Atkore (ATKR) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales were $655.5 million, a 0.9% decrease year-over-year, primarily due to lower average selling prices and divestitures, partially offset by higher volumes.

• Net income declined 67.6% to $15.0 million, driven by lower operating income, higher costs, and restructuring charges.

• Adjusted EBITDA was $69.1 million, down 30.3% year-over-year, and Adjusted EPS was $0.83, both above guidance but significantly lower than the prior year.

• Organic volume grew 2% year-over-year, led by the Electrical segment, with over $30 million in productivity savings achieved.

• The Tectron mechanical tube product line was divested to focus on core electrical infrastructure.

Financial highlights

• Gross profit fell 26.4% to $125.9 million, with gross margin declining to 19.2% from 25.9% year-over-year.

• Adjusted EBITDA margin for the quarter was 10.5%, down from 15.0% in the prior year.

• Net income per diluted share was $0.44, down from $1.31; adjusted EPS was $0.83, down from $1.63.

• Free cash flow was negative $67.3 million, compared to positive $33.1 million in the prior year quarter.

• Net debt at quarter-end was $317.3 million, with net debt to trailing twelve months adjusted EBITDA at approximately 0.89x.

Outlook and guidance

• FY 2026 net sales outlook is $2.95–$3.05 billion, with adjusted EBITDA guidance of $340–$360 million and adjusted EPS of $5.05–$5.55.

• Guidance reflects a $40–$50 million annual sales reduction from the Tectron divestiture.

• Volume growth for the full year expected to be mid-single digits, with 2H 2026 Adjusted EBITDA expected to be higher than 1H.

• Q2 Adjusted EBITDA expected to be similar to, but slightly better than Q1.

• Capital expenditures expected at $80–$90 million, down $5 million from prior guidance.