Atkore (US:ATKR)2026-02-02 23:28Financial Performance - Net sales decreased by $6.0 million, or 0.9%, to $655.5 million for the three months ended December 26, 2025, compared to $661.6 million for the same period in 2024[105] - Cost of sales increased by $39.1 million, or 8.0%, to $529.6 million for the three months ended December 26, 2025, primarily due to increased input costs of $25.3 million and increased depreciation of $11.8 million[107] - Operating income fell by $47.9 million, or 70.5%, to $20.1 million for the three months ended December 26, 2025, compared to $67.9 million for the same period in 2024[105] - Net income decreased by $31.3 million, or 67.6%, to $15.0 million for the three months ended December 26, 2025, compared to $46.3 million for the same period in 2024[105] - Adjusted EBITDA for the Electrical segment decreased by $37.3 million, or 40.4%, to $55.1 million for the three months ended December 26, 2025, compared to $92.4 million for the same period in 2024[118] - Adjusted EBITDA margin for the Electrical segment decreased to 11.7% for the three months ended December 26, 2025, compared to 19.9% for the same period in 2024[119] - Net sales for the Safety & Infrastructure segment decreased by $10.5 million, or 5.3%, to $186.3 million for the three months ended December 26, 2025, compared to $196.7 million for the same period in 2024[120] - Adjusted EBITDA for the Safety & Infrastructure segment increased by $14.6 million, or 93.8%, to $30.2 million for the three months ended December 26, 2025, compared to $15.6 million for the same period in 2024[122] Cash Flow and Liquidity - Cash and cash equivalents were $443.8 million as of December 26, 2025, with $98.2 million held at non-U.S. subsidiaries[123] - The Company has access to an ABL Credit Facility with an estimated borrowing base of $325.0 million, with no outstanding borrowings as of December 26, 2025[124] - For the three months ended December 26, 2025, the company used $55.5 million in operating activities, a decrease of $129.9 million compared to $74.4 million provided in the same period in 2024[133] - The decrease in cash provided by operating activities was primarily due to a decline in operating income of $47.9 million, partially offset by a reduction in working capital used of $100.3 million[133] - In investing activities, the company used $6.6 million during the three months ended December 26, 2025, compared to $41.1 million in the same period in 2024, marking a decrease of $47.8 million[134] - The reduction in cash used for investing activities was mainly due to a decrease of $29.5 million in capital expenditures and proceeds from the sale of Tectron Tube amounting to $18.4 million[134] - Financing activities provided $15.3 million during the three months ended December 26, 2025, compared to $67.7 million used in the same period in 2024, reflecting a decrease of $50.0 million in cash used for stock repurchases[135] Risks and Forward-Looking Statements - The company cautions that forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from expectations[139] - Key risks include economic conditions, competition, supply chain disruptions, and regulatory changes that could impact financial performance[140] - The company emphasizes that comparisons of results for current and prior periods should only be viewed as historical data and not indicative of future performance[142] - There have been no material changes to the disclosures about market risks previously reported[143] Accounting Policies - There have been no material changes in critical accounting policies and estimates since the last Annual Report[136]