Atkore’s Q2 performance met Wall Street’s revenue expectations but prompted a significant negative market reaction, with shares declining sharply after the results. Management attributed the year-over-year revenue decline to lower average selling prices in key product categories, especially PVC and steel conduit, offset only partially by modest volume growth and productivity gains. CEO Bill Waltz specifically cited the evolving tariff environment as a source of both direct cost pressure and market uncertainty, affecting both sales and input costs. Waltz also acknowledged that recent pricing improvements in steel conduit were not enough to counter rising raw material costs, notably copper and aluminum.
Is now the time to buy ATKR? Find out in our full research report (it’s free).
Atkore (ATKR) Q2 CY2025 Highlights:
- Revenue: $735 million vs analyst estimates of $738.6 million (10.6% year-on-year decline, in line)
- Adjusted EPS: $1.63 vs analyst estimates of $1.58 (3.2% beat)
- Adjusted EBITDA: $99.92 million vs analyst estimates of $99.85 million (13.6% margin, in line)
- Management raised its full-year Adjusted EPS guidance to $6.50 at the midpoint, a 3.2% increase
- EBITDA guidance for the full year is $400 million at the midpoint, below analyst estimates of $402.7 million
- Operating Margin: 8.7%, down from 20.5% in the same quarter last year
- Organic Revenue fell 10.3% year on year vs analyst estimates of 9.7% declines (55.8 basis point miss)
- Market Capitalization: $1.92 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 From Atkore’s Q2 Earnings Call
- Piyush Mubayi (Citi): Asked about demand visibility and volume expectations for next year, CEO Bill Waltz cited optimism in data center and solar sectors but declined to provide specific forecasts, stating, “reasonable growth going into next year.”
- Deane Michael Dray (RBC Capital Markets): Inquired about the impact of tariffs on steel and PVC conduit imports. Waltz explained that imports were down over 20% in the quarter and attributed most of the decline to the effectiveness of tariffs.
- Deane Michael Dray (RBC Capital Markets): Probed for surprises in pricing trends. Waltz noted that steel and PVC conduit pricing was slightly better than expected, but aluminum cost recovery remained a challenge due to tariff-driven input cost increases.
- David Edmund Tarantino (KeyBanc Capital Markets): Sought details on the $50 million anticipated headwind for next year. CFO John Deitzer explained this reflects mostly the carryover effect of current year price declines and ongoing raw material challenges.
- Justin Lars Clare (ROTH Capital Partners): Asked about the opportunity to regain market share in steel conduit. Waltz responded that the company expects to benefit from reduced import competition, which should gradually support volume and margin improvement.
Catalysts in Upcoming Quarters
Looking ahead, our analyst team will be closely monitoring (1) the impact of evolving tariff policies and their effect on input costs and pricing power, (2) whether Atkore can successfully regain market share in steel conduit and other domestically sourced products, and (3) the execution of productivity and cost control initiatives to offset persistent margin pressures. The timing and outcome of the CEO succession process will also be a notable factor in upcoming quarters.
Atkore currently trades at $56.99, down from $76.57 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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