Valmont Industries, Inc.

Second-quarter net sales were $1.12 billion, up 6.5% year over year. Operating income was $166.1 million and operating margin was 14.8%, up 130 basis points. Diluted EPS was $6.14, up 25.8% from the prior year. By segment, infrastructure sales were $879 million, up 14.8%, and agriculture sales were $244 million, down 15.8%. North America utility sales increased 33.9%, coatings rose 16.6%, telecom fell 26.1%, and agriculture operating margin was 16.5%, up 90 basis points. Cash from operations was $148 million, cash was about $139 million, and net debt leverage remained close to 1x. For full year 2026, Valmont raised sales guidance to $4.3 billion to $4.45 billion and adjusted EPS guidance to $22.25 to $23.50. Capital expenditures are still expected to be $170 million to $200 million. Management said infrastructure margins should be consistent with the first half in the back half, while agriculture margins should moderate seasonally into the low teens.

Avner Applbaum said the quarter reflected strong execution, commercial discipline, and investments in capacity and throughput, especially in utility, where the company sees a multi-year investment cycle tied to grid modernization, power demand, data centers, and electrification. He emphasized that Valmont is focusing capital and operational efforts on the highest-return opportunities while improving performance across the portfolio. His tone was constructive on infrastructure and long-term agriculture fundamentals, but more cautious on telecom and near-term ag market conditions.

John L. Schwietz highlighted the hard numbers: net sales of $1.12 billion, operating income of $166.1 million, 14.8% operating margin, and diluted EPS of $6.14. He said infrastructure sales growth was driven by higher utility pricing and volumes, while agriculture margins improved despite lower sales due to structural cost actions and better risk management; he also noted the Q2 ag comparison benefited from the nonrecurrence of bad debt expense in Brazil. On cash and capital allocation, he cited $148 million of operating cash flow, $36 million of capex, repayment of the remaining $60 million on the revolver, and $75 million returned to shareholders through $60 million of buybacks and $15 million of dividends, with about $451 million still available under the repurchase authorization. He raised full-year sales guidance to $4.3 billion-$4.45 billion and EPS to $22.25-$23.50, and said capex stays at $170 million-$200 million.

Analysts focused on telecom softness, ag demand, infrastructure pricing versus volume, and whether utility growth would carry into the second half. Management said telecom has low visibility and is now seeing carrier spending shift and become more selective, but Valmont remains embedded with customers and still expects carriers to spend on spectrum and network build-out over time. On agriculture, management said it is seeing stabilization rather than green shoots, with North America and Brazil still strained and the Middle East weak because of conflict-related project delays. On margins, CFO said Q2 ag margins of 16.5% are sustainable for a second quarter, but the back half should be lower seasonally; infrastructure margins are expected to stay roughly in line with the first half despite inflation in steel and diesel.