Atkore International Group Inc (NYSE:ATKR) reported a net loss for the second quarter of fiscal year 2025 due to a significant impairment charge, according to the company’s earnings presentation released on May 6, 2025. Despite the quarterly loss, the company maintained its full-year outlook and highlighted sequential improvement from the first quarter.
Quarterly Performance Highlights
Atkore reported a net loss of $50.1 million for Q2 2025, which included a $128 million non-cash impairment charge related to certain long-lived assets for its HDPE pipe and conduit products. On an adjusted basis, the company delivered earnings per share of $2.04, down 50% from $4.08 in the same quarter last year but up 25% from $1.63 in Q1 2025.
Net sales for the quarter reached $701.7 million, representing an 11.5% decrease from $792.9 million in Q2 2024, but a 6% increase from Q1 2025’s $662 million. The company achieved 5% organic volume growth compared to the prior year, though this was offset by a 16.6% decrease in pricing.
As shown in the following chart of quarterly financial performance:
Adjusted EBITDA came in at $116.4 million, down 45.1% from $211.9 million in Q2 2024 but up 17% from Q1 2025. The adjusted EBITDA margin contracted to 16.6% from 26.7% in the prior-year quarter.
The detailed income statement summary highlights the year-over-year performance changes:
Segment Performance
Atkore’s two business segments showed divergent performance in the quarter. The Electrical segment, which accounted for approximately 70% of total sales, experienced a 16.6% year-over-year decline in net sales to $492.7 million. More concerning was the 53.5% drop in Adjusted EBITDA to $90.9 million, with margins contracting by 1,460 basis points to 18.5%.
In contrast, the Safety & Infrastructure segment delivered positive results with net sales increasing 3.4% to $209.3 million and Adjusted EBITDA surging 41.3% to $36.1 million. The segment’s Adjusted EBITDA margin expanded by 460 basis points to 17.2%.
The segment performance and contributing factors are illustrated in the following chart:
Product Portfolio Performance
Atkore provided insights into the performance of its key product areas, with construction services supporting the data center market driving growth in the Metal Framing, Cable Management & Construction Services category, which represents 26% of fiscal year 2025 year-to-date net sales.
The company’s Plastic Pipe, Conduit & Fittings segment, accounting for 24% of year-to-date sales, experienced a mid-single-digit percentage decline compared to the prior year, reflecting customer targeting efforts within water-related markets.
Metal Electrical Conduit & Fittings, representing 20% of sales, remained flat year-over-year, with the company noting solid market demand leading up to and after enacted tariffs.
The product portfolio breakdown and trends are shown here:
Strategic Initiatives and Capital Allocation
During the quarter, Atkore completed the divestiture of its Northwest Polymers recycling business in February 2025 and ratified a new five-year labor agreement with the United Steelworkers at its Harvey, Illinois facility in April 2025.
The company continued its commitment to shareholder returns by completing approximately $50 million in share repurchases and $11 million in dividend payments during the quarter. Additionally, Atkore’s Board of Directors increased the quarterly cash dividend to $0.33 per share.
The company’s cash flow and balance sheet remain strong, as illustrated in this cash bridge:
Maintained Full-Year Outlook
Despite the quarterly net loss, Atkore maintained its full-year 2025 outlook, projecting net sales of $2.85 billion to $2.95 billion, adjusted EBITDA of $375 million to $425 million, and adjusted diluted EPS of $5.75 to $6.85.
For the third quarter of fiscal 2025, the company expects net sales between $715 million and $745 million, adjusted EBITDA between $85 million and $105 million, and adjusted diluted EPS between $1.25 and $1.75.
The company’s outlook assumes low-single-digit percentage volume growth and anticipates price versus cost to be down $395 million to $435 million for the full year.
The detailed outlook is presented in the following chart:
Market Reaction and Investor Sentiment
Atkore’s stock was trading down 4.78% in premarket activity at $63.69, reflecting investor concerns about the impairment charge and year-over-year performance declines. The stock had closed at $66.89 on May 5, 2025, up 1.5% in the regular trading session.
The company’s shares have traded in a 52-week range of $49.92 to $164.13, highlighting significant volatility over the past year.
Tariff Impacts and Geographic Exposure
Atkore believes tariffs will be a net benefit to the company, given its predominantly U.S.-based operations. According to the presentation, approximately 88% of the company’s net sales and 91% of its long-lived assets are located in the United States.
The company stated it anticipates no material impacts from tariffs and is organizing its supply chain between U.S. and Canadian manufacturing operations to optimize its position.
While Atkore faces near-term challenges, including the impairment charge and pricing pressures, management remains confident in the company’s long-term prospects, citing strong secular tailwinds from renewable energy expansion, grid hardening, digital infrastructure investment, and electrification as drivers for future growth.
Full presentation:
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