Valmont Industries (NYSE:VMI) reported first-quarter 2026 results showing higher sales and expanded profitability, driven primarily by strength in its Infrastructure segment and accelerating demand in North America Utility. Management also raised full-year earnings guidance, citing pricing and volume momentum in utility markets and continued progress on operational initiatives.
Quarterly results and profitability
Chief Financial Officer John Schwietz said first-quarter net sales were $1.03 billion, up 6.2% year-over-year, “driven by sales growth in Infrastructure, particularly North America Utility.” Operating income increased to $155.6 million and operating margin improved 190 basis points to 15.1%. The company’s tax rate was approximately 26%, and diluted earnings per share rose to $5.51, a 27.5% increase from the prior year.
Infrastructure strength led by North America Utility
Infrastructure segment sales were $806 million, up 14.1% year-over-year. Schwietz said North America Utility sales increased 27.4% on pricing and higher volumes, while North America Coatings sales rose 13.3% on “healthy infrastructure and data center demand.” North America Lighting and Transportation sales fell 4.4%, which management tied to production challenges, and North America Telecommunications sales declined 3.9% due to softer volumes amid changes in carrier spending allocation. International Infrastructure sales increased 6.9%, which Schwietz attributed to favorable foreign exchange impacts.
Infrastructure operating income was $143 million, or 17.8% of net sales, up 110 basis points, reflecting pricing actions and fixed-cost leverage.
Applbaum highlighted what he described as durable demand drivers in the utility market, including grid expansion to support data centers and replacement of aging assets. He said U.S. utilities are planning roughly $1.4 trillion of investment through 2030, up from about $1.1 trillion previously, driven by load growth, grid modernization, and data center demand. He added that industry supply remains constrained with extended lead times and favorable pricing and margins.
In the Q&A, Applbaum said Valmont’s backlog was “relatively flat” sequentially but up year-over-year. He also noted lead times had improved and said Valmont had “best lead times in the industry right now, between 42 weeks-44 weeks on our bid market.” He added that some projects with alliance customers do not show up in backlog, which he characterized as an advantage for managing steel pricing risk.
Management also discussed capacity and throughput improvements. Responding to a question about how capital spending is translating into capacity, Applbaum described a “whole system of capacity increases” beyond CapEx, including operational and commercial initiatives. He cited examples such as adding labor to relieve bottlenecks, holding hiring events, and conducting Kaizen events to improve flow. He said Valmont has 24 U.S. facilities and is taking “many actions to drive the increased output,” adding that the company expected the trend to continue into the second quarter.
Agriculture headwinds, but margins improved
Agriculture segment sales decreased 15.1% year-over-year to $227 million, driven by lower international sales. North America Agriculture sales increased 1.5%. Despite the sales decline, operating margin improved to 14.8%, which Schwietz said reflected pricing, cost management, and risk mitigation, and a favorable product and regional mix.
Applbaum described North America grower sentiment as cautious, citing tighter farm economics and muted seasonal order patterns with “no meaningful acceleration in the spring selling season.” He also said the Middle East remains a “very challenging environment” and emphasized that employee safety was the top priority. Applbaum said Valmont’s Dubai facility initially operated at a minimal level at the onset of the conflict and “has currently paused operations until conditions stabilize,” though the company has mitigated some impact through its global manufacturing footprint.
Schwietz said a previously discussed “material Brazil legal matter” was settled during the quarter and “resolved within our existing accrual.”
Asked about sustaining Agriculture margins if headwinds persist, Schwietz said margins were helped in the quarter by favorable pricing and improved mix, but he expects pressure from seasonality (more international mix later in the year) and fixed-cost under-absorption tied to the Dubai facility. He said the company expects Agriculture margins to be in the “mid-teens to low teens” for the year.
Cash flow, capital allocation, and tariff commentary
Schwietz said Valmont generated $103.5 million of operating cash flow and ended the quarter with $160.2 million of cash, with net debt leverage of approximately 1x. The company invested $35 million in capital expenditures, “primarily for utility capacity expansion,” and expects to invest $170 million-$200 million this year, with the majority directed to Utility.
Valmont also completed the acquisition of Rational Minds and purchased the remaining minority shares of ConcealFab for a combined $20 million. The company returned $71 million to shareholders, including $13 million in dividends and $58 million through share repurchases. Schwietz noted Valmont increased its quarterly dividend by 13% in February to $0.77 per share, or $3.08 annualized.
Tariffs were a prominent topic during Q&A. Schwietz said updated regulations that went into effect April 6 were incorporated in guidance and that Valmont’s approach is to “maximize U.S. poured and melted steel,” which he said the company has been doing for the last few quarters. He reiterated the company’s objective to be “tariff cost profit neutral,” adding that as tariffs change “we adjust our pricing and also our supply chains,” though it can take time to take hold.
Addressing investor questions about Section 232, Schwietz confirmed that a 10% figure was “part of the new regulation” in the context discussed on the call and said the team is working to reduce tariff exposure by adjusting sourcing toward U.S. melt-and-pour steel. When asked to size incremental costs, he indicated analysts’ general range was “approximately right.” Applbaum added that as Utility grows, the company would pay more tariffs, but said Valmont makes “very strong margins” from its Mexico plant and expressed no concern.
Updated 2026 outlook and investor day
Schwietz said the company is raising its full-year EPS guidance and now expects:
- Net sales of $4.2 billion-$4.4 billion
- Infrastructure sales of $3.3 billion-$3.45 billion
- Agriculture sales of $0.9 billion-$0.95 billion
- Diluted EPS of $21.50-$23.50
At the midpoint, Schwietz said the outlook implies 4.8% revenue growth and 17.9% growth in adjusted EPS, driven by higher pricing and volumes in North America Utility. He said the Agriculture outlook reflects increased selectivity in the pipeline due to changes in market conditions and project economics “primarily related to the Middle East conflict.”
Applbaum said the company continues to advance three value drivers—“catching the Infrastructure wave, positioning Agriculture for growth, and executing disciplined resource allocation”—and plans to share more details at its Investor Day on June 16.
About Valmont Industries (NYSE:VMI)
Valmont Industries, Inc (NYSE: VMI) is a diversified industrial manufacturer specializing in infrastructure and agricultural products. Headquartered in Omaha, Nebraska, the company engages in the design, production and distribution of engineered products that support water management, power transmission, lighting and traffic infrastructure. Valmont’s solutions range from center-pivot and lateral-move irrigation systems to utility poles, transmission towers, lighting structures and highway traffic signal support structures.
The company operates through several core business segments.
