Atkore Inc. Reports 11.5% Decline in Net Sales and $50.1 Million Net Loss in Q2 Fiscal 2025

Atkore Inc. reported a significant decline in financial performance for the second quarter of fiscal 2025, with net sales of $701.7 million, down 11.5% from $792.9 million in the same period last year. The decrease was primarily driven by a reduction in average selling prices, which fell by 16.6%, offset slightly by a 4.9% increase in sales volume. Gross profit also saw a substantial drop, decreasing by 36.5% to $185.1 million, while the company recorded an operating loss of $51.8 million compared to an operating income of $178.8 million in the prior year.

The company's financial results were adversely affected by a $127.7 million asset impairment charge related to its HDPE business, which was attributed to adverse market conditions and increased competition. This impairment charge significantly impacted the overall profitability, leading to a net loss of $50.1 million for the quarter, a stark contrast to the net income of $138.0 million reported in the same quarter of the previous year. The effective tax rate also increased to 24.7%, influenced by the impairment charge.

In terms of operational developments, Atkore did not engage in any acquisitions during the reported period but completed the divestiture of Northwest Polymers, resulting in a loss of $6.1 million. The company’s total assets decreased to $2.86 billion from $3.02 billion at the end of the previous fiscal year, primarily due to the impairment charges and the divestiture. The company’s cash and cash equivalents stood at $330.4 million, reflecting a slight decrease from $351.4 million at the end of September 2024.

Geographically, sales in the United States accounted for the majority of revenue, totaling $608.8 million, down from $700.2 million in the prior year. The Electrical segment, which includes products for electrical power systems, reported a 16.6% decline in net sales, while the Safety & Infrastructure segment experienced a modest increase of 3.4%. The company’s employee headcount remained stable, with no significant changes reported.

Looking ahead, Atkore expressed cautious optimism regarding its operational strategies, emphasizing the need to navigate ongoing market uncertainties, including inflation and supply chain disruptions. The company plans to focus on improving operational efficiencies and maintaining liquidity to support future growth initiatives. The Board of Directors has declared a quarterly cash dividend of $0.33 per share, payable on May 28, 2025, indicating a commitment to returning value to shareholders despite the current challenges.