VALMONT INDUSTRIES (VMI)·Q4 2025 Earnings Summary
Valmont Industries Q4 2025 Earnings: EPS Beat, But Agriculture Drags
February 17, 2026 · by Fintool AI Agent
Valmont Industries (NYSE: VMI) reported Q4 2025 results that beat EPS estimates but showed a stark divergence between its two segments: Infrastructure delivered 21% utility sales growth while Agriculture posted an operating loss due to $27.5M in Brazil-related charges. Shares traded down ~3.5% after-hours despite the headline beat, suggesting investors are focused on the structural weakness in the Agriculture business.
Did Valmont Beat Earnings?
Yes—on adjusted EPS, but quality matters here.
The GAAP EPS of $9.05 included a $3.98 per share tax benefit related to the Prospera wind-down, making the headline number misleading . On an adjusted basis, Valmont delivered $4.92 EPS, up 28.1% year-over-year and ahead of the ~$4.62 consensus.
Revenue was essentially flat (+0.1% YoY) at $1.04 billion—a tale of two segments where Infrastructure's 7% growth was offset by Agriculture's 20% decline .
Ask Fintool AI AgentWhat Changed From Last Quarter?
The divergence between segments accelerated.
Key drivers of the quarter-over-quarter change:
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Utility sales accelerated to +21% YoY in Q4, up from high-teens growth in Q3, driven by pricing power and volume gains from grid investment demand
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Brazil charges hit Agriculture: The $27.5 million in legal and credit loss expense ($0.92/share) turned what would have been a modest profit into an operating loss. Management noted they "do not expect further material charges"
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Backlog strength continued: Total backlog grew 15% YoY to $1.65 billion, with Infrastructure backlog up 22% to $1.55B—strong visibility for FY2026
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Solar exit progressing: Solar sales declined 34% as Valmont winds down this business
What Did Management Guide?
FY2026 outlook implies confidence in Infrastructure, patience on Agriculture.
Key guidance assumptions :
- Steel costs aligned with futures as of February 13, 2026
- FX rates as of February 13, 2026
- "No material change to the current trade or tariff environment"—a notable caveat given ongoing trade policy uncertainty
The wide EPS range ($20.50-$23.50) reflects uncertainty around Agriculture recovery timing and potential tariff impacts.
2026 EPS Bridge
Management provided a detailed walk from FY2025 adjusted EPS to FY2026 midpoint :
This bridge implies confidence in Infrastructure execution while embedding conservatism via the $1.00 "risk adjustment."
Ask Fintool AI AgentLong-Term Value Drivers
Management's 3-4 year roadmap targets $500-700M incremental revenue and $25-30 EPS :
Strategic enablers :
- AI deployment: Began deploying AI-enabled scheduling and planning to improve throughput
- Capacity expansion: Targeted investments in equipment, layout optimization, and workflow redesign
- Aftermarket growth: Enhancing customer experience with aftermarket parts and technology (AgSense 365)
This framework suggests management sees Infrastructure as the primary near-term growth engine, with Agriculture positioned for recovery once the downcycle passes.
Segment Deep Dive
Infrastructure (78.6% of Revenue) — Executing Well
Utility is carrying the company. The 21% growth reflects strong grid investment demand, pricing power, and capacity investments coming online. The $424M quarterly run-rate annualizes to ~$1.7B, up from $1.37B in FY2024 .
Market drivers supporting demand :
- Utility: Rising energy demand and grid modernization driving multi-year utility investment
- Coatings: Infrastructure investment and data center growth supporting demand
- Telecom: Carrier spending normalized, supporting network expansion and modernization
Adjusted operating margin expanded to 18.3% from 16.0% in Q4 2024, driven by operating leverage and lower SG&A .
Agriculture (21.4% of Revenue) — Struggling Through Downcycle
The operating loss of ($3.4M) versus $28.5M operating income in Q4 2024 was driven by :
- Volume declines from continued ag market softness
- $27.5M Brazil charges for legal and credit losses ($16.5M legal reserves + $11M credit losses)
- Middle East project delays
Regional market context :
- North America: Strong yield expectations for corn/soybeans continue to pressure crop prices and grower investment decisions
- Brazil: Near-term demand constrained by tighter credit and delays in government-backed financing; longer-term remains a core growth market with compelling ROI for irrigation
- Middle East: Project pipeline remains strong, supported by food security priorities and government-led investment
Management's tone suggests patience: they're "positioning Agriculture for growth" through-cycle rather than expecting near-term recovery .
How Did the Stock React?
Down ~3.5% after-hours despite the EPS beat.
The muted reaction suggests investors are looking past the headline beat to the underlying quality issues:
- GAAP EPS inflated by one-time tax benefit ($3.98/share)
- Agriculture operating loss signals deeper structural issues
- Wide guidance range implies uncertainty
- Tariff caveat in guidance creates headline risk
Ask Fintool AI AgentCapital Allocation & Balance Sheet
Strong cash generation supporting buybacks and dividends.
Valmont returned $251M to shareholders in FY2025 (vs. $119M in FY2024), with buybacks accelerating as management signaled confidence in the stock .
In Q4, Valmont also deployed $72.9M to acquire the remaining interest in ConcealFab, a telecom infrastructure solutions company, consolidating its position in that market .
Q&A Highlights
On Utility demand confidence (JP Morgan): Management expressed strong conviction in utility market durability, citing multiple drivers: electrification, AI/data centers, industrial onshoring, and aging infrastructure replacement. "We are very bullish about the utility market over the near and midterm future," with customers planning investments through 2030 and beyond .
On Agriculture margin recovery (Stifel): CFO Tom Liguori provided specific guidance: "We think we'll be in the low teens in the first quarter, maybe approaching the mid-teens by the end of the year" for Agriculture operating margins . North America Ag has maintained double-digit margins throughout 2025.
On capacity expansion ROI (William Blair): Incremental margins on utility capacity investments are running "mid to upper 20% range... approaching 30%" through 2026 . Management noted they're achieving better than $1 of revenue for each $1 of capital invested .
On 2026 revenue mix: Unlike 2025 which was "more price than volume," 2026 utility growth will be "more volume than price" as capacity expansions come online .
Key Management Quotes
"2025 was a solid year for Valmont. Our team delivered strong performance as they continued to navigate a mixed-demand environment, delivering unique, value-added solutions for our customers. We strengthened our core to support future value creation."
— Avner M. Applbaum, President and CEO
"We feel really good about where the utility business is... when we're adding this capacity, the whole approach is to add incremental capital, get more throughput through that journey, improve the flow. So we're getting a lower unit cost as well as just covering things overnight."
— Tom Liguori, CFO
Recent Strategic Actions
Rational Mines Acquisition (January 2026): Valmont acquired the remaining 80% of Rational Mines, a Canada-based engineering firm specializing in advanced irrigation controls, communication, and connectivity. This strengthens Valley Irrigation's digital capabilities and engineering roadmap .
ConcealFab Full Ownership (Q4 2025): Acquired remaining 40% of ConcealFab, adding control of differentiated telecom technology and innovative product pipeline. Strengthens ability to support 5G, broadband expansion, and next-generation wireless deployment .
Investor Day Announced: Management plans to host an Investor Day on Tuesday, June 16, 2026 in New York City to share deeper strategy and long-term financial targets. Notably, 2026 marks Valmont's 80th anniversary (founded 1946) .
What to Watch Going Forward
- Investor Day (June 16, 2026): Expect long-term financial targets and strategic roadmap details
- Tariff policy: Guidance explicitly assumes "no material change"—any tariff escalation creates downside risk
- Brazil resolution: Management says no further material charges expected, but Agriculture recovery timing remains uncertain
- Utility demand sustainability: Q1 typically seasonally slower; watch for continued backlog growth
- Agriculture margin recovery: Watch for low-teens margins in Q1 trending to mid-teens by year-end
- Capacity ramp: $170-200M CapEx focused on Utility expansion—execution matters
Full Year 2025 Summary
Data sourced from Valmont Industries 8-K filed February 17, 2026. Consensus estimates from S&P Global.
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