Atkore (ATKR) Q2 2026 earnings summary

Executive summary

• Net sales rose 4.2% year-over-year to $731.4 million for the quarter ended March 27, 2026, with sequential growth in net sales, Adjusted EBITDA, and Adjusted EPS compared to Q1, driven by higher volumes and pricing, partially offset by divestitures.

• Organic volume increased 5% year-over-year, with growth in both Electrical and Safety & Infrastructure segments.

• Net loss widened to $124.1 million from $50.1 million, primarily due to a $136.5 million litigation settlement and a $25.7 million loss on assets held for sale.

• Strategic divestitures included the HDPE Pipe & Conduit business and Belgium surface protection and powder coating business, completed in April 2026.

• Settlement agreements reached for two classes in the PVC Pipe Antitrust Litigation, totaling $136.5 million, impacting Q2 results.

Financial highlights

• Adjusted EBITDA for the quarter was $81.1 million, down 30.3% year-over-year; Adjusted EBITDA margin declined to 11.1%.

• Adjusted EPS was $1.23, down from $2.04 in the prior year; reported diluted EPS was a loss of $3.65.

• Gross profit declined 26.5% year-over-year to $136.1 million, with gross margin dropping to 18.6% from 26.4% due to higher input costs.

• Free cash flow for the six months ended March 27, 2026, was negative $53.5 million, compared to positive $97.3 million in the prior year period.

• Cash and cash equivalents stood at $442.3 million as of March 27, 2026.

Outlook and guidance

• Full-year 2026 net sales expected between $2.9 billion and $2.95 billion, reflecting recent divestitures.

• Adjusted EBITDA guidance maintained at $340 million–$360 million; adjusted EPS expected between $5.05 and $5.55.

• Management expects sufficient liquidity for ongoing operations and capital needs, supported by cash on hand and a $325 million undrawn credit facility.

• Volume growth for the full year projected at mid-single digits, driven by non-residential construction, solar, and global construction services.

• Ongoing restructuring and strategic review may result in further divestitures and related charges.