Atkore's Long-Awaited Inflection: Growth Returns Amid Strategic Reshaping
First net sales growth since fiscal 2022, divestitures and a data-center tailwind, but the PVC antitrust shadow looms.
ATKR · Earnings Call · 2026-05-05
The Tape Turns
Atkore's stock has been a serial disappointment since peaking in April 2024, but the last 90 days tell a different story: a +38% rally, the sharpest move since the pandemic recovery. The multiple is re-rating even as the company sits 51% below its high. This isn't just a mean-reversion—the business is demonstrating genuine growth after two years of decline. The Price-to-Revenue multiple has climbed from ~0.5x to ~0.7x.Q2: The First Growth Quarter Since 2022
Net sales rose 4% year-over-year to $731M, the first quarterly increase since fiscal Q4 2022. Organic volumes grew 5% with both Electrical and S&I segments contributing. Adjusted EBITDA came in at $81M and adjusted EPS at $1.23, both sequentially better than Q1. “We are pleased to see a year-over-year improvement in our net sales, which reflects increases in both organic volumes and average selling prices.” — John Deitzer, Chief Financial Officer · 2026-05-05 The gross margin, however, remains under pressure, falling 7.8 points year-over-year to 18.6%. Margin compression from PVC pricing and raw-material cost inflation persists. Operating income swung to a loss, driven by the $136.5M PVC antitrust settlement and impairment charges related to strategic divestitures.Strategic Self-Help: Divestitures and Refocus
Management has executed a comprehensive pruning of the portfolio. Since Q1, Atkore ceased manufacturing at three U.S. facilities, divested the HDPE business (retaining a 10% stake), and sold its surface protection and powder-coating operations in Belgium. Combined with the earlier Tectron tube and Northwest Polymers exits, these actions sharpen focus on the electrical infrastructure market. “As we reflect on actions taken to date, we remain committed to utilizing the Atkore Business System to create shareholder value by improving operational performance, delivering consistent productivity and serving our customers with a highly diverse electrical infrastructure portfolio.” — John Pregenzer, Chief Operating Officer and President of Electrical · 2026-05-05 The divestiture program is part of a broader strategic review that continues to consider "all options," with the board not locking into any timeline.Data Centers and Solar Drive the Volume Story
The growth is being led by products tied to data center growth—metal framing, cable management, and Construction Services—which grew ~10% last year and are again growing low-single-digits despite the tough comp. “data centers are double-digit growth” — William Waltz, President and CEO · 2026-05-05 Bill Waltz noted. John Pregenzer added that data centers are a "big part" of what Atkore does globally and will drive much of the second-half growth. Solar torque tubes are also picking up. Management reaffirmed mid-single-digit volume growth for fiscal 2026, echoing prior commentary: “the product lines that line up with data centers in our portfolio, we see them growing in those type of rates” — John Pregenzer, Chief Operating Officer and President of Electrical · 2025-11-20.Pricing: Steel Positive, PVC Still a Drag
Average selling prices rose 1.5% in the quarter, with steel conduit and cable prices up while PVC-related products declined. Raw materials are mixed: steel costs are higher sequentially, copper and aluminum hit the cable business (about 17% of sales), and PVC resin remains elevated. Management expects to hold guidance, implying it can pass through these costs. Imports from Mexico for steel conduit have fallen from the low-20s market share to mid-teens, a tailwind. “there's been a continual steady decline in imports month-over-month, specifically from Mexico” — William Waltz, President and CEO · 2026-05-05 John Pregenzer said. This is a shift from prior quarters when imports were a persistent overhang.The Bottom Line
Atkore is emerging from a painful two-year downcycle with a leaner portfolio, renewed growth, and a clear tailwind from electrification and data centers. The antitrust settlement removes a major overhang. The stock's recent 38% rally suggests the market is beginning to price in the turnaround.we are on track to deliver mid-single-digit organic volume growth for the full year. This represents how we see the broader market performing and contributions from several key initiatives.