Atkore (ATKR) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales declined 17% year-over-year to $661.6–$662 million, with net income down 66.5%–67% to $46–$46.3 million and adjusted EBITDA down 53.6%–54% to $99–$99.2 million, all within outlook range.

• Adjusted EPS was $1.63, near the top end of guidance but down from $4.12 in the prior year.

• Organic volume declined 5% year-over-year after strong prior-year growth, with import competition and market softness impacting results.

• Growth initiatives in water and global construction services are progressing, with new equipment for PVC and HDPE water products expected online later in FY 2025.

• Management remains focused on cost structure, asset optimization, and capital returns, publishing the 2024 Sustainability Report and advancing ESG goals.

Financial highlights

• Net sales for Q1 2025 were $661.6–$662 million, down 17% year-over-year; adjusted EBITDA was $99–$99.2 million, down 54%.

• Net income was $46–$46.3 million, down 66.5%–67%; adjusted EPS was $1.63, down from $4.12.

• Gross profit dropped 41.1% to $171.1 million; gross margin decreased to 25.9% from 36.4%.

• Free cash flow for Q1 2025 was $33–$33.1 million, down from $113.8–$114 million in Q1 2024.

• Returned $50 million to shareholders via stock repurchases and paid $11 million in dividends in Q1 2025.

Outlook and guidance

• FY 2025 adjusted EBITDA outlook revised to $375–$425 million; adjusted EPS guidance set at $5.75–$6.85.

• Q2 2025 net sales expected at $685–$715 million; adjusted EBITDA $85–$95 million; adjusted EPS $1.30–$1.50.

• Full-year net sales projected at $2.85–$2.95 billion; capital expenditures expected at $100–$125 million.

• Volume growth anticipated across both segments, with incremental margin of 30%–35%.

• Guidance assumes no material benefit from potential tariffs or cyclical improvement in construction markets.