Earnings release
Page 1
Valmont Reports Third Quarter 2026 Results and Raises Full-Year 2026 Adjusted EPS Guidance October 20, 2026 OMAHA, Neb.--(BUSINESS WIRE)--Oct. 20, 2026-- Valmont ® Industries, Inc. (NYSE: VMI), a global leader that provides products and solutions to support vital infrastructure and advance agricultural productivity, today reported financial results for the third quarter ended September 26, 2026. President and Chief Executive Officer Avner M. Applbaum commented, “We delivered another quarter of sales and earnings growth. Higher sales in North America Utility and Coatings reinforce our confidence in the strength and durability of the infrastructure market. To support continued infrastructure demand, we are focused on increasing capacity and improving throughput, with a continued focus on reliable delivery and disciplined execution. In Agriculture, we delivered sales growth in North America despite broader market softness. Our focus remains on deepening strategic customer relationships and expanding our higher-value aftermarket and technology solutions, positioning the business for stronger growth as market conditions improve. “Given our results, we are raising our adjusted earnings per share guidance range. As we finish 2026 and prepare for 2027, we are focused on turning our capacity investments into higher throughput and improved productivity across the Infrastructure segment. At the same time, we are taking pricing actions and applying contractual pass-throughs to recover higher steel and zinc costs. The pace of margin expansion depends in part on how quickly input costs stabilize. Strong customer demand in Utility and Coatings, together with our investments and operating improvements across Infrastructure and Agriculture support our confidence in the objectives presented at our 2026 Investor Day.” Third Quarter 2026 Highlights (all metrics compared to Third Quarter 2025 unless otherwise noted) Net sales increased 5.5% to $1.10 billion, compared to $1.05 billion Operating income increased 22.2% to $172.8 million or 15.7% of net sales, compared to $141.5 million or 13.5% of net sales Diluted earnings per share increased 25.3% to $6.24, compared to $4.98 Generated operating cash flow of $100.5 million; cash and cash equivalents were $122.0 million and net leverage ratio 1 was ~0.9x Returned $97.2 million to shareholders through $82.3 million in share repurchases and $14.9 million in dividends Invested $45.6 million in capital expenditures to primarily support growth-related capacity expansion in the North America Utility product line 1Please see Reg G reconciliation to GAAP measures at end of document Key Financial Metrics Third Quarter 2026 GAAP Adjusted1 (In thousands, except per-share amounts) 9/26/2026 9/27/2025 9/26/2026 9/27/2025 Q3 2026 Q3 2025 vs. Q3 2025 Q3 2026 Q3 2025 vs. Q3 2025 Net Sales $ 1,103,801 $ 1,045,980 5.5% $ 1,103,801 $ 1,045,980 5.5% Gross Profit 331,384 318,246 4.1% 331,384 318,246 4.1% Gross Profit as a % of Net Sales 30.0% 30.4% 30.0% 30.4% Operating Income 172,834 141,456 22.2% 172,834 141,456 22.2% Operating Income as a % of Net Sales 15.7% 13.5% 15.7% 13.5% Net Earnings Attributable to VMI 121,053 99,031 22.2% 121,053 99,031 22.2% Diluted Earnings per Share 6.24 4.98 25.3% 6.24 4.98 25.3% Weighted Average Shares Outstanding 19,391 19,876 19,391 19,876 Year-to-Date 2026 GAAP Adjusted1
Page 2
(In thousands, except per-share amounts) 9/26/2026 9/27/2025 9/26/2026 9/27/2025 YTD 2026 YTD 2025 vs. YTD 2025 YTD 2026 YTD 2025 vs. YTD 2025 Net Sales $ 3,251,687 $ 3,065,842 6.1% $ 3,251,687 $ 3,065,842 6.1% Gross Profit 989,079 930,515 6.3% 989,079 932,109 6.1% Gross Profit as a % of Net Sales 30.4% 30.4% 30.4% 30.4% Operating Income 494,571 299,046 65.4% 494,571 411,126 20.3% Operating Income as a % of Net Sales 15.2% 9.8% 15.2% 13.4% Net Earnings Attributable to VMI 2 349,004 156,029 123.7% 349,004 283,490 23.1% Diluted Earnings per Share 17.88 7.80 129.2% 17.88 14.17 26.2% Weighted Average Shares Outstanding 19,516 20,001 19,516 20,001 2Fiscal 2025 net earnings attributable to Valmont Industries, Inc. including a change in redemption value of redeemable noncontrolling interests of $26,243 Third Quarter 2026 Segment Review (all metrics compared to Third Quarter 2025 unless otherwise noted) Infrastructure (79.7% of Net Sales) Products and solutions to serve the infrastructure markets of utility, lighting, transportation, and telecommunications, along with coatings services to protect metal products Sales increased 9.1% to $882.1 million, compared to $808.3 million. North America Utility sales increased 23.0%, driven by higher pricing and volumes, supported by strong market demand. North America Coatings sales grew 13.8%, supported by broader infrastructure demand. International sales increased primarily due to pricing actions and favorable foreign currency impacts. These increases were partially offset by significantly lower volumes in North America Telecommunications, reflecting lower carrier spend as customers shifted capital allocation priorities. Operating income increased to $154.8 million or 17.6% of net sales, compared to $143.4 million or 17.8% of net sales. Higher pricing and volumes in North America Utility and Coatings were partially offset by higher material costs, primarily steel and zinc, costs associated with ramping Utility capacity, and lower North America Telecom volumes. Agriculture (20.3% of Net Sales) Center pivot and linear irrigation equipment components for agricultural markets, including aftermarket parts and tubular products, and advanced technology solutions for precision agriculture Sales decreased 6.4% to $226.0 million, compared to $241.3 million. North America sales increased 15.8%, driven by higher volumes, including storm replacement activity and favorable pricing. International sales decreased 25.3%, primarily due to lower volumes in the Middle East and Brazil. Operating income increased to $40.1 million or 17.9% of net sales, compared to $23.2 million or 9.7% of net sales. Lower credit losses in Brazil and higher North America volumes contributed to the year-over-year increase, partially offset by lower international volumes. Full-Year 2026 Financial Outlook and Key Assumptions The Company is reaffirming its full-year 2026 net sales outlook and raising its adjusted diluted EPS outlook. Key assumptions have also been updated. Metric Previous Outlook Updated Outlook Net Sales $4.3 to $4.45 billion No change Infrastructure Net Sales $3.4 to $3.5 billion No change Agriculture Net Sales $0.9 to $0.95 billion No change Adjusted Diluted Earnings per Share $22.25 to $23.50 $22.75 to $23.75 Capital Expenditures $170 to $200 million No change Adjusted Effective Tax Rate ~26.0% No change Key Assumptions Steel cost assumptions are aligned with markets as of October 16, 2026
Page 3
Foreign currency assumptions are based on FX rates as of October 16, 2026 This outlook includes the current tariffs as of October 16, 2026 and assumes no material change to the current trade or tariff environment A live audio discussion with Avner M. Applbaum, President and Chief Executive Officer, and John Schwietz, Executive Vice President and Chief Financial Officer, will take place on Tuesday, October 20, 2026 at 8:00 a.m. CT. The discussion can be accessed by telephone at +1 877.407.6184 or +1 201.389.0877 (no Conference ID needed) or via webcast at the following link: Valmont Industries 3Q 2026 Earnings Conference Call . A slide presentation will be available for download on the Investors page of valmont.com during the webcast. A replay of the event will be accessible three hours after the call at the above link or by telephone at +1 877.660.6853 or +1 201.612.7415 using access code 13756346. The replay will be available until 10:59 p.m. CT on Tuesday, October 27, 2026. About Valmont Industries, Inc. For more than 80 years, Valmont has been a global leader that provides products and solutions to support vital infrastructure and advance agricultural productivity. We are committed to customer-focused innovation that delivers lasting value. Learn more about how we’re Conserving Resources. Improving Life. ® at valmont.com. Concerning Forward-Looking Statements This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions made by management, considering its experience in the industries where Valmont operates, perceptions of historical trends, current conditions, expected future developments, and other relevant factors. It is important to note that these statements are not guarantees of future performance or results. They involve risks, uncertainties (some of which are beyond Valmont’s control), and assumptions. Forward-looking statements may be accompanied by words such as “opportunities,” “estimate,” “outlook,” “clear path,” “target,” “expect,” “plan” and similar expressions. While management believes these forward-looking statements are based on reasonable assumptions as of the date made, numerous factors could cause actual results to differ materially from those anticipated. These factors include, among other things, risks described in Valmont’s reports to the Securities and Exchange Commission (“SEC”), the Company’s actual cash flows and net income, future economic and market circumstances, industry conditions, company performance and financial results, operational efficiencies, availability and price of raw materials, availability and market acceptance of new products, product pricing, domestic and international competitive environments, geopolitical risks, and actions and policy changes by domestic and foreign governments, including tariffs. The Company cautions that any forward-looking statements in this release are made as of its publication date and does not undertake to update these statements, except as required by law. The Company may provide certain non-GAAP financial measures (adjusted diluted earnings per share and adjusted effective tax rate) on a forward-looking basis from time to time. These measures are typically calculated by excluding the impact of items such as foreign exchange, acquisitions, divestitures, realignment or restructuring expenses, goodwill or intangible asset impairment, changes in tax laws or rates, change in redemption value of redeemable noncontrolling interests, and other non-recurring items. To the extent the Company provides forward-looking non-GAAP financial measures, reconciliations to the most directly comparable GAAP financial measures are not provided, as the Company cannot do so without unreasonable effort due to the inherent uncertainty and difficulty in predicting the timing and financial impact of such items. For the same reasons, the Company cannot assess the likely significance of unavailable information, which could be material to future results. Website and Social Media Disclosure The Company uses its website and social media channels, as identified on its website, to distribute company information. Posts on these channels may contain material information. Therefore, investors should monitor these channels alongside the Company’s press releases, SEC filings, and public conference calls and webcasts. The contents of the Company’s website and social media channels are not considered part of this press release. VALMONT INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and shares in thousands, except per-share amounts) (Unaudited) Thirteen weeks ended Thirty-nine weeks ended September 26, September 27, September 26, September 27, 2026 2025 2026 2025 Net sales $ 1,103,801 $ 1,045,980 $ 3,251,687 $ 3,065,842 Cost of sales 772,417 727,734 2,262,608 2,135,327 Gross profit 331,384 318,246 989,079 930,515 Selling, general, and administrative expenses 158,550 176,790 494,508 531,248 Impairment of long-lived assets — — — 91,337
Page 4
Realignment charges — — — 8,884 Operating income 172,834 141,456 494,571 299,046 Other income (expenses): Interest expense (9,306) (9,738) (28,147) (30,396) Interest income 1,274 1,588 3,922 6,550 Gain on deferred compensation investments 793 1,187 3,021 2,730 Other, net (2,310) (2,956) (2,468) (9,361) Total other expenses (9,549) (9,919) (23,672) (30,477) Earnings before income taxes and equity method investment loss 163,285 131,537 470,899 268,569 Income tax expense 41,821 30,424 120,925 83,503 Equity method investment loss — (21) (264) (602) Net earnings 121,464 101,092 349,710 184,464 Earnings attributable to redeemable noncontrolling interests (411) (2,061) (706) (2,192) Net earnings attributable to Valmont Industries, Inc. $ 121,053 $ 99,031 $ 349,004 $ 182,272 Weighted average shares outstanding - Basic 19,232 19,736 19,357 19,864 Earnings per share - Basic $ 6.29 $ 5.02 $ 18.03 $ 7.85 1 Weighted average shares outstanding - Diluted 19,391 19,876 19,516 20,001 Earnings per share - Diluted $ 6.24 $ 4.98 $ 17.88 $ 7.80 1 Cash dividends per share $ 0.77 $ 0.68 $ 2.31 $ 2.04 1Fiscal 2025 basic and diluted earnings per share include a change in redemption value of redeemable noncontrolling interests of $26,243 VALMONT INDUSTRIES, INC. AND SUBSIDIARIES SUMMARY OPERATING RESULTS (Dollars in thousands) (Unaudited) Thirteen weeks ended Thirty-nine weeks ended September 26, September 27, September 26, September 27, 2026 2025 2026 2025 Infrastructure Net sales $ 879,586 $ 806,562 $ 2,559,484 $ 2,273,145 Gross profit 255,371 239,426 764,202 680,184 as a percentage of net sales 29.0% 29.7% 29.9% 29.9% Selling, general, and administrative expenses 100,532 96,049 311,964 302,899 as a percentage of net sales 11.4% 11.9% 12.2% 13.3% Impairment of long-lived assets — — — 89,356 Realignment charges — — — 1,426 Operating income 154,839 143,377 452,238 286,503 as a percentage of net sales 17.6% 17.8% 17.7% 12.6% Agriculture Net sales $ 224,215 $ 239,418 $ 692,203 $ 792,697 Gross profit 76,013 78,820 224,877 250,331 as a percentage of net sales 33.9% 32.9% 32.5% 31.6% Selling, general, and administrative expenses 35,864 55,631 111,342 149,987 as a percentage of net sales 16.0% 23.2% 16.1% 18.9% Impairment of long-lived assets — — — 1,981 Realignment charges — — — 2,886 Operating income 40,149 23,189 113,535 95,477
Page 5
as a percentage of net sales 17.9% 9.7% 16.4% 12.0% Corporate Selling, general, and administrative expenses $ 22,154 $ 25,110 $ 71,202 $ 78,362 Realignment charges — — — 4,572 Operating loss (22,154) (25,110) (71,202) (82,934) VALMONT INDUSTRIES, INC. AND SUBSIDIARIES SUMMARY OPERATING RESULTS (Dollars in thousands) (Unaudited) In the first quarter of fiscal 2026, the Company revised its product line presentation to better reflect how the business is currently managed. Within the Infrastructure segment, product lines are now presented as North America Utility, North America Lighting and Transportation, North America Coatings, North America Telecommunications, and International Infrastructure and Solar, replacing the previous presentation of Utility, Lighting and Transportation, Coatings, Telecommunications, and Solar. Within the Agriculture segment, product lines are now presented as Agriculture, replacing the previous presentation of Irrigation Equipment and Parts and Technology Products and Services. The prior period product line amounts have been recast to conform to the current period presentation. Thirteen weeks ended September 26, 2026 Infrastructure Agriculture Intersegment Consolidated Geographical Market: North America $ 721,751 $ 128,920 $ (4,285) $ 846,386 International 160,338 97,077 — 257,415 Total sales $ 882,089 $ 225,997 $ (4,285) $ 1,103,801 Product Line: North America Utility $ 469,622 $ — $ — $ 469,622 North America Lighting and Transportation 127,471 — — 127,471 North America Coatings 69,713 — (2,503) 67,210 North America Telecommunications 54,885 — — 54,885 International Infrastructure and Solar 160,398 — — 160,398 Agriculture — 225,997 (1,782) 224,215 Total sales $ 882,089 $ 225,997 $ (4,285) $ 1,103,801 Thirteen weeks ended September 27, 2025 Infrastructure Agriculture Intersegment Consolidated Geographical Market: North America $ 656,285 $ 111,334 $ (3,638) $ 763,981 International 152,000 130,004 (5) 281,999 Total sales $ 808,285 $ 241,338 $ (3,643) $ 1,045,980 Product Line: North America Utility $ 381,657 $ — $ — $ 381,657 North America Lighting and Transportation 130,369 — — 130,369 North America Coatings 61,251 — (1,718) 59,533 North America Telecommunications 82,926 — — 82,926 International Infrastructure and Solar 152,082 — (5) 152,077 Agriculture — 241,338 (1,920) 239,418 Total sales $ 808,285 $ 241,338 $ (3,643) $ 1,045,980 VALMONT INDUSTRIES, INC. AND SUBSIDIARIES SUMMARY OPERATING RESULTS (Dollars in thousands)
Page 6
(Unaudited) Thirty-nine weeks ended September 26, 2026 Infrastructure Agriculture Intersegment Consolidated Geographical Market: North America $ 2,103,093 $ 407,670 $ (11,956) $ 2,498,807 International 463,858 289,022 — 752,880 Total sales $ 2,566,951 $ 696,692 $ (11,956) $ 3,251,687 Product Line: North America Utility $ 1,350,544 $ — $ — $ 1,350,544 North America Lighting and Transportation 376,625 — — 376,625 North America Coatings 201,884 — (7,467) 194,417 North America Telecommunications 173,374 — — 173,374 International Infrastructure and Solar 464,524 — — 464,524 Agriculture — 696,692 (4,489) 692,203 Total sales $ 2,566,951 $ 696,692 $ (11,956) $ 3,251,687 Thirty-nine weeks ended September 27, 2025 Infrastructure Agriculture Intersegment Consolidated Geographical Market: North America $ 1,849,918 $ 391,292 $ (12,079) $ 2,229,131 International 430,113 406,737 (139) 836,711 Total sales $ 2,280,031 $ 798,029 $ (12,218) $ 3,065,842 Product Line: North America Utility $ 1,055,681 $ — $ — $ 1,055,681 North America Lighting and Transportation 388,257 — — 388,257 North America Coatings 176,143 — (6,747) 169,396 North America Telecommunications 224,063 — — 224,063 International Infrastructure and Solar 435,887 — (139) 435,748 Agriculture — 798,029 (5,332) 792,697 Total sales $ 2,280,031 $ 798,029 $ (12,218) $ 3,065,842 VALMONT INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) (Unaudited) September 26, December 27, 2026 2025 ASSETS Current assets: Cash and cash equivalents $ 122,045 $ 187,140 Receivables, net 651,738 590,127 Inventories 644,813 566,396 Contract assets 303,996 266,922 Prepaid expenses and other current assets 112,744 109,063 Total current assets 1,835,336 1,719,648 Property, plant, and equipment, net 716,289 673,863 Goodwill and other non-current assets 989,249 975,818 Total assets $ 3,540,874 $ 3,369,329 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY
Page 7
Current liabilities: Current installments of long-term debt $ 152 $ 513 Mandatorily redeemable financial instrument — 8,922 Accounts payable 406,475 359,539 Accrued expenses 265,392 284,751 Contract liabilities 64,911 52,013 Income taxes payable 9,306 12,604 Dividends payable 14,737 13,278 Total current liabilities 760,973 731,620 Long-term debt, excluding current installments 756,141 795,150 Operating lease liabilities 139,358 130,007 Other non-current liabilities 115,545 70,267 Total liabilities 1,772,017 1,727,044 Redeemable noncontrolling interests 9,236 9,498 Shareholders' equity 1,759,621 1,632,787 Total liabilities, redeemable noncontrolling interests, and shareholders' equity $ 3,540,874 $ 3,369,329 VALMONT INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) (Unaudited) Thirty-nine weeks ended September 26, September 27, 2026 2025 Cash flows from operating activities: Net earnings $ 349,710 $ 184,464 Depreciation and amortization 72,860 65,429 Contribution to defined benefit pension plan (886) (3,155) Impairment of long-lived assets 9,629 91,337 Changes in assets and liabilities (127,397) (18,745) Other, net 48,159 25,913 Net cash flows from operating activities 352,075 345,243 Cash flows from investing activities: Purchases of property, plant, and equipment (116,077) (104,230) Acquisitions, net of cash acquired (11,470) — Other, net 5,676 (81) Net cash flows from investing activities (121,871) (104,311) Cash flows from financing activities: Net repayments on short-term borrowings — (1,652) Proceeds from long-term borrowings 120,665 130,000 Principal repayments on long-term borrowings (160,590) (130,531) Dividends paid (43,091) (39,085) Purchases of redeemable noncontrolling interests (8,922) (14,624) Repurchases of common stock (199,859) (125,839) Other, net (4,210) (4,438) Net cash flows from financing activities (296,007) (186,169) Effect of exchange rates on cash and cash equivalents 708 7,029 Net change in cash and cash equivalents (65,095) 61,792 Cash and cash equivalents—beginning of period 187,140 164,315 Cash and cash equivalents—end of period $ 122,045 $ 226,107 VALMONT INDUSTRIES, INC. AND SUBSIDIARIES USE OF NON-GAAP FINANCIAL MEASURES
Page 8
Management utilizes non-GAAP financial measures to assess the Company’s historical and prospective financial performance, evaluate operational profitability on a consistent basis, factor into executive compensation decisions, and enhance transparency for the investment community. These non-GAAP measures are intended to supplement, not replace, the Company’s reported financial results prepared in accordance with GAAP. It is important to note that other companies may calculate these measures differently, which can limit their usefulness for comparison across organizations. The following non-GAAP measures may be included in financial releases and other financial communications: Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Net Earnings, Adjusted Diluted EPS, and Adjusted Effective Tax Rate: These metrics provide meaningful supplemental insights into the Company’s operating performance by excluding items that are not considered part of core operating results. This approach enhances comparability across reporting periods. Adjustments may include costs or benefits associated with acquisitions, divestitures, expenses related to realignment or restructuring programs, goodwill or intangible asset impairment, significant expenses or benefits from changes in tax laws or rates, cumulative effects of changes in accounting standards, refinancing-related expenses, a loss or a gain from a partial or full settlement of the U.K. defined benefit pension plan obligation, losses from natural disasters, change in redemption value of redeemable noncontrolling interests, and other non-recurring items. Adjusted EBITDA: This metric is a key component of a financial ratio included in the covenants of our major debt agreements. It is calculated as net earnings before interest, taxes, depreciation, amortization, stock-based compensation, and other adjustments as outlined in the applicable debt agreements. This metric offers investors and analysts valuable insights into the Company’s core operating performance. Adjusted EBITDA margin is also used to evaluate profitability. Leverage Ratio: This ratio is calculated by taking the sum of interest-bearing debt, minus unrestricted cash in excess of $50.0 million (but not exceeding $500.0 million), and dividing it by Adjusted EBITDA. This is a key financial ratio included in the covenants of our major debt agreements and is calculated on a rolling four-fiscal-quarter basis. The revolving credit facility requires us to maintain a financial leverage ratio of 3.50 or lower, measured as of the last day of each fiscal quarter. Free Cash Flow: Calculated as net cash provided by operating activities minus capital expenditures, free cash flow serves as an indicator of the Company’s financial strength. However, this measure does not fully reflect the Company’s ability to deploy cash freely, as it has obligations such as debt repayments and other fixed commitments. Backlog: This operating measure is used to evaluate future potential sales revenue. An order is included in the backlog upon receipt of a customer purchase order or the execution of a sales order contract. Backlog is particularly relevant to the Infrastructure segment due to the longer-term nature of its projects. However, backlog is not a term defined under U.S. GAAP and does not measure contract profitability. It should not be viewed as the sole indicator of future revenue, as many projects with short lead times book-and-bill within the same reporting period and are not included in the backlog. ROIC: Return on invested capital (“ROIC”) and adjusted ROIC are key operating ratios that enable investors to assess our operating performance relative to the investment needed to generate operating profit. ROIC is calculated as after-tax operating income divided by the average of beginning and ending invested capital. Adjusted ROIC is calculated as after-tax adjusted operating income divided by the average of beginning and ending invested capital. Invested capital represents total assets minus total liabilities (excluding interest-bearing debt and redeemable noncontrolling interests). VALMONT INDUSTRIES, INC. AND SUBSIDIARIES SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS REGULATION G RECONCILIATION (Dollars in thousands) (Unaudited) Thirteen weeks ended September 27, 2025 Gross Profit Reconciliation Infrastructure Agriculture Corporate Consolidated Gross profit - as reported $ 239,426 $ 78,820 $ — $ 318,246 Adjusted gross profit $ 239,426 $ 78,820 $ — $ 318,246 Net sales - as reported 806,562 239,418 — 1,045,980 Gross profit as a % of net sales 29.7% 32.9% NM 30.4% Adjusted gross profit as a % of net sales 29.7% 32.9% NM 30.4% Thirty-nine weeks ended September 27, 2025 Gross Profit Reconciliation Infrastructure Agriculture Corporate Consolidated Gross profit - as reported $ 680,184 $ 250,331 $ — $ 930,515 Realignment charges 910 — — 910 Other non-recurring charges — 684 — 684 Adjusted gross profit $ 681,094 $ 251,015 $ — $ 932,109 Net sales - as reported 2,273,145 792,697 — 3,065,842
Page 9
Gross profit as a % of net sales 29.9% 31.6% NM 30.4% Adjusted gross profit as a % of net sales 30.0% 31.7% NM 30.4% VALMONT INDUSTRIES, INC. AND SUBSIDIARIES SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS REGULATION G RECONCILIATION (Dollars in thousands) (Unaudited) Thirteen weeks ended September 27, 2025 Operating Income (Loss) Reconciliation Infrastructure Agriculture Corporate Consolidated Operating income (loss) - as reported $ 143,377 $ 23,189 $ (25,110) $ 141,456 Adjusted operating income (loss) $ 143,377 $ 23,189 $ (25,110) $ 141,456 Net sales - as reported 806,562 239,418 — 1,045,980 Operating income (loss) as a % of net sales 17.8% 9.7% NM 13.5% Adjusted operating income (loss) as a % of net sales 17.8% 9.7% NM 13.5% Thirty-nine weeks ended September 27, 2025 Operating Income (Loss) Reconciliation Infrastructure Agriculture Corporate Consolidated Operating income (loss) - as reported $ 286,503 $ 95,477 $ (82,934) $ 299,046 Impairment of long-lived assets 89,356 1,981 — 91,337 Realignment charges 2,336 2,886 4,572 9,794 Other non-recurring charges 7,031 3,918 — 10,949 Adjusted operating income (loss) $ 385,226 $ 104,262 $ (78,362) $ 411,126 Net sales - as reported 2,273,145 792,697 — 3,065,842 Operating income (loss) as a % of net sales 12.6% 12.0% NM 9.8% Adjusted operating income (loss) as a % of net sales 16.9% 13.2% NM 13.4% VALMONT INDUSTRIES, INC. AND SUBSIDIARIES SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS REGULATION G RECONCILIATION (Dollars in thousands) (Unaudited) Thirteen Thirty-nine weeks ended Diluted weeks ended Diluted September 27, earnings September 27, earnings 2025 per share1 2025 per share1 Net earnings attributable to Valmont Industries, Inc. including change in redemption value of redeemable noncontrolling interests - as reported $ 99,031 $ 4.98 $ 156,029 $ 7.80 Less: Change in redemption value of redeemable noncontrolling interests — — 26,243 1.31 Net earnings attributable to Valmont Industries, Inc. 99,031 4.98 182,272 9.11 Impairment of long-lived assets 3 — — 91,337 4.57 Realignment charges4 — — 9,794 0.49 Other non-recurring charges 5 — — 10,949 0.55 Total adjustments, pre-tax — — 112,080 5.60 Tax effect of adjustments2 — — (10,862) (0.54)
Page 10
Net earnings attributable to Valmont Industries, Inc. - adjusted $ 99,031 $ 4.98 $ 283,490 $ 14.17 Average shares outstanding - diluted 19,876 20,001 1Diluted earnings per share includes rounding. 2The tax effect of adjustments is calculated based on the income tax rate in each applicable jurisdiction. 3The Company recorded non-cash impairment charges of $71.1 million for goodwill and certain intangible assets in the Solar and Access Systems businesses and recorded $20.2 million for other long-lived assets that will no longer be utilized. 4The Company took realignment actions resulting in pre-tax charges of $9.8 million, primarily severance-related. 5Other non-recurring charges consist of costs to fulfill contractually required payments for system licenses no longer needed and asset valuation adjustments for a joint venture ag solar business. VALMONT INDUSTRIES, INC. AND SUBSIDIARIES REGULATION G RECONCILIATION OF ADJUSTED EBITDA (Dollars in thousands) (Unaudited) Four fiscal quarters ended September 26, 2026 Net cash flows from operating activities $ 463,316 Interest expense 38,293 Income tax expense 61,286 Impairment of long-lived assets (9,629) Deferred income taxes (4,458) Redeemable noncontrolling interests (1,929) Net periodic pension cost (3,481) Contribution to defined benefit pension plan 890 Changes in assets and liabilities 191,076 Other, net (255) Impairment of long-lived assets 9,629 Realignment activities 6,272 Pro forma acquisition adjustment 2,030 Adjusted EBITDA $ 753,040 Net earnings attributable to Valmont Industries, Inc. $ 517,005 Interest expense 38,293 Income tax expense 61,286 Depreciation and amortization 95,940 Stock-based compensation 22,585 Impairment of long-lived assets 9,629 Realignment activities 6,272 Pro forma acquisition adjustment 2,030 Adjusted EBITDA $ 753,040 VALMONT INDUSTRIES, INC. AND SUBSIDIARIES REGULATION G RECONCILIATION OF LEVERAGE RATIO (Dollars in thousands) (Unaudited) September 26, 2026 Interest-bearing debt, excluding origination fees and discounts of $24,335 $ 780,628 Less: Cash and cash equivalents in excess of $50,000 72,045 Net indebtedness $ 708,583
Page 11
Adjusted EBITDA 753,040 Leverage ratio 0.94 VALMONT INDUSTRIES, INC. AND SUBSIDIARIES BACKLOG (Dollars in millions) (Unaudited) September 26, December 27, 2026 2025 Infrastructure $ 1,808.2 $ 1,548.3 Agriculture 199.6 105.4 Total backlog $ 2,007.8 $ 1,653.7 View source version on businesswire.com: https://www.businesswire.com/news/home/20261020569835/en/ Renee Campbell renee.campbell@valmont.com Source: Valmont Industries, Inc.