Valmont (VI1) AI Stock Analysis

Valmont

(Frankfurt:VI1)

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Positive Factors

Utility backlog and demand visibilityThe substantial utility backlog and extended customer visibility provide a durable revenue foundation beyond the current quarter. Grid modernization, capacity expansion, resiliency, and related infrastructure investment can support sustained volume growth and help Valmont plan capacity with greater confidence.

Negative Factors

Moderate cash conversion and volatile free cash flowCash generation remains positive, but the gap between earnings and operating cash flow indicates working-capital or timing pressure. Negative free-cash-flow growth can reduce flexibility for capacity investment, debt reduction, or shareholder returns if the conversion weakness persists across coming quarters.

Valmont (VI1) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 8.08B
Dividend Yield: 0.68%
Average Volume (3M): 29
Price to Earnings (P/E): 15.9
Beta (1Y): 0.35
Revenue Growth: -0.59%
EPS Growth: 118.16%
Country: Germany
Employees: 10,791
Sector: Industrials
Sector Strength: 63
Industry: Conglomerates

Valmont Business Overview & Revenue Model

Company Description

Valmont Industries, Inc. is a global enterprise specializing in engineered products, conducting operations across the United States, Australia, Brazil, Denmark, and other international markets. The company's business is organized into two primary div...

Valmont Earnings Call Summary

Earnings Call Date:Oct 19, 2026(Q3-2026)|% Change Since:-3.03%|Next Earnings Date:Feb 23, 2027

Earnings Call SentimentPositive

The call was predominantly positive, supported by 5.5% consolidated sales growth, a 25.3% increase in EPS, strong Utility and Coatings demand, a $1.8 billion infrastructure backlog, expanded long-term visibility, raised full-year EPS guidance, and a strong balance sheet. The main challenges were near-term margin pressure from input-cost inflation, continued Telecom weakness, difficult international agriculture markets, Middle East delays, and an expected moderation in fourth-quarter earnings and margins.

Positive Updates

Third-Quarter Sales and Earnings Growth

Net sales increased 5.5% year over year to $1.1 billion, operating income rose to $172.8 million, operating margin expanded 22 basis points to 15.7%, and diluted earnings per share increased 25.3% to $6.24.

Negative Updates

Fourth-Quarter Margin Pressure

Management expects fourth-quarter earnings and margins to moderate from third-quarter levels because of increasing input-cost pressures, business-mix effects, and the absence of certain third-quarter benefits.

Company Guidance

Management reaffirmed its net sales outlook of $4.3 billion to 4.45 billion, including infrastructure sales of $3.4 billion to $3.5 billion and agriculture sales of $900 million to $950 million, and raised full year adjusted diluted earnings per share guidance to $22.75 to $23.75; capital expenditure outlook remains unchanged at $170 million to $200 million. For the fourth quarter, earnings and margins are expected to moderate from third quarter levels, reflecting increasing input cost pressures, business mix effects, and the absence of certain third quarter benefits. Full-year Utility growth is expected to be mid twenties, with double digit volume growth, while North America utility pricing is expected to sustain at a double digit run rate into 2027; telecom conditions are expected to remain soft at least through the end of the year, and the overall operating environment for ag is expected to persist through year end.

Valmont Risk Analysis

Valmont disclosed 24 risk factors in its most recent earnings report. Valmont reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

Valmont Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:VI1 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HON	73Outperform	$69.29B	9.87	36.19%	2.04%	-17.35%	23.22%
OTTR	66Neutral	$3.79B	19.39	10.43%	2.50%	0.27%	-31.92%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NNBR	61Neutral	$368.41M	-4.52	-27.06%	―	13.92%	29.66%
MMM	57Neutral	$90.09B	25.83	94.02%	1.76%	1.70%	7.26%
MATW	45Neutral	$601.79M	-20.73	-5.81%	5.29%	-31.82%	55.14%

* Industrials Sector Average

Performance Comparison

DE:VI1 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:VI1	Valmont Industries	384.00	28.35	7.97%
MMM	3M Company	174.34	15.09	9.48%
HON	Honeywell International	218.33	15.01	7.38%
MATW	Matthews International Corp	19.28	-3.23	-14.37%
NNBR	NN Inc	3.93	2.08	112.43%
OTTR	Otter Tail	90.35	14.35	18.89%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Valmont AI Stock Analysis