Valmont Industries (NYSE:VMI) reported fourth-quarter and full-year 2025 results and outlined its 2026 outlook, emphasizing continued strength in its utility business, actions to improve agriculture profitability, and increased investment aimed at expanding capacity to meet what management described as durable infrastructure demand.
Management highlights: “solid year” and positioning for 2026 growth
President and CEO Avner Applbaum said 2025 was “a solid year” in a mixed-demand environment, with the company focused on disciplined execution, simplifying the business, and aligning capital and resources. Applbaum highlighted utility demand tied to load growth, aging infrastructure, and rising complexity, and said Valmont has made targeted investments in equipment and workflow redesign while also beginning to deploy AI-enabled scheduling and planning tools to improve throughput.
He also noted improving conditions in lighting and transportation, growth expectations for coatings, and “normalized” telecom carrier capital spending. In telecom, Valmont acquired the remaining 40% of ConcealFab in the fourth quarter, which management said adds control of differentiated technology and an innovative product pipeline supporting 5G, broadband expansion, and next-generation wireless deployment.
Fourth-quarter results included unusual items; adjusted EPS rose 28%
Executive Vice President and CFO Tom Liguori said GAAP EPS for the quarter was $9.05, including a $78.5 million tax benefit, or $3.98 per share, primarily related to a U.S. tax deduction tied to a loss on Valmont’s Prospera investment as the company wound down business operations in 2025. Liguori said the benefit is excluded from adjusted EPS and is also a cash flow benefit, with about half reflected in 2025 and the remainder expected to benefit first-half 2026 cash flows.
Adjusted diluted EPS was $4.92, up 28.1% year over year. However, adjusted results included costs tied to Brazil agriculture: a $16.5 million legal reserve related to disputes dating as far back as 2019 and $11 million of credit losses in Brazil. For the full year, Liguori said Brazil agriculture included $24 million of legal reserves and $26 million of credit losses, totaling $50 million. He said management believes it has fully accrued its financial exposures in Brazil and does not expect additional unusual expenses going forward.
Segment performance: utility strength offset agriculture declines
In the fourth quarter, infrastructure segment sales were $819 million, up 7.2% from the prior year. Utility sales grew 21%, which Liguori attributed to strong market conditions, favorable pricing, and higher volumes from capacity increases. Infrastructure operating income was $149.6 million, or 18.3% of sales, up 230 basis points, driven by pricing actions, volume growth in high-value offerings, and lower SG&A.
Lighting and transportation sales declined 5.3% due to weakness in Asia-Pacific and North America production challenges that temporarily reduced output. Liguori said North America lighting and transportation orders were stable in the quarter, order rates were trending up entering 2026, and production challenges are expected to be resolved in the first half of 2026. Coatings sales increased 6.3%, telecommunications sales were similar to the prior year, and solar sales declined due to Valmont’s decision to exit certain markets.
Agriculture segment sales fell 19.9% year over year to $222.7 million as North America remained challenged and international sales declined due to the weakened economic environment in Brazil and lower project sales in the Middle East. The segment posted an operating loss of $3.3 million, including $27.5 million of legal reserves and credit losses. Excluding those expenses, operating income would have been $24.1 million, or 10.9% of sales.
Full-year 2025: $4.1B sales, $19.09 adjusted EPS
For full-year 2025, Valmont reported $4.1 billion in net sales, slightly higher year over year, with infrastructure growth offset by lower agriculture sales. Operating income rose to $538 million, or 13.1% of revenue, including the $50 million of Brazil agriculture legal reserves and credit losses. Excluding those items, Liguori said operating income would have been $588 million, or 14.3% of revenue. Adjusted diluted EPS was $19.09, up 11.1% versus 2024, and the adjusted tax rate was 23.2% due to geographic mix.
Operating cash flow was $457 million for the year, including $111 million in the fourth quarter. Valmont invested $145 million in capex, primarily for utility capacity expansion, and reported $311 million of free cash flow, which Liguori said represented about 90% of net earnings. The company deployed $102 million to acquire minority shares from joint venture partners (mostly ConcealFab, plus agriculture businesses in Brazil and Argentina) and returned $250 million to shareholders via $52 million in dividends and $198 million in share repurchases at an average price of $327.65.
2026 outlook: higher capex, sales growth, and EPS range
Valmont guided to 2026 net sales of $4.2 billion to $4.4 billion and diluted EPS of $20.50 to $23.50. At the midpoint, management said this implies 4.8% revenue growth and 15.2% EPS growth year over year. Liguori said the high end of the range could be supported by additional utility revenue from enhanced factory scheduling or faster-than-expected capacity additions, or an improved agriculture environment. The low end could reflect capacity expansion delays or changes to tariff regulations, which management said require time to address through supply-chain adjustments and pricing.
Management expects more volume than price contribution in utility in 2026, after a 2025 mix that leaned more heavily toward price. On incremental profitability, Liguori said utility capacity expansions were producing drop-through in the “mid to upper 20%” range and could approach 30% through 2026.
On agriculture, management said it is not assuming a near-term recovery in North American equipment demand. Liguori said the company expects the agriculture segment to deliver double-digit operating margins in the first quarter of 2026 and remain there for the full year, with additional detail during Q&A that margins could be in the low teens in the first quarter and potentially approach the mid-teens by year-end. Applbaum and Liguori also pointed to actions in Brazil—such as changes in legal counsel, adding a lawyer, and replacing the finance leader—as steps taken to strengthen the foundation amid a tight credit environment.
Valmont also increased its planned 2026 capex to $170 million to $200 million, primarily directed toward utility. Applbaum described the approach as brownfield investments within the existing footprint, including equipment additions, modernization, flow improvements, automation, and AI tools.
Separately, Applbaum announced Valmont plans to host an investor day on Tuesday, June 16, in New York City, where the company expects to share more on its strategy and long-term financial targets.
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.
