Core Insights - Atkore Inc. primarily generates revenue through the manufacture and sale of electrical infrastructure products, with a significant focus on the non-residential construction market [1] Group 1: Company Overview - Atkore Inc. operates in the electrical infrastructure sector, emphasizing products that cater to non-residential construction [1] Group 2: Market Dynamics - The company faces challenges in pricing and earnings stabilization, indicating ongoing volatility in its financial performance [1]

Core Insights - Atkore Inc. is taking strategic actions to enhance its financial returns and strengthen its core electrical infrastructure portfolio [1] Strategic Actions - The Board of Directors and executive leadership team are evaluating a broad range of alternatives to improve focus on Atkore's core product lines and businesses [1]

Financial Data and Key Metrics Changes - Orion reported Q1 2026 revenue of $19.6 million, a slight decrease from $19.9 million in Q1 2025, with two of the three segments showing year-over-year growth [19] - The gross profit percentage rose to over 30% for the first time in six years, with a net loss reduced to $1.2 million from $3.6 million in Q1 2025 [11][17] - Adjusted EBITDA improved to positive $200,000 in Q1 2026 compared to a negative $1.8 million in Q1 2025 [22] Business Line Data and Key Metrics Changes - LED lighting segment revenue increased by 1% to $12.9 million, while the electrical maintenance segment revenue rose by 21% to $4 million [19][20] - EV charging solutions revenue decreased to $2.7 million from $3.8 million, primarily due to the timing of larger projects [20] - The gross margin for the LED lighting segment improved to 31.8% from 22.6%, and the maintenance segment gross margin increased to 22.4% from 3.8% [20] Market Data and Key Metrics Changes - The company is experiencing tailwinds in all three business lines nationally and regionally, with a focus on converting quality leadership into market leadership [8] - The electrical infrastructure market is seeing significant investments, providing a unique opportunity for Orion to leverage its expertise [15] Company Strategy and Development Direction - The company aims to achieve $84 million in revenue for FY 2026, with a growth expectation of 5% [24] - Orion is focusing on enhancing margins, reducing costs, and expanding its footprint in existing maintenance service customers [12][13] - The decision was made to retain the existing operational structure rather than reorganizing into two business units, allowing for better integration of EV solutions [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving year-over-year growth in revenue, profitability, and shareholder value [6] - The company anticipates modest growth in LED lighting and electrical maintenance revenues, with flat to slightly lower EV charging revenues due to funding uncertainties [25] - Management believes that the company is well-positioned to manage tariff impacts due to its domestic manufacturing capabilities [25] Other Important Information - Orion has made significant reductions in overhead and has built a diversified pipeline of revenue to support growth [17] - The company has reduced total operating expenses by 10.6% to $6.9 million in Q1 2026 from $7.7 million in Q1 2025 [12][22] Q&A Session Summary Question: Interest in electrical infrastructure and potential investment needed - Management indicated that they are in the early stages of electrical infrastructure development and believe their current infrastructure can manage growth without significant initial investment [32] Question: Expectations for pipeline impact in fiscal 2027 and beyond - Management confirmed that the current pipeline will contribute to revenue growth in fiscal 2027 and beyond [35] Question: Details on the electrical infrastructure project - Management stated that the initial project involves expanding electrical infrastructure work based on customer requests, with more details to be shared in future releases [39][40] Question: Clarification on the Boston Public Schools contract - Management clarified that the recent $6.5 million contract is an expansion of previous work done for the Boston Public Schools, indicating a significant increase in project scope [43][46] Question: Status of fluorescent bulb ban and its impact - Management acknowledged the potential impact of the fluorescent bulb ban on business but indicated that it is too early to assess enforcement [50][52]

Financial Data and Key Metrics Changes - The company's second quarter 2025 revenues were $900 million, an increase of $71 million or 8.6% compared to the same period last year [10] - Net income for the second quarter was $27 million compared to a net loss of $15 million for the same period last year [14] - EBITDA for the second quarter was $56 million compared to negative $5 million for the same period last year [14] - Operating cash flow was $33 million compared to $23 million for the same period last year [15] - Free cash flow was $12 million compared to $3 million for the same period last year [15] Business Segment Data and Key Metrics Changes - Transmission and Distribution (T&D) revenues were $506 million, an increase of 10% compared to the same period last year, with $305 million from transmission and $201 million from distribution [10] - Commercial and Industrial (C&I) revenues were $394 million, an increase of 6% compared to the same period last year [11] - T&D operating income margin was 8% for 2025 compared to an operating loss margin of 1.8% for the same period last year [12] - C&I operating income margin was 5.6% for 2025 compared to 0.4% for the same period last year [12] Market Data and Key Metrics Changes - Total backlog as of June 30, 2025, was $2.64 billion, 4% higher than a year ago, with $927 million for T&D and $1.72 billion for C&I [14] - The U.S. power sector is forecasted to see $1.4 trillion in capital investments from 2025 to 2030, with power demand expected to increase by 10% to 17% from 2024 levels [18][19] Company Strategy and Development Direction - The company emphasizes grid modernization and hardening as strong market drivers, presenting opportunities for consistent success [8] - The focus remains on collaborating closely with customers while delivering safe, quality, and consistent results [8] - The company is committed to maintaining and expanding diverse customer relationships and adapting to market conditions [25][26] Management's Comments on Operating Environment and Future Outlook - Management noted a steady performance due to strong customer relationships and operational consistency [7] - The company is optimistic about ongoing success in chosen markets due to increased electrification and investments in electrical infrastructure [8] - Management highlighted the importance of being proactive and disciplined in a dynamic energy landscape [25][26] Other Important Information - The company has a strong funded debt to EBITDA leverage ratio of 0.46x as of June 30, 2025 [16] - A new $75 million share repurchase program was authorized, replacing the prior program [16] Q&A Session Summary Question: Inquiry about the new MSA with Xcel Energy - Management confirmed that the MSA is new scope and additional to existing agreements [29][30] Question: Follow-up on C&I backlog and its sequential decline - Management explained that the backlog is typically lumpy and reflects the normal progression of work [31][32] Question: Discussion on business footprint expansion and future MSA announcements - Management indicated that they are always looking for MSA opportunities but also pursue bidding work [37][38] Question: Update on solar market contributions to revenue - Management stated that solar work has declined to 4% of T&D revenues and remains a selective area [49][50] Question: Capital allocation outlook regarding M&A and buybacks - Management emphasized a disciplined approach to acquisitions while balancing organic growth and stock buybacks [52][53] Question: Operating environment improvements and CapEx spending - Management noted that they are monitoring CapEx needs but do not anticipate significant increases [60] Question: Supply chain issues affecting project timelines - Management reported that while schedules have not extended significantly, clients are engaging earlier to secure long lead equipment [61]

Financial Data and Key Metrics Changes - The company has compounded earnings at a high teens CAGR over the last decade, despite zero load growth, indicating strong operational efficiency and market positioning [81]. - The company expects organic growth to be in the high upper single digits, reflecting confidence in future demand and operational capabilities [82]. Business Line Data and Key Metrics Changes - The company operates in three addressable markets: utility infrastructure, renewable infrastructure, and technology infrastructure, with significant growth potential in each [3][4]. - The company self-performs 85% of its work, which is critical for managing costs and ensuring quality [12][14]. Market Data and Key Metrics Changes - The utility capital market is estimated to be around $250 to $300 billion, while technology capital is around $200 to $300 billion, indicating a large and growing addressable market [10][11]. - The company sees a significant demand for transmission infrastructure, which is essential for supporting load growth driven by data centers and renewable energy [24][26]. Company Strategy and Development Direction - The company is evolving from an electrical contractor to a full electrical infrastructure solutions provider, focusing on integrating various services to meet client needs [5][6]. - Recent acquisitions, such as Cupertino, have expanded the company's capabilities into low voltage and behind-the-meter opportunities, enhancing its market position [34][36]. Management's Comments on Operating Environment and Future Outlook - Management believes that the grid needs to double in generation capacity over the next 20 years to meet growing demand, particularly from data centers and onshoring [24][26]. - The company is optimistic about the future, citing strong demand for renewable energy and infrastructure projects, despite potential regulatory changes [50][52]. Other Important Information - The company is focused on training and developing skilled labor to meet future demands, emphasizing the importance of craft in its operations [19][20]. - The company has a robust pipeline of projects and is well-positioned to capitalize on the growing demand for renewable energy and infrastructure solutions [49][50]. Q&A Session Summary Question: What is the breakdown between maintenance CapEx and growth CapEx? - The company indicated that approximately 35% of utility CapEx is for O&M, while 65% is for new builds, reflecting a strong focus on growth [86][88]. Question: How does the company manage cost risk in fixed-price contracts? - Management stated that most work is negotiated, and they have a long track record of executing fixed-price contracts effectively, with an average contract size around $6 million [90][92]. Question: What are the expectations for renewable backlog growth? - The company expects the renewable backlog to grow sequentially, indicating confidence in future project demand and execution capabilities [101].

Q2 2025 Financial Performance - Net sales were $701.7 million, a decrease of 11.5% year-over-year[11] - Net loss was $50.1 million, compared to a net income of $138 million in Q2 2024[11] - Adjusted EBITDA was $116.4 million, a decrease of 45.1% year-over-year[11] - Adjusted diluted EPS was $2.04, a decrease of 50% year-over-year[11] Business Updates - The company achieved net sales of $702 million, including 5% organic volume growth compared to the prior year[10] - A net loss of $50 million includes a $128 million non-cash impairment charge for certain long-lived assets for HDPE pipe and conduit products[10] - The company completed approximately $50 million in share repurchases and $11 million in dividend payments in Q2[10] Segment Performance - Electrical Safety & Infrastructure net sales increased by 3.4% to $209.3 million[22] - Electrical Safety & Infrastructure adjusted EBITDA increased by 41.3% to $36.1 million[22] - Electrical adjusted EBITDA margin increased by 460 bps to 17.2%[22] Outlook - The company is maintaining its full-year 2025 outlook for net sales of $2.85 billion - $2.95 billion[29] - The company is maintaining its full-year 2025 outlook for adjusted EBITDA of $375 million - $425 million[29] - The company is maintaining its full-year 2025 outlook for adjusted diluted EPS of $5.75 - $6.85[29]