HARVEY, Ill. — Atkore Inc. (the “Company” or “Atkore”) announced earnings for its fiscal 2026 second quarter ended March 27, 2026.
“We were pleased with our second quarter results. We delivered approximately 5% year-over-year organic volume growth and solid productivity gains. In addition our net sales, Adjusted EBITDA and Adjusted EPS all improved sequentially versus our first quarter results,” said Bill Waltz, Atkore President and Chief Executive Officer. “These operating results reflect improvements from our own internal initiatives as well as benefits from solid end-market demand.”
Waltz continued, “Over the past few months, we have also completed several actions related to our broader review of strategic alternatives. We have now finalized the three plant closures previously announced, and we have recently divested both our High-Density Polyethylene Pipe & Conduit (“HDPE”) business as well as our surface protection and powder coatings business in Belgium. Each of these completed actions represent our commitment to support the electrical infrastructure market which we believe will enable long-term shareholder value creation.”
Net sales increased by $29.7 million, or 4.2%, to $731.4 million for the three months ended March 27, 2026, compared to $701.7 million for the three months ended March 28, 2025. The increase in net sales is primarily attributed to increased sales volume of $32.3 million, increased average selling prices of $10.2 million and foreign exchange benefits of $8.2 million partially offset by the impact of divestitures of $12.6 million.
Gross profit decreased by $49.0 million, or 26.5%, to $136.1 million for the three months ended March 27, 2026, as compared to $185.1 million for the prior-year period. Gross margin decreased to 18.6% for the three months ended March 27, 2026, as compared to 26.4% for the prior-year period. Gross profit decreased primarily due to increased input costs of $82.1 million outpacing increases in average selling prices of $10.2 million.
Net loss decreased by $74.0 million, or 147.9%, to a net loss of $124.1 million for the three months ended March 27, 2026 compared to $50.1 million of net loss for the prior-year period. The decrease was primarily due to lower gross profit of $49.0 million, increased litigation settlement expense of $136.5 million, increased other expense related to loss on assets held for sale of $19.2 million and increased selling, general and administrative expense of $8.9 million, partially offset by decreased asset impairment charges of $116.2 million and increased income tax benefit of $18.2 million.
Adjusted EBITDA decreased by $35.4 million, or 30.4%, to $81.1 million for the three months ended March 27, 2026 compared to $116.4 million for the three months ended March 28, 2025. The decrease was primarily due to lower gross profit.
Net loss per diluted share prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) was $(3.65) for the three months ended March 27, 2026, as compared to $(1.46) in the prior-year period. The decrease in diluted earnings per share is primarily due to the impact of lower gross margin, litigation settlement expense and losses on assets held for sale. Adjusted net income per diluted share decreased by $0.81 to $1.23 for the three months ended March 27, 2026, as compared to $2.04 in the prior year period.
Segment Results
Electrical
Net sales increased by $39.8 million, or 8.1%, to $532.5 million for the three months ended March 27, 2026 compared to $492.7 million for the three months ended March 28, 2025. The increase in net sales is primarily attributed to increased sales volume of $28.4 million, foreign exchange benefits of $8.0 million and increased average selling prices of $6.5 million.
Adjusted EBITDA for the three months ended March 27, 2026 decreased by $16.6 million, or 18.2%, to $74.4 million from $90.9 million for the three months ended March 28, 2025. Adjusted EBITDA margin decreased to 14.0% for the three months ended March 27, 2026 compared to 18.5% for the three months ended March 28, 2025. The decrease in Adjusted EBITDA and Adjusted EBITDA margin was largely due to increases in input costs outpacing increases in average selling prices.
Safety & Infrastructure
Net sales decreased by $10.2 million, or 4.9%, for the three months ended March 27, 2026 to $199.1 million compared to $209.3 million for the three months ended March 28, 2025. The decrease is primarily attributed to the impact of recent divestitures of $9.5 million and higher solar credit rebates of $8.5 million, partially offset by increased sales volume of $3.9 million and an increase in average selling prices of $3.7 million.
Adjusted EBITDA decreased by $18.8 million, or 52.0%, to $17.3 million for the three months ended March 27, 2026 compared to $36.1 million for the three months ended March 28, 2025. Adjusted EBITDA margin decreased to 8.7% for the three months ended March 27, 2026 compared to 17.2% for the three months ended March 28, 2025. The decrease in Adjusted EBITDA and Adjusted EBITDA margin was largely due to higher input costs.
Divestitures
On April 8, 2026, Atkore completed the sale of its HDPE business to Infra Pipes. Under the terms of the sales agreement, Atkore contributed its HDPE business and retained a 10% equity stake in the combined entity. In addition to contributing the HDPE business, Atkore will capitalize the combined business with approximately $28 million in cash over time.
On April 30, 2026, the Company completed the sale of its Vergo Coating SRL and Vergo Galva NV businesses in Belgium.
Legal Settlements
On April 28, 2026, the Company entered into settlement agreements (the “Settlement Agreements”) with two of the three putative classes in a case captioned In re PVC Pipe Antitrust Litigation (“Class Action Litigation”). These two classes were the Direct Purchaser Plaintiffs (“DPP Plaintiffs”) and the Non-Converter Seller Purchaser Plaintiffs (“NCSP” Plaintiffs) (together, the “DPP and NCSP Plaintiffs”), individually and on behalf of the putative DPP and NCSP Plaintiff class members. The Settlement Agreements totaled $136.5 million and was recognized in the Company’s financial statements for the quarter ended March 27, 2026.
Liquidity & Capital Resources
On April 30, 2026, Atkore’s Board of Directors approved a quarterly dividend payment of $0.33 per share of common stock payable on May 29, 2026 to stockholders of record on May 19, 2026.
Full-Year Outlook1
The Company is maintaining its estimated range for fiscal year 2026 Adjusted EBITDA at $340 to $360 million, and Adjusted net income per diluted share at $5.05 to $5.55.
The Company notes that this perspective may vary due to changes in assumptions or market conditions and other factors described under “Forward-Looking Statements.”