10-Q · April 27, 2026
Valmont reported Q1 FY2026 net sales of $1,029,197,000, up 6.2% year-over-year, with gross margin expanding to 30.8% and operating income rising 21.3% to $155,626,000. Diluted EPS was $5.51, up 27.5% from $4.32 a year…
Earnings analysis · 10-Q
VMI earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
Valmont delivered a strong Q2, with revenue up 6.5% to $1.119 billion and EPS of $6.14 versus a $1.53 loss a year earlier; sales and earnings also increased sequentially from Q1. Infrastructure, especially North America…
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Valmont delivered a strong Q2, with revenue up 6.5% to $1.119 billion and EPS of $6.14 versus a $1.53 loss a year earlier; sales and earnings also increased sequentially from Q1. Infrastructure, especially North America Utility, drove growth and cash generation remained robust, while debt declined and liquidity was ample. The principal offset is a 15.8% Agriculture contraction, concentrated in international markets affected by Middle East conflict, alongside continued telecom weakness and tariff uncertainty. Gross margin was essentially stable year over year at 30.5% but modestly below the implied 30.8% in Q1.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $6.14
What stood out
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Revenue grew 6.5% YoY and 8.7% QoQ
Q2 net sales rose 6.5% year over year to $1.119 billion, accelerating from the implied $1.029 billion in Q1 (derived from first-half sales of $2.148 billion), an 8.7% sequential increase. Sales growth was led by Infrastructure, partially offset by Agriculture.
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EPS and operating margin rebounded
Diluted EPS improved to $6.14 from a $1.53 loss a year ago and $5.51 in Q1, a sequential increase of 11.4%. Operating margin rose to 14.8% from 2.8% last year, although the prior-year result included $91.3 million of long-lived-asset impairment and $8.9 million of realignment charges; margin was modestly below Q1's implied 15.1%.
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Utility demand powered Infrastructure
Infrastructure net sales increased 14.9% to $876.7 million and operating income reached $154.4 million, versus $25.9 million a year ago. North America Utility grew $115.6 million, or 33.9%, to $456.7 million, supported by pricing, volume, grid reinforcement, and data-center-related power demand.
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Coatings and international infrastructure grew
North America Coatings sales increased 16.6% to $69.0 million, while International Infrastructure and Solar increased 7.4% to $165.7 million. Management attributed Coatings growth to infrastructure and data-center demand; favorable foreign exchange added approximately $7.4 million to Infrastructure's quarterly results.
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Cash generation covered investment needs
First-half operating cash flow increased to $251.6 million from $232.7 million. After $70.5 million of capital spending, first-half free cash flow was approximately $181.1 million, with capex equal to 28.0% of operating cash flow; management expects full-year capex of $170.0 million to $200.0 million.
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Liquidity and leverage strengthened
Total interest-bearing debt declined to $755.2 million at June 27 from $829.5 million at December 27, while revolver borrowings fell from $65.0 million to zero. The company had $139.1 million of cash, $799.8 million of revolver availability, and a 0.93 leverage ratio versus its 3.50 covenant limit.
What to watch
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Agriculture demand and conflict remain headwinds
Agriculture net sales declined 15.8% to $242.0 million, with international sales down $42.4 million, or 28.9%, due principally to Middle East conflict disruptions. North American Agriculture sales fell 2.3% to $139.2 million amid weak irrigation demand, lower grain prices, trade-policy uncertainty, and timing of government funding.
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Telecom and lighting volumes contracted
North America Telecommunications sales fell $20.2 million, or 26.1%, to $57.0 million as carrier spending declined. North America Lighting and Transportation also decreased 2.4% to $130.5 million because of operational challenges.
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Steel-tariff interpretation could raise costs
Modified steel tariffs affect approximately $220.0 million of fabricated steel structures imported from Mexico during fiscal 2025. Management expects most qualifying Mexico-made steel poles to receive a 10% rate, but products that fail sourcing requirements could face tariffs of up to 50%, and regulatory interpretation may differ from management's view.
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No formal risk-factor update; working capital rose
The filing states that there were no material changes to risk factors during the twenty-six weeks ended June 27, 2026. Working-capital pressure nevertheless affected cash flow: receivables and inventories increased, and the company made a $20.3 million Brazil litigation settlement payment.
Management's outlook
The 10-Q does not restate quantitative revenue or EPS guidance. Management expects fiscal-2026 capital expenditures of $170.0 million to $200.0 million and describes allocating approximately 50% of operating cash flow to growth investments and approximately 50% to shareholder returns.
Earlier filings 4
10-K · February 24, 2026
Valmont reported fiscal 2025 net sales of $4,104.1 million (up $29.1 million vs. 2024) and diluted EPS of $16.79. The company generated strong operating cash flow of $456.5 million and repurchased $198.1 million of…
10-Q · April 30, 2025
Valmont reported net sales of $969,314,000 and diluted EPS of $4.32 for the thirteen weeks ended March 29, 2025. Revenue and gross profit declined modestly versus the year-ago quarter, while operating cash flow…
10-K · February 28, 2024
Valmont reported fiscal 2023 net sales of $4,174,598 (thousands) with diluted EPS of $6.78, down from $11.62 in 2022, and net earnings of $144,912 (thousands) versus $254,251 in 2022. Operating cash flow remained strong…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.