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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, Inc.'s recent performance was positively driven by increased institutional investor interest. AGF Management Ltd. lifted its stake by 53.9% during the third quarter, acquiring 7,486 shares. Additionally, Advisors Asset Management Inc. and American Century Companies Inc. also increased their positions in the company. Valmont's Q4 earnings report showed quarterly earnings of $4.92 per share, slightly missing estimates, but still representing a year-over-year increase. The company's average 12-month price target from analysts is $462.00, with a "Moderate Buy" rating.

1.c. Company Highlights

2. Valmont Industries' Q4 2025 Earnings: A Mixed Bag

Valmont Industries reported a slight increase in net sales for the full year 2025, with revenue reaching $4.1 billion, up from the previous year. Operating income was $538 million, or 13.1% of revenue. Excluding $50 million of expenses related to Brazil Agriculture, operating income would have been $588 million or 14.3% of revenue. The company's EPS for the year was $4.92, slightly below analyst estimates of $4.95. For the fourth quarter, sales in the Infrastructure segment grew 7.2% year-over-year, driven by strong market conditions and favorable pricing.

Publication Date: Feb -22

📋 Highlights
  • Agriculture Segment Recovery:: Valmont expects a meaningful margin recovery in Q1 2026 after Q4 2025 charges, with double-digit operating margins in North America and improved project pipelines post-Brazil legal/credit resolution.
  • Infrastructure Growth Drivers:: Utility sales grew 21% YoY, contributing to 7.2% total Infrastructure segment growth, while Coatings sales rose 6.3% due to strong infrastructure demand.
  • 2026 Financial Guidance:: Revenue projected at $4.2–$4.4B (4.8% growth), with EPS of $20.50–$23.50 (15.2% growth), driven by Infrastructure expansion and margin improvements in Agriculture.
  • Capacity Expansion Impact:: Utility business to add 20% incremental capacity per investment, generating mid- to upper-20% incremental margins approaching 30% in 2026.
  • Strategic Acquisition:: Acquisition of remaining 80% in Rational Mind enhances Valley Irrigation’s digital capabilities, supporting $150M incremental Utility growth and integrated tech advancements.

Segment Performance

In the Agriculture segment, sales decreased 19.9% year-over-year to $222.7 million, due to challenging North America markets and international sales declining due to the weakened economic environment in Brazil and lower project sales in the Middle East. The segment had an operating loss of $3.3 million in the fourth quarter. In contrast, the Utility business within the Infrastructure segment saw sales grow 21% year-over-year, driven by healthy demand.

Outlook and Guidance

Looking ahead to 2026, Valmont expects net sales to be between $4.2 billion to $4.4 billion, with diluted earnings per share projected to be in the range of $20.50 to $23.50. At the midpoint, the guidance represents year-over-year revenue growth of 4.8% and EPS growth of 15.2%. Tom Liguori mentioned that the team has taken steps to strengthen the foundation in Brazil, addressing legal and credit exposures. Analysts estimate revenue growth at 5.6% for the next year.

Valuation Metrics

With a P/E Ratio of 28.49 and an EV/EBITDA of 19.11, the market appears to be pricing in a certain level of growth for Valmont Industries. The company's ROIC is 14.99%, indicating efficient use of capital. The ROE of 20.28% is also a positive indicator of profitability. As the company executes on its strategic priorities, including investing in high-return capacity expansion and advancing its aftermarket and technology businesses in Agriculture, it remains to be seen if it can meet or exceed these expectations.

3. NewsRoom

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Valmont Industries, Inc. (VMI) Presents at Citi's Global Industrial Tech & Mobility Conference 2026 Transcript

Feb -19

Source: seekingalpha.com

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Valmont Industries' Q4 Earnings and Revenues Miss Estimates

Feb -18

Source: zacks.com

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Valmont Industries, Inc. (VMI) Q4 2025 Earnings Call Transcript

Feb -17

Source: seekingalpha.com

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Valmont (VMI) Reports Q4 Earnings: What Key Metrics Have to Say

Feb -17

Source: zacks.com

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Valmont Industries (VMI) Misses Q4 Earnings and Revenue Estimates

Feb -17

Source: zacks.com

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Stay Ahead of the Game With Valmont (VMI) Q4 Earnings: Wall Street's Insights on Key Metrics

Feb -11

Source: zacks.com

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Valmont Industries (VMI) to Release Earnings on Tuesday

Feb -10

Source: defenseworld.net

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Brokerages Set Valmont Industries, Inc. (NYSE:VMI) PT at $462.33

Feb -08

Source: defenseworld.net

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

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Value: 5.6

Growth: 2.1

Quality: 4.8

Yield: 6.0

Momentum: 7.0

Volatility: 9.0

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Seaboard

A-Score: 5.6/10

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TopBuild

A-Score: 5.4/10

Value: 4.0

Growth: 8.9

Quality: 6.2

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Growth: 4.4

Quality: 2.9

Yield: 10.0

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Valmont

A-Score: 5.3/10

Value: 3.1

Growth: 7.3

Quality: 6.0

Yield: 1.0

Momentum: 7.5

Volatility: 6.7

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A-Score: 4.7/10

Value: 3.1

Growth: 5.9

Quality: 4.3

Yield: 5.0

Momentum: 4.0

Volatility: 5.7

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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

455.28$

Current Price

455.28$

Potential

-0.00%

Expected Cash-Flows