Abstract

Valmont Industries is scheduled to release its quarterly results on February 17, 2026 Pre-Market, with consensus pointing to modest revenue growth and a solid year-over-year rebound in earnings per share, while recent operating trends suggest supportive margin dynamics and a constructive setup into the print.

Market Forecast

Consensus for the quarter ending December 2025 points to revenue of $1.04 billion, EBIT of $142.27 million, and adjusted EPS of $4.97; this implies year-over-year growth of 3.01% for revenue, 25.20% for EBIT, and 36.97% for adjusted EPS, with no explicit gross or net margin forecasts disclosed. Management’s prior update and segment trends suggest continued strength where recent momentum has been most visible, with margins expected to track near recent levels given price-cost discipline and operating efficiency improvements. The main business remains concentrated in Infrastructure, where volume execution and pricing discipline are expected to underpin revenue consistency and stable profitability in the near term. Within the portfolio, Utility and Telecommunications have emerged as the most promising pockets of growth inside Infrastructure, supported by last quarter’s “double-digit” year-over-year gains, while Infrastructure contributed $808.29 million in revenue in the previous quarter.

Last Quarter Review

For the quarter ended September 2025, Valmont Industries delivered revenue of $1.05 billion (+2.53% year over year), a gross profit margin of 30.43%, GAAP net profit attributable to shareholders of $99.03 million (net profit margin 9.47%), and adjusted EPS of $4.98 (+21.17% year over year). A notable highlight was operating leverage: EBIT reached $141.46 million, up 12.50% year over year, driving operating margin to 13.53% from 12.30% in the prior-year period, with revenue and EPS both exceeding the quarter’s consensus estimates. By business, Infrastructure generated $808.29 million of revenue (approximately 77% of total) propelled by “double-digit” year-over-year gains in Utility and Telecommunications, while Agriculture contributed $241.34 million and Solar was softer on a year-over-year basis.

Current Quarter Outlook

Infrastructure execution and margin drivers this quarter

Infrastructure is the company’s revenue anchor and the key determinant of earnings stability this quarter. Consensus implies a modest step down in total revenue from the prior quarter and a healthy year-over-year EPS expansion; this dynamic typically requires Infrastructure to sustain solid conversion on its order activity and preserve recent margin gains. The EBIT forecast of $142.27 million, up 25.20% year over year, suggests ongoing benefits from mix, pricing actions, and productivity, even as volume growth normalizes versus a strong September quarter base. Recent results provide a reference point for achievable profitability. Gross margin at 30.43% and net margin at 9.47% last quarter reflected better price realization and scale in the higher-value portions of the Infrastructure portfolio. Provided that product and project mix remains favorable and input cost inflation stays contained versus the prior year, it is reasonable to expect gross margin to hold within a range close to recent performance, which would support the forecast acceleration in EPS despite only low-single-digit revenue growth. Management’s operating cadence and spending profile also matter for near-term earnings power. With capital expenditures indicated for the year and an estimated full-year tax rate previously guided at roughly 25.00%, non-operating items appear steady, which puts more emphasis on operating efficiency for incremental margin uplift this quarter. Watch for signs of continued cost discipline and throughput improvements in higher complexity structures, as those typically have an outsized impact on consolidated operating margin when volume is stable.

Utility and Telecommunications momentum inside Infrastructure

Within Infrastructure, Utility and Telecommunications demonstrated “double-digit” sales growth last quarter, and this sub-portfolio remains the most promising lever for sustaining above-trend earnings performance. The growth profile of these businesses tends to reflect multi-quarter project commitments and product cycles, which can provide visibility on shipments and enable better cost absorption. When combined with focused pricing and tight execution, this mix has historically supported higher incremental margins than more cyclical or lower-value product categories. The current-quarter revenue forecast of $1.04 billion and EPS forecast of $4.97 implicitly assume that these outgrowing sub-categories continue to outpace the total company growth rate. If Utility and Telecommunications maintain last quarter’s expansion rates and Infrastructure remains near $808.29 million of quarterly revenue (or better), consolidated gross profit dollars should hold up even if other areas run softer on a year-over-year basis. This dynamic also reduces sensitivity to isolated pockets of demand softness, because higher-value Infrastructure shipments can offset lower contribution from slower-moving categories. The sustainability of this momentum will hinge on delivery timing and pricing carryover. Given that last quarter’s operating margin reached 13.53%, an incremental lift from favorable mix could keep EBIT aligned with the 25.20% year-over-year growth embedded in consensus. Any upside surprise would likely be tied to better-than-expected conversion of committed orders and continued mix skew toward higher-value Utility and Telecommunications products, while downside risk may stem from shipment timing slippage or a heavier mix of lower-margin deliveries.

Key stock drivers into the print

The first and most visible catalyst is earnings delivery versus expectations, particularly the 36.97% year-over-year growth embedded in the $4.97 adjusted EPS forecast. With last quarter’s beats on revenue and EPS, investors will be attentive to whether the company can deliver a second consecutive quarter of positive variance; even a match to consensus could be perceived constructively if margin quality remains high. Conversely, a shortfall on EPS would likely be attributed to mix or execution timing rather than a structural reset, but it could still pressure the shares near term. The second driver is segment mix and the relative contribution of Infrastructure versus Agriculture. Infrastructure’s $808.29 million revenue last quarter and “double-digit” growth in Utility and Telecommunications positioned the company for operating leverage, while Agriculture and Solar trailed on a year-over-year basis. If the current quarter reflects a similar pattern—Infrastructure steady and higher-value sub-categories leading—the implied low-single-digit revenue growth can still convert into robust EPS expansion; however, a re-acceleration in Agriculture would represent clean upside to revenue and margin breadth. The third driver is margin resilience and cash discipline. Maintaining gross margin near last quarter’s 30.43% and net margin near the 9.47% area would underpin the EPS outlook even if revenue is only up 3.01% year over year. Investors will also watch operating expense control and capital allocation pacing; with earlier commentary calling for full-year capex in the $140.00 million–$160.00 million range and a roughly 25.00% full-year tax rate, deviations from these parameters could influence free cash flow expectations and valuation multiples.

Analyst Opinions

Bullish views dominate recent commentary, with a 100% positive skew in the past six months based on available opinions (2 bullish, 0 bearish). J.P. Morgan’s Tomohiko Sano maintained a Buy rating with a $480.00 price target and previously initiated coverage with a Buy, citing a favorable setup grounded in growth potential and strategic execution. This stance aligns with the current consensus path: revenue growth of 3.01% year over year coupled with a 36.97% EPS increase suggests improving operating efficiency and mix, two factors analysts often highlight when arguing for multiple support in similar earnings phases. The constructive rating also dovetails with last quarter’s beats and operational improvements. EBIT growth of 12.50% last quarter and the operating margin expansion to 13.53% offer tangible evidence that price realization and cost control are translating into stronger profitability metrics. Analysts focused on these trends are likely to look for confirmation that the same mechanisms—mix lift in Utility and Telecommunications, stable Infrastructure execution, and disciplined expenses—remain intact in the December quarter. From a preview perspective, the bullish camp expects the company to navigate low-single-digit revenue growth with better incremental margins, effectively leveraging the stronger parts of the portfolio to drive disproportionate EPS gains. Should the company reiterate or improve on the recent operating profile and deliver adjusted EPS near or above $4.97, the bullish case anticipates that investors will reward consistency and visibility in the mix-led expansion. In this framework, the near-term balance of risk appears favorable to positive execution on revenue quality and margins, which is consistent with the Buy rating and the elevated target price.