In This Article:
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Net Sales: $702 million, with 5% organic volume growth.
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Adjusted EBITDA: $116 million.
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Adjusted EPS: $2.04.
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Adjusted EBITDA Margin: 16.6%, up from 15% in the previous quarter.
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Share Repurchases: Approximately $50 million in the second quarter.
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Dividend Increase: Increased to $0.33 per share.
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Impairment Charge: $128 million noncash impairment related to HDPE assets.
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Full Year Adjusted EBITDA Guidance: Midpoint of $400 million.
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Q3 Net Sales Guidance: $715 million to $745 million.
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Q3 Adjusted EBITDA Guidance: $85 million to $105 million.
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Q3 Adjusted EPS Guidance: $1.25 to $1.75.
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Full Year Adjusted EPS Guidance: $5.75 to $6.85.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Atkore Inc (NYSE:ATKR) achieved net sales of $702 million in the second quarter, with a 5% organic volume growth driven by strong contributions from construction services, steel conduit, metal framing, and cable management products.
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The company reported an adjusted EBITDA of $116 million and an adjusted EPS of $2.04, indicating strong financial performance.
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Atkore Inc (NYSE:ATKR) successfully ratified a new five-year labor agreement with the United Steelworkers at their Harvey, Illinois facility, which is expected to enhance productivity and customer service.
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The company repurchased approximately $50 million in shares and increased its quarterly dividend to $0.33 per share, demonstrating a commitment to returning cash to shareholders.
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Atkore Inc (NYSE:ATKR) maintained its full-year fiscal 2025 adjusted EBITDA guidance with a midpoint of $400 million, reflecting confidence in its business strategy and market position.
Negative Points
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The company experienced a 17% year-over-year decline in average selling prices, particularly affecting PVC conduit and steel conduit products.
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Atkore Inc (NYSE:ATKR) announced a $128 million non-cash impairment charge related to its HDPE pipe and conduit products due to competing technologies and delays in government stimulus funding.
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The unpredictability of tariffs and their impact on the broader construction market remains a concern, with potential implications for future demand and pricing.
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The Dodge Momentum Index suggested a slowdown in planning activity across several nonresidential categories, indicating potential challenges in future construction demand.
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The company anticipates a moderation in growth for its Construction Services business in the second half of the year due to a reduced backlog of projects.