Valmont Announces Strong Q1 2026 Results and Increases Full-Year EPS Outlook
Valmont® Industries, Inc. (NYSE: VMI), a global leader in providing engineered products and solutions that support critical infrastructure and enhance agricultural productivity, has announced its financial results for the first quarter ended March 28, 2026. The company delivered a strong performance to begin the year, highlighted by record first-quarter earnings per share, steady revenue growth, and notable margin expansion across key business segments.
President and Chief Executive Officer Avner M. Applbaum emphasized the company’s positive momentum, noting that Valmont’s results reflect both strong execution and favorable market conditions in its core infrastructure operations. He stated that the company achieved a robust start to 2026, driven by disciplined pricing strategies, increased volumes in its North America Utility business, and ongoing operational improvements.
According to Applbaum, Valmont’s continued focus on value-based pricing and commercial discipline has played a key role in strengthening profitability. In parallel, the company has made significant progress in enhancing production capacity and throughput, which has helped support higher demand levels and improve overall efficiency. These efforts are aligned with Valmont’s broader strategy to drive sustainable growth and create long-term shareholder value.
The Infrastructure segment, which accounts for approximately 78% of Valmont’s total net sales, remained a primary growth driver during the quarter. This segment includes products and services that support utility, lighting, transportation, and telecommunications markets, as well as coatings services designed to protect and extend the life of metal infrastructure.
During the first quarter, Infrastructure segment sales rose 14.1% to $805.9 million, compared to $706.2 million in the same period last year. Growth was particularly strong in the North America Utility business, where sales surged 27.4%, supported by increased investment in energy infrastructure, grid modernization, and electrification initiatives. Demand for coatings services in North America also remained robust, with sales increasing 13.3% due to favorable pricing conditions and higher volumes.
International Infrastructure sales experienced additional gains, aided by favorable foreign exchange movements. However, these positive trends were partially offset by lower volumes in North America Lighting and Transportation, as well as softer demand in the telecommunications market.
Operating income for the Infrastructure segment increased 22.0% to $143.0 million, representing 17.8% of net sales, compared to $117.2 million or 16.7% of net sales in the prior year. This improvement was driven primarily by higher pricing, increased volumes in key markets, and the benefits of a more efficient global cost structure.
In contrast, the Agriculture segment, which contributes 22% of total net sales, faced a more challenging operating environment during the quarter. This segment includes center pivot and linear irrigation equipment, aftermarket components, tubular products, and advanced technology solutions aimed at improving water efficiency and farm productivity.
Agriculture segment sales declined 15.1% year-over-year to $227.0 million, down from $267.3 million in the first quarter of 2025. In North America, irrigation sales posted a modest increase of 1.5%, supported by pricing improvements, although overall volumes remained under pressure due to continued softness in the agricultural market.
International Agriculture sales experienced a more significant decline, falling 32.7%. This decrease was largely attributed to operational disruptions related to the ongoing conflict in the Middle East, as well as reduced demand in Brazil, both of which negatively impacted shipment volumes.
Operating income in the Agriculture segment decreased 7.5% to $33.5 million, compared to $36.2 million in the prior-year period. Despite the decline in earnings, operating margins improved to 14.8% of net sales, up from 13.6%, reflecting the positive impact of pricing actions and cost management efforts, including reduced selling, general, and administrative expenses.
On a consolidated basis, Valmont reported net sales of $1.03 billion for the first quarter, representing a 6.2% increase compared to the same period in 2025. Operating income rose 21.3% to $155.6 million, or 15.1% of net sales, up from $128.3 million, or 13.2% of net sales, in the previous year. Diluted earnings per share increased significantly by 27.5% to $5.51, compared to $4.32 in the prior-year quarter.
The company also made strategic adjustments to its reporting structure during the quarter, realigning its product line reporting within segments to better reflect the markets it serves and improve operational transparency.
Valmont maintained a solid financial position, ending the quarter with $160.2 million in cash and cash equivalents and a net leverage ratio of approximately 1.1x. The company continued to return capital to shareholders, distributing a total of $70.8 million through share repurchases and dividends. This included $57.5 million in stock buybacks and $13.3 million in dividend payments. Additionally, Valmont increased its quarterly cash dividend by 13% to $0.77 per share, equivalent to an annualized rate of $3.08.
Capital expenditures during the quarter totaled $34.6 million, with the majority directed toward expanding capacity in the North America Utility product line to support ongoing demand growth.
Looking ahead, Valmont’s outlook is based on several key assumptions, including steel cost projections aligned with futures markets as of April 17, 2026, and foreign exchange rates consistent with current market conditions. The company also assumes no significant changes in the existing trade or tariff environment.
To further discuss its first-quarter performance and outlook, Valmont will host a live audio conference call featuring CEO Avner M. Applbaum and CFO John Schwietz. The call will provide additional insights into the company’s financial results, strategic initiatives, and market conditions, and will be accessible via telephone or webcast. A replay of the event will be made available following the live discussion.
Overall, Valmont’s first-quarter performance demonstrates strong execution in its Infrastructure segment, effective cost management, and a disciplined approach to pricing, positioning the company well for continued growth in 2026 despite ongoing challenges in the agricultural sector.
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