Valmont Industries (VMI)
NYSE:VMI
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Valmont
(NYSE:VMI)
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Rating:71Outperform
Price Target:
$473.00
â–²(10.95% Upside)
Action:ReiteratedDate:04/10/26
The score is driven primarily by solid underlying financial performance (notably de-leveraging and improved profitability) and a positive earnings outlook supported by backlog and Utility momentum. Offsetting factors include only mixed/softening technical momentum and a valuation profile with a relatively high P/E and minimal dividend yield, plus ongoing segment and execution risks cited on the call (Agriculture/Brazil, working capital, tariffs).
Positive Factors
Balance Sheet De‑leveraging
Valmont’s material de‑leveraging (debt-to-equity ~0.04 in 2025) meaningfully lowers financial risk and interest burden. This durable strength increases capacity for strategic investment, acquisitions, and capital returns, and improves resilience to cyclical capital and commodity shocks.
Negative Factors
Agriculture / Brazil Exposure
Large Brazil-related legal reserves and credit losses (~$50M) and nearly 20% Ag sales decline highlight persistent country and receivables risk in Agriculture. Such international/project exposures can create recurring earnings volatility and impair recovery timing for Ag margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet De‑leveraging
Valmont’s material de‑leveraging (debt-to-equity ~0.04 in 2025) meaningfully lowers financial risk and interest burden. This durable strength increases capacity for strategic investment, acquisitions, and capital returns, and improves resilience to cyclical capital and commodity shocks.
Read all positive factors
Valmont (VMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.33B
Dividend Yield0.63%
Average Volume (3M)180.60K
Price to Earnings (P/E)23.3
Beta (1Y)1.06
Revenue Growth1.23%
EPS Growth-22.77%
CountryUS
Employees10,986
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)4.92
Shares Outstanding19,535,261
10 Day Avg. Volume180,747
30 Day Avg. Volume180,600
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 Cap1.10
Enterprise Value/Revenue2.24
Enterprise Value/Gross Profit7.42
Enterprise Value/Ebitda17.43
Forecast
1Y Price Target
$487.00Price Target Upside14.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)22.01
Revenue Forecast (FY)$4.28B
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...
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, whe...
Valmont Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Positive
The call presents a largely positive outlook driven by strong Infrastructure performance—especially Utility—robust cash generation, disciplined capital allocation, strategic acquisitions and constructive 2026 guidance. Headwinds remain in Agriculture (notably Brazil), some near-term pressure in Lighting & Transportation, and execution/ tariff risks that could impact outcomes. Management emphasizes they have accrued for Brazil exposures and expect Agriculture margins to recover in early 2026. On balance, the positive operational momentum and financial strength outweigh the localized challenges.Positive Updates
Strong Adjusted Earnings Performance
Adjusted diluted EPS of $4.92 in Q4, up 28.1% year-over-year; full-year adjusted diluted EPS of $19.09, up 11.1% versus 2024 (GAAP EPS $9.05 included a $78.5M / $3.98 per share tax benefit excluded from adjusted EPS).
Negative Updates
Agriculture Revenue Decline
Q4 Agriculture sales $222.7M, down 19.9% year-over-year; international weakness (notably Brazil) and lower project sales in the Middle East contributed to the decline.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Adjusted Earnings Performance
Adjusted diluted EPS of $4.92 in Q4, up 28.1% year-over-year; full-year adjusted diluted EPS of $19.09, up 11.1% versus 2024 (GAAP EPS $9.05 included a $78.5M / $3.98 per share tax benefit excluded from adjusted EPS).
Read all positive updates
Company Guidance
Valmont guided 2026 net sales of $4.2–$4.4 billion and diluted EPS of $20.50–$23.50 (midpoint implying ~4.8% revenue growth and ~15.2% EPS growth versus 2025 adjusted EPS of $19.09), with year‑over‑year growth expected in Q1; management cited a $1.5 billion backlog (up 22% y/y) and assumed roughly $150 million of incremental Utility revenue in 2026 driven by capacity additions, with incremental margins in the mid‑to‑upper‑20% range (approaching 30%). Planned 2026 CapEx is $170–$200 million (vs $145 million in 2025) largely for Utility; Agriculture is expected to return to double‑digit operating margins in Q1 (low‑teens initially, mid‑teens by year‑end). The company expects its adjusted tax rate to normalize to ~26%, ended 2025 with ~$187 million cash and ~1x net leverage, generated $457 million operating cash flow and $311 million free cash flow in 2025, and reiterated a multi‑year target to deliver $500–$700 million in revenue growth and $25–$30 in EPS over the next 3–4 years.Valmont Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
82
Very Positive
Cash Flow
68
Positive
| 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
Positive
426.31
Price Trends
434.54
Negative
424.68
Positive
399.05
Positive
Market Momentum
-4.34
Negative
56.30
Neutral
79.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VMI, the sentiment is Positive. The current price of 426.31 is above the 20-day moving average (MA) of 404.59, below the 50-day MA of 434.54, and above the 200-day MA of 399.05, indicating a neutral trend. The MACD of -4.34 indicates Negative momentum. The RSI at 56.30 is Neutral, neither overbought nor oversold. The STOCH value of 79.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $8.33B | 23.29 | 20.28% | 0.63% | 1.23% | -22.77% | |
69 Neutral | $147.78B | 24.26 | 31.25% | 2.24% | 7.48% | 9.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $79.27B | 26.32 | 71.89% | 1.82% | -13.09% | -20.63% |
* Industrials Sector Average
VMI
Valmont
426.31
144.91
51.50%
MMM
3M
150.50
17.01
12.74%
HON
Honeywell International
236.06
52.92
28.90%
Valmont Corporate Events
Executive/Board Changes
Valmont Names John Schwietz as New Chief Financial Officer
Positive
Apr 9, 2026
Valmont Industries, Inc. appointed longtime executive John Schwietz as Executive Vice President, Chief Financial Officer and Corporate Secretary, effective April 8, 2026, succeeding Thomas Liguori. Schwietz, who joined Valmont in 2009, has held se...
Executive/Board Changes
Valmont Industries Expands Board, Appoints New Independent Director
Neutral
Feb 25, 2026
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 compensa...
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.