Cash conversion has deteriorated sharply with OCF-to-net income compressing from 2.71x to 0.83x and FCF margins halving from 20.1% to 5.0%, while buybacks surged 452% to $82.3M against a 46% cash reserve drawdown to $122.0M, indicating capital deployment is outpacing generation.
Valmont Industries, Inc. (VMI) cash flow statement — 30-year operating, investing & financing cash flows
| 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 | 463.32M | 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 % | -5.92% | -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 | 517M | 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 | 71.72M | 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 | 11.79M | 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 | -1.15M | -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 | -19.55M | 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 | -127.38M | -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 | -17.04M | 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 | -7.71M | 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 | -5M | -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 | -238.52M | -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 | -156.88M | -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 | 3.66% | 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 | -91.26M | -101.77M | 3.83M | -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 | 9.62M | 2.3M | -3.26M | 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 | -330.48M | -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) | 24.83M | 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) | -269.88M | -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 | -56.49M | -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 | -272.11M | -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 | -28.94M | -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 | -104.06M | 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 | 306.43M | 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 % | 7.14% | 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 % | -25.04% | -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 | 15.80 | 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) | 0.59x | 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 | 1.2M | 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 | 48.97M | 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 |
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.
Key Metrics
Top Statement Risk
Capex intensity outpacing cash generation
Metrics are mathematically derived from official filings.
Earnings-to-Cash Conversion Eroding Sharply
Valmont's OCF-to-net income ratio has compressed from 2.71x in 2024Q3 to 0.83x in 2026Q3, a substantial decline that suggests growing accruals and receivable build-up. Based on the company's quarterly filings, this pattern indicates reported earnings are increasingly outpacing actual cash receipts, raising questions about earnings durability.
The 2024 period exhibited cash conversion well above 1.0x—2.71x and 2.49x in Q3 and Q4 respectively—driven in part by large working capital releases of $128.5M and $78.9M. Those releases have since reversed, and the ratio has settled into a range of 0.66x to 1.24x through 2025–2026, with the most recent quarter falling to 0.83x. When net income rises to $121.1M while operating cash flow lingers at $100.5M, it implies that a growing portion of reported profit is tied up in non-cash accruals—potentially in receivables or contract assets related to percentage-of-completion utility projects. Investors should monitor whether this gap narrows or widens, as persistent sub-1.0x conversion would suggest the 12.7% net margin may be overstating real economic earnings power.
FCF Margins Halved From Cyclical Peaks
Free cash flow margins have deteriorated from a peak of 20.1% in 2024Q3 to just 5.0% in 2026Q3, a 1,500-basis-point compression. As reported in Valmont's financial statements, this steep decline reflects simultaneous pressures from rising capital expenditure and working capital absorption, materially constraining discretionary cash.
The trajectory is unambiguous: four consecutive quarters of FCF margins at or below 10.0% through 2026, compared to the outsized 16.2% and 20.1% margins in late 2024. The $204.6M of FCF generated in 2024Q3 now appears to have been a cyclical high-water mark, inflated by working capital releases that were subsequently reversed. At $54.9M of FCF in the most recent quarter, the company is generating less absolute free cash than at any point since 2025Q1 ($34.8M), even as quarterly net income has more than doubled from $83.1M to $121.1M over the same span. This divergence—rising profits alongside shrinking free cash—is the central tension in Valmont's cash flow profile and warrants close attention if the trend persists.
Capital Intensity Doubles Over Ten Quarters
Quarterly capital expenditure has escalated from $18.3M in 2024Q2 to $45.6M in 2026Q3, while CapEx-to-revenue has risen from 1.8% to 4.1%. Based on Valmont's reported figures, this 128% increase in absolute capex represents a structural step-up that is absorbing an increasingly large share of operating cash flow.
The trajectory of capital spending is the single largest mechanical driver of FCF compression across the observation window. CapEx now consumes approximately 45% of operating cash flow in 2026Q3, compared to roughly 14% in 2024Q3—a threefold increase in capital intensity. Whether this represents growth investment into higher-margin infrastructure capabilities or a rising maintenance burden related to the galvanizing and fabrication footprint is not yet clear from the data alone, though management's stated refocus on core assets would support the former interpretation. Either way, if the 4%+ CapEx/revenue run rate persists, it would structurally reset the company's normalized FCF margin well below the double-digit levels seen in 2024. The absence of a corresponding acceleration in revenue growth means this incremental spending has yet to demonstrate a return through cash generation.
Working Capital Swings Mask Underlying Drag
Valmont's working capital changes have oscillated violently, from a $128.5M release in 2024Q3 to a $63.7M drag in 2026Q3, with quarterly swings exceeding $100M. As disclosed in recent filings, this volatility reflects the lumpy, project-based billing cycle of the Infrastructure segment and obscures a recent net absorption trend.
The 2024 working capital releases—totalling over $207M in Q3 and Q4—were the primary engine behind the inflated OCF/NI ratios of 2.71x and 2.49x during that period. These releases were fully reversed in subsequent quarters, with 2025Q1 through 2026Q3 showing an aggregate working capital drag exceeding $250M on a net basis. The oscillation pattern appears partly seasonal, with releases concentrated in Q4 and Q2 and drags in Q1 and Q3, but the magnitude of recent outflows ($63.7M and $48.5M in the two most recent absorption quarters) is consistent with the earlier releases, suggesting a genuinely cash-intensive project pipeline. If the Infrastructure segment's growth is requiring larger advance working capital commitments, this dynamic could become a persistent headwind to free cash flow rather than a neutral seasonal fluctuation.
Buyback Acceleration Tensions Against Declining FCF
Share repurchases have surged from $14.9M in 2024Q2 to $82.3M in 2026Q3—a 452% increase—while FCF over the same quarter declined 51%. According to Valmont's capital allocation disclosures, this aggressive return of capital is increasingly funded from balance sheet resources rather than current-period free cash generation.
The deployment profile reveals a clear priority shift: buybacks plus dividends consumed $97.2M in 2026Q3 against $54.9M of FCF, implying an approximately $42M gap funded from cash reserves or borrowing. Over the full ten-quarter window, cumulative buybacks total roughly $464M and dividends approximately $128M against cumulative FCF of roughly $1,032M, suggesting the payout ratio is approaching 58% of free cash—a level that constrains reinvestment flexibility. The $88.7M acquisition in 2025Q4 further consumed cash in a quarter where net income spiked to $168.0M but OCF only reached $111.2M, a timing mismatch that appears to have been absorbed through the balance sheet. If FCF margins remain at or near current levels, the sustainability of this repurchase pace warrants scrutiny, particularly given the rising capital expenditure base.
Non-Cash Adjustments Obscure True Cash Trend
Stock-based compensation dropped to $0M in three of the last five quarters from a $5.5M–$8.2M range, while D&A showed $0 in 2026Q2. These anomalies in non-cash items make it difficult to fully reconcile the reported operating cash flow with underlying economic performance.
The absence of SBC expense in 2026Q2, 2026Q3, and 2025Q4—following consistent $6–8M quarterly amounts in 2024—could reflect a change in grant timing, vesting schedules, or reporting classification, but without further disclosure it complicates cross-period comparisons of adjusted cash earnings. Similarly, the $0 D&A figure in 2026Q2, flanked by $22.6M and $23.1M in adjacent quarters, introduces noise into any capex-versus-depreciation analysis. More fundamentally, the LIFO inventory method means that swings in steel and zinc prices create non-cash earnings distortions that flow through both net income and working capital simultaneously, making it challenging to isolate the cash impact of true demand shifts from those driven by commodity repricing. The Q4 net income of $168.0M against operating income of $123.0M—a $45M non-operating uplift—suggests material one-time items that further complicate the normalization exercise.