To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Group 1 - The document provides dial-in information for a conference call, including numbers for the US, Canada, and international participants [1]

Core Viewpoint - Kaskela Law LLC has initiated an investigation into Atkore Inc. to assess potential violations of securities laws or breaches of fiduciary duties by the company and its executives in relation to recent corporate actions [1]. Group 1 - The investigation is being conducted on behalf of Atkore's shareholders [1]. - Shareholders are encouraged to reach out to Kaskela Law LLC for more information regarding their legal rights and options [2]. - Kaskela Law LLC specializes in representing investors in cases of securities fraud, corporate governance, and merger & acquisition litigation [2].

Core Points - Atkore Inc. has announced the sale of its Tectron mechanical tube product line and manufacturing facility to Lock Joint Tube, aiming to enhance focus on its electrical infrastructure portfolio and deliver greater shareholder value [1][2][3] Company Overview - Atkore Inc. is a leading manufacturer of electrical products for various applications, including commercial, industrial, data center, telecommunications, and solar, with 5,400 employees and $2.9 billion in sales for fiscal year 2025 [4]

Financial Performance - Net sales for fiscal 2025 decreased by $351.7 million, or 11.0%, to $2,850.4 million compared to $3,202.1 million in fiscal 2024, primarily due to decreased average selling prices[236] - Gross profit for fiscal 2025 was $676.1 million, a decrease of $401.7 million, or 37.3%, from $1,077.8 million in fiscal 2024[236] - Operating income plummeted by $601.6 million, or 96.3%, to $23.2 million in fiscal 2025 compared to $624.8 million in fiscal 2024[236] - Net income for fiscal 2025 was a loss of $15.2 million, a decrease of $488.0 million, or 103.2%, from a net income of $472.9 million in fiscal 2024[236] - Adjusted EBITDA decreased by $397.8 million, or 54.6%, to $330.5 million for fiscal 2025, compared to $728.3 million for fiscal 2024[247] Cost and Expenses - Cost of sales increased by $50.1 million, or 2.4%, to $2,174.3 million for fiscal 2025, driven by increased freight costs and higher sales volume[238] - Selling, general and administrative expenses decreased by $0.9 million, or 0.2%, to $396.6 million in fiscal 2025, attributed to lower costs across various categories[239] - Intangible asset amortization expense decreased by $13.6 million, or 24.5%, to $41.9 million in fiscal 2025 due to certain intangibles becoming fully amortized[240] - Other expense, net increased by $5.7 million to $7.7 million for fiscal 2025, compared to $2.0 million for fiscal 2024[243] Impairment Charges - The company recognized a $66.7 million impairment charge related to the potential sale of the HDPE business in fiscal 2025[224] - Asset impairment charges increased to $214.4 million for fiscal 2025, compared to no charges in fiscal 2024[241] - In fiscal 2025, the Company recorded a goodwill impairment of $18.9 million for the Mechanical reporting unit[301] - The Company identified non-cash impairment charges of $194,450 related to the long-lived assets of the HDPE business in fiscal 2025[306] Tax and Income - Income tax expense decreased by $117.8 million to a benefit of $3.4 million for fiscal 2025, compared to an expense of $114.4 million for fiscal 2024[244] - The effective tax rate decreased to 18.4%[244] Cash Flow and Capital Expenditures - Cash and cash equivalents increased by $155.3 million to $506.7 million as of September 30, 2025, compared to the previous year[268] - The company reported cash flows from operating activities of $402.8 million in fiscal 2025, a decrease of 26.6% compared to $549.0 million in fiscal 2024[280] - Cash used in investing activities decreased to $85.6 million in fiscal 2025 from $154.3 million in fiscal 2024, primarily due to reduced capital expenditures[282] - Financing activities resulted in cash outflows of $160.5 million in fiscal 2025, down from $435.3 million in fiscal 2024, mainly due to decreased share repurchases[283] - In fiscal 2025, capital expenditures totaled $107.1 million, focusing on equipment and growth initiatives to support Global Megaprojects[271] Market Dependence and Sales - Approximately 88% of net sales in fiscal 2025 were to customers located in the United States, indicating a strong dependence on the U.S. economy[217] - Approximately 12% of net sales in fiscal 2025 came from international customers, primarily in foreign currencies[225] - Safety & Infrastructure segment net sales increased by $4.3 million, or 0.5%, to $853.4 million for fiscal 2025, compared to $849.1 million for fiscal 2024[249] Future Outlook and Commitments - The company expects to incur additional restructuring costs in fiscal 2026 following a $1.3 million accrual for restructuring activities announced on September 29, 2025[224] - The company has purchase commitments of $110.9 million and $4.1 million for raw materials in 2026 and 2027, respectively[272] - The projected pension contribution for fiscal 2026 is estimated at $0.4 million[273] - Total estimated cash outflows for servicing existing debt instruments amount to $972.4 million, with significant payments due in the next five years[274] Industry Trends - Emerging industry trends indicate a shift towards renewable power generation and increased demand for digital infrastructure products[226][227] Accounting Policies - The Company utilizes the last-in, first-out (LIFO) method for inventory valuation, reflecting current costs and revenues[307] - The Company assesses the recoverability of goodwill and indefinite-lived intangible assets annually, with the measurement date set for the first day of the fourth fiscal quarter[298] - The Company accounts for business combinations using the acquisition method, recording all acquired assets and assumed liabilities at fair value at the date of acquisition[297]

Company Overview - Atkore Inc. is a leading manufacturer of electrical products and solutions, offering a wide range of products including electrical raceway solutions, mechanical products, and safety and infrastructure solutions [1] - The company serves various industries such as construction, industrial, and infrastructure, competing with major players like Eaton Corporation and Schneider Electric [1] Stock Performance - On November 21, 2025, Roth Capital set a price target of $65 for Atkore, indicating a potential increase of about 12.19% from the current stock price of $57.94 [2] - The stock has recently declined by 12.91%, with a change of -$8.59, and has fluctuated between $55.46 and $67.05 [2] Earnings Call Insights - Atkore's Q4 2025 earnings call included key executives such as CEO William Waltz and CFO John Deitzer, with attendance from analysts of major financial institutions like ROTH Capital Partners and Citigroup [3] Market Capitalization and Trading Volume - The company's market capitalization is approximately $1.95 billion, with a trading volume of 2,358,222 shares on the NYSE [4] - Over the past year, Atkore's stock has reached a high of $97.32 and a low of $49.92, indicating significant fluctuations [4]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Viewpoint - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues, particularly when ad-blockers are enabled [1] Group 1 - The article suggests that users may face restrictions if they have ad-blockers enabled, indicating a need for adjustments in browser settings to ensure smooth access [1]

Core Insights - SoftBank plans to invest up to $3 billion to revamp an electric vehicle facility in Lordstown, Ohio [1] - The remodeled facility will produce equipment for OpenAI's upcoming data centers [1] Investment Details - The investment amount is significant, reaching up to $3 billion [1] - The focus of the investment is on overhauling an existing electric vehicle facility [1] Strategic Implications - The remodeling of the facility indicates a shift towards supporting AI infrastructure, particularly for OpenAI [1] - This move aligns with broader trends in the industry towards integrating electric vehicle technology with data center operations [1]

Financial Data and Key Metrics Changes - In Q4 FY2025, net sales reached $752 million, exceeding the previous outlook, with adjusted EBITDA of $71 million, impacted by one-time inventory adjustments and non-routine items [7][11][14] - For the full year, net sales totaled $2.9 billion, with adjusted EPS at $6.05 and adjusted EBITDA of $386 million [13][14] - The company reported a net loss of $54 million in Q4, including a $19 million non-cash goodwill impairment charge and a $67 million impairment charge related to HDPE assets [11][12] Business Line Data and Key Metrics Changes - Organic volume growth was 1.4% in Q4, with significant contributions from plastic pipe conduit and finished products, particularly PVC, fiberglass, and HDPE, all showing double-digit growth [7][8] - The electrical segment generated net sales of $519 million, with organic volume growth contributing $7 million, while the S&I segment saw a 4% increase in net sales compared to the prior year [15][16] Market Data and Key Metrics Changes - The company anticipates mid-single digit volume growth in FY2026, driven by expected growth across all product areas, particularly in construction end markets such as data centers and renewable energy [10][17] - The demand for electricity is projected to grow, with a compound annual growth rate of 2.6% through 2035, driven by the expansion of data centers and renewable energy adoption [19][20] Company Strategy and Development Direction - The board is exploring strategic alternatives, including a potential sale or merger of the entire company, to enhance focus on Atkore's core electrical infrastructure portfolio [4][5] - The company plans to divest non-core assets and close three manufacturing facilities to improve financial returns and focus on electrical products [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth in construction end markets for FY2026, particularly in data centers, healthcare, and renewable energy [10][19] - The company aims to generate strong cash flows and maintain a healthy balance sheet while focusing on shareholder value [9][18] Other Important Information - The company has achieved three consecutive years of organic volume growth, with a total volume increase of approximately 1% for FY2025 [8][14] - Cash flow generation remains a strength, with $144 million returned to shareholders through share repurchases and dividends [9] Q&A Session Summary Question: Guidance for fiscal 2026 and pricing dynamics - Management indicated that mid-single digit volume growth is expected, with potential pricing benefits due to sequential price increases in steel conduit and other products [26][28] Question: Strategic review and divestment magnitude - The board is considering various outcomes, including a full sale or continuing operations as is, with ongoing interest in the HDPE business [36][37] Question: Cost savings initiatives - Expected annualized cost reductions of $10 million-$12 million from the closure of three plants, with potential for further savings in the future [39][41] Question: Headwinds from imports and pricing - Management confirmed ongoing price versus cost headwinds, with a projected $50 million impact for 2026, but expects improvements in the second half of the year [48][49] Question: Impact of data centers on growth - Management acknowledged strong growth in data center-related products and expects significant contributions from global mega projects in the second half of the year [60][61] Question: Closing plants and production shifts - The company plans to shift production from closing plants to existing facilities without significant learning curves, focusing on electrical products [66][68] Question: Engagement with activists and board alignment - Management confirmed a cooperative relationship with activist investors and ongoing discussions about board refreshment [81][82]