Atkore’s first quarter results came in above Wall Street’s expectations for both revenue and non-GAAP profit, though total sales declined year over year. Management attributed the results to improved organic volume growth in construction services, steel conduit, and metal framing, partially offset by lower average selling prices across conduit products. CEO Bill Waltz noted, “Our 5% year-over-year volume growth in the second quarter was supported by growth across three out of five product areas, a meaningful improvement over the first quarter.” Sequential pricing improvements in steel conduit and disciplined cost management also contributed to operational gains, despite challenges from pricing declines in key categories.
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Atkore (ATKR) Q1 CY2025 Highlights:
- Revenue: $701.7 million vs analyst estimates of $697.6 million (11.5% year-on-year decline, 0.6% beat)
- Adjusted EPS: $2.04 vs analyst estimates of $1.71 (19.1% beat)
- Adjusted EBITDA: $116.4 million vs analyst estimates of $103.8 million (16.6% margin, 12.1% beat)
- Management reiterated its full-year Adjusted EPS guidance of $6.30 at the midpoint
- EBITDA guidance for the full year is $400 million at the midpoint, above analyst estimates of $395.5 million
- Operating Margin: -7.4%, down from 22.6% in the same quarter last year
- Organic Revenue fell 11.7% year on year, in line with the same quarter last year
- Market Capitalization: $2.36 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Atkore’s Q1 Earnings Call
- Chris Moore (CJS Securities) asked about the outlook for PVC conduit pricing and Atkore’s market share; CEO Bill Waltz responded that pricing trends remain difficult to forecast, but the company expects to retain its leadership position despite import pressures.
- David Tarantino (KeyBanc) inquired about the impact of tariffs on both PVC and steel imports; Waltz and CFO John Deitzer explained that tariffs are expected to benefit Atkore, but the ultimate effect depends on evolving import flows and customer demand.
- Deane Dray (RBC Capital Markets) questioned the rationale and timing behind the HDPE asset impairment; Waltz clarified that competition from satellite internet technology and delayed infrastructure funding triggered the decision, and it was deemed fiscally prudent given current information.
- Chris Dankert (Loop Capital) asked if there was any direct communication from the administration regarding the broadband program changes; Waltz said decisions were based on public statements and industry reporting rather than explicit government directives.
- Andy Kaplowitz (Citigroup) sought details on demand trends by month and the evolving mix of construction services projects; management noted that each month in the quarter showed improvement, with data centers and chip manufacturing remaining key areas of strength.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the impact of tariffs on Atkore’s market share and pricing dynamics, (2) whether construction services and data center-related demand can sustain momentum amid a normalizing backlog, and (3) the company’s ability to maintain productivity improvements while navigating commodity price volatility and evolving project pipelines. The resolution of infrastructure funding and technology adoption trends will also be key signposts.
Atkore currently trades at $71.49, up from $66.89 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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