8-K: Atkore Inc. Announces Preliminary Q2 Results, Records Impairment Charge on HDPE Assets, and Maintains Full-Year Outlook

Atkore Inc. announced preliminary Q2 2025 results, including an impairment charge related to HDPE assets, while maintaining its full-year fiscal 2025 outlook.

Summary

• Atkore Inc. released preliminary estimated results for the quarter ended March 28, 2025.
• Net sales are expected to be approximately $695 million to $705 million.
• The company anticipates a net loss of approximately $(77) million to $(41) million.
• Adjusted EBITDA is estimated to be between $115 million and $118 million.
• Net loss per diluted share is projected to be $(1.20) to $(2.24).
• Adjusted net income per diluted share is expected to be $2.01 to $2.08.
• The company is maintaining its full-year fiscal 2025 outlook with net sales of approximately $2,850 million to $2,950 million.
• Full-year adjusted EBITDA is projected to be $375 million to $425 million.
• Adjusted net income per diluted share for the full year is expected to be $5.75 to $6.85.
• An agreement has been reached with the United Steelworkers for a new 5-year labor contract at the Harvey, Illinois facility, retroactive to April 2024.
• The company will release its Second Quarter Fiscal Year 2025 results on May 6, 2025.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While the company maintains its full-year outlook and reports some positive volume growth, the significant impairment charge and net loss temper the overall outlook.

Positives

• Atkore experienced mid-single digit volume growth in Q2 2025.
• Manufacturing productivity was better than expected in Q2 2025.
• The Safety & Infrastructure segment benefited from favorable construction services projects.
• A new 5-year labor contract has been ratified with the United Steelworkers for the Harvey, Illinois facility, retroactive to April 2024.

Negatives

• Atkore expects a net loss of $(77) million to $(41) million for Q2 2025.
• The company is recording a pre-tax non-cash impairment charge of $121 million to $162 million related to HDPE assets.

Risks

• The impairment charge was triggered by the emergence of a competing technology for federal stimulus funding.
• An acceleration of constraints on public spending and adverse market-related conditions contributed to the impairment.
• Delays in the deployment of government stimulus funding for nationwide broadband infrastructure investments pose a risk.

Future Outlook

Atkore is maintaining its full-year fiscal 2025 outlook, projecting net sales of $2,850 million to $2,950 million, adjusted EBITDA of $375 million to $425 million, and adjusted net income per diluted share of $5.75 to $6.85.

Management Comments

• Our preliminary estimated second quarter results underscore the resilience of our portfolio and the dedication of our team, said Bill Waltz, Atkores President and Chief Executive Officer.
• We are confident that our business model and diverse portfolio will enable us to continue to effectively adapt in these dynamic times.
• Notably, we source and manufacture most of our products in the U.S. and most of our customers operate domestically.

Industry Context

The announcement highlights the impact of government stimulus funding and competition within the electrical products industry, particularly in the HDPE pipe and conduit market. The emergence of competing technologies and delays in stimulus deployment are affecting Atkore's business.

Comparison to Industry Standards

• It is difficult to compare Atkore's results directly to specific competitors without knowing their Q2 results.
• However, companies like ABB, Siemens, and Legrand operate in similar markets and are subject to similar macroeconomic factors.
• The impairment charge related to HDPE assets suggests a potential shift in market demand or competitive landscape within the conduit and piping sector, which could affect other players as well.

Stakeholder Impact

• Shareholders will be impacted by the net loss and impairment charge.
• Employees at the Harvey, Illinois facility are affected by the new labor agreement.
• Customers may be impacted by changes in the HDPE pipe and conduit market.

Next Steps

• The company will release its Second Quarter Fiscal Year 2025 results on May 6, 2025.
• A conference call will be held on May 6, 2025, to discuss the results.

Key Dates

Keywords

Atkore, HDPE, Impairment, Q2 2025, Outlook, Financial Results, Net Sales, Adjusted EBITDA, Labor Agreement