Q2 2026 Valmont Industries Inc Earnings Call Transcript
Key Points
- Valmont Industries Inc (VMI) reported a 6.5% increase in net sales and a 25.8% growth in adjusted earnings per share for the second quarter of 2026.
- The company raised its full-year sales and earnings outlook, driven by strong performance in the North America Utility segment, which saw a 34% growth.
- Infrastructure sales grew by 14.8% year-over-year, with North America Utility sales increasing by 33.9%, supported by higher pricing and volume growth.
- Valmont Industries Inc (VMI) achieved a 16.5% operating margin in the agriculture segment, improving 90 basis points year-over-year due to disciplined cost and risk management.
- The company maintained a strong financial position with healthy operating cash flow of $148 million and a net debt leverage close to one times.
- The North America Telecom segment experienced a 26.1% decrease in sales due to lower carrier spending as customers shifted capital allocation priorities.
- Agriculture sales decreased by 15.8% year-over-year, with international sales dropping 28.9% primarily due to lower Middle East volumes.
- The company faces ongoing challenges in the global agriculture market, with tighter farm economics in North America and reduced financing rates in Brazil.
- Material cost inflation, particularly in steel and diesel, is impacting short-term profitability, with steel prices up 27% to 30% year-to-date.
- The Middle East agriculture market is experiencing project delays due to regional conflicts, affecting sales and operational efficiency.
Greetings. Welcome to Valmont Industries, Inc, second-quarter 2026 earnings conference call.
(Operator Instructions)
Please note this conference is being recorded. I will now turn the conference over to your host, Renee Campbell, Senior Vice President, Capital Markets and Risk.
Ms. Campbell, you may begin.
Good morning, everyone, and thank you for joining us. With me today are Avner Applbaum, President and Chief Executive Officer; John Schwietz, Executive Vice President, and Chief Financial Officer; and Eric Johnson, Chief Accounting Officer.
Earlier this morning, we issued a press release announcing our second quarter 2026 results. Both the release and the presentation for today's webcast are available on the Investors page of our website at valmont.com. A replay of the webcast will be available later this morning.
To stay updated with Valmont's latest news releases and information, please sign up for e-mail alerts on
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