Financial Performance - Net sales increased by 2.5% to $1.05 billion compared to $1.02 billion in Q3 2024, with double-digit growth in Utility and Telecommunications segments[5] - Operating income rose by 12.5% to $141.5 million, representing 13.5% of net sales, up from 12.3% in the previous year[5] - Diluted earnings per share (EPS) increased by 21.2% to $4.98, compared to $4.11 in Q3 2024[5] - The company reported a net earnings attributable to Valmont Industries, Inc. of $99,031 for the thirteen weeks ended September 27, 2025, compared to $83,068 in 2024, marking a 19.2% increase[23] - Earnings per share (EPS) for the thirteen weeks ended September 27, 2025, were $5.02, compared to $4.13 for the same period in 2024, reflecting a 21.5% increase[23] - Net earnings for the thirty-nine weeks ended September 27, 2025, were $184,464 thousand, a decrease of 32.3% compared to $272,189 thousand for the same period in 2024[33] - Adjusted net earnings attributable to Valmont Industries, Inc. for the thirteen weeks ended September 27, 2025, were $99.031 million, or $4.98 per diluted share, compared to $283.490 million, or $14.17 per diluted share for the thirty-nine weeks ended September 27, 2025[42] Shareholder Returns - The company returned $39.2 million to shareholders through share repurchases of $25.8 million and dividends of $13.4 million[5] - Cash dividends per share increased to $0.68 for the thirteen weeks ended September 27, 2025, up from $0.60 in the same period last year[23] Sales and Segment Performance - Infrastructure segment sales grew by 6.6% to $808.3 million, with Utility sales up by 12.3% due to favorable pricing and higher volumes[7][8] - Agriculture segment sales decreased by 9.0% to $241.3 million, reflecting continued market softness in North America[10] - Operating income for the Agriculture segment fell by 19.7% to $23.2 million, or 9.7% of net sales, due to lower volumes and higher credit loss expenses[11] - Agriculture segment net sales decreased to $239,418 for the thirteen weeks ended September 27, 2025, down from $263,805 in 2024, a decline of 9.3%[25] - Total sales for the thirty-nine weeks ended September 27, 2025, reached $3,065,842, a slight increase from $3,037,740 in the previous year[29] Outlook and Guidance - The full-year 2025 adjusted diluted EPS outlook was raised to a range of $18.70 to $19.50[5] - The company updated its full-year 2025 net sales outlook to approximately $4.1 billion, with Infrastructure net sales expected around $3.1 billion[14] Backlog and Future Sales Potential - Backlog increased by $293.2 million or 20.4% since year-end 2024, primarily driven by strong Utility market demand[5] - Total backlog as of September 27, 2025, was $1.7299 billion, an increase from $1.4367 billion as of December 28, 2024, with infrastructure backlog at $1.6348 billion and agriculture backlog at $95.1 million[52] Cash Flow and Assets - Cash and cash equivalents increased to $226,107 thousand at the end of the period, compared to $164,315 thousand at the beginning, marking a net change of $61,792 thousand[33] - Net cash flows from operating activities for the thirty-nine weeks ended September 27, 2025, were $345,243 thousand, down from $379,264 thousand in the prior year[33] - Total assets increased to $3,367,999 thousand as of September 27, 2025, up from $3,329,972 thousand at December 28, 2024, reflecting a growth of 1.14%[31] Impairment and Charges - The company incurred impairment charges of $91,337 thousand during the thirty-nine weeks ended September 27, 2025, impacting overall profitability[40] - The company recorded non-cash impairment charges of $71.1 million for goodwill and certain intangible assets, along with $20.2 million for other long-lived assets that will no longer be utilized[43] - The company incurred realignment charges resulting in pre-tax charges of $9.8 million, primarily related to severance[43] Non-GAAP Measures - The company utilized non-GAAP financial measures to provide insights into operational profitability, including Adjusted EBITDA and Free Cash Flow metrics[35] - Adjusted EBITDA for the four fiscal quarters ended September 27, 2025, was $636.356 million, with net earnings attributable to Valmont Industries, Inc. at $259.925 million[48] - Cash flows from operating activities for the four fiscal quarters ended September 27, 2025, were $538.657 million[48] Other Financial Metrics - The leverage ratio as of September 27, 2025, was 0.91, calculated using net indebtedness of $579.633 million and adjusted EBITDA of $636.356 million[50] - Earnings before income taxes for the thirteen weeks ended September 27, 2025, were $131.537 million, with an effective tax rate of 23.1%[46] - Total current liabilities decreased to $778,584 thousand from $811,425 thousand, indicating a reduction of approximately 4.0%[31]

Core Viewpoint - Valmont Industries (VMI) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in a company's earnings potential, which is strongly correlated with near-term stock price movements [4][6]. - Institutional investors often base their valuation models on earnings estimates, leading to buying or selling actions that affect stock prices [4]. Valmont's Earnings Outlook - The upgrade for Valmont signifies an improvement in its underlying business, which is expected to drive the stock price higher as investors respond positively to this trend [5][10]. - For the fiscal year ending December 2025, Valmont is projected to earn $18.71 per share, with a 3.3% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating [9][10]. - The system has a proven track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill this potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Valmont Industries (VMI) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 18.5%, with projected EPS growth of 8.8% this year, significantly outperforming the industry average of 4.4% [4] Group 2: Financial Metrics - Valmont's asset utilization ratio is 1.2, indicating that the company generates $1.2 in sales for every dollar in assets, surpassing the industry average of 1.01 [5] - The company's sales are expected to grow by 0.9% this year, compared to an industry average of 0% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Valmont, with the Zacks Consensus Estimate for the current year increasing by 0.4% over the past month [8] - Valmont has achieved a Growth Score of A and a Zacks Rank 2, indicating its potential as a strong choice for growth investors [10]

Core Insights - Valmont Industries, Inc. is set to release its third quarter 2025 financial results on October 21, 2025, before market opening [1] - Following the earnings release, a webcast and conference will be hosted by the President and CEO, Avner M. Applbaum, and the Executive Vice President and CFO, Thomas Liguori [1] Company Overview - Valmont Industries is recognized as a global leader in providing products and solutions that support vital infrastructure and enhance agricultural productivity [1]

Core Insights - Valmont Industries, Inc. (NYSE:VMI) has been recognized as one of the best diversified stocks to buy, showcasing significant upside potential according to hedge funds [1] - The company reached an all-time high stock price of $384.84 on September 11, 2025, reflecting a 31.42% return over the past year, driven by strong investor confidence in its diversified manufacturing operations [2] - Valmont's steady cash flows and a 47-year history of consistent dividend payments enhance investor sentiment, supported by strategic initiatives such as targeted capital investments and efficient cost management [3] Company Overview - Valmont Industries, Inc. operates in the infrastructure and agriculture sectors, manufacturing products and providing services in the U.S., Australia, Brazil, and other international markets [4]

Core Viewpoint - Valmont Industries reported a strong second-quarter performance, beating earnings and sales estimates, and has raised its earnings outlook for 2025, indicating positive momentum in the company's financials [2][6]. Financial Performance - The adjusted profit for Q2 2025 was $97.2 million or $4.88 per share, slightly down from $99.7 million or $4.91 in the same quarter last year, but above the Zacks Consensus Estimate of $4.72 [2]. - Revenues for the quarter reached $1,050.5 million, reflecting a 1% year-over-year increase and surpassing the Zacks Consensus Estimate of $1,038.8 million [2]. Segment Review - Infrastructure segment revenues totaled $763.1 million, showing a slight increase year-over-year but falling short of the estimate of $767.1 million. Utility sales increased due to higher volumes and favorable pricing, while telecommunications sales benefited from strategic positioning [3]. - Agriculture segment revenues were $287.5 million, up 2.9% year-over-year, exceeding the estimate of $269.8 million. Strong international sales, particularly in the EMEA region and Brazil, contributed to this growth, although North American irrigation equipment sales declined [4]. Financials - Operating cash flows for the 26 weeks ended June 28, 2025, were $232.7 million, with cash and cash equivalents at $208.5 million at the end of Q2. The company returned $113.6 million to shareholders through share repurchases and dividends during the quarter [5]. - Capital expenditures for growth initiatives amounted to $32 million [5]. 2025 Outlook - Valmont updated its net sales expectations to between $4 billion and $4.2 billion, with adjusted earnings per share now projected to be between $17.50 and $19.50, an increase from the previous guidance [6]. - Anticipated capital expenditures are in the range of $140-$160 million, with an effective tax rate expected around 26% [6]. Market Sentiment - There has been an upward trend in fresh estimates for Valmont, indicating positive market sentiment [7]. - The company holds a Zacks Rank 2 (Buy), suggesting expectations for above-average returns in the coming months [10]. VGM Scores - Valmont has a strong Growth Score of A, but a lower Momentum Score of C. The stock also has a B score on the value side, placing it in the top 40% for value investors [8][9].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Valmont Industries (VMI) currently holding a Momentum Style Score of B [2][3] Group 2: Valmont Industries Performance - Valmont Industries has shown a 2.7% increase in shares over the past week, while the Zacks Steel - Pipe and Tube industry increased by 2.92% [5] - Over the past quarter, VMI shares increased by 21.49%, and over the last year, they gained 34.94%, outperforming the S&P 500's increases of 10.18% and 20.38% respectively [6] - The average 20-day trading volume for VMI is 177,740 shares, indicating a bullish sign if the stock is rising with above-average volume [7] Group 3: Earnings Outlook - In the past two months, four earnings estimates for VMI have moved higher, with no downward revisions, raising the consensus estimate from $18.12 to $18.63 [9] - For the next fiscal year, four estimates have also moved upwards without any downward revisions [9] Group 4: Conclusion - Valmont Industries is rated as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]

Core Insights - The article discusses the author's extensive experience in investment and research, focusing on medium-term investing strategies that target value unlocking catalysts and growth stories at reasonable prices [1]. Group 1: Investment Strategy - The investment strategy emphasizes medium-term investing in ideas with catalysts that can unlock value and drive upside, as well as short selling in the presence of downside catalysts [1]. - The author prefers to invest in growth stories that are available at reasonable prices, indicating a focus on value [1]. Group 2: Sector Preferences - The author identifies as a generalist but has a strong background in analyzing the industrial, consumer, and technology sectors, where higher conviction in investments is typically found [1].

Core Insights - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] - Valmont Industries (VMI) currently holds a Momentum Style Score of A, indicating strong potential for momentum-based investment [2][11] Company Performance - VMI shares have increased by 0.16% over the past week, outperforming the Zacks Steel - Pipe and Tube industry, which rose by 0.14% [5] - Over the last quarter, VMI shares have risen by 22.24%, and over the past year, they have increased by 32.31%, compared to the S&P 500's gains of 18.84% and 15.9% respectively [6] - The average 20-day trading volume for VMI is 200,999 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for VMI have been revised upwards, leading to an increase in the consensus estimate from $18.14 to $18.49 [9] - For the next fiscal year, three estimates have also moved higher, with no downward revisions noted [9] Investment Recommendation - Given the strong performance metrics and positive earnings outlook, VMI is rated as a 2 (Buy) stock with a Momentum Score of A, making it a compelling option for near-term investment [11]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform in the next 30 days [3][4] - Each stock receives a rating from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [4] Growth Score - The Growth Score assesses a company's financial health and future outlook based on projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [6] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, providing a comprehensive indicator for stock selection [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist in portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [8][9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] Stock to Watch: Valmont Industries - Valmont Industries, Inc. is engaged in producing fabricated metal products and mechanized irrigation systems, holding a Zacks Rank of 2 (Buy) and a VGM Score of B [12] - The company has a Momentum Style Score of A, with shares increasing by 10.3% over the past four weeks, and earnings estimates for fiscal 2025 have been revised upward [13]