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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on VMI

Valmont Industries' recent performance was driven by strong Q2 earnings, beating estimates with $4.88 per share, and revenue growth. The company's profit and sales exceeded expectations, leading to an upward revision of its full-year EPS outlook. Restructuring efforts, including the exit of unprofitable solar operations, are expected to yield $22 million in annual savings starting 2026, contributing to margin expansion. A robust U.S. utility investment cycle, 5G telecom demand, and international agriculture strength are poised to drive strong revenue growth.

1.c. Company Highlights

2. Valmont Industries' Q3 2025 Earnings: Strong Utility Segment Drives Growth

Valmont Industries, Inc. reported a 2.5% increase in net sales to $1.05 billion in its third-quarter 2025 earnings, driven by double-digit growth in Utility and Telecom. The operating margin improved by 120 basis points, and diluted earnings per share increased by 21% to $4.98, beating analyst estimates of $4.64. The company's revenue growth was primarily driven by its Infrastructure segment, which saw sales grow 6.6% to $808.3 million.

Publication Date: Oct -21

📋 Highlights
  • Net Sales Growth:: Increased 2.5% to $1.05 billion, driven by 12.3% Utility sales growth and double-digit Telecom expansion.
  • Full-Year Guidance Raised:: Net sales projected at $4.1 billion, with adjusted diluted EPS expected to reach $18.70–$19.50.
  • Infrastructure Segment Strength:: Generated $808.3 million in sales (+6.6%), with Utility business up 12.3% due to pricing and volume gains.
  • Operating Margin Expansion:: Improved 120 basis points, with Utility capacity expansion operating margin exceeding 20%.
  • Shareholder Returns:: Returned $39 million via dividends and buybacks, while investing $42 million in utility capacity expansion.

Segment Performance

The Utility segment was a key driver of growth, with sales increasing 12.3% due to pricing and higher volumes. The company's backlog is well into 2026, and it feels confident about its leadership in this space, driven by megatrends such as electrification, AI, and grid connectivity. In contrast, the Agriculture segment saw a decline in sales due to lower irrigation equipment volumes in North America and project timing in the Middle East.

Cash Flow and Investments

The company generated $112.5 million in operating cash flows and invested $42 million in capital expenditures, primarily for utility capacity expansion. It returned $39 million to shareholders through dividends and share repurchases. The company's operating margin for the utility capacity expansion is over 20%, driven by good pricing, engineering capability, on-time delivery, and scale.

Outlook and Valuation

Valmont Industries, Inc. raised its full-year earnings guidance, with net sales projected to be approximately $4.1 billion and adjusted diluted earnings per share expected to be between $18.7 and $19.50. Analysts estimate next year's revenue growth at 5.2%. The company's current valuation metrics include a P/E Ratio of 35.01, P/S Ratio of 1.99, and EV/EBITDA of 15.93, indicating a premium valuation. The company's ROIC is 11.3%, and ROE is 14.83%, indicating a strong return on equity.

Growth Prospects

The company is well-positioned to lead in attractive markets, with a focus on accelerating growth, enhancing performance, and investing in high-return initiatives. The utility segment is seeing strong demand across all product lines, including transmission, distribution, substations, and large projects. The company plans to continue investing in growth, with plans in place for 2025 and beyond, while maintaining agility and protecting delivery performance.

3. NewsRoom

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Hypori Releases First-Ever Virtual Mobile Infrastructure (VMI) Report, Exposing Massive Mobile Security Gaps

Dec -03

Source: businesswire.com

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Edgestream Partners L.P. Invests $4.80 Million in Valmont Industries, Inc. $VMI

Dec -03

Source: defenseworld.net

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American Century Companies Inc. Boosts Stock Position in Valmont Industries, Inc. $VMI

Dec -01

Source: defenseworld.net

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Valmont Industries, Inc. $VMI Shares Bought by Advisors Asset Management Inc.

Nov -26

Source: defenseworld.net

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Brokerages Set Valmont Industries, Inc. (NYSE:VMI) PT at $448.33

Nov -25

Source: defenseworld.net

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Creative Planning Cuts Position in Valmont Industries, Inc. $VMI

Nov -24

Source: defenseworld.net

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Aviva PLC Invests $502,000 in Valmont Industries, Inc. $VMI

Nov -14

Source: defenseworld.net

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Valmont Industries, Inc. (VMI) Presents at Baird 55th Annual Global Industrial Conference Transcript

Nov -13

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Infrastructure

Expected Growth: 3%

Valmont Industries' Infrastructure segment growth is driven by increasing demand for smart grid and renewable energy solutions, government investments in transportation and utility infrastructure, and rising adoption of advanced materials for construction and maintenance. Additionally, the company's strategic acquisitions and expansion into emerging markets contribute to its growth momentum.

Agriculture

Expected Growth: 3%

Valmont Industries' 3% growth in Agriculture is driven by increasing global demand for precision irrigation systems, rising adoption of sustainable farming practices, and growing need for crop protection products. Additionally, the company's expansion into emerging markets and strategic acquisitions have contributed to its growth.

7. Detailed Products

Center Pivot Irrigation Systems

Valmont's center pivot irrigation systems are designed to provide efficient and effective irrigation solutions for agricultural applications.

Linear Irrigation Systems

Valmont's linear irrigation systems are designed for smaller fields and offer a cost-effective solution for irrigation.

Pivot Irrigation Towers

Valmont's pivot irrigation towers are designed to support center pivot irrigation systems and provide a sturdy structure for irrigation.

Lighting Poles and Towers

Valmont's lighting poles and towers are designed to provide lighting solutions for various applications such as highways, streets, and sports stadiums.

Traffic Management Solutions

Valmont's traffic management solutions are designed to provide intelligent transportation systems and traffic management solutions.

Wireless Communication Towers

Valmont's wireless communication towers are designed to provide infrastructure for wireless communication networks.

Utility Structures

Valmont's utility structures are designed to provide infrastructure for electrical transmission and distribution.

8. Valmont Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Valmont Industries, Inc. operates in a industry where substitutes are available, but they are not a significant threat to the company's revenue. The score is 3, indicating a moderate threat.

Bargaining Power Of Customers

Valmont Industries, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. The score is 2, indicating a low threat.

Bargaining Power Of Suppliers

Valmont Industries, Inc. relies on a few key suppliers for raw materials, which gives them some bargaining power. The score is 3, indicating a moderate threat.

Threat Of New Entrants

The agricultural industry is attractive to new entrants, and Valmont Industries, Inc. faces a high threat from new competitors. The score is 4, indicating a high threat.

Intensity Of Rivalry

The agricultural industry is highly competitive, and Valmont Industries, Inc. faces intense rivalry from established competitors. The score is 4, indicating a high threat.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.48%
Debt Cost 7.20%
Equity Weight 51.52%
Equity Cost 9.17%
WACC 8.22%
Leverage 94.11%

11. Quality Control: Valmont Industries, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Seaboard

A-Score: 5.9/10

Value: 7.6

Growth: 5.1

Quality: 5.4

Yield: 0.0

Momentum: 9.0

Volatility: 8.0

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MDU Resources

A-Score: 5.6/10

Value: 3.0

Growth: 2.1

Quality: 5.7

Yield: 6.0

Momentum: 7.5

Volatility: 9.3

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Griffon

A-Score: 5.5/10

Value: 3.4

Growth: 7.3

Quality: 4.8

Yield: 5.0

Momentum: 6.5

Volatility: 5.7

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Valmont

A-Score: 5.3/10

Value: 3.0

Growth: 7.3

Quality: 5.9

Yield: 1.0

Momentum: 8.0

Volatility: 6.7

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TopBuild

A-Score: 4.8/10

Value: 3.5

Growth: 9.0

Quality: 6.4

Yield: 0.0

Momentum: 5.0

Volatility: 5.0

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Icahn Enterprises

A-Score: 4.8/10

Value: 6.8

Growth: 4.4

Quality: 1.1

Yield: 10.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

414.89$

Current Price

414.89$

Potential

-0.00%

Expected Cash-Flows