Valmont Industries: Transmission Capex And Capacity Expansion Support Stronger Growth Ahead

2025-11-13 09:59:58 ET

Executive Summary

I last covered Valmont Industries, Inc. ( VMI ) in July and the stock has given good returns since then gaining ~13% versus S&P 500’s ( SPY ) ~7% gains. Moving forward, I continue to remain optimistic about the company’s growth prospects. The company is well placed to benefit from strong transmission capex as utilities are investing to address rising power demand. The company is also expanding its capacity to meet this demand. In addition to utility, telecommunications and coatings business are also seeing strong demand, and should help the company’s Infrastructure segment post good growth. While the Agriculture segment is seeing weaker trends, it is relatively smaller portion compared to the Infrastructure business, and the strength in the Infrastructure segment should more than offset it. The company is also taking the right steps in this business, like focusing on growing the high-margin replacement parts business and recurring technology revenues. So, it is well placed to see growth acceleration once the cycle turns....

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