Valmont Industries, Inc. Reports Fourth Quarter and Full-Year 2025 Results
Valmont Industries, Inc. (NYSE: VMI), a global leader providing engineered products and solutions that support critical infrastructure and enhance agricultural productivity, has announced its financial results for the fourth quarter and fiscal year ended December 27, 2025. The company delivered improved earnings performance in the quarter, expanded its backlog year-over-year, and outlined a positive outlook for 2026 supported by infrastructure demand and strategic investments.
CEO Commentary: Positioning for Long-Term Growth
President and Chief Executive Officer Avner M. Applbaum highlighted the company’s operational progress during the fourth quarter and throughout fiscal 2025.
“In the fourth quarter we delivered improved earnings per share and grew our backlog year-over-year amid a mixed demand environment,” Applbaum said. “During 2025, we focused on optimally positioning the business for future growth through capacity investments and disciplined execution.”
He added that the company expects to generate both sales and earnings growth in 2026. This growth is projected to be driven primarily by sustained strength in Infrastructure markets and incremental capacity coming online. At the same time, Valmont plans to manage its Agriculture segment prudently as it navigates a cyclical downturn.
“Looking ahead to 2026, we expect to achieve sales and earnings growth driven by strong Infrastructure demand and additional capacity coming online, while managing Agriculture efficiently through the downcycle,” Applbaum noted. “We will continue to prioritize supporting our customers and allocating capital in line with our strategy to drive long-term value for shareholders.”
Fourth Quarter 2025 Financial Highlights
Valmont delivered relatively stable top-line performance in the fourth quarter of 2025 compared to the same period in 2024, while achieving meaningful gains in adjusted profitability and earnings per share.
Net Sales
Net sales for the fourth quarter increased 0.1% year-over-year to $1.04 billion. The modest increase reflects strength in Infrastructure markets, particularly Utility, offset by softer conditions in certain international markets and Agriculture.
Operating Income
Reported operating income declined 2.9% to $116.5 million, representing 11.2% of net sales. However, adjusted operating income rose 5.6% to $126.7 million, or 12.2% of net sales, compared with the prior-year period.
Adjusted operating income included elevated legal and credit loss expenses totaling $27.5 million within the Brazil Agriculture business. This represented approximately $0.92 per diluted share. The company indicated that it does not anticipate further material charges related to this matter.
Earnings Per Share (EPS)
Diluted earnings per share (EPS) increased significantly, rising 135.7% to $9.05. The reported EPS included a $3.98 benefit from a lower effective tax rate. This tax benefit was primarily associated with a deduction linked to the investment loss in Prospera following the wind-down of that business in 2025.
Adjusted EPS increased 28.1% to $4.92, compared to $3.84 in the fourth quarter of 2024. The strong adjusted EPS growth reflects improved operational performance, particularly within the Infrastructure segment.
Balance Sheet and Capital Deployment
Valmont ended the quarter with a strong financial position, providing flexibility to invest in growth initiatives while returning capital to shareholders.
Cash and cash equivalents totaled $187.1 million at quarter end. The company’s net leverage ratio stood at approximately 1.1x, reflecting a disciplined capital structure.
Capital Expenditures
During the quarter, Valmont invested $40.8 million in capital expenditures. These investments were primarily directed toward expanding capacity within the Utility product line to support increasing demand.
Strategic Acquisition
The company deployed $72.9 million to acquire the remaining interest in ConcealFab, a telecom infrastructure and technology solutions provider. This move strengthens Valmont’s position in telecommunications infrastructure and enhances its ability to deliver integrated solutions to customers.
Shareholder Returns
Valmont returned $85.6 million to shareholders during the quarter. This included $72.2 million in share repurchases and $13.4 million in dividends, demonstrating the company’s commitment to balanced capital allocation.
Fourth Quarter 2025 Segment Performance
Infrastructure Segment
The Infrastructure segment accounted for 78.6% of total net sales during the quarter. This segment delivers products and solutions serving utility, lighting, transportation, telecommunications, and solar infrastructure markets, as well as coatings services that protect metal products.
Sales Performance
Infrastructure sales increased 7.2% year-over-year to $819.0 million, compared to $763.6 million in the fourth quarter of 2024.
Utility sales grew 21.0%, driven by robust market demand that supported higher pricing and increased volumes. The company experienced steady sales performance across other North American infrastructure product lines, excluding Solar.
Solar sales declined following Valmont’s strategic decision to exit that market earlier in 2025. International Infrastructure sales decreased due to continued softness in Asia-Pacific markets.
Profitability
Operating income for the Infrastructure segment rose to $143.7 million, or 17.6% of net sales. On an adjusted basis, operating income reached $149.6 million, or 18.3% of net sales. This compares favorably with $122.0 million, or 16.0% of net sales, in the prior-year quarter.
The improvement in operating income was primarily driven by higher pricing, increased volumes in Utility markets, and lower selling, general, and administrative (SG&A) expenses.
Strategic Focus for 2026
As Valmont enters fiscal 2026, the company is positioned to benefit from strong Infrastructure demand, particularly in Utility markets, where grid modernization, electrification, and renewable integration continue to support investment.
Capacity expansions undertaken in 2025 are expected to contribute meaningfully to revenue growth and operational efficiency in the coming year. Meanwhile, management plans to maintain disciplined cost control and operational efficiency within the Agriculture segment as it works through cyclical market challenges.
The company remains committed to executing its long-term strategy, which centers on delivering innovative infrastructure and agricultural solutions, maintaining operational excellence, and allocating capital prudently.
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