Key Takeaways:
- Net sales rose 2.5% year over year to $1.05 billion; operating margin improved to 13.5%
- Diluted EPS increased 21.2% to $4.98; adjusted full-year EPS outlook raised to $18.70–$19.50
- Infrastructure segment grew 6.6% on strong Utility and Telecom; Agriculture declined 9.0%
- Backlog up 20.4% since year-end 2024, led by Utility demand; cash balance at $226.1 million
- Returned $39.2 million to shareholders in Q3 and invested $41.9 million in growth capex
Overview of Valmont Industries Q3 2025 performance
Valmont Industries reported third-quarter 2025 net sales of $1.046 billion, up 2.5% from the prior year, with operating income up 12.5% to $141.5 million and gross margin expanding to 30.4%. Net earnings attributable to shareholders were $99.0 million, or $4.98 per diluted share. Management cited robust Utility demand, improved factory throughput, and execution on North American capacity expansions as key drivers, while Agriculture markets remained soft.
Segment results at Valmont Industries
Infrastructure (77.1% of sales) grew 6.6% to $808.3 million. Utility sales rose 12.3% on favorable pricing and higher volumes; Telecommunications also increased, and Coatings benefited from steady infrastructure activity. These gains were partly offset by lower Solar sales following market exits and softer Lighting & Transportation volumes.
Agriculture (22.9% of sales) declined 9.0% to $241.3 million. North American irrigation demand remained muted, and international sales were lower on timing of Middle East projects. Operating income in the segment fell to $23.2 million, reflecting lower volumes and higher specific credit loss expense in Brazil.
Outlook and assumptions
The company raised its 2025 adjusted diluted EPS guidance to $18.70–$19.50 and now expects approximately $4.1 billion in full-year net sales. Infrastructure sales are expected to be about $3.1 billion and Agriculture about $1.0 billion. The adjusted effective tax rate is now estimated at roughly 25%. Valmont Industries noted steel cost assumptions aligned with October futures and continued actions to mitigate tariff impacts with a goal of remaining profit neutral on a dollar basis for fiscal 2025.
Liquidity, capital allocation, and backlog
Cash and cash equivalents ended the quarter at $226.1 million, and the net leverage ratio was approximately 0.9x. During the quarter, Valmont Industries returned $39.2 million to shareholders through repurchases and dividends and invested $41.9 million in capital expenditures to support strategic initiatives. Total backlog increased to $1.73 billion from $1.44 billion at year-end 2024, driven primarily by ongoing Utility strength.
What’s next
Valmont Industries plans to host its Q3 2025 earnings call on October 21, 2025, at 8:00 a.m. CT, with a webcast and replay available via the company’s investor relations site.
Read the full report here.
1 Comment