Valmont’s third quarter results reflected steady execution in its infrastructure businesses, offsetting lingering headwinds in agriculture. Management attributed the 2.5% year-over-year sales growth to double-digit gains in Utility and Telecommunications, with CEO Avner Applbaum highlighting recent large project wins and operational improvements as key contributors. Meanwhile, the company faced continued pressure in agriculture, particularly from weaker North American grower sentiment and challenging credit conditions in Brazil. Applbaum noted, “We delivered net sales growth...with double-digit growth in Utility and Telecom,” crediting the company’s diversified portfolio and disciplined execution for the quarter’s stability.
Is now the time to buy VMI? Find out in our full research report (it’s free for active Edge members).
Valmont (VMI) Q3 CY2025 Highlights:
- Revenue: $1.05 billion vs analyst estimates of $1.03 billion (2.5% year-on-year growth, 1.5% beat)
- Adjusted EPS: $4.98 vs analyst estimates of $4.62 (7.8% beat)
- Adjusted EBITDA: $163.1 million vs analyst estimates of $161.2 million (15.6% margin, 1.2% beat)
- The company reconfirmed its revenue guidance for the full year of $4.1 billion at the midpoint
- Management raised its full-year Adjusted EPS guidance to $19.10 at the midpoint, a 6.1% increase
- Operating Margin: 13.5%, up from 12.3% in the same quarter last year
- Backlog: $1.73 billion at quarter end
- Organic Revenue rose 2.8% year on year vs analyst estimates of 2.1% growth (69.4 basis point beat)
- Market Capitalization: $8.19 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Valmont’s Q3 Earnings Call
- Adam Farley (Stifel) asked about the most impactful initiatives behind infrastructure margin gains. CFO Tom Liguori pointed to a mix of pricing, cost controls, and higher-margin product mix, with incremental capacity expected to drive over 20% operating margin.
- Adam Farley (Stifel) inquired about upside to utility capacity additions. CEO Avner Applbaum said capacity is managed flexibly and current expansions are on track to exceed the $100 million revenue benchmark, with plans for further investment ahead.
- Chris Moore (CJS Securities) questioned whether the current SG&A expense ratio is sustainable. Liguori responded that sub-17% of revenue is realistic, though there may be quarterly fluctuations.
- Brent Thielman (D.A. Davidson) asked if backlog softness in the agriculture project business signals weaker demand. Applbaum explained that project timing, not fundamentals, caused the change, and that pipeline diversity supports future growth.
- Tomohiko Asano (JPMorgan) pressed for clarity on utility segment pricing trends. Liguori said strong bid markets and tight demand-supply balance support healthy pricing outlooks for the foreseeable future.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace at which new utility and telecom capacity is absorbed, (2) signs of stabilization or improvement in agriculture margins and bad debt management, and (3) continued progress on operational efficiency and cost discipline. We will also watch for the success of aftermarket and technology offerings in driving recurring revenue growth, particularly as international agriculture markets evolve.
Valmont currently trades at $415.07, up from $408.58 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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