Valmont Beats Q2 Earnings and Sales Estimates, Raises EPS Outlook

Valmont Industries, Inc. VMI reported a second-quarter 2025 profit (as adjusted) of $97.2 million or $4.88 per share compared with $99.7 million or $4.91 in the year-ago quarter. However, the bottom line beat the Zacks Consensus Estimate of $4.72.

The company’s revenues were $1,050.5 million in the quarter, up 1% year over year. The top line also outpaced the Zacks Consensus Estimate of $1,038.8 million.

Valmont Industries, Inc. Price, Consensus and EPS Surprise

Valmont Industries, Inc. price-consensus-eps-surprise-chart | Valmont Industries, Inc. Quote

VMI’s Segment Review

Second-quarter revenues in the infrastructure segment increased marginally from the previous year, totaling $763.1 million. The figure lagged our estimate of $767.1 million. Utility sales grew owing to higher volumes and favorable pricing. Telecommunications sales rose, owing to strategic positioning within carrier capex spending plans, whereas Solar sales declined drastically on lower volumes. Lighting, Transportation and Coatings sales declined mainly due to weaker demand in international markets.

Agriculture segment revenues totaled $287.5 million, up 2.9% year over year. The matric beat our estimate of $269.8 million. International sales grew strongly, especially in the EMEA region and Brazil, where the market conditions have started to improve. Irrigation equipment sales in North America fell because there were fewer storm-related replacement sales than last year and the agriculture market remained weak.

VMI’s Financials

The company's operating cash flows totaled $232.7 million for 26 weeks ended June 28, 2025. At the end of the second quarter, cash and cash equivalents were $208.5 million. VMI returned $113.6 million to its shareholders through share repurchases and dividends during the second quarter. The company invested $32 million as capital expenditure for its growth initiatives.

VMI’s 2025 Outlook Updated

Valmont expects net sales to be between $4 billion and $4.2 billion. Adjusted earnings per share are now expected to be between $17.50 and $19.50, up from previous guidance of $17.20 to $18.80, factoring in the impacts of the realignment actions completed in the second quarter. It anticipates capital expenditures in the $140-$160 million range. The effective tax rate is expected to be around 26%.

VMI Stock’s Price Performance

VMI’s shares have gained 31.6% in the past year compared with the industry’s rise of 25.7%.

VMI’s Zacks Rank & Other Key Picks

VMI currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks worth a look in the basic materials space include Royal Gold, Inc. RGLD, Kinross Gold Corporation (KGC) and Agnico Eagle Mines AEM.

Royal Gold is slated to report second-quarter results on Aug. 6. The Zacks Consensus Estimate for earnings is pegged at $1.70 per share. RGLD’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 9%. Royal Gold flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kinross is scheduled to report second-quarter results on July 30. The Zacks Consensus Estimate for KGC’s second-quarter earnings is pegged at 27 cents per share. KGC’s earnings beat the Zacks Consensus Estimate in three of the last four quarters but missing it in one, with the average surprise being 16.1%. Kinross currently sports a Zacks Rank #1.

Agnico Eagle is slated to report second-quarter results on July 30. The consensus estimate for AEM’s earnings is pegged at $1.66 per share. AEM flaunts a Zacks Rank #1 at present. Agnico Eagle’s earnings beat the consensus estimate in each of the last four quarters, with the average surprise being 12.3%.
 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research