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Atkore Inc. (ATKR)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered an EPS and revenue beat versus S&P Global consensus; Adjusted EPS was $2.04 vs $1.71 consensus and net sales were $701.7M vs $697.7M consensus, while GAAP EPS was a loss of $(1.46) driven by a $127.7M non-cash impairment on HDPE assets . S&P Global values denoted with * below.
  • Segment mix: Electrical net sales fell 16.6% with margin compression; Safety & Infrastructure net sales rose 3.4% with margin expansion, aided by construction services .
  • Management maintained FY25 guidance (Adjusted EBITDA $375–$425M; Adjusted EPS $5.75–$6.85) and issued Q3 guidance (net sales $715–$745M; Adjusted EPS $1.25–$1.75); dividend increased to $0.33/share and buybacks continued .
  • Catalysts: Structural tariff developments (steel/aluminum) viewed as a net benefit; strong secular demand tied to data centers; near-term headwinds from PVC pricing and imports; HDPE impairment clarifies outlook .

What Went Well and What Went Wrong

What Went Well

  • Adjusted EPS and revenue beat: Adjusted EPS $2.04 vs consensus $1.71*; net sales $701.7M vs consensus $697.7M* — management highlighted 5% organic volume growth and sequential pricing improvement in steel conduit .
  • Safety & Infrastructure momentum: Net sales +3.4% and Adjusted EBITDA +41.3% with margin up 460 bps, driven by construction services strength and productivity gains .
  • Capital returns and dividend hike: ~$50M repurchases in Q2 and dividend raised to $0.33/share (effective May 28, 2025) .

What Went Wrong

  • GAAP loss from impairment: Reported net loss $(50.1)M and GAAP diluted EPS $(1.46) due to a $127.7M non-cash HDPE asset impairment tied to satellite competition for broadband and funding delays .
  • Electrical margin compression: Electrical Adjusted EBITDA fell 53.5% with margin down 1,460 bps YoY, primarily price declines in PVC and steel conduit .
  • Ongoing pricing/import headwinds: Average selling prices down $131.4M YoY; management cited double‑digit PVC import growth and persistent steel conduit import pressure, implying continued price pressure .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$788.296 $661.597 $701.725
Diluted EPS (GAAP, $)$2.02 $1.31 $(1.46)
Adjusted Diluted EPS ($)$2.43 $1.63 $2.04
Gross Margin (%)27.4% 25.9% 26.4%
Adjusted EBITDA ($USD Millions)$140.150 $99.150 $116.408
Adjusted EBITDA Margin (%)17.8% 15.0% 16.6%
Q2 2025 vs EstimatesConsensus*Actual
Adjusted Diluted EPS ($)$1.71*$2.04
Revenue ($USD Millions)$697.7*$701.7
# of Estimates (EPS/Revenue)6*/6*—

Values with * retrieved from S&P Global.

SegmentQ2 2024 Net Sales ($M)Q2 2025 Net Sales ($M)YoY ChangeQ2 2024 Adj. EBITDA ($M)Q2 2025 Adj. EBITDA ($M)Margin (Q2 2024 → Q2 2025)
Electrical$590.820 $492.677 (16.6%) $195.752 $90.943 33.1% → 18.5%
Safety & Infrastructure$202.419 $209.272 +3.4% $25.529 $36.064 12.6% → 17.2%
KPIs (Q2 context)Value
Price Impact on Sales (YoY)$(131.4)M
Volume Contribution to Sales (YoY)+$38.9M
Free Cash Flow (Six Months YTD, $M)$97.306
Net Debt ($M, 3/28/2025)$435.528
Cash & Equivalents ($M, 3/28/2025)$330.385
Dividend per Share$0.33 (declared 4/30/2025)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EBITDA ($M)FY 2025$375–$425 (set Q1) $375–$425 Maintained
Adjusted Diluted EPS ($)FY 2025$5.75–$6.85 (set Q1) $5.75–$6.85 Maintained
Net Sales ($M)Q3 2025—$715–$745 Initiated
Adjusted EBITDA ($M)Q3 2025—$85–$105 Initiated
Adjusted Diluted EPS ($)Q3 2025—$1.25–$1.75 Initiated
Interest Expense ($M)FY 2025—$38–$42 Initiated
Tax Rate (%)FY 2025—~23–25 Initiated
Capital Expenditures ($M)FY 2025—$100–$125 Initiated
Stock Repurchases ($M)FY 2025—≥$150 Initiated
Diluted Shares (M)FY 2025—33–35 Initiated
Dividend per Share ($)Quarterly$0.32 (declared 1/30/25) $0.33 (declared 4/30/25) Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 & Q1 2025)Current Period (Q2 2025)Trend
Tariffs/macroExpect steel conduit import pressure; PVC pricing normalization; cautious macro views More optimistic on U.S.-made steel conduit demand; note unpredictability and Dodge Momentum Index softness Tariffs increasingly supportive; macro mixed
PVC pricing & importsNew domestic entrants; PVC and steel import pressure PVC pricing down; double‑digit PVC import growth; sequential steel pricing improvement Persistent headwind; gradual steel improvement
HDPE/broadbandTelecom softness and HDPE challenges Impairment due to satellite competition and delayed funding (non‑cash) Negative; outlook reset via impairment
Construction services/data centersGrowth in metal framing/cable management; secular AI/data center demand Strong Q2 contribution; expected moderation in H2 due to backlog cadence Strong but moderating near-term
Solar/Hobart operationsOutput improvement at Hobart; torque tubes growth Solar business can be profitable without IRA; grid/transformer constraints noted Operationally solid; external constraints
Labor relations—Ratified new 5‑year United Steelworkers agreement at Harvey, IL Positive stability
Capital returnsFY24 buybacks; dividend initiation ~$50M repurchases in Q2; dividend increased to $0.33 Shareholder-friendly
Secular tech tailwindsGenerative AI/datacenter growth underpinning demand Continued emphasis on electrification and data centers Structural tailwind intact

Management Commentary

  • “Atkore delivered strong second quarter results. We grew organic volume 5% year over year.” — CEO Bill Waltz .
  • “We are more optimistic about demand for U.S.-made steel conduit in 2025… tariffs… are typically a good thing for Atkore.” — CEO Bill Waltz .
  • “Adjusted EBITDA margins expanded sequentially to 16.6% from 15% in the first quarter of fiscal 2025.” — CFO John Deitzer .
  • “The net loss of $50M includes a $128M non‑cash impairment charge for certain long‑lived assets for our HDPE pipe and conduit products.” — CEO Bill Waltz .
  • “We expect Q3 net sales in the range of $715–$745M… adjusted EPS $1.25–$1.75.” — CFO John Deitzer .

Q&A Highlights

  • PVC pricing trajectory: Management still expects a path back toward pre‑pandemic pricing in FY25; imports up solid double digits; market share leadership maintained though competitive dynamics remain intense .
  • Tariffs and imports: Steel conduit imports (e.g., Mexico) face a 25% tariff; management sees net benefit over time, though magnitude/timing uncertain .
  • HDPE impairment rationale: Triggered by satellite-based broadband competition and funding delays; decision deemed prudent and timely .
  • Demand cadence/backlog: Each month in Q2 was stronger than the prior; construction services contributed in H1 but expected to moderate in H2 given backlog mix .
  • Solar profitability: Hobart/solar business can be profitable without IRA; current constraints relate more to grid/transformer availability than incentives .

Estimates Context

  • Q2 2025 results vs consensus: Adjusted EPS $2.04 vs $1.71* (beat); revenue $701.7M vs $697.7M* (beat); 6 estimates for EPS and revenue* .
  • Q3 2025 outlook vs consensus: Company guided revenue $715–$745M vs consensus $736.9M* (midpoint ~ in-line); guided Adjusted EPS $1.25–$1.75 vs consensus $1.58* (range brackets consensus)* . Values with * retrieved from S&P Global.

Key Takeaways for Investors

  • EPS and revenue beat despite GAAP loss; impairment was non‑cash and reset expectations around HDPE assets .
  • Electrical segment margins compressed on PVC/steel price pressure; S&I margins expanded on construction services and productivity — watch for expected moderation in H2 .
  • Management maintained FY25 guidance and provided Q3 ranges; near‑term visibility is guarded given macro/tariff uncertainties, but secular electrification/data center demand provides support .
  • Tariffs are a potential multi‑quarter tailwind for domestically sourced products; monitor import trends and pricing stabilization, particularly in steel conduit .
  • Dividend increased to $0.33 and buybacks continued — shareholder returns remain a priority, supported by strong liquidity .
  • Pricing headwinds remain the core debate; volume growth (low single digit expected) and productivity should partially offset; S&I resilience offers diversification .
  • Trading lens: Near‑term supports include Q2 beat, Q3 guide bracketing consensus, and tariff narrative; risks center on PVC pricing normalization pace and import dynamics.

S&P Global disclaimer: All consensus estimate values marked with * are retrieved from S&P Global.