Atkore Inc. Q1 FY2026 earnings call

• Pleased with first quarter performance: net sales of $656M and adjusted EBITDA of $69M, both above outlook range; adjusted EPS of $0.83 above top end of outlook range.
• Organic volume increased 2% driven by Electrical segment; over $30M of productivity savings year-over-year.
• Completed divestiture of Tectron Mechanical Tube product line and manufacturing facility, aligning with 80/20 initiative.
• On track to exit 3 manufacturing facilities in second fiscal quarter.
• Continues strategic alternative process to evaluate business strengthening opportunities.
• Highlights from 2025 sustainability report, detailing ongoing initiatives and accomplishments.

In the first quarter, Atkore achieved net sales of $656 million and adjusted EBITDA of $69 million. The Electrical segment saw net sales increase, but adjusted EBITDA margins compressed due to higher material costs and lower average selling prices. The S&I segment had lower net sales year-over-year due to lower volume, but adjusted EBITDA and margins increased due to productivity. Organic volume increased 2% in the first quarter, driven by strong performance in the Electrical segment. Over $30 million of productivity savings were generated year-over-year. The Electrical segment contributed to the net sales growth, while the S&I segment's lower volume impacted net sales but improved adjusted EBITDA due to productivity.

• Full year 2026 net sales expected in range of $2.95 billion to $3.05 billion, adjusted EBITDA in range of $340 million to $360 million, and adjusted EPS in range of $5.05 to $5.55.
• Net sales outlook adjusted for approximately $40 million of annual sales from Tectron divestiture.
• Volume growth expected to be mid-single digits for full year; second quarter expected to be similar to first quarter but slightly better in adjusted EBITDA perspective.
• Outlook weighted more toward back half of the year.

• Volatility in raw material prices, such as copper, which can impact cost structures and margins.
• Impact of tariffs on aluminum supply, affecting cost and potential margin implications.
• Competitive dynamics in PVC and steel segments, including import competition affecting pricing and market share.
• Uncertainty around execution of strategic alternatives and their impact on long-term value creation.

Q: Can you give us a little more color on the core markets that you're seeing?

A: PVC and steel conduit markets seeing good growth; data center projects have strong backlogs and commitments for orders and expansion opportunities. Warehousing, education, health care also seeing growth, with PVC conduit demand driven by border wall.

Q: I appreciate there's an update specifically on the strategic review, but maybe could you give us some more color and an update on the cost saving effort?

A: Strategic alternatives still being worked; $30M+ productivity savings in first quarter, expecting strong productivity year; 3 plant closures on schedule with smooth execution and favorable equipment transfer and training.

Q: How I'd like to circle back on some of the competitive dynamics and how it impacted price in the quarter?

A: Steel conduit pricing up year-over-year due to strong demand; PVC pricing down due to new capacity and import competition; price dynamics multifaceted with various factors influencing, and normalization of year-over-year price hard to pinpoint but expected to occur this year.

Q: So just wanted to follow up on steel conduit pricing here. So I think it's the fourth quarter in a row that pricing has improved. Wondering if you could just speak a little bit to the trend you expect ahead?

A: Steel conduit prices have been up for 4 quarters, with sequential improvements; at this stage, no meaningful spread increases expected, but steel prices expected to continue to go up slightly over next 6-9 months.

Q: I guess just to kind of circle back on solar, I think you touched on it in your prepared remarks, but I missed it. Can you just kind of give us a sense for what the solar activity is now, kind of how we're shifting capacity in that market?

A: Solar activity had timing of projects down year-over-year, but has good backlog and commitments from OEMs; facility Hobart making solar torque tubes performing well, contributing to productivity and helping with solar demand in second half of year.