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Valmont
(NYSE:VMI)
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Rating:62Neutral
Price Target:
$557.00
â–²(34.99% Upside)
Action:Reiterated
Date:07/21/26
Overall score reflects solid underlying financial quality and cash generation plus a positive, guidance-raising earnings call, tempered by a meaningful recent revenue contraction and weak near-term technical momentum (price below key short-term averages with negative MACD). Valuation (higher P/E with low yield) is a modest headwind.
Positive Factors
Free cash flow generation
Valmont's sustained, high free cash flow and strong conversion versus reported profits provide durable internal funding for capex, share repurchases, dividends and debt reduction. Over 2–6 months this supports investment in utility capacity and maintains capital allocation flexibility despite cyclical end markets.
Negative Factors
Sharp trailing revenue decline
A near-24% TTM revenue decline is a meaningful structural risk: prolonged top-line weakness can erode operating leverage and make margins and cash conversion less durable. If the decline persists beyond seasonal recovery, it threatens earnings visibility and the sustainability of current capital returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Valmont's sustained, high free cash flow and strong conversion versus reported profits provide durable internal funding for capex, share repurchases, dividends and debt reduction. Over 2–6 months this supports investment in utility capacity and maintains capital allocation flexibility despite cyclical end markets.
Read all positive factors
Valmont Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales by region so investors can assess growth opportunities and risks tied to local markets, currency swings, or regional demand trends — important for understanding where Valmont is most exposed or gaining traction.
Breaks down sales by region so investors can assess growth opportunities and risks tied to local markets, currency swings, or regional demand trends — important for understanding where Valmont is most exposed or gaining traction.
Data provided by:
The Fly
The FlyValmont (VMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.81B
Dividend Yield0.59%
Average Volume (3M)223.68K
Price to Earnings (P/E)27.8
Beta (1Y)0.97
Revenue Growth3.80%
EPS Growth138.85%
CountryUS
Employees10,791
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)17.62
Shares Outstanding19,413,650
10 Day Avg. Volume182,116
30 Day Avg. Volume223,677
Financial Highlights & Ratios
PEG Ratio10.34
Price to Book (P/B)5.00
Price to Sales (P/S)1.99
P/FCF Ratio26.20
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$615.00Price Target Upside49.05% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)22.83
Revenue Forecast (FY)$4.31B
Valmont Business Overview & Revenue Model
Company Description
Valmont Industries, Inc. is a global enterprise specializing in engineered products, conducting operations across the United States, Australia, Brazil, Denmark, and other international markets. The company's business is organized into two primary ...
How the Company Makes Money
Valmont makes money by manufacturing and selling engineered products and providing related services, with revenue primarily generated from its Agriculture and Infrastructure segments. In Agriculture, the company earns revenue from the sale of irri...
Valmont Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented a decidedly positive operational and financial picture driven by strong infrastructure performance—particularly North America utility and coatings—resulting in higher sales, expanded margins, materially higher adjusted EPS, and an upgraded full-year outlook. Offsetting this optimism are notable challenges in agriculture (significant revenue declines and regional project delays), a steep decline and low visibility in telecom, and accelerating raw material and fuel inflation that compresses short-term incremental margins. Overall, management portrays these headwinds as manageable and emphasized investments and pricing discipline to sustain momentum.Positive Updates
Revenue and EPS Growth
Net sales of $1.12B increased 6.5% year-over-year; operating income rose to $166.1M and adjusted operating margin expanded 130 bps to 14.8%. Diluted adjusted EPS was $6.14, up 25.8% versus prior year.
Negative Updates
Significant Agriculture Revenue Decline
Agriculture sales declined 15.8% YoY to $244M; North America down 2.3% and international down 28.9%, with the Middle East cited as the primary driver of the international decline.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and EPS Growth
Net sales of $1.12B increased 6.5% year-over-year; operating income rose to $166.1M and adjusted operating margin expanded 130 bps to 14.8%. Diluted adjusted EPS was $6.14, up 25.8% versus prior year.
Read all positive updates
Company Guidance
Valmont raised 2026 guidance to net sales of $4.30–$4.45 billion (midpoint ≈6.7% YoY growth) with infrastructure sales of $3.4–$3.5 billion while maintaining the agriculture outlook; adjusted diluted EPS is now guided to $22.25–$23.50 (midpoint ≈20% adjusted EPS growth) with an effective tax rate around 26% and capital expenditures expected to be $170–$200 million (weighted to the second half). Management said infrastructure operating margins should be consistent with the first half despite elevated raw‑material and freight costs, and reiterated longer‑term targets (from a 2025 baseline) of ~7% annual sales growth, a 17% operating margin, double‑digit annual EPS growth and 21% ROIC by 2029. Related liquidity/capital‑allocation metrics disclosed: Q2 operating cash flow $148 million, cash ≈$139 million, net leverage ~1x, $36 million Q2 capex, $75 million returned to shareholders in Q2 ($60M repurchases, $15M dividends) and ≈$451 million remaining on the share repurchase authorization.Valmont Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
64
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.16B | 4.10B | 4.08B | 4.17B | 4.35B | 3.50B |
| Gross Profit | 1.27B | 1.24B | 1.24B | 1.24B | 1.13B | 883.89M |
| EBITDA | 555.57M | 506.60M | 622.80M | 391.97M | 508.59M | 395.27M |
| Net Income | 344.80M | 350.27M | 348.26M | 143.47M | 250.86M | 195.63M |
Balance Sheet | ||||||
| Total Assets | 3.44B | 3.37B | 3.33B | 3.48B | 3.56B | 3.45B |
| Cash, Cash Equivalents and Short-Term Investments | 160.19M | 187.14M | 164.31M | 203.04M | 185.41M | 177.23M |
| Total Debt | 921.30M | 925.67M | 866.84M | 1.27B | 1.03B | 1.11B |
| Total Liabilities | 1.75B | 1.73B | 1.74B | 2.06B | 1.92B | 2.03B |
| Stockholders Equity | 1.68B | 1.63B | 1.54B | 1.35B | 1.58B | 1.39B |
Cash Flow | ||||||
| Free Cash Flow | 345.54M | 311.45M | 493.23M | 210.00M | 232.98M | -41.85M |
| Operating Cash Flow | 494.83M | 456.48M | 572.68M | 306.77M | 326.26M | 65.94M |
| Investing Cash Flow | -257.39M | -244.51M | -78.88M | -115.28M | -132.08M | -417.31M |
| Financing Cash Flow | -267.56M | -197.09M | -522.56M | -176.41M | -181.91M | 133.50M |
Valmont Technical Analysis
Negative
412.62
Price Trends
536.57
Negative
487.65
Negative
454.51
Positive
Market Momentum
-8.13
Positive
29.29
Positive
7.98
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 412.62 is below the 20-day moving average (MA) of 546.68, below the 50-day MA of 536.57, and below the 200-day MA of 454.51, indicating a neutral trend. The MACD of -8.13 indicates Positive momentum. The RSI at 29.29 is Positive, neither overbought nor oversold. The STOCH value of 7.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VMI.
Valmont Risk Analysis
Valmont disclosed 24 risk factors in its most recent earnings report. Valmont reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Valmont Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $72.83B | 16.38 | 23.56% | 2.24% | 1.15% | -19.00% | |
67 Neutral | $88.06B | 30.08 | 66.03% | 1.82% | 2.35% | -21.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $9.81B | 27.84 | 21.43% | 0.63% | 3.80% | 138.85% |
* Industrials Sector Average
VMI
Valmont
488.60
133.61
37.64%
MMM
3M
170.76
24.20
16.51%
HON
Honeywell International
246.27
29.31
13.51%
Valmont Corporate Events
Business Operations and Strategy
Valmont to Host Investor Day Outlining Growth Strategy
Positive
Jun 16, 2026
Valmont Industries plans to host an Investor Day in New York City on June 16, 2026, with a live webcast, where senior leadership will outline its growth strategy, capital allocation priorities and detailed 2026–2029 financial and market oppo...
Executive/Board Changes
Valmont Finalizes CFO Transition and Retirement Arrangements
Neutral
Jun 1, 2026
Valmont Industries Inc. has previously appointed John Schwietz as Executive Vice President, Chief Financial Officer and Corporate Secretary, effective April 8, 2026, succeeding outgoing CFO Thomas Liguori. On May 26, 2026, the company formalized L...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.