Cash conversion remains inconsistent, highlighted by an OCF/NI ratio that swung from a negative 5.54 in 2025Q2 to a positive 0.96 in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 494.83M | 456.48M | 572.68M | 306.77M | 326.26M | 65.94M | 316.29M | 307.61M | 153.01M | 145.72M | 219.17M | 272.27M | 174.1M | 396.44M | 197.1M | 149.67M | 152.22M | 349.52M | 52.58M | 110.25M | 59.13M | 133.78M | 6.15M | 59.78M | 69.45M | 109.84M | 10.98M | 63.9M | 42M | 23.3M | 19.8M |
| Operating CF Margin % | - | 11.12% | 14.05% | 7.35% | 7.51% | 1.88% | 10.92% | 11.12% | 5.55% | 5.31% | 8.69% | 10.4% | 5.57% | 12% | 6.51% | 5.62% | 7.71% | 19.56% | 2.76% | 7.35% | 4.61% | 12.07% | 0.6% | 7.14% | 8.12% | 12.59% | 1.3% | 10.4% | 6.93% | 3.74% | 3.07% |
| Operating CF Growth % | -5.51% | -20.29% | 86.68% | -5.97% | 394.81% | -79.15% | 2.82% | 101.04% | 5% | -33.51% | -19.5% | 56.39% | -56.09% | 101.14% | 31.69% | -1.67% | -56.45% | 564.8% | -52.31% | 86.45% | -55.8% | 2076.3% | -89.72% | -13.93% | -36.77% | 899.99% | -82.81% | 52.14% | 80.26% | 17.68% | -30.77% |
| Net Income | 344.8M | 334.78M | 350.62M | 144.91M | 254.25M | 197.72M | 142.15M | 159.47M | 100.31M | 122.32M | 178.39M | 45.33M | 189.32M | 280.46M | 238.92M | 237.23M | 100.41M | 153.94M | 132.4M | 94.71M | 61.54M | 39.08M | 26.88M | 25.49M | 33.63M | 26.69M | 30.4M | 26.4M | 27.6M | 37.5M | 21.2M |
| Depreciation & Amortization | 45.69M | 88.51M | 95.39M | 98.71M | 97.17M | 92.58M | 82.89M | 82.26M | 82.83M | 84.96M | 82.42M | 91.14M | 89.33M | 77.44M | 70.22M | 74.56M | 59.66M | 44.75M | 39.6M | 35.18M | 36.54M | 39.81M | 38.64M | 34.6M | 33.94M | 36.32M | 30.27M | 21.9M | 19.8M | 16.4M | 14.8M |
| Stock-Based Compensation | 0 | 0 | 29.87M | 39.22M | 41.85M | 28.72M | 14.87M | 11.59M | 10.39M | 10.71M | 9.93M | 7.24M | 6.73M | 6.51M | 5.83M | 5.93M | 7.15M | 6.59M | 4.74M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -24.19M | -19.2M | -24.66M | -18.65M | -1.23M | 71K | -1.4M | 3.94M | -1.66M | 39.76M | -23.68M | 4.86M | 5.25M | -10.14M | 3.72M | -84.96M | 5.02M | 7.38M | -4.5M | -1.62M | -11.03M | -1.95M | -4.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 276.5M | 134.81M | -6.79M | 123.15M | -9.69M | 31.58M | 25.49M | -29.88M | 15.71M | -37.94M | -38.08M | 51.8M | -18.16M | 7.97M | -13.12M | -13.78M | 6.25M | -74K | 5.47M | -5.27M | 2.6M | 3.96M | 5.08M | 10.06M | 4.76M | 3.5M | 4M | -1.7M | -400K | 1.4M | 600K |
| Working Capital Changes | -89.95M | -82.42M | 128.23M | -80.56M | -56.09M | -284.74M | 52.28M | 80.23M | -54.56M | -74.08M | 10.19M | 71.89M | -98.38M | 34.2M | -108.47M | -69.31M | -26.27M | 136.94M | -125.13M | -16.28M | -34.21M | 52.88M | -59.76M | -10.36M | -2.88M | 43.32M | -53.68M | 17.3M | -5M | -32M | -16.8M |
| Change in Receivables | -15.17M | 2.66M | -41.32M | -46.31M | -74.16M | -69.28M | -24.4M | 5.41M | 12.57M | -49.11M | 24.62M | 50.27M | 907K | -12.71M | -84.89M | -9.63M | -47.12M | 50.12M | -49.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 26.87M | 39.44M | 45.64M | 88.43M | -3.43M | -289.94M | -21.89M | 12.31M | -13.77M | -57.44M | -11.46M | 3.3M | 21.46M | 13.43M | -13.61M | -118.87M | 22.32M | 107.25M | -83.41M | -13.64M | -28.62M | 24.89M | -48.89M | 9M | -10.17M | 35.71M | -40.89M | -8.5M | 4.1M | -7.7M | -16.3M |
| Change in Payables | -19.6M | -26.33M | 24.8M | -10.53M | 36.99M | 89.42M | 33.04M | -21.41M | -1.49M | 39.41M | 104K | -6.8M | -34.32M | 12.45M | -6.25M | 42.64M | -872K | -19.72M | 9.99M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -257.39M | -244.51M | -78.88M | -115.28M | -132.08M | -417.31M | -104.03M | -168.15M | -155.44M | -49.62M | -53.05M | -48.17M | -256.86M | -131.72M | -136.69M | -84.06M | -262.71M | -43.59M | -194.62M | -71.04M | -36.73M | -30.35M | -150.67M | -21.12M | -13.73M | -61.72M | -109.79M | -32.1M | -56.8M | -10M | -37.4M |
| Capital Expenditures | -75.37M | -145.03M | -79.45M | -96.77M | -93.29M | -107.79M | -106.7M | -97.42M | -71.98M | -55.27M | -57.92M | -45.47M | -73.02M | -106.75M | -97.07M | -83.07M | -36.09M | -44.13M | -50.88M | -56.61M | -27.9M | -35.12M | -17.18M | -17.68M | -13.94M | -25.65M | -46.46M | -40.6M | -59.1M | -39.1M | -36.9M |
| CapEx % of Revenue | 1.81% | 3.53% | 1.95% | 2.32% | 2.15% | 3.08% | 3.69% | 3.52% | 2.61% | 2.01% | 2.3% | 1.74% | 2.34% | 3.23% | 3.2% | 3.12% | 1.83% | 2.47% | 2.67% | 3.77% | 2.18% | 3.17% | 1.67% | 2.11% | 1.63% | 2.94% | 5.49% | 6.61% | 9.75% | 6.28% | 5.73% |
| Acquisitions | -99.9M | -101.77M | 0 | -26.31M | -39.29M | -312.5M | -15.86M | -81.84M | -143.02M | -5.36M | -5.88M | -12.78M | -185.71M | -63.15M | -45.69M | 2.17M | -237.67M | 0 | -142.88M | -22.64M | -3.86M | 0 | -125.45M | 0 | 0 | -34.08M | -63.17M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -82.11M | 2.3M | 573K | 7.8M | 495K | 2.98M | 7.83M | 11.12M | 59.56M | 11.01M | 4.87M | 10.07M | 1.87M | 38.18M | 6.07M | -3.16M | 11.05M | 534K | -852K | 8.21M | -3.6M | 4.76M | -8.04M | -3.51M | 216K | -2.39M | -759K | 200K | 2.3M | 29.1M | -500K |
| Cash from Financing | -267.56M | -197.09M | -522.56M | -176.41M | -181.91M | 133.5M | -173.76M | -98.95M | -162.11M | -32.01M | -95.16M | -220M | -139.76M | -37.38M | -16.36M | -45.91M | 269.69M | -198.4M | 109.29M | -210K | -6.95M | -93.83M | 139.74M | -26.44M | -59.31M | -45.53M | 107.91M | -23.6M | 10.8M | -11.3M | 10M |
| Debt Issued (Net) | 58.79M | 62.57M | -379.56M | 231.97M | -89.98M | 200.93M | -32.79M | 31.56M | -2.31M | -1.47M | -2.21M | -1.1M | 289.88M | 5.19M | 1.39M | 9.29M | 305.32M | -185.62M | 115.13M | 2.17M | -10.01M | -89.98M | 149.31M | -16.25M | -39.99M | -38.92M | 115.36M | 4.9M | 70.4M | -5.2M | 14.4M |
| Equity Issued (Net) | -252.73M | -191.74M | -70.07M | -345.28M | -58.44M | -47.65M | -70.98M | -62.91M | -114.81M | 0 | -56.1M | -169.76M | -395.88M | -9.08M | 0 | -4.8M | 328K | 206K | -985K | 159K | -5.35M | 4.19M | 3.6M | -2.77M | -12.56M | -303K | -1.4M | -22.2M | -53M | -200K | 400K |
| Dividends Paid | -53.74M | -52.48M | -48.36M | -49.52M | -45.81M | -41.41M | -36.93M | -32.64M | -33.73M | -33.86M | -34.05M | -35.36M | -32.44M | -25.41M | -21.52M | -23.18M | -29.66M | -14.7M | -12.25M | -10.3M | -9.09M | -8.04M | -7.65M | -7.41M | -6.76M | -6.31M | -6.06M | -6.3M | -6.6M | -5.8M | -4.8M |
| Share Repurchases | -255.98M | -198.09M | -70.07M | -345.28M | -40.47M | -26.1M | -56.49M | -62.91M | -114.81M | 0 | -53.8M | -168.98M | -395.05M | 0 | 0 | -4.8M | -5.34M | -4.74M | -8.5M | -9.89M | -34.58M | -9.91M | -2.7M | -3.97M | -21.15M | -1.56M | -3.97M | -22.8M | -56.3M | -3.3M | -1.7M |
| Other Financing | -19.87M | -15.44M | -24.58M | -13.58M | 12.33M | 21.63M | -33.05M | -34.95M | -11.26M | 3.32M | -2.79M | -13.79M | -1.32M | -8.08M | 3.77M | -32.17M | -19.38M | 2.67M | 7.4M | 7.77M | 17.5M | 0 | -5.52M | 0 | 0 | 0 | 0 | 0 | 0 | -100K | 0 |
| Net Change in Cash | -24.21M | 22.82M | -38.73M | 17.64M | 8.17M | -223.49M | 47.18M | 40.33M | -179.59M | 92.86M | 50.87M | -22.5M | -242.13M | 199.58M | 51.23M | 15.99M | 166.12M | 112.22M | -37.97M | 43.03M | 16.64M | 9.41M | -3.13M | 13.83M | -5.01M | 1.35M | 8.24M | 7.3M | -4M | 2M | -7.6M |
| Free Cash Flow | 419.45M | 311.45M | 493.23M | 210M | 232.98M | -41.85M | 209.59M | 210.19M | 81.02M | 90.45M | 161.25M | 226.8M | 101.07M | 289.69M | 100.02M | 66.6M | 116.13M | 305.39M | 1.7M | 53.64M | 31.23M | 98.66M | -11.04M | 42.1M | 55.51M | 84.19M | -35.47M | 23.3M | -17.1M | -15.8M | -17.1M |
| FCF Margin % | 10.07% | 7.59% | 12.1% | 5.03% | 5.36% | -1.2% | 7.24% | 7.6% | 2.94% | 3.29% | 6.39% | 8.66% | 3.24% | 8.77% | 3.3% | 2.5% | 5.88% | 17.09% | 0.09% | 3.58% | 2.44% | 8.9% | -1.07% | 5.03% | 6.49% | 9.65% | -4.19% | 3.79% | -2.82% | -2.54% | -2.65% |
| FCF Growth % | -19.29% | -36.85% | 134.87% | -9.86% | 656.67% | -119.97% | -0.28% | 159.42% | -10.42% | -43.91% | -28.9% | 124.39% | -65.11% | 189.62% | 50.18% | -42.65% | -61.97% | 17906.54% | -96.84% | 71.74% | -68.34% | 994.05% | -126.21% | -24.16% | -34.06% | 337.33% | -252.24% | 236.26% | -8.23% | 7.6% | -175.81% |
| FCF per Share | 21.38 | 15.62 | 24.34 | 9.93 | 10.80 | -1.95 | 9.78 | 9.66 | 3.61 | 3.98 | 7.10 | 9.69 | 3.90 | 10.77 | 3.74 | 2.51 | 4.40 | 11.62 | 0.06 | 2.06 | 1.21 | 3.89 | -0.45 | 1.73 | 2.26 | 3.44 | -1.49 | 0.95 | -0.63 | -0.56 | -0.61 |
| FCF Conversion (FCF/Net Income) | 1.22x | 1.30x | 1.64x | 2.14x | 1.30x | 0.34x | 2.25x | 2.10x | 1.62x | 1.25x | 1.27x | 6.79x | 0.95x | 1.42x | 0.84x | 0.66x | 1.61x | 2.27x | 0.40x | 1.16x | 0.96x | 3.42x | 0.23x | 2.35x | 2.07x | 4.11x | 0.36x | 2.42x | 1.52x | 0.62x | 0.93x |
| Interest Paid | 19.5M | 0 | 57.71M | 55.54M | 46.65M | 41.16M | 0 | 0 | 43.3M | 44.53M | 45.68M | 44.97M | 32.6M | 32.66M | 31.28M | 34.18M | 26.27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 57.47M | 0 | 125.55M | 103.7M | 93.11M | 60.37M | 0 | 0 | 47.35M | 63.79M | 48.2M | 33.05M | 111.17M | 167.15M | 137.12M | 66.9M | 38.11M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical Working Capital Volatility
Based on reported financial statements, Valmont's cash conversion exhibits significant volatility, evidenced by an OCF/NI ratio that swung from a negative 5.54 in 2025Q2 to a robust 4.05 in 2023Q4, highlighting a persistent disconnect between accounting net income and actual cash generation capabilities.
The wide variance in the OCF/NI ratio suggests that reported net income is frequently distorted by non-cash charges and timing differences inherent in long-term project accounting. Investors should monitor whether this divergence stems from structural inefficiencies in revenue recognition or temporary fluctuations in accruals that mask the underlying cash-generating power of the business.
As reported in recent filings, Valmont's free cash flow margins have fluctuated significantly, ranging from a low of 0.9% in 2024Q1 to a peak of 20.1% in 2024Q3, reflecting the company's sensitivity to cyclical demand shifts and the lumpy nature of its infrastructure project delivery cycles.
The inconsistency in FCF margins indicates that the company struggles to maintain a predictable cash flow profile across its disparate business segments. This volatility warrants further investigation into whether the recent margin compression is a byproduct of strategic divestitures or a broader weakening in the core infrastructure and agricultural demand environments.
According to quarterly data, Valmont's working capital changes have been highly erratic, with a swing from a $128.5 million inflow in 2024Q3 to a $89.7 million outflow in 2024Q1, underscoring the significant impact of inventory and receivables management on the company's short-term liquidity position.
The frequent shifts in working capital suggest that the company is highly susceptible to the timing of large-scale utility project milestones and agricultural equipment sales. This reliance on working capital efficiency implies that any disruption in supply chain or customer payment cycles could lead to immediate pressure on operating cash flow.
Based on historical cash flow statements, Valmont has consistently utilized cash for share repurchases, including a notable $100.3 million outflow in 2025Q2, even during periods of net income volatility, suggesting a management preference for returning capital to shareholders over aggressive reinvestment or debt reduction.
The aggressive pace of share buybacks relative to the company's fluctuating free cash flow may limit the financial flexibility required to navigate cyclical downturns. Investors should evaluate whether this capital allocation strategy is sustainable if the current cooling in agricultural demand persists and impacts the company's long-term cash generation.
Quick answers to the most common questions about buying VMI stock.
Valmont Industries, Inc. (VMI) generated $456.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Valmont Industries, Inc. (VMI) generated $311.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Valmont Industries, Inc. (VMI) spent $145.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Valmont Industries, Inc. (VMI) returned $52.5M to shareholders via cash dividends and spent $198.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.