Valmont’s first quarter saw flat sales and stable margins, with the market responding positively despite misses on both revenue and earnings per share versus Wall Street expectations. Management attributed the resilience to ongoing infrastructure investments and an expanding backlog, particularly in utility and telecommunications. CEO Avner Applbaum highlighted the company’s “disciplined execution against our strategic priorities,” citing operational streamlining and cost management. The team also pointed to successful mitigation efforts on tariffs, saying their local-for-local supply chain approach and domestic manufacturing footprint helped contain near-term cost impacts.
Is now the time to buy VMI? Find out in our full research report (it’s free).
Valmont (VMI) Q1 CY2025 Highlights:
- Revenue: $969.3 million vs analyst estimates of $975.5 million (flat year on year, 0.6% miss)
- EPS (GAAP): $4.32 vs analyst expectations of $4.36 (0.8% miss)
- Adjusted EBITDA: $149.8 million vs analyst estimates of $157.4 million (15.5% margin, 4.8% miss)
- The company reconfirmed its revenue guidance for the full year of $4.1 billion at the midpoint
- EPS (GAAP) guidance for the full year is $18 at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 13.2%, in line with the same quarter last year
- Backlog: $1.49 billion at quarter end
- Organic Revenue was flat year on year (-8.3% in the same quarter last year)
- Market Capitalization: $6.55 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Valmont’s Q1 Earnings Call
- Adam Farley (Stifel): Asked if price actions have fully offset tariff impacts and about potential lags in pricing. CFO Tom Liguori explained that about half of the tariff mitigation comes from pricing, with timing effects mainly impacting the backlog and second-half results.
- Chris Moore (CJS Securities): Inquired about steel price volatility and its effect on earnings timing. Liguori responded that steel price futures are moderating, and local sourcing is expected to reduce costs, with improved visibility for the second half of the year.
- Brent Thielman (D.A. Davidson): Sought clarity on international infrastructure demand and Brazil’s agriculture market recovery. CEO Applbaum pointed to improving order rates in Australia’s lighting market and stabilization in Brazil, though margins there are still pressured.
- Jon Braatz (Kansas City Capital): Questioned the North American irrigation outlook and the company’s ability to recover first quarter tariff costs. Applbaum acknowledged a tough year ahead for North America ag, while Liguori confirmed that cost neutrality on tariffs is expected over the remaining quarters.
- Brian Drab (William Blair): Asked about expected volume growth in utility and lighting/transportation businesses, and USMCA compliance for Mexico operations. Applbaum forecast mid-single-digit volume growth in infrastructure (excluding solar), and Liguori affirmed ongoing compliance with trade rules.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will focus on (1) the pace of utility and telecom order growth as infrastructure investments accelerate, (2) the effectiveness of tariff mitigation and cost control measures in sustaining margins, and (3) signs of recovery in international agriculture markets, especially Brazil and the Middle East. Progress on manufacturing expansion and adoption of new AgTech solutions will also be important markers.
Valmont currently trades at $326.36, up from $269.53 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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