Atkore (ATKR) Citi's Global Industrial Tech & Mobility Conference 2026 summary

Strategic review and portfolio focus

• Undergoing a strategic review, considering options including divestitures and a potential sale, with no set timeline.

• Recent actions include selling the Tectron operation and exploring alternatives for the HDPE business.

• Emphasis on focusing more on the core electrical industry and evaluating ownership of non-core assets.

• Divestitures of underperforming businesses are expected to improve margins and return on invested capital.

• Management remains open-minded about the best long-term outcome for shareholders.

Market trends and business performance

• Data centers, healthcare, manufacturing, and multifamily housing are driving mid-single-digit growth, while single-family residential remains weak.

• Data center and chip manufacturing markets are seeing strong backlogs and direct sales initiatives, with results expected to ramp up in Q3 and Q4.

• Solar business is performing well, with expectations for further growth and efficiency improvements into 2026 and 2027.

• Municipal water segment is ramping up after product certification and local approvals, with potential for significant growth from a small base.

• Channel inventories are considered normal, with seasonal stocking underway and no major destocking or overstocking trends.

Pricing, competition, and cost dynamics

• Maintains a price premium through bundled offerings and strong distributor relationships, though premiums are relative to market pricing.

• Steel conduit imports are down, supporting pricing power, while PVC imports are normalizing.

• Volatility in copper and aluminum prices presents challenges for pricing and cost management, with tariffs impacting aluminum costs.

• Price versus cost headwinds are moderating, with potential for positive trends in the second half of 2026.

• Competitive landscape remains stable, with some advantage from reduced imports and strong value proposition.