Valmont (VMI) AI Stock Analysis

• Market Cap: $8.00B
• Dividend Yield: 0.63%
• Average Volume (3M): 154.68K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.06
• Revenue Growth: 1.23%
• EPS Growth: -22.77%
• Country: US
• Employees: 10,986
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 4.92
• Shares Outstanding: 19,535,261
• 10 Day Avg. Volume: 157,818
• 30 Day Avg. Volume: 154,684
• PEG Ratio: 10.34
• Price to Book (P/B): 5.00
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 26.20
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 7.20
• Enterprise Value/Ebitda: 16.91
• 1Y Price Target: $487.00
• Price Target Upside: 19.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 21.95
• Revenue Forecast (FY): $4.28B

• Rating: 75 Outperform
• Price Target: $460.00 ▲(12.45% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

Overall score reflects strong technical uptrend and a solid fundamental backdrop (earnings rebound and much lower leverage), reinforced by upbeat 2026 guidance and backlog strength. The main constraint is valuation (high P/E and low yield), with cash-flow volatility and segment-specific risks (Agriculture/Brazil and working-capital pressure) as secondary offsets.

Positive Factors

Robust Utility backlog & high-margin capacity

A growing $1.5B backlog and targeted Utility capacity additions provide durable revenue visibility. Management expects ~ $150M of incremental Utility revenue with mid-to-upper-20% incremental margins, implying high-return investments that can sustainably lift segment profitability and cash generation.

Markedly improved leverage & balance sheet

Leverage reduction to near-zero net debt levels materially increases financial flexibility and lowers refinancing risk. A de-risked balance sheet supports capacity investments, strategic M&A, and buybacks while providing a cushion against cyclical downturns in infrastructure and agriculture markets.

Strong cash generation & disciplined returns

Consistent operating cash flow and high FCF conversion underpin durable capital allocation. Strong 2025 OCF and FCF enabled $250M in shareholder returns and funded capex and minority buyouts, indicating the business can self-finance growth and reward shareholders without overrelying on external financing.

Negative Factors

Agriculture exposure & Brazil charges

Significant Brazil-related legal reserves and credit losses (~$50M) and steep Ag sales declines highlight persistent regional and credit risks in Agriculture. These exposures can produce recurring earnings volatility and credit losses until regional issues and project pipelines normalize.

Working-capital pressure & cash-flow volatility

A ~35% FCF drop in 2025 and historical swings in operating cash flow reflect working-capital and project-timing sensitivity. Elevated contract assets from higher Utility volumes can tie up cash, constraining discretionary returns or forcing timing shifts in capex and M&A over the medium term.

Execution, tariff & commodity risks; segment softness

External risks—tariff shifts, steel/commodity cost swings—and execution delays can erode margins and postpone benefits from capacity builds. Combined with near-term Lighting & Transportation weakness, these structural operational risks could reduce realized returns and extend recovery timelines.

Valmont Business Overview & Revenue Model

Company Description

Valmont Industries, Inc. produces and sells fabricated metal products in the United States, Australia, Brazil, Denmark, and internationally. It operates through two segments: Infrastructure and Agriculture. The company manufactures and distributes engineered metal, steel, wood, aluminum, and composite poles, towers, and components for lighting, traffic, and wireless communication markets; engineered access systems; integrated structure solutions for smart cities; and highway safety products. It also offers engineered steel and concrete pole structures for utility transmission, distribution, substations, and renewable energy generation equipment; and inspection services. In addition, the company provides hot-dipped galvanizing, anodizing, and powder coating services to preserve and protect metal products; and water management solutions and technology for precision agriculture. Further, it manufactures and distributes mechanical irrigation equipment, and related parts and services under the Valley brand name for the agricultural industry; and tubular products for industrial customers. The company serves municipalities and government entities, commercial lighting fixtures manufacturing companies, contractors, telecommunications and utility companies, and large farms, as well as the general manufacturing sector. Valmont Industries, Inc. was founded in 1946 and is headquartered in Omaha, Nebraska.

How the Company Makes Money

Valmont makes money primarily by manufacturing and selling engineered steel (and other material) products and systems used in critical infrastructure and agriculture, with revenue generally recognized upon shipment or delivery of products and, where applicable, over time for certain service/longer-duration project work. Key revenue streams include: (1) Utility segment sales to electric utilities and industrial customers for transmission and distribution structures (such as poles, substation structures, and related components) and associated services (including certain engineering, coating/finishing, and project support), where demand is driven by grid hardening, reliability upgrades, replacement of aging infrastructure, and new connection/expansion projects. (2) Infrastructure segment sales to government agencies, contractors, and commercial customers for roadway and transportation-related structures (such as lighting, traffic signal, and other engineered support structures), with demand tied to public infrastructure spending and project-based procurement. (3) Agriculture segment sales of mechanized irrigation systems (including center-pivot and related irrigation solutions) and aftermarket parts and service, where initial equipment sales contribute meaningful revenue and recurring aftermarket revenue is generated through replacement parts, maintenance, and upgrades over the installed base. Across segments, profitability is influenced by product mix, project execution, capacity utilization, steel and other input costs (and the company’s ability to pass through pricing), and the timing/scale of large customer orders. If applicable for specific contracts, Valmont may also generate revenue from value-added services tied to its products (e.g., coating/galvanizing and other finishing work), though segment-level details beyond these general categories are null.

Valmont Financial Statement Overview

Summary

Financial statements show a healthy overall profile: earnings rebounded strongly after 2023 weakness and leverage improved materially by 2025 (debt-to-equity falling sharply). Offsetting factors include uneven revenue growth, notable cash-flow volatility (including a sharp 2025 free-cash-flow decline vs 2024), and some reduced metric clarity in the latest period.

Income Statement

Revenue has been relatively stable over the last several years (down in 2023–2024, modestly up in 2025), while profitability improved meaningfully from 2023 to 2024 (net income rising from ~$143M to ~$348M with solid margins in 2024). Strengths include generally healthy operating profitability and a rebound in earnings power after a weaker 2023. Weaknesses include uneven top-line growth and missing margin data for 2025, which limits visibility into the most recent profitability profile.

Balance Sheet

Leverage improved substantially, with total debt falling sharply by 2025 and the debt load looking very manageable relative to equity (debt-to-equity drops from ~0.94 in 2023 to ~0.56 in 2024 and ~0.04 in 2025). This de-risking strengthens financial flexibility and reduces downside sensitivity. A key weakness is limited data quality/consistency in 2025 balance sheet fields (e.g., assets and equity align unusually closely and return on equity is not provided), which adds some uncertainty despite the clearly positive leverage trend.

Cash Flow

Cash generation is generally solid, with positive operating cash flow and free cash flow in most years and strong conversion versus earnings in 2022–2024 (free cash flow running at roughly 68%–86% of net income). However, cash flow has been volatile: 2021 posted weak operating cash flow and negative free cash flow, and 2025 free cash flow declined sharply versus 2024 (down ~35%), signaling potential working-capital or investment swings that can pressure near-term cash returns.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.10B	4.08B	4.17B	4.35B	3.50B
Gross Profit	1.24B	1.24B	1.24B	1.13B	883.89M
EBITDA	506.60M	622.80M	391.97M	508.59M	395.27M
Net Income	350.27M	348.26M	143.47M	250.86M	195.63M
Balance Sheet
Total Assets	3.37B	3.33B	3.48B	3.56B	3.45B
Cash, Cash Equivalents and Short-Term Investments	187.14M	164.31M	203.04M	185.41M	177.23M
Total Debt	1.06B	866.84M	1.27B	1.03B	1.11B
Total Liabilities	1.73B	1.74B	2.06B	1.92B	2.03B
Stockholders Equity	1.63B	1.54B	1.35B	1.58B	1.39B
Cash Flow
Free Cash Flow	311.45M	493.23M	210.00M	232.98M	-41.85M
Operating Cash Flow	456.48M	572.68M	306.77M	326.26M	65.94M
Investing Cash Flow	-244.51M	-78.88M	-115.28M	-132.08M	-417.31M
Financing Cash Flow	-197.09M	-522.56M	-176.41M	-181.91M	133.50M

Valmont Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 409.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VMI, the sentiment is Negative. The current price of 409.08 is below the 20-day moving average (MA) of 444.58, below the 50-day MA of 445.10, and above the 200-day MA of 392.70, indicating a neutral trend. The MACD of -9.88 indicates Positive momentum. The RSI at 32.75 is Neutral, neither overbought nor oversold. The STOCH value of 11.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VMI.

Valmont Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMI	75 Outperform	$8.00B	23.29	20.28%	0.63%	1.23%	-22.77%
HON	69 Neutral	$149.07B	24.26	31.25%	2.24%	7.48%	9.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MMM	55 Neutral	$78.98B	26.32	71.89%	1.82%	-13.09%	-20.63%

Valmont Corporate Events

Valmont Industries Expands Board, Appoints New Independent Director

On February 22, 2026, Valmont Industries, Inc. expanded its board of directors to eleven members and appointed Paul T. Maass as a new non-employee director, signaling an adjustment in its governance structure. As part of standard director compensation at Valmont, Maass will receive an annual cash retainer of $95,000 and an annual grant of restricted stock units valued at $170,000, which vest on the first anniversary of the grant date, aligning director incentives more closely with long-term shareholder interests.

The most recent analyst rating on (VMI) stock is a Buy with a $542.00 price target. To see the full list of analyst forecasts on Valmont stock, see the VMI Stock Forecast page.