Valmont Industries, Inc.

Third-quarter net sales were $1.1 billion, up 5.5% year over year. Operating income was $172.8 million and operating margin expanded 22 basis points to 15.7%; diluted EPS was $6.24, up 25.3% from the prior year, and the tax rate was approximately 26%. Infrastructure sales rose 9.1% to $882.1 million, with North America utility up 23%, North America coatings up 13.8%, North America telecom down 33.8%, and international infrastructure up 5.5%. Agriculture sales were $226 million, down 6.4%, with North America up 15.8% and international down 25.3%; agriculture operating income was $40.1 million versus $23.2 million a year ago. Operating cash flow was $100.5 million, including $40 million of accelerated receivable collections, cash was $122 million, net debt leverage was approximately 0.9x, capex was about $46 million, and the company returned $97 million to shareholders. For the full year, Valmont reaffirmed net sales guidance of $4.3 billion to $4.45 billion, kept infrastructure sales guidance at $3.4 billion to $3.5 billion, kept agriculture sales guidance at $900 million to $950 million, kept capex guidance at $170 million to $200 million, and raised adjusted diluted EPS guidance to $22.75 to $23.75. Management said Q4 earnings and margins should moderate from Q3 due to higher input cost pressure, mix effects, and the absence of certain third-quarter benefits.

Avner Applbaum framed the quarter as another step in Valmont’s long-term growth story, emphasizing utility demand, backlog conversion, and the company’s engineering and delivery advantages. He said the company is seeing stronger customer spending, more visibility into multi-year utility projects, and continued momentum from grid modernization, resiliency, data centers, and onshoring. His tone was confident but measured, with recurring emphasis on capacity expansion, disciplined execution, and passing through higher input costs.

John Schwietz highlighted the hard numbers behind the quarter: $1.1 billion in sales, $172.8 million in operating income, 15.7% operating margin, and $6.24 EPS. He said margin pressure from steel and other input inflation was modest in Q3 but should increase in Q4, with price/cost typically taking 2 to 3 quarters to work through; he also noted average steel prices on their index were about 50% above prior year levels. On cash and capital allocation, he pointed to $100.5 million of operating cash flow, $122 million of cash on hand, net debt leverage of about 0.9x, $46 million of capex, and $97 million returned to shareholders. He also said $367 million remained available under the share repurchase authorization.

Analysts focused on steel price/cost timing, the quality of agriculture margins, the utility backlog and pricing outlook, telecom weakness, and the potential impact of new industry capacity. Management said Q3 margin pressure from input costs was modest but Q4 would be more pressured as inflation accelerated, and pricing catch-up usually takes 2 to 3 quarters; they also said utility pricing should sustain at a double-digit rate into 2027. On ag, management said Q3 margins were boosted by storm-driven North America mix and about $7 million of one-time recoveries, while Q4 should see more normal mix and lower margins versus Q3. On telecom, management said spending remains selective after the 5G buildout and some site modification work has slipped into 2027, while on competition they said the industry remains constrained and demand still exceeds supply.