquisitions, divestitures, realignment or restructuring expenses, goodwill or intangible asset impairment, changes in tax laws or rates, change in redemption value of redeemable noncontrolling interests, and other non-recurring items. To the extent the Company provides forward-looking non-GAAP financial measures, reconciliations to the most directly comparable GAAP financial measures are not provided, as the Company cannot do so without unreasonable effort due to the inherent uncertainty and difficulty in predicting the timing and financial impact of such items. For the same reasons, the Company cannot assess the likely significance of unavailable information, which could be material to future results. Website and Social Media Disclosure The Company uses its website and social media channels, as identified on its website, to distribute company information. Posts on these channels may contain material information. Therefore, investors should monitor these channels alongside the Company’s press releases, SEC filings, and public conference calls and webcasts. The contents of the Company’s website and social media channels are not considered part of this press release. Management utilizes non-GAAP financial measures to assess the Company’s historical and prospective financial performance, evaluate operational profitability on a consistent basis, factor into executive compensation decisions, and enhance transparency for the investment community. These non-GAAP measures are intended to supplement, not replace, the Company’s reported financial results prepared in accordance with GAAP. It is important to note that other companies may calculate these measures differently, which can limit their usefulness for comparison across organizations. The following non-GAAP measures may be included in financial releases and other financial communications: Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Net Earnings, Adjusted Diluted EPS, and Adjusted Effective Tax Rate: These metrics provide meaningful supplemental insights into the Company’s operating performance by excluding items that are not considered part of core operating results. This approach enhances comparability across reporting periods. Adjustments may include costs or benefits associated with acquisitions, divestitures, expenses related to realignment or restructuring programs, goodwill or intangible asset impairment, significant expenses or benefits from changes in tax laws or rates, cumulative effects of changes in accounting standards, refinancing-related expenses, a loss or a gain from a partial or full settlement of the U.K. defined benefit pension plan obligation, losses from natural disasters, change in redemption value of redeemable noncontrolling interests, and other non-recurring items. Adjusted EBITDA: This metric is a key component of a financial ratio included in the covenants of our major debt agreements. It is calculated as net earnings before interest, taxes, depreciation, amortization, stock-based compensation, and other adjustments as outlined in the applicable debt agreements. This metric offers investors and analysts valuable insights into the Company’s core operating performance. Adjusted EBITDA margin is also used to evaluate profitability. Leverage Ratio: This ratio is calculated by taking the sum of interest-bearing debt, minus unrestricted cash in excess of $50.0 million (but not exceeding $500.0 million), and dividing it by Adjusted EBITDA. This is a key financial ratio included in the covenants of our major debt agreements and is calculated on a rolling four-fiscal-quarter basis. The revolving credit facility requires us to maintain a financial leverage ratio of 3.50 or lower, measured as of the last day of each fiscal quarter. Free Cash Flow: Calculated as net cash provided by operating activities minus capital expenditures, free cash flow serves as an indicator of the Company’s financial strength. However, this measure does not fully reflect the Company’s ability to deploy cash freely, as it has obligations such as debt repayments and other fixed commitments. Backlog: This operating measure is used to evaluate future potential sales revenue. An order is included in the backlog upon receipt of a customer purchase order or the execution of a sales order contract. Backlog is particularly relevant to the Infrastructure segment due to the longer-term nature of its projects. However, backlog is not a term defined under U.S. GAAP and does not measure contract profitability. It should not be viewed as the sole indicator of future revenue, as many projects with short lead times book-and-bill within the same reporting period and are not included in the backlog. ROIC: Return on invested capital ("ROIC") and adjusted ROIC are key operating ratios that enable investors to assess our operating performance relative to the investment needed to generate operating profit. ROIC is calculated as after-tax operating income divided by the average of beginning and ending invested capital. Adjusted ROIC is calculated as after-tax adjusted operating income divided by the average of beginning and ending invested capital. Invested capital represents total assets minus total liabilities (excluding interest-bearing debt and redeemable noncontrolling interests). View source version on businesswire.com: https://www.businesswire.com/news/home/20260721572238/en/ Contacts Renee [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was primarily driven by 34% growth in North America utility, fueled by multi-year investment cycles in grid modernization, data centers, and electrification. Management attributes margin expansion to commercial execution and pricing discipline, which successfully offset inflationary pressures in raw materials and freight. Agriculture results reflect a resilient business model where disciplined cost management and 16.5% operating margins mitigated a 15.8% decline in sales due to strained grower economics. Strategic focus on high-value segments led to growth in agriculture aftermarket parts (6%) and technology services (7%), despite overall equipment demand softness. Telecom performance was impacted by a 26.1% sales decline as carriers shifted capital allocation following the 5G deployment peak, though the segment remains highly profitable. International infrastructure initiatives are in early stages, focusing on product line management and engineering excellence to drive material financial benefits by 2027. Full-year net sales guidance raised to $4.3 billion - $4.45 billion, assuming continued volume strength in North America utility and coatings through year-end. Infrastructure operating margins for the second half are expected to remain consistent with the first half, as pricing actions balance elevated material and freight costs. Agriculture outlook assumes normal seasonal patterns with lower second-half sales and operating margins moderating to the low teens. Capital expenditure guidance of $170 million to $200 million remains unchanged, with spending weighted toward the second half to support utility capacity expansion. Management expects telecom market softness to persist through the balance of 2026 as carriers remain disciplined with capital expenditures. Material cost inflation is accelerating, with steel up 27% to 30% and diesel up 45% year-to-date, creating short-term timing lags in price realization. Geopolitical conflict in the Middle East is causing project timing delays and high support costs, leading to minimal project expectations for the region in the short term. Utility growth is currently capacity-constrained rather than demand-constrained, with performance tied to engineering and manufacturing throughput improvements. Brazil agriculture remains pressured by reduced government irrigation funding and high financing rates, despite a recent reduction in financing rates for equipment. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted telecom is a 'quick turn' business with low visibility and no typical backlog, leading to the unexpected Q2 softness. The decline is attributed to carrier leadership changes and disciplined spending post-5G peak, rather than a loss of competitive position. Management considers 16% to be a sustainable margin level for agriculture at current volumes, excluding seasonal second-half compression. During a market recovery, the company targets a 3-point margin growth improvement over current levels due to structural cost removals. Sequential margin compression in infrastructure was driven by accelerated material cost inflation impacting the P&L faster than pricing adjustments. Management views this as a short-term timing issue that does not impact the long-term margin trajectory or customer demand.

This article first appeared on GuruFocus. Net Sales: $1.12 billion, a 6.5% increase year-over-year. Operating Income: $166.1 million, with a margin expansion of 130 basis points to 14.8%. Diluted Earnings Per Share (EPS): $6.14, a 25.8% increase from the prior year. Infrastructure Sales: $879 million, a 14.8% increase year-over-year. North America Utility Sales: Increased 33.9% due to higher pricing and volume growth. North America Coatings Sales: Increased 16.6% driven by infrastructure and data center demand. North America Telecom Sales: Decreased 26.1% due to lower carrier spending. Agriculture Sales: Decreased 15.8% year-over-year to $244 million. Operating Cash Flow: $148 million for the quarter. Cash and Net Debt Leverage: $139 million in cash, with net debt leverage close to one times. Capital Expenditures: $36 million, primarily for utility capacity expansion. Shareholder Returns: $75 million returned through $60 million in share repurchases and $15 million in dividends. 2026 Full Year Sales Outlook: Projected between $4.3 billion and $4.45 billion, approximately 6.7% growth. 2026 EPS Outlook: Increased to a range of $22.25 to $23.50, nearly 20% growth at the midpoint. Warning! GuruFocus has detected 3 Warning Sign with BOM:532977. Is VMI fairly valued? Test your thesis with our free DCF calculator. Release Date: July 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Valmont Industries Inc (NYSE:VMI) reported a 6.5% increase in net sales and a 25.8% growth in adjusted earnings per share for the second quarter of 2026. The company raised its full-year sales and earnings outlook, driven by strong performance in the North America Utility segment, which saw a 34% growth. Infrastructure sales grew by 14.8% year-over-year, with North America Utility sales increasing by 33.9%, supported by higher pricing and volume growth. Valmont Industries Inc (NYSE:VMI) achieved a 16.5% operating margin in the agriculture segment, improving 90 basis points year-over-year due to disciplined cost and risk management. The company maintained a strong financial position with healthy operating cash flow of $148 million and a net debt leverage close to one times. The North America Telecom segment experienced a 26.1% decrease in sales due to lower carrier spending as customers shifted capital allocation priorities. Agriculture sales decreased by 15.8% year-over-year, with international sales dropping 28.9% primarily due to lower Middle East volumes. The company faces ongoing challenges in the global agriculture market, with tighter farm economics in North America and reduced financing rates in Brazil. Material cost inflation, particularly in steel and diesel, is impacting short-term profitability, with steel prices up 27% to 30% year-to-date. The Middle East agriculture market is experiencing project delays due to regional conflicts, affecting sales and operational efficiency. Q: Could you provide more visibility on the telecom sector's performance, given the soft quarter? A: Avner Applbaum, President and CEO, explained that the telecom business has low visibility and is quick-turn, typically without a backlog. The carriers have shifted their spending due to leadership changes and financial discipline. Although the softness was not anticipated, the company remains embedded with customers and expects continued spending on spectrum build-out. Q: Can you elaborate on the situation in the Middle East agriculture market and the Dubai facility's operations? A: Avner Applbaum noted that the Dubai facility is a manufacturing site, not just distribution. Currently, there is minimal activity due to regional conflicts, leading to project delays. Despite this, long-term demand for food security remains strong, and the company is well-positioned for future opportunities. Q: Are there any signs of recovery or stabilization in the agriculture market, particularly outside the Middle East? A: Avner Applbaum stated that while there are no immediate signs of recovery, the market is stabilizing. The company focuses on its value proposition, including a large dealer network and aftermarket services, which have shown single-digit growth. Long-term prospects remain positive. Q: What are the expectations for agriculture margins and incremental margins during the next upcycle? A: John Schwietz, CFO, mentioned that the Q2 margin of 16.5% is sustainable for that period. However, margins are expected to compress to low teens in the second half due to seasonality. In a recovery, margins could grow by about three points. Q: Can you discuss the significant jump in infrastructure revenue from Q1 to Q2 and the impact on margins? A: Avner Applbaum explained that the sequential growth was driven by both price and volume. However, material cost inflation, particularly in steel and diesel, impacted margins. Despite this, year-over-year growth remains strong. Q: Will infrastructure segment margins improve in the second half despite telecom challenges? A: Avner Applbaum expects second-half margins to be consistent with the first half. While telecom is a high-margin business, cost inflation is a more significant factor. The company is managing costs and pricing to maintain profitability. Q: Should we expect a typical second-half step-up in the utility business, or are there factors affecting this? A: Avner Applbaum confirmed that the guidance increase is driven by utility growth, indicating a second-half increase. The growth is more supply-constrained than demand-constrained, with robust demand across all utility segments. Q: How are international commercial initiatives impacting infrastructure performance, and what KPIs should be tracked? A: Avner Applbaum stated that the company is focusing on product line management, operations, and engineering to improve international business. Key performance indicators include top-line growth and margin improvements, with more significant impacts expected in 2027. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Valmont Industries, Inc.? Here are five stocks we like better. Valmont beat second-quarter expectations with net sales up 6.5% to $1.12 billion and diluted EPS up 25.8% to $6.14, driven mainly by strong Infrastructure performance. Management said the company is executing well and raised its full-year sales and earnings outlook. Infrastructure was the key growth engine, led by 33.9% growth in North America Utility and 16.6% growth in Coatings. Demand tied to grid modernization, power needs, data centers and electrification is helping support a multiyear investment cycle. Agriculture remains weak, especially overseas, with sales down 15.8% as North American farm spending stayed cautious and Middle East projects were delayed by conflict. Even so, the segment’s operating margin improved to 16.5% on cost discipline, and Valmont still expects full-year Agriculture sales to hold steady. MarketBeat Week in Review – 04/20 - 04/24 Valmont Industries (NYSE:VMI) reported higher second-quarter 2026 sales and earnings, driven by strength in its Infrastructure segment, particularly North America Utility and Coatings, while Agriculture remained pressured by weaker equipment demand and delayed projects in the Middle East. President and CEO Avner Applbaum said the company delivered “a strong second quarter” reflecting execution of its strategy. He cited a 6.5% increase in net sales, a 130-basis-point expansion in adjusted operating margin and a 25.8% increase in adjusted earnings per share. Based on the results, Valmont raised its full-year sales and earnings outlook. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks 1 Stock Is Powering the AI Boom and the Next Farm Supercycle “Infrastructure delivered another high-quality quarter, led by 34% growth in North America Utility and 17% growth in Coatings,” Applbaum said. He added that commercial execution, pricing discipline and investments in capacity and throughput helped convert customer demand into profitable growth. Executive Vice President and CFO John Schwietz said consolidated net sales rose 6.5% year over year to $1.12 billion. Operating income increased to $166.1 million, while operating margin expanded to 14.8%. Diluted earnings per share rose 25.8% to $6.14. Schwietz said the tax rate remained steady at approximately 26%. → Cybersecurity Stocks Are Holding Up as the AI Trade Starts to Crack Investing in Sustainable Solutions: 2 Top Water Tech Stocks Infrastructure sales increased 14.8% year over year to $879 million. North America Utility sales rose 33.9%, driven by higher pricing and volume growth. Applbaum said demand in Utility continues to be supported by investment in grid modernization, power demand, data centers and electrification, adding that customer discussions suggest the market is in the early stages of a multiyear investment cycle. North America Coatings sales increased 16.6%, supported by infrastructure and data center demand. Applbaum said the Coatings business is benefiting from higher internal volumes and growing third-party infrastructure demand, supported by Valmont’s galvanizing network. → Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit North America Lighting and Transportation sales declined 2.4% due to lower volumes. Applbaum said Transportation markets remain healthy, while Lighting is being affected by softer residential and commercial construction activity. North America Telecom sales fell 26.1% as carrier spending slowed following the peak of the 5G deployment cycle. International Infrastructure sales increased 7.4%, helped by favorable foreign exchange and a slight increase in volume. Applbaum said Valmont is pursuing initiatives to strengthen its international businesses, though he described the process as still in its early stages. Agriculture sales declined 15.8% year over year to $244 million. North America sales decreased 2.3%, with reduced volumes partly offset by favorable pricing. International Agriculture sales dropped 28.9%, primarily due to lower Middle East volumes. Schwietz said that outside the Middle East, international Agriculture sales were relatively flat. Despite the sales decline, Agriculture operating margin improved 90 basis points to 16.5%. Schwietz attributed the improvement to disciplined cost and risk management, and said the actions taken position the segment to expand margins when agricultural markets recover. Applbaum said global agriculture market conditions remain challenging. In North America, tighter farm economics continue to constrain capital spending. In Brazil, a recently announced government crop plan reduced financing rates for irrigation equipment, but total funding allocated to irrigation is below last year’s level. In the Middle East, the ongoing conflict is causing delays in certain customer projects. Valmont said it is focusing on higher-value opportunities within Agriculture, including aftermarket and technology solutions. Applbaum said aftermarket parts sales grew approximately 6% in the quarter, while technology services increased 7%, despite softer equipment demand. Valmont raised its full-year 2026 net sales guidance to a range of $4.3 billion to $4.45 billion. At the midpoint, Schwietz said that represents approximately 6.7% revenue growth for the year. The company increased its Infrastructure sales outlook to a range of $3.4 billion to $3.5 billion, while maintaining its Agriculture outlook. The company also raised its diluted earnings per share outlook to a range of $22.25 to $23.50. At the midpoint, Schwietz said the guidance represents nearly 20% growth in adjusted EPS. He said the higher earnings outlook reflects continued strength in North America Utility and Coatings, supported by volume growth and favorable pricing. Schwietz said raw material and freight costs are expected to remain elevated through the rest of the year, but pricing actions and operational execution are expected to support Infrastructure operating margins at levels consistent with the first half of 2026. In Agriculture, he said margins are expected to moderate in the second half due to normal seasonality. Valmont maintained its capital expenditure outlook of $170 million to $200 million, with spending weighted toward the second half of the year as it continues investing in capacity expansion. Valmont generated operating cash flow of $148 million in the quarter and ended the period with approximately $139 million in cash. Schwietz said net debt leverage remained close to one times. The company invested $36 million in capital expenditures during the quarter, primarily to support Utility capacity expansion. It also repaid the remaining $60 million outstanding on its revolving credit facility and returned $75 million to shareholders, including $60 million of share repurchases and $15 million in dividends. At quarter end, approximately $451 million remained available under Valmont’s share repurchase authorization. During the question-and-answer portion of the call, CJS Securities analyst Chris Moore asked about visibility in Telecom following the segment’s weaker quarter. Applbaum said Telecom is a quick-turn business with limited backlog visibility and that Valmont did not anticipate the second-quarter softness at the start of the year. He said carriers have shifted spending and are being more disciplined with capital allocation. Valmont now expects Telecom to be down in the teens for the year. Asked about Agriculture in the Middle East, Applbaum said Valmont manufactures from its Dubai facility and has a flexible model to scale for projects. However, he said regional activity is currently minimal due to the conflict, with customers delaying projects. He said the long-term demand for food security in the region remains compelling. Stifel analyst Nathan Jones asked whether Valmont was seeing signs of improvement in Agriculture. Applbaum said he would not characterize the market as showing “green shoots,” but said the company is seeing stabilization outside the Middle East. Schwietz said a 16% margin is sustainable for a second quarter in Agriculture, though margins are expected to move into the low teens in the back half of the year due to seasonality. In response to questions about Infrastructure margins, Schwietz said sequential growth in Infrastructure was driven mostly by price, with a volume component. He said material cost inflation accelerated in the second quarter and is expected to affect the third quarter as well. Later, he said steel was up 27% to 30% year to date and diesel was up 45% year to date, depending on the measure used. Applbaum said the inflationary pressure is manageable and does not change customer demand, Valmont’s competitive position or its long-term margin trajectory. He also said demand remains strong across transmission, distribution and substations in the Utility business, with capacity constraints more important than demand limitations in determining growth. Valmont Industries, Inc (NYSE: VMI) is a diversified industrial manufacturer specializing in infrastructure and agricultural products. Headquartered in Omaha, Nebraska, the company engages in the design, production and distribution of engineered products that support water management, power transmission, lighting and traffic infrastructure. Valmont's solutions range from center-pivot and lateral-move irrigation systems to utility poles, transmission towers, lighting structures and highway traffic signal support structures. The company operates through several core business segments. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Valmont Industries Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

For the quarter ended June 2026, Valmont Industries (VMI) reported revenue of $1.12 billion, up 6.5% over the same period last year. EPS came in at $6.14, compared to $4.88 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.09 billion, representing a surprise of +2.32%. The company delivered an EPS surprise of +6.6%, with the consensus EPS estimate being $5.76. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Valmont performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Total Sales by Product Line- North America Utility: $456.74 million versus the two-analyst average estimate of $431.65 million. Total Sales by Product Line- North America Lighting and Transportation: $130.5 million compared to the $130.9 million average estimate based on two analysts. Total Sales by Product Line- International Infrastructure and Solar: $165.68 million compared to the $162.25 million average estimate based on two analysts. Total Sales by Product Line- North America Telecommunications: $56.99 million versus $75.4 million estimated by two analysts on average. Total Sales by Product Line- North America Coatings: $66.81 million compared to the $65.25 million average estimate based on two analysts. Total Sales- Intersegment: $-3.95 million versus the two-analyst average estimate of $-3.99 million. The reported number represents a year-over-year change of -10.1%. Net Sales- Agriculture: $241.97 million versus $236.23 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -15.8% change. Total Sales- Infrastructure: $878.94 million versus $835.09 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +14.8% change. Total Sales- Agriculture: $243.7 million compared to the $264.59 million average estimate based on two analysts. The reported number represents a change of -15.8% year over year. Net Sales- Infrastructure: $876.72 million compared to the $861.94 million average estimate based on two analysts. The reported number represents a change of +14.9% year over year. Operating income- Corporate: $-28.15 million compared to the $-24.81 million average estimate based on four analysts. Operating income- Infrastructure: $154.38 million versus the four-analyst average estimate of $154.09 million. View all Key Company Metrics for Valmont here>>> Shares of Valmont have returned -9.8% over the past month versus the Zacks S&P 500 composite's -0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Valmont Industries, Inc. (VMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Valmont Industries (VMI) came out with quarterly earnings of $6.14 per share, beating the Zacks Consensus Estimate of $5.76 per share. This compares to earnings of $4.88 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.60%. A quarter ago, it was expected that this infrastructure equipment maker would post earnings of $4.72 per share when it actually produced earnings of $5.51, delivering a surprise of +16.74%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Valmont, which belongs to the Zacks Steel - Pipe and Tube industry, posted revenues of $1.12 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.32%. This compares to year-ago revenues of $1.05 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Valmont shares have added about 30.7% since the beginning of the year versus the S&P 500's gain of 8.7%. While Valmont has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Valmont was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $5.78 on $1.1 billion in revenues for the coming quarter and $22.82 on $4.31 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Steel - Pipe and Tube is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Industrial Products sector, Emerson Electric (EMR), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This maker of process controls systems, valves and analytical instruments is expected to post quarterly earnings of $1.68 per share in its upcoming report, which represents a year-over-year change of +10.5%. The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. Emerson Electric's revenues are expected to be $4.79 billion, up 5.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Valmont Industries, Inc. (VMI) : Free Stock Analysis Report Emerson Electric Co. (EMR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research