Valmont's Earnings Surpass Expectations in Q1, Revenues Lag

Valmont Industries, Inc. VMI reported a first-quarter 2025 profit of $87.3 million or $4.32 per share. This compares to the profit of $87.8 million or $4.32 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $4.24.

The company’s revenues were $969.3 million in the quarter, down 0.9% year over year. The top line missed the Zacks Consensus Estimate of $975.6 million.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Valmont Industries, Inc. Price, Consensus and EPS Surprise

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

VMI’s Segment Review

The first-quarter revenues in the infrastructure segment decreased roughly 2.4% over the previous year, totaling $703.5 million. It lagged our estimate of $752.2 million. Utility sales grew owing to higher volumes. Telecommunications sales rose, owing to a higher level of carrier spending whereas Solar sales declined drastically for lower volumes.

Agriculture segment revenues totaled $265.8 million, up 3.4% year over year. It topped our estimate of $228.8 million. International sales rose year over year, with strong growth in Europe, Middle East and Africa. Brazil also achieved higher sales due to a stabilizing market environment. This offset lower irrigation equipment sales due to softness in the agricultural market.

VMI’s Financials

The company's operating cash flows totaled $65.1 million for the quarter ended March 29, 2025. At the end of the first quarter, cash and cash equivalents were $184.4 million. VMI returned $12 million to its shareholders through dividends during the first quarter. The company invested $30.3 million in future growth as capital expenditure.

VMI’s 2025 Outlook

Valmont expects net sales to be between $4 billion and $4.2 billion. Earnings per share are expected to be $17.20 to $18.80. 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 shares have soared 30.9% in the past year compared with the industry’s decline of 0.6%.

VMI’s Zacks Rank & Key Picks

VMI currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth a look in the basic materials space are Avino Silver & Gold Mines Ltd. ASM, Balchem Corporation BCPC and Agnico Eagle Mines Limited AEM.

ASM is slated to report first-quarter results on May 13. The Zacks Consensus Estimate for first-quarter earnings is pegged at 1 cent per share. ASM beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 94.44%. ASM carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BCPC is scheduled to release first-quarter results on April 24. The Zacks Consensus Estimate for BCPC’s first-quarter earnings is pegged at $1.25 per share. BCPC, a Zacks Rank #1 stock, has gained around 8.6% in the past year.

AEM is expected to report first-quarter results on April 24. The consensus estimate for AEM’s first-quarter earnings is pegged at $1.38 per share. AEM, carrying a Zacks Rank #2 (Buy), beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 16.44%.

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

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