Valmont Industries Inc. will report fourth-quarter results Tuesday before market open, testing whether the infrastructure and agriculture equipment maker can sustain momentum near record highs despite mounting pressure in its core irrigation business.
Analysts expect revenue of $1.04 billion, flat year over year, with adjusted earnings forecast at $4.96 per share. That compares with analysts' expectations that revenue will be flat year on year at $1.05 billion, slowing from the 2.1% increase it recorded in the same quarter last year. While the expected EPS represents a 29% jump from the prior year, it would mark a slight sequential decline from the $4.98 per share Valmont posted in the third quarter. Revenue is also anticipated to dip modestly from last quarter's $1.05 billion.
EPS estimates have remained flat over the past 60 days, suggesting analysts have maintained their outlook heading into the print. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course.
Valmont shares closed Monday at $467.32, hovering near the $487.58 peak reached last week -- the stock's highest level in the past 52 weeks. Analysts rate the stock a Buy, with a consensus price target of $459.25, though that implies roughly 3% downside from current levels. Stifel analyst Nathan Jones maintains a Buy rating with a $491 price target.
What Investors Are Watching
The health of Valmont's irrigation business will be front and center. A recent Stifel dealer survey revealed softening sentiment, with irrigation dealers now expecting fourth-quarter domestic volume down 5.1% year over year -- worse than the 2.7% decline anticipated three months earlier. Dealers cited low crop prices as the primary demand headwind, affecting 70% of respondents, alongside general uncertainty and inflation pressures.
Pricing power will be critical. The same survey showed dealers reporting price increases of 260 basis points year over year, up from 120 basis points in the prior quarter. Whether Valmont can sustain that pricing momentum to offset volume declines will likely shape margin expectations for 2026.
Infrastructure segment performance remains a wildcard. While the agriculture business faces cyclical pressures, Valmont's utility structure and grid reliability solutions could provide a cushion. The company has been investing in precision agriculture technology and grid reliability solutions, preserving profitability through cost controls and improved business mix.
Last quarter, Valmont beat analysts' revenue expectations by 1.5%, reporting revenues of $1.05 billion, up 2.5% year on year, with an impressive beat of analysts' adjusted operating income estimates. The company also raised its full-year EPS guidance, signaling confidence despite near-term headwinds.
Tuesday's report will test whether that confidence remains justified. Management commentary on 2026 demand trends and margin trajectory will be crucial, particularly given the disconnect between weakening dealer sentiment and the stock's proximity to all-time highs.