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Valmont's Earnings Surpass Expectations in Q1, Revenues Lag

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Valmont Industries, Inc. (VMI - Free Report) 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 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%.

Zacks Investment Research
Image Source: Zacks Investment Research

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 - Free Report) , Balchem Corporation (BCPC - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) .

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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