Valmont Industries reported first-quarter 2026 net sales of $1.03 billion, up 6.2% from $969.3 million a year earlier, as higher infrastructure revenue more than offset a decline in agriculture.
Operating income rose 21.3% to $155.6 million from $128.3 million, lifting operating margin to 15.1% from 13.2%. Gross profit increased 8.9% to $316.9 million, and gross margin improved to 30.8% from 30.0%.
Net earnings attributable to Valmont climbed 23.8% to $108.0 million from $87.3 million. Diluted earnings per share increased 27.5% to $5.51 from $4.32.
The infrastructure segment generated $805.9 million in sales, up 14.1% from $706.2 million. Operating income in the segment rose 22.0% to $143.0 million from $117.2 million, with margin widening to 17.8% from 16.7%. Valmont said North America utility sales increased 27.4%, North America coatings sales grew 13.3%, and international sales rose on favorable foreign exchange, while North America lighting, transportation and telecommunications were lower.
Agriculture sales fell 15.1% to $227.0 million from $267.3 million. Operating income in the segment declined 7.5% to $33.5 million from $36.2 million, though margin improved to 14.8% from 13.6%. North America irrigation sales rose 1.5%, but international sales dropped 32.7%, driven by operational disruptions in the Middle East and lower volumes in Brazil.
Valmont ended the quarter with $160.2 million in cash and cash equivalents and a net leverage ratio of about 1.1x. It returned $70.8 million to shareholders, including $57.5 million in share repurchases and $13.3 million in dividends. The company also raised its quarterly dividend 13% to $0.77 per share, or $3.08 annualized.
Capital expenditures totaled $34.6 million, primarily for capacity investments supporting North America utility.
For full-year 2026, Valmont kept net sales guidance at $4.2 billion to $4.4 billion and capital expenditures at $170 million to $200 million, but raised diluted EPS guidance to $21.50 to $23.50 from $20.50 to $23.50. It also lifted its infrastructure sales outlook to $3.3 billion to $3.45 billion from $3.25 billion to $3.4 billion, while trimming agriculture sales expectations to $900 million to $950 million from $950 million to $1.0 billion. As a result of these announcements, the company's shares have moved -1.74% on the market, and are now trading at a price of $399.33. For more information, read the company's full 8-K submission here.
