Atkore Inc. Q2 FY2026 earnings call

• Pleased with Q2 performance: net sales $731M, adjusted EBITDA $81M, adjusted EPS $1.23; all metrics sequentially better than Q1. - Organic volume up 5% YOY in Q2 from electrical and S&I segments. - Continued solid productivity gains after strong Q1 and FY25. - Completed divestitures of HDP and surface protection/powder coating business in Belgium; also sold Tektron tube mechanical product line, ceased operations at three U.S. facilities, sold Northwest Polymers recycling business. - Announced settlement of two PVC pipe antitrust litigation classes with $136.5M proposed settlement reflected in Q2 results. - On track to deliver outlook for adjusted EBITDA and adjusted EPS for fiscal 26. - Focused on continuous improvement and growth initiatives to create value. - Recognized employees' commitment to improving operational footprint and cost structure.

In the electrical segment, net sales increased year-over-year driven by higher volume growth and higher selling prices; adjusted EBITDA margins improved sequentially from Q1 but were still lower than prior year. In the S&I segment, net sales were lower year-over-year due to divestiture impact and tax credits passed to solar end customers; adjusted EBITDA and margins decreased year-over-year. Organic volume increased 5% year-over-year in Q2 with contributions from electrical and S&I segments. Net sales for the quarter were $731 million, adjusted EBITDA was $81 million, adjusted EPS was $1.23. Year-to-date volume was up mid-single digits, with four out of five product categories growing. Metal framing, cable management, and construction services grew ~10% in first half of FY25 and are growing again in FY26. Plastic pipe conduit and fittings grew in electrical and water products. Metal electrical conduit had healthy end market demand, especially larger sizes. Specialty conduit products growing due to increased market demand. Mechanical tube business, including solar-related products, growing due to better momentum for large utility-scale solar projects. Shifting capacity from non-solar mechanical products to electrical conduit as part of 80-20 initiative.

• Expect mid-single-digit volume growth for full year. - Net sales expected in range of $2.9 to $2.95B. - Adjusted EBITDA expected in range of $340 to $360M. - Adjusted EPS expected in range of $5.05 to $5.55. - Tax rate for third and fourth quarter expected to be 22-24%. - Anticipate Q3 to grow sequentially in net sales, adjusted EBITDA, and adjusted EPS from Q2, then slightly grow sequentially from Q3 to Q4 in all three metrics.

Q: Could you give more color into what you're seeing in the overall markets in terms of volume and the drivers of that volume?

A: Data centers are double-digit growth; products in data center area seeing high growth; low markets like office buildings in low to mid single digit growth; residential still slow but growing; manufacturing industrial feels optimistic.

Q: Could you give us an update on both the strategic review and the ongoing cost savings program?

A: Initiatives laid out last fall hit; strategic review committee still considering all options.

Q: Can we follow on that last point? Just with regard to some of the imports, can you be more specific?

A: Imports from Mexico for steel conduit down from low 20% of market to high teens to mid-teens; tariffs likely a driving factor; PVC dynamics: able to raise price and cover costs so far with healthy markets