Q2 2025 Atkore Inc Earnings Call Transcript
Key Points
- Atkore Inc (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.
- The company reported an adjusted EBITDA of $116 million and an adjusted EPS of $2.04, indicating strong financial performance.
- Atkore Inc (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.
- 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.
- Atkore Inc (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.
- The company experienced a 17% year-over-year decline in average selling prices, particularly affecting PVC conduit and steel conduit products.
- Atkore Inc (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.
- The unpredictability of tariffs and their impact on the broader construction market remains a concern, with potential implications for future demand and pricing.
- The Dodge Momentum Index suggested a slowdown in planning activity across several nonresidential categories, indicating potential challenges in future construction demand.
- 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.
Good morning. My name is Van and I will be your conference operator today. At this time, I would like to welcome everyone to Atkore's second quarter fiscal year 2025 earnings conference call. (Operator Instructions)
As a reminder, this conference is being recorded. Thank you. I would now like to turn the conference over to your host, Matt Kline, Vice President of Treasury and Investor Relations. Thank you. You may now begin.
Thank you, and good morning, everyone. I'm joined today by Bill Waltz, President and CEO; John Deitzer, Chief Financial Officer; and John Pregenzer, Chief Operating Officer and President of Electrical. We will take questions at the conclusion of the call.
I would like to remind everyone that during this call, we may make projections or forward-looking statements regarding future events or financial performance of the company. Such statements involve risks and uncertainties such that actual results may differ materially. Please refer to our SEC
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