Valmont Rides Infrastructure Wave to Offset Agricultural Headwinds

OMAHA, NE – February 17, 2026 – Valmont Industries (NYSE: VMI) presented a story of two divergent markets in its fourth-quarter 2025 earnings report, showcasing how a surge in its infrastructure business is powering the company through a significant downturn in the global agricultural sector. While headline sales remained nearly flat, a 28.1% jump in adjusted earnings per share and an optimistic forecast for 2026 underscore the company's strategy of leveraging its strengths to navigate a complex economic landscape.

In the fourth quarter, Valmont delivered an adjusted EPS of $4.92, handily beating the $3.84 from the same period last year. The company's GAAP earnings per share saw a dramatic 135.7% increase to $9.05, though this figure was significantly inflated by a one-time tax benefit. The more telling story lies in the performance of its core divisions, which are moving in opposite directions.

“In the fourth quarter we delivered improved earnings per share and grew our backlog year-over-year amid a mixed demand environment,” commented President and Chief Executive Officer Avner M. Applbaum. “During 2025, we focused on optimally positioning the business for future growth through capacity investments and disciplined execution.”

The Infrastructure Powerhouse

The clear engine of Valmont's current success is its Infrastructure segment, which accounts for nearly 79% of its net sales. The division saw sales climb 7.2% to $819.0 million in the fourth quarter, fueled by what the company describes as powerful market demand. The standout performer within this segment was the Utility product line, which saw sales skyrocket by 21.0%.

This robust growth is not happening in a vacuum. It is directly tied to major secular trends and government initiatives, including the U.S. Infrastructure Investment and Jobs Act (IIJA). This multi-year federal program has unlocked significant funding for the modernization of the nation's aging power grid. Utilities are investing heavily in making their networks more resilient to extreme weather, integrating a growing supply of renewable energy, and enhancing cybersecurity, all of which drives demand for Valmont's transmission poles, towers, and other structural components.

Further bolstering its infrastructure offerings, Valmont has made strategic moves in the telecommunications space. The company recently deployed $72.9 million to acquire the remaining interest in ConcealFab, a specialist in telecom infrastructure and technology solutions. This acquisition is particularly timely, as the rollout of 5G technology requires a dense network of small cell sites. ConcealFab’s expertise in creating concealment solutions that blend wireless equipment into urban landscapes helps overcome aesthetic and zoning hurdles, positioning Valmont as a key enabler of next-generation wireless networks. The company also invested $40.8 million in capital expenditures during the quarter, primarily to expand capacity for its in-demand Utility product line.

Navigating the Agricultural Downcycle

While infrastructure thrives, Valmont’s Agriculture segment tells a different story. The division, which provides center pivot irrigation systems and precision agriculture technology, saw sales plummet by 19.9% to $222.7 million in the fourth quarter. The segment posted an operating loss of $3.4 million, a stark reversal from the $28.5 million in operating income it generated a year ago.

The company attributes the decline to continued market softness in North America and a particularly challenging environment in Brazil. This “softness” is the result of a tough economic reality for farmers worldwide. Following a period of high prices, grain commodities have seen a sharp drop due to abundant supply. Simultaneously, farmers are grappling with high input costs for fertilizer and financing, which are squeezing profit margins and leading to cautious spending on new equipment.

This trend is not unique to Valmont; agricultural equipment manufacturers across the board, such as CNH Industrial and Deere & Co., have reported weak demand and are adjusting production accordingly. The challenging conditions in Brazil were underscored by a significant $27.5 million charge for legal and credit loss expense within Valmont's operations there. The high debt loads and increasing bankruptcies among Brazilian farmers have elevated credit risks for their suppliers. Valmont stated it does not expect further material charges from this issue, but it highlights the volatility of the agricultural market.

A Balancing Act and an Optimistic Outlook

Despite the agricultural headwinds, Valmont has issued a confident forecast for 2026. The company projects net sales to grow between 2.5% and 7% to a range of $4.2 to $4.4 billion. More impressively, it anticipates diluted earnings per share to land between $20.50 and $23.50, representing growth of 7% to 23% over 2025's adjusted results.

This outlook is built on the expectation that the powerful tailwinds in infrastructure will continue to more than compensate for the cyclical downturn in agriculture. “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 stated.

This strategy is supported by a strong financial position. The company's backlog grew by 15.1% year-over-year to $1.65 billion, driven primarily by utility market strength. Furthermore, Valmont demonstrated its commitment to shareholder returns, deploying $250.6 million in 2025 through share repurchases and dividends. This balancing act—investing in high-growth areas while prudently managing challenged segments and rewarding shareholders—defines Valmont's current strategy as it navigates a global economy of contrasting fortunes.