Executives from Atkore (NYSE:ATKR) said the company’s fiscal first-quarter performance came in slightly above expectations, but management reiterated its full-year outlook as it continues to anticipate a more typical seasonal pickup and company-specific growth drivers in the second half of the fiscal year.
Speaking at a recent investor event, Chief Financial Officer John Deitzer and Vice President of Treasury and Investor Relations Matt Kline discussed volume trends, pricing dynamics, end-market indicators, productivity initiatives, and the status of the company’s ongoing strategic review.
First-quarter performance and full-year cadence
Management also pointed to productivity and operational efficiency as key positives in the quarter. Deitzer noted, however, that the first quarter included some isolated productivity and efficiency benefits that are not expected to repeat in future quarters.
On pricing, Deitzer said average selling prices (ASPs) declined about 2.5%–3% in the first quarter, but emphasized that the pace of decline has moderated significantly versus prior periods. He compared the current decline to steeper drops in the prior year’s first quarter (around 12%–13%) and second quarter (around 16%–17%), framing the change as part of a “multi-year journey of pricing normalization.”
Why management expects a stronger second half
Deitzer said the company’s business—primarily tied to non-residential construction—typically exhibits seasonality, with higher volumes in spring and summer. With Atkore’s fiscal year ending September 30, he said the company expects a “more normal seasonal ramp” in the second half compared with recent years that were affected by disruptions such as COVID and other market events.
Beyond seasonality, management outlined several Atkore-specific factors supporting the back-half weighting:
- Solar torque tube growth: Deitzer said the company expects its solar torque tube business to grow in calendar 2026, supported by operational improvements and prior investments in a Northwest Indiana facility. He characterized solar as a business that has seen “ups and downs” but said the company believes its execution is now better aligned with market conditions.
- Construction services project activity: The executives described a construction services offering that spans engineering and design, manufacturing (notably in metal framing and cable tray), off-site assembly near projects, and on-site assembly. Deitzer said the company has line of sight to several large projects—such as data centers and chip manufacturing facilities—that are expected to ramp in the back half of the year.
- Capacity and capability investments: Management also referenced prior investments that are expected to contribute to second-half performance.
Deitzer added that metal framing, cable management, and construction services together represent “roughly north of 25%” of company sales and have become the company’s largest product category, but can be “lumpy” depending on the timing of major projects.
Backlog visibility varies by business
Asked about how much of the expected second-half activity is already secured, management said customer practices differ, ranging from purchase orders to other forms of working agreements. Deitzer said market feedback for both solar and construction has supported expectations.
He contrasted that with the company’s traditional North American electrical business—about 75% of sales—which he described as typically carrying only two to three weeks of backlog. To extend visibility beyond that, he said the company triangulates using contractor backlog data, distributor feedback, and other market indicators.
Market indicators, pricing and imports
In discussing the Dodge Momentum Index and other construction indicators, management cautioned against overreacting to month-to-month changes. Deitzer said data centers remain the fastest-growing part of the market and continue to dominate the largest projects entering planning. He described other segments as mixed, citing healthcare as growing but still not back to pre-COVID levels, offset by weakness in office construction and multifamily.
On the relationship between price and cost, Deitzer said Atkore’s key raw material inputs include steel, PVC resin, copper, aluminum, and zinc, each of which can move independently and affect cost of goods sold. He described three main drivers behind ASP dynamics:
- Atkore’s value proposition and ability to sell a bundled product portfolio through its regional service centers
- Supply-demand dynamics in specific product categories
- Raw material movements
Deitzer also highlighted recent volatility in copper prices and said that can influence distributor and contractor purchasing behavior, noting Atkore’s position as a top player in armored cable.
On imports, Kline said steel conduit imports from Mexico peaked at more than 25% market share a little over a year ago, but have since declined to the “high to mid-teens” after 50% tariffs took effect, with the tariff approaching its one-year anniversary in June. Kline said the decline in imports has coincided with a period in which Atkore has been able to raise selling prices for steel-related products in line with steel input costs.
For PVC conduit, Kline said imports represent less than 10% of the market and have remained roughly in the 6%–9% range, with no sizable reduction. He added that imports are concentrated in Latin American countries and said the company continues to monitor tariff-related developments, noting uncertainty around potential changes to tariff policy.
Productivity actions and strategic review
Deitzer provided an update on facility consolidation efforts announced at the end of the prior fiscal year. He said the company planned to stop manufacturing at three U.S. facilities by the end of March and that the projects are “largely on track,” with some cleanup work extending into the third quarter. Management expects modest benefits to begin in the fourth quarter, with a larger benefit carrying into fiscal 2027.
He estimated the facility closures will generate approximately $10 million to $12 million of annualized benefit, with some realized late in the current fiscal year and a “good portion” in fiscal 2027.
In the first quarter, Deitzer said the company delivered roughly $30 million of year-over-year operational cost savings, though he attributed $5 million to $10 million of that to isolated items tied to the construction services business or cost avoidance linked to a facility slated for closure. He said the company remains positive on productivity for the year, but does not expect the same level of benefit each quarter.
On the strategic review, Deitzer said there was “not much to update,” reiterating that Atkore is evaluating a broad range of alternatives. He referenced actions already taken, including the previously announced Tectron Tube divestiture, along with facility closures and cost-reduction initiatives. He added that the review has expanded to include consideration of the “entire enterprise,” and said the company is still evaluating options.
About Atkore (NYSE:ATKR)
Atkore International Group Inc (NYSE: ATKR) is a diversified global manufacturer of electrical raceway and mechanical products, serving a broad range of end markets including commercial construction, industrial facilities and energy infrastructure. The company’s electrical product portfolio encompasses conduit, tubing, fittings, connectors and cable management systems designed for use in residential, commercial and industrial wiring applications. On the mechanical side, Atkore offers pipe support solutions, seismic bracing, HVAC hangers and other mechanical products that address critical building and process piping needs.
Founded as a family-owned business before its reorganization into a standalone public company in 2016, Atkore has grown through both organic investment and targeted acquisitions.
