Atkore Inc. Q4 FY2025 earnings call

• Announced strategic actions to maximize shareholder value, including evaluating potential sale or merger of the whole company, ongoing sale of HDPE business, and closure of 3 manufacturing facilities.
• Organic volume was up 1.4% in the fourth quarter, with double-digit growth in plastic pipe, conduit, and fittings. Net sales in Q4 were $752 million, exceeding the August outlook. Adjusted EBITDA in Q4 was $71 million, with adjustments for inventory and nonroutine items.
• Fiscal 2025 had net sales of $2.9 billion and adjusted EBITDA of $386 million. Achieved 3 consecutive years of organic volume growth.
• Focus on core electrical infrastructure portfolio, anticipating strong cash flows and growth in construction end markets like data centers, health care, etc., related to renewable energy and grid hardening.

In the fourth quarter, the Electrical segment had net sales of $519 million, with $7 million from organic volume growth but offset by pricing normalization in PVC products. The S&I segment saw net sales increase 4% compared to the prior year, with EBITDA dollars and margin meaningfully higher due to better cost management and productivity improvements. There was also a $6 million inventory adjustment in the S&I segment related to a facility closure.

• Fiscal 2026 expected mid-single-digit volume growth.
• Q1 2026 net sales expected in range of $645 million to $655 million, adjusted EBITDA between $55 million and $65 million, adjusted EPS $0.55 to $0.75.
• Full year 2026 net sales expected $3.0 billion to $3.1 billion, adjusted EBITDA $340 million to $360 million, adjusted EPS $5.05 to $5.55.
• First quarter of 2026 expected to be the softest quarter, with performance ramping up through the year, back half of 2026 expected higher than first half on adjusted EBITDA basis.

• Uncertainties related to strategic actions such as potential sale or merger of the company.
• Impact of end market fluctuations on business performance.
• Raw material price dynamics affecting pricing and cost management.
• Import/export related risks, particularly in steel conduit and PVC markets.

Q: Justin Clare asked about guidance for fiscal '26, mid-single-digit volume growth and potential price improvement.

A: John Deitzer said there are sequential price increases in steel conduit, some pricing growth in other businesses, but also price versus cost dynamics with raw material inputs.

Q: David Tarantino asked about strategic review range of outcomes and cost savings initiatives.

A: William Waltz said it's early in the process, with inbound calls, and John Pregenzer mentioned about $10 million to $12 million annualized cost reductions from closing 3 plants.

Q: Andrew Kaplowitz asked about '26 guidance and imports.

A: John Deitzer discussed price versus cost headwinds, and John Pregenzer talked about steel conduit import volume down 2% and PVC strong demand from data centers.

Q: Christopher Moore asked about 3 closing plants and HDPE.

A: William Waltz discussed moving production from closing plants to other facilities and ongoing discussions on HDPE.

Q: Deane Dray asked about running the business for cash and activist engagement.

A: William Waltz said no discussion on suspending dividends, and Board is cooperative with activists.

Q: Christopher Dankert asked about back half weighted guide and water investments.

A: John Deitzer discussed seasonality and William Waltz talked about edge-out strategy in water PVC investments