Valmont (VMI) Up 7.8% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Valmont Industries (VMI). Shares have added about 7.8% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Valmont due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Valmont Industries, Inc. before we dive into how investors and analysts have reacted as of late.

Valmont's Q1 Earnings and Revenues Beat Estimates, Rise Y/Y

Valmont reported first-quarter 2026 profit of $108 million or $5.51 per share. This compares to profit of $87.3 million or $4.32 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $4.72.

The company’s revenues were $1,029.2 million in the quarter, up 6.2% year over year. The top line outpaced the Zacks Consensus Estimate of $996.8 million.

Segment Review

First-quarter revenues in the Infrastructure segment rose about 14.1% year over year to $805.9 million, beating our estimate of $735.5 million. Sales were driven by favorable pricing and higher volumes. International sales increased due to favorable foreign exchange.

North America Utility sales increased 27.4% while North America Coatings sales increased 13.3%. The growth was offset by lower volumes in North America Lighting and Transportation and North America Telecommunications.

Agriculture revenues declined about 15.1% year over year to $227 million. The metric underperformed our estimate of $262.7 million. The decline was primarily due to a decrease in international sales due to lower volumes in Brazil and the Middle East conflict, causing operational disruptions.

Financials

The company ended the quarter with cash and cash equivalents of $160.2 million. For the 13 weeks ended March 28, 2026, cash provided by operating activities was $103.5 million, up around 59% year over year. Valmont returned $70.8 million to shareholders through dividends and share repurchases in the reported quarter. The company invested $34.6 million as capital expenditure to support capacity investments for the North America Utility product line.

2026 Outlook Updated

Valmont raised its full-year 2026 earnings per share guidance. The company anticipates net sales of approximately $4.2-$4.4 billion, with infrastructure-segment revenues of roughly $3.3-$3.45 billion, up from the previous guidance of $3.25-$3.4 billion. It expects agriculture-segment revenues of around $0.9-$0.95 billion, compared with the previously expected range of $0.95-$1 billion.

For earnings per share, the guidance was revised from $20.5-$23.50 to $21.5-$23.5. VMI anticipates capital expenditure in the $170-$200 million range. The company also expects its effective tax rate for the year to approximate 26%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 5.06% due to these changes.

VGM Scores

At this time, Valmont has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Valmont has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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