Valmont raises 2026 earnings outlook as utility demand lifts third-quarter EPS 25%

Valmont Industries raised its full-year earnings forecast Tuesday after strong demand for utility structures and coatings pushed third-quarter profit sharply higher.

The Omaha, Nebraska-based maker of infrastructure and irrigation equipment said diluted earnings rose 25.3% to $6.24 a share from $4.98 a year earlier. Net earnings were $121.1 million, up from $99.0 million, and net sales grew 5.5% to $1.10 billion from $1.05 billion, according to its earnings release filed with an 8-K.

Operating income climbed 22.2% to $172.8 million, lifting the operating margin to 15.7% from 13.5%. The company reported no adjustments for the quarter, so its GAAP and adjusted figures were the same.

Guidance moves up

Valmont now expects 2026 adjusted diluted EPS of $22.75 to $23.75, up from $22.25 to $23.50. It reaffirmed its net sales outlook of $4.3 billion to $4.45 billion and kept capital spending plans at $170 million to $200 million.

"We are taking pricing actions and applying contractual pass-throughs to recover higher steel and zinc costs. The pace of margin expansion depends in part on how quickly input costs stabilize," President and CEO Avner M. Applbaum said in the release.

Utility leads Infrastructure

Infrastructure sales rose 9.1% to $882.1 million. North America Utility sales jumped 23.0% on higher pricing and volumes, and North America Coatings grew 13.8%. Those gains were partly offset by significantly lower volumes in North America Telecommunications, which the company tied to lower carrier spending.

Segment operating income rose to $154.8 million, though the margin eased to 17.6% from 17.8% as higher steel and zinc costs and the cost of ramping Utility capacity weighed. Infrastructure backlog stood at $1.81 billion at Sept. 26, up from $1.55 billion at the end of 2025, and total backlog reached $2.01 billion.

Agriculture profit climbs despite lower sales

Agriculture sales fell 6.4% to $226.0 million as international sales dropped 25.3% on lower volumes in the Middle East and Brazil. North America sales rose 15.8%, helped by storm replacement activity and favorable pricing.

The segment's operating income still rose to $40.1 million from $23.2 million, with the margin expanding to 17.9% from 9.7%, which Valmont credited in part to lower credit losses in Brazil.

Cash returned

Valmont returned $97.2 million to shareholders in the quarter, including $82.3 million of share repurchases and $14.9 million in dividends. It generated $100.5 million in operating cash flow, spent $45.6 million on capital projects aimed mainly at expanding North America Utility capacity, and ended the period with a net leverage ratio of about 0.9 times.

By the numbers

• Diluted EPS: $6.24, vs. $4.98
• Net sales: $1.10 billion, up 5.5%
• Operating margin: 15.7%, vs. 13.5%
• North America Utility sales: up 23.0%
• 2026 adjusted EPS outlook: $22.75 to $23.75
• Total backlog: $2.01 billion

Sources

1. Valmont Industries, Inc., Form 8-K (Item 2.02) with Exhibit 99.1 earnings release for the third quarter of 2026 (quarter ended Sept. 26, 2026), filed Oct. 20, 2026, accession 0001104659-26-117126

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