Atkore (NYSE:ATKR) reported fiscal first-quarter 2026 results that came in above management’s outlook range, supported by modest organic volume growth in its core electrical products and more than $30 million of year-over-year productivity savings. Executives also reiterated the company’s full-year guidance, noting that expectations remain weighted to the back half of the year and that price-cost headwinds are largely a first-half issue.
Quarterly results beat outlook as volumes rose
For the fiscal first quarter, Atkore posted net sales of $656 million and adjusted EBITDA of $69 million, both above the company’s outlook range, according to President and CEO Bill Waltz. Adjusted EPS was $0.83, also above the top end of guidance, though down from $1.63 a year earlier.
Deitzer also highlighted an unusually low 3% tax rate in the quarter, compared with 21% a year ago, attributing the change to a one-time discrete benefit tied to tax planning related to a foreign operation.
Segment trends: electrical growth offset by pricing pressure
Management said volume gains were led by metal electrical conduit and plastic pipe conduit, both benefiting from what the company described as healthy non-residential end market demand. Deitzer said some categories lagged due to project timing, including metal framing, cable management, and construction services, but he added the company expects these businesses to grow over the course of the year.
In the electrical segment, net sales increased year-over-year on higher volume, but were offset by lower selling prices. Deitzer said adjusted EBITDA margins compressed in the electrical segment due to higher material costs and lower average selling prices.
In the Safety & Infrastructure (S&I) segment, net sales declined year-over-year, primarily due to lower volume, but adjusted EBITDA and margins increased due to productivity improvements. The company said most of the more than $30 million in year-over-year productivity savings came from S&I.
Asked about the sustainability of S&I profitability after the segment posted a 16.2% adjusted EBITDA margin, Deitzer said Atkore typically expects the business to be more in the 12% to 14% range, noting mix factors (including solar) and that some discrete items benefited first-quarter margins. He said the company expects margin regression in S&I as the year progresses.
Portfolio actions: TekTube divestiture and plant exits
Waltz said Atkore continues to advance its strategic alternative process to evaluate opportunities to strengthen the business and maximize shareholder value, though he noted the board does not have a set timeframe. During the quarter, the company completed the divestiture of the TekTube mechanical tube product line and manufacturing facility, which management said further aligns Atkore around its electrical infrastructure portfolio and its broader “80/20 Initiative.”
Deitzer said results included approximately $18 million in cash proceeds recognized from the TekTube divestiture, representing a portion of proceeds. He added the company anticipates an additional $7 million in fiscal Q2 from the sale of the real estate where the products were manufactured.
Separately, the company reiterated plans to exit three manufacturing facilities in fiscal Q2, a move COO and President of Electrical John Pregenzer described as part of prioritizing domestically manufactured electrical infrastructure products and creating a more streamlined cost structure. Pregenzer said the transfers of equipment, hiring, and training at receiving plants are progressing as planned and on schedule.
Pricing, competition, and price-cost outlook
Management fielded multiple questions on conduit pricing and foreign competition. Waltz said PVC imports continue to enter the market, citing relatively low tariffs (he referenced a 10% level), and added that while the company does not have precise market size data, imports remain “probably less than 10%” of the overall PVC market and are growing. For steel conduit, Waltz said imports were down low- to mid-single digits year-over-year over the last three months, while Atkore continued to grow, and he noted sequential improvement in price and margins for metal conduit.
Deitzer said the company’s price-versus-cost headwind is largely loaded into the first half of the fiscal year, with Q1 reflecting that impact and Q2 expected to remain unfavorable year-over-year. He added that Atkore anticipates the back half of the year to be price-versus-cost positive, potentially only slightly, while cautioning that the dynamics can change quickly.
On raw material volatility, Deitzer pointed to copper price fluctuations as a variable the company is watching closely. Waltz also discussed the impact of 50% aluminum tariffs on some inputs sourced from Canada, saying the company has been evaluating domestic sources but that supply shifts can be complicated by specifications and that domestic suppliers may raise prices as demand shifts.
Guidance reaffirmed; Q2 expected slightly better than Q1 on EBITDA
Atkore reaffirmed its fiscal 2026 outlook first presented in November. Waltz said the company expects:
- Net sales of $2.95 billion to $3.05 billion, adjusted to reflect about $40 million of annual sales tied to the TekTube divestiture
- Adjusted EBITDA of $340 million to $360 million (unchanged)
- Adjusted EPS of $5.05 to $5.55
Deitzer reiterated that Atkore is no longer providing quarterly guidance, but said the company expects fiscal Q2 results to be “similar to, but slightly better” than Q1 from an adjusted EBITDA perspective. He also emphasized that the company still expects results to be weighted toward the back half of the fiscal year.
On cash flow, Deitzer said the company ended the quarter in a favorable cash position despite a year-over-year decline in operating cash flow, attributing the shortfall to typical timing of accounts receivable collections, with larger collections falling into early fiscal Q2 due to the quarter ending on December 26. He said Atkore expects cash from operations to improve through the year and noted the company has modestly reduced its capital expenditure expectation while focusing investments on the right projects. Deitzer added that the balance sheet remains strong, with no debt maturities until 2030.
In closing remarks, Waltz said the year is off to a good start, driven by healthy end markets and self-help productivity gains, while the company continues executing strategic actions and evaluating additional opportunities with a focus on long-term shareholder value.
About Atkore (NYSE:ATKR)
Atkore International Group Inc (NYSE: ATKR) is a diversified global manufacturer of electrical raceway and mechanical products, serving a broad range of end markets including commercial construction, industrial facilities and energy infrastructure. The company’s electrical product portfolio encompasses conduit, tubing, fittings, connectors and cable management systems designed for use in residential, commercial and industrial wiring applications. On the mechanical side, Atkore offers pipe support solutions, seismic bracing, HVAC hangers and other mechanical products that address critical building and process piping needs.
Founded as a family-owned business before its reorganization into a standalone public company in 2016, Atkore has grown through both organic investment and targeted acquisitions.
