Operating income rose 22.2% on 5.5% sales growth, but gross margin fell to 30.0% from 30.4% a year earlier 8-K. Management raised full-year adjusted EPS guidance to $22.75 to $23.75 and kept its sales outlook 8-K.
Valmont Industries, Inc · Q3 2026 · Reported 20 Oct 2026 · US
Key figures
Million USD | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Revenue | 1,103.80 | 1,045.98 | +5.5 % |
Gross profit | 331.38 | 318.25 | +4.1 % |
Operating income | 172.83 | 141.46 | +22.2 % |
Net income | 121.05 | 99.03 | +22.2 % |
Diluted EPS | 6.24 USD/share | 4.98 USD/share | +25.3 % |
Gross margin | 30.0 % | 30.4 % | -0.4 pp |
Operating margin | 15.7 % | 13.5 % | +2.1 pp |
Net margin | 11.0 % | 9.5 % | +1.5 pp |
Figures in USD, as reported. Margins are computed from the reported lines.
Profit growth came from lower SG&A, not gross profit
Net sales rose 5.5% to $1.10 billion and operating income rose 22.2% to $172.8 million, a 15.7% margin against 13.5% a year earlier 8-K. Gross profit grew only 4.1%, and gross margin slipped to 30.0% from 30.4% 8-K. The gap closed below gross profit: SG&A was $158.6 million, against $176.8 million a year earlier 8-K.
The year-earlier quarter shows no impairment or realignment line, so the quarter comparison is clean 8-K. The year-to-date comparison is not. The prior-year nine months carried a $91.3 million impairment and $8.9 million of realignment charges, so operating income is up 65.4% reported but 20.3% on the company's adjusted basis 8-K.
Infrastructure grew 9.1%, but margin dipped on steel, zinc and capacity ramp costs
Infrastructure sales rose 9.1% to $882.1 million 8-K. North America Utility rose 23.0% on higher pricing and volumes, and Coatings rose 13.8% 8-K. North America Telecommunications volumes were significantly lower on reduced carrier spend 8-K.
Segment operating margin was 17.6% against 17.8% a year earlier 8-K. Higher steel and zinc costs, Utility capacity ramp costs and weaker Telecom volumes partly offset the pricing and volume gains 8-K. Management says it is applying pricing actions and contractual pass-throughs, and that the pace of margin expansion depends in part on how quickly input costs stabilize 8-K.
Agriculture's margin jump rests partly on lower Brazil credit losses
Agriculture sales fell 6.4% to $226.0 million 8-K. North America rose 15.8%, helped by storm replacement activity and favorable pricing, while international fell 25.3% on lower volumes in the Middle East and Brazil 8-K. Operating margin rose to 17.9% from 9.7% 8-K.
The company credits lower credit losses in Brazil alongside higher North America volumes 8-K. My reading is that storm replacement demand and a credit-loss benefit are less repeatable than the margin suggests.
Buybacks widened the EPS gain; operating cash flow was below net income
Diluted EPS rose 25.3% to $6.24 while net income attributable to Valmont rose 22.2% 8-K. Weighted average shares fell to 19,391 thousand from 19,876 thousand, after $82.3 million of repurchases in the quarter 8-K.
Operating cash flow was $100.5 million against net earnings of $121.1 million 8-K. Capital expenditures were $45.6 million, mainly for North America Utility capacity 8-K. Cash was $122.0 million against $226.1 million a year earlier 8-K. Net leverage was about 0.9x, well inside the 3.50 covenant ceiling 8-K.
What to watch next
Full-year guidance: adjusted diluted EPS is now $22.75 to $23.75 (previously $22.25 to $23.50), with net sales unchanged at $4.3 to $4.45 billion, and assumes no material change in tariffs 8-K.
Whether pricing and pass-throughs restore Infrastructure margin from 17.6% as steel and zinc costs settle, and whether Utility capacity investment lifts throughput 8-K.
Backlog stood at $2,007.8 million against $1,653.7 million at December 27, 2025, with Agriculture at $199.6 million against $105.4 million 8-K.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.