What Does Valmont (VMI)'s Irrigation Weakness Reveal About Its Long-Term Value Proposition?

• In October 2025, Valmont Industries reported a modest year-over-year increase in net sales and a significant improvement in adjusted earnings per share, despite a 4.2% decline in third-quarter domestic irrigation volumes and forecasts of further volume declines by dealers.
• An important insight from this development is that the company's positive earnings results have been tempered by investor concerns about persistent weakness and uncertainty in the irrigation sector.
• We'll explore how the continued softness in Valmont's core irrigation business shapes the company's long-term investment narrative.

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Valmont Industries Investment Narrative Recap

Shareholders in Valmont Industries generally need to believe that demand for infrastructure and water efficiency solutions will offset cyclical risks faced by its irrigation business. The recent October 2025 update, showing only modest net sales growth and persistent irrigation weakness, may dampen enthusiasm for rapid recovery, but does not appear to fundamentally alter the near-term outlook. The biggest short-term catalyst remains strength in non-irrigation segments, while sustained domestic irrigation softness stands as the key risk.

Among the recent updates, Valmont's third-quarter earnings release is most relevant, highlighting a significant improvement in adjusted EPS even as domestic irrigation volumes fell harder than expected. This illustrates how progress in areas outside core agriculture may help cushion the impact of ongoing challenges in the irrigation market.

However, against improving earnings, investors should be aware that persistent headwinds in irrigation could still limit potential for...

Read the full narrative on Valmont Industries (it's free!)

Valmont Industries is projected to reach $4.5 billion in revenue and $462.5 million in earnings by 2028. This outlook assumes annual revenue growth of 3.5% and an earnings increase of $244.8 million from the current $217.7 million.

Uncover how Valmont Industries' forecasts yield a $415.00 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Two Simply Wall St Community members placed fair values between US$415 and US$436, reflecting a US$21 spread in forecasts. With ongoing softness in irrigation volumes, consider how these different outlooks may capture uncertainty in Valmont's core business.

Explore 2 other fair value estimates on Valmont Industries - why the stock might be worth as much as 8% more than the current price!

Build Your Own Valmont Industries Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Valmont Industries research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Valmont Industries research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Valmont Industries' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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