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]

Financial Performance - The company achieved net sales of $702 million with a 5% organic volume growth driven by construction services, steel conduit, metal framing, and cable management products [6][12] - Adjusted EBITDA was $116 million, with adjusted EBITDA margins expanding sequentially to 16.6% from 15% in the previous quarter [12] - Adjusted EPS was reported at $2.04, reflecting a strong performance despite a 17% year-over-year decline in average selling prices [12][13] Business Line Performance - Organic volumes increased by 5% compared to a 1% decline in the same quarter of the previous fiscal year, with significant growth in metal framing, cable management, and construction services [12][14] - The electrical cable and flexible conduit category saw low single-digit growth year-to-date, while PVC conduit products experienced a decline in volume [15][16] - The S and I segment improved adjusted EBITDA margins due to strong volume performance and better productivity, contributing approximately $11 million to segment EBITDA [16] Market Dynamics - The company noted a slowdown in planning activity across several non-residential categories, as indicated by the Dodge Momentum Index [11] - Despite recent increases in construction starts, there is a possibility of slower activity moving forward due to economic uncertainties and potential project delays [20][21] - The impact of tariffs on imported steel and aluminum products is expected to benefit the company, as most of its products are sourced domestically [10][22] Strategic Direction - The company remains committed to a balanced capital deployment model, focusing on returning cash to shareholders through share repurchases and dividends while investing in growth initiatives [18][25] - The management emphasized the importance of maintaining a strong financial profile and leveraging domestic manufacturing capabilities to serve the electrical infrastructure market [23][24] Management Commentary - Management expressed cautious optimism regarding future demand for US-made steel conduit, despite uncertainties surrounding tariffs and macroeconomic conditions [10][20] - The company is maintaining its full-year fiscal 2025 adjusted EBITDA guidance in the range of $375 million to $425 million, with adjusted EPS expected between $5.75 and $6.85 [21][25] - Management acknowledged the challenges posed by competing technologies, particularly in the fiber optic space, which contributed to an impairment charge for certain long-lived assets [9][65] Other Important Information - The company ratified a new five-year labor agreement with the United Steel Workers at its Harvey, Illinois facility, which is expected to enhance productivity [7][8] - The company repurchased approximately $50 million in shares during the second quarter and increased its dividend to $0.33 per share [8] Q&A Session Summary Question: Expectations for PVC conduits for the remainder of the year - Management indicated that pricing for PVC conduits has continued to decline, but they are maintaining their previous guidance regarding future pricing expectations [30] Question: Market share for PVC conduit - Management believes the company remains a leader in the PVC conduit market, although imports have been increasing [31][32] Question: Recent import levels and potential pricing upside - Management noted that PVC imports have increased significantly year-over-year, but the future trajectory remains uncertain due to tariffs [40][41] Question: Impact of tariffs on steel pricing - Management stated that the 25% tariff on imported steel is expected to benefit the company, although predicting exact impacts remains challenging [44][46] Question: Impairment of HD PVC and competitive changes - Management clarified that the impairment was influenced by competing technologies, particularly fiber optics, and not by the company's own product performance [64][67] Question: Direction from the administration regarding tariffs - Management confirmed that there has been no specific direction from the administration regarding tariffs, leading to a prudent decision to take the impairment charge [73][76] Question: Demand cadence for products - Management reported that demand has been improving month-over-month, with cautious optimism for the remainder of the fiscal year [92][94] Question: Construction services opportunity - Management indicated that data centers are expected to become a significant portion of the construction services business moving forward [95][96]