Valmont lifts 2026 adjusted EPS outlook as third-quarter operating income rises 22.2% from a year earlier

Valmont Industries raised its full-year 2026 adjusted earnings guidance on October 20 while reaffirming its sales outlook, after the infrastructure and irrigation manufacturer reported third-quarter net sales of $1.10 billion, up 5.5%, and diluted earnings per share of $6.24, up 25.3% from $4.98 a year earlier.

Utility pricing and coatings carry Infrastructure

Infrastructure, which accounted for 79.7% of net sales, lifted sales 9.1% from a year earlier. North America Utility sales rose 23.0% from a year earlier on higher pricing and volume, and North America Coatings sales grew 13.8% against the same quarter as infrastructure demand broadened. International infrastructure sales increased on pricing actions and favorable currency moves. The gains were partly reversed by what the release described as “significantly lower volumes in North America Telecommunications, reflecting lower carrier spend as customers shifted capital allocation priorities.” Segment operating income rose to $154.8 million, or 17.6% of net sales, from $143.4 million, or 17.8% a year earlier, as higher steel and zinc costs and spending to ramp Utility capacity absorbed part of the pricing benefit.

Agriculture splits between North America and overseas

Agriculture, 20.3% of net sales, posted a 6.4% sales decline. North America sales increased 15.8% from a year earlier on higher volumes, including storm replacement activity, and favorable pricing, while international sales fell 25.3% on lower volumes in the Middle East and Brazil. Operating income still rose to $40.1 million, or 17.9% of net sales, from $23.2 million, or 9.7%. The company credited Brazil for the swing: “Lower credit losses in Brazil and higher North America volumes contributed to the year-over-year increase, partially offset by lower international volumes.”

A higher EPS range with the sales outlook untouched

Applbaum said in the release's opening commentary: “Given our results, we are raising our adjusted earnings per share guidance range.” Valmont now guides full-year adjusted diluted earnings to $22.75 to $23.75, up from $22.25 to $23.50, while leaving net sales at $4.3 to $4.45 billion, capital spending at $170 to $200 million and the adjusted effective tax rate near 26.0%. The segment outlooks are unchanged at $3.4 to $3.5 billion for Infrastructure and $900 million to $950 million for Agriculture. Adjusted diluted EPS of $17.88 is already booked for the first nine months, so the new range implies fourth-quarter adjusted EPS of roughly $4.87 to $5.87 — below the $6.24 just reported, because the nine-month total is deducted from the full-year range. That bridge is the desk's arithmetic, not a company forecast.

Steel, zinc and the 8:00 a.m. CT call

Applbaum put the cost side of the margin story in input prices: the release has him saying the company is “taking pricing actions and applying contractual pass-throughs to recover higher steel and zinc costs.” He added that “The pace of margin expansion depends in part on how quickly input costs stabilize.” Volume moved too, with Utility and North America Agriculture both citing higher volumes. Guidance assumes steel and foreign-exchange rates as of October 16, 2026, and current tariffs with no material change to the trade environment. The release does not break down how much of the raise came from pricing and pass-throughs rather than volume. Consolidated gross margin slipped to 30.0% of net sales from 30.4% even as operating margin widened to 15.7% from 13.5%, a shift that coincided with lower selling, general and administrative expense. The quarter's outlays ran ahead of its operating cash flow: $82.3 million of buybacks, $14.9 million of dividends and $45.6 million of capital expenditure against $100.5 million of operating cash flow. Cash and equivalents were $122.0 million at period end, with net leverage of about 0.9x. Valmont filed the release as Exhibit 99.1 to a Form 8-K carrying Item 2.02, results of operations and financial condition. Applbaum and Chief Financial Officer John Schwietz discuss the quarter on a call at 8:00 a.m. CT on October 20, with a replay available until 10:59 p.m. CT on October 27; the release gives no quarterly outlook and no analyst consensus figure.