Atkore Inc. Reports 8.1% Revenue Growth in Q3 2026 Amid Significant Net Income Decline

Atkore Inc. reported its financial results for the third quarter of fiscal 2026, revealing a net sales increase of 8.1% to $794.8 million, compared to $735.0 million in the same period last year. The growth was primarily driven by a rise in sales volume, which contributed $65.7 million, alongside increased average selling prices of $22.4 million and foreign exchange benefits of $8.0 million. However, the impact of divestitures reduced sales by $39.0 million. Despite the revenue growth, the company experienced a net income of $745, a significant decline from $42.9 million in the prior year, largely due to a $50 million litigation settlement expense related to ongoing antitrust litigation.

For the nine months ending June 26, 2026, Atkore's net sales reached $2.18 billion, up 4.0% from $2.10 billion in the previous year. The increase was attributed to a $113.3 million rise in sales volume and a $14.6 million increase in average selling prices, offset by a $56.8 million impact from divestitures. However, the company reported a net loss of $108.3 million for the nine-month period, a stark contrast to the $39.2 million profit recorded in the same timeframe last year. This loss was influenced by a significant increase in costs, including a 11.0% rise in cost of sales, which totaled $1.74 billion.

Operationally, Atkore has undergone significant changes, including the divestiture of its High-Density Polyethylene (HDPE) pipe business and the sale of Vergo Galva NV and Vergo Coating SRL. The HDPE business was sold for a 9.9% equity interest in Infra Pipes U.S. Corp, valued at $54 million, and contingent consideration of up to $28 million based on future performance. The divestitures resulted in losses of $10.5 million and $1.2 million, respectively, impacting the overall financial performance. The company also reported a decrease in its employee headcount due to restructuring efforts aimed at optimizing operations.

Looking ahead, Atkore has entered into a merger agreement with Prysmian S.p.A., which will see Atkore merge into a wholly-owned subsidiary of Prysmian, with shareholders receiving $95.00 per share in cash. The merger is subject to customary closing conditions, including regulatory approvals and shareholder votes. The company anticipates that the merger will provide a strategic advantage and enhance its market position, although it remains cautious about potential market uncertainties, including inflation and geopolitical tensions that could affect operations.

In summary, while Atkore Inc. has shown revenue growth in its latest quarter, the financial results reflect challenges, including increased costs and significant litigation expenses. The ongoing strategic divestitures and the proposed merger with Prysmian signal a transformative phase for the company as it navigates a complex market landscape.