Records Impairment Charge related to HDPE Pipe & Conduit Assets
Maintains Outlook for Full-Year Fiscal 2025
New Collective Bargaining Agreement Reached at Harvey, IL Location
Company to Release Q2 Earnings on May 6, 2025
Atkore Inc. (the “Company” or “Atkore”) (NYSE: ATKR), a leading manufacturer of electrical products for commercial, industrial, data center, telecommunications, and solar applications, today announced preliminary estimated results for its quarter ended March 28, 2025, and provided a business update.
Q2 2025 Estimated Results
Based on preliminary results, management expects to report the following results for the quarterly period ended March 28, 2025:
- Net sales of approximately $695 million to $705 million
- Net loss of approximately $(77) million to $(41) million; Adjusted EBITDA of approximately $115 million to $118 million
- Net loss per diluted share of approximately $(1.20) to $(2.24); Adjusted net income per diluted share of approximately $2.01 to $2.08
The Company’s preliminary second quarter estimates reflect mid-single digit volume growth and better than expected manufacturing productivity. The Safety & Infrastructure segment results also include favorable benefits related to construction services projects. The quarterly net loss and diluted loss per share were primarily the result of an asset impairment charge related to High-Density Polyethylene (“HDPE”) assets.
“Our preliminary estimated second quarter results underscore the resilience of our portfolio and the dedication of our team,” said Bill Waltz, Atkore’s President and Chief Executive Officer. “We are confident that our business model and diverse portfolio will enable us to continue to effectively adapt in these dynamic times. Notably, we source and manufacture most of our products in the U.S. and most of our customers operate domestically.”
Impairment Charge Related to HDPE Assets
On April 15, 2025, the Company concluded that an impairment exists for certain long-lived assets related to its HDPE pipe and conduit products, primarily definite-lived intangible assets and fixed assets. This impairment was triggered by the emergence in Q2 of a competing technology for federal stimulus funding, an acceleration of constraints on public spending and adverse market-related conditions during the second quarter, which include delays in the deployment of government stimulus funding for nationwide broadband infrastructure investments, in combination with the Company’s forward-looking cash flow projections.
The Company expects to record a pre-tax non-cash impairment charge of approximately $121 million to $162 million in its second quarter results. This charge is not expected to result in future cash expenditures.
These preliminary estimated results are subject to revision based upon the completion of the Company’s quarter-end financial closing process.
Maintaining Outlook for FY 20251
In conjunction with its second quarter estimates for preliminary results, the Company is maintaining its full-year fiscal 2025 outlook.
- Net sales of approximately $2,850 million to $2,950 million
- Adjusted EBITDA of approximately $375 million to $425 million
- Adjusted net income per diluted share of approximately $5.75 to $6.85
Ratification of Collective Bargaining Agreement at Harvey, IL Location
The Company is pleased to announce that an agreement has been reached with representatives of the United Steelworkers for a new 5-year labor contract for the Company’s Harvey, Illinois facility. The new contract is retroactive to April 2024 which is when the previous contract had expired.
Q2 2025 Earnings Release Date and Conference Call
The Company will release its Second Quarter Fiscal Year 2025 results before the market opens on Tuesday, May 6, 2025. The Company will hold a conference call to discuss the results at 8:00 a.m. (ET) that same day.
The conference call may be accessed by dialing (888) 330-2446 (domestic) or (240) 789-2732 (international). The call will be available for replay until May 20, 2025. The replay can be accessed by dialing (800) 770-2030 for domestic callers, or for international callers, (609) 800-9909. The passcode for the live call and the replay is 5592214.
Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company’s website at https://investors.atkore.com/investors/events-and-presentations/default.aspx. The online replay will be available on the same website following the call.
| ________________________ |
| 1 Reconciliations of the forward-looking full-year 2025 outlook for Adjusted EBITDA and Adjusted net income per diluted share are not being provided as the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliations. Accordingly, we are relying on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K to exclude these reconciliations. |
Discover the latest trends and insights—explore the Business Insights Journal for up-to-date strategies and industry breakthroughs!
