Atkore (ATKR) Q4 2024 earnings summary

Executive summary

• Achieved 3.5% organic volume growth in FY 2024, with growth across all key product categories and product vitality in the low double digits as a percentage of net sales.

• Returned over 50% of operating cash flow to shareholders via $380M in share repurchases and $34M in dividends, initiating a new quarterly dividend program.

• Expanded service footprint with new regional centers in Texas and Georgia, now covering all customers nationally.

• Maintained a strong balance sheet with a total debt leverage ratio of ~1x and no repayments due until 2028.

• Released environmental product declarations and received multiple ESG, employer, and product awards.

Financial highlights

• FY 2024 net sales were $3.2B, adjusted EBITDA $772M, and adjusted EPS $14.48, all down year-over-year.

• Q4 2024 net sales were $788M, adjusted EBITDA $140M, and adjusted EPS $2.43, with significant year-over-year declines.

• Adjusted EBITDA margin for FY 2024 was 24.1%, down 550 bps from prior year.

• Free cash flow for FY 2024 was $399.2M, down from $588.7M in 2023.

• Net sales increased $123M year-over-year due to volume growth, but average selling price decreased by $406M.

Outlook and guidance

• FY 2025 guidance: net sales $2.9–$3.2B, adjusted EBITDA $475–$525M, adjusted EPS $7.80–$8.90.

• Q1 2025 guidance: net sales $655M–$705M, adjusted EBITDA $95M–$105M, adjusted EPS $1.45–$1.65.

• Expect low to mid-single digit volume growth, but anticipate continued year-over-year pricing headwinds, especially in PVC and steel conduit.

• Price versus cost expected to be more unfavorable than previously forecast, with new domestic competition and import pressures.

• Capital expenditures expected at $100M–$125M in FY 2025; share repurchases to exceed $150M.