Atkore Inc. Reports 10.6% Decline in Q3 Fiscal 2025 Net Sales

Atkore Inc. reported a significant decline in financial performance for the third quarter of fiscal 2025, with net sales dropping to $735.0 million, a decrease of 10.6% from $822.4 million in the same period last year. The decline was primarily driven by reduced average selling prices, which accounted for a $100.5 million decrease in revenue, alongside a $4.2 million impact from divestitures. Despite a slight increase in sales volume of $15.4 million, the overall gross profit fell sharply to $172.1 million, down 38.5% from $279.7 million a year earlier. The company's operating income also suffered, decreasing by 62.1% to $63.8 million, while net income fell to $43.0 million, a 65.2% decline compared to the previous year.

In the nine-month period ending June 27, 2025, Atkore's net sales totaled $2.1 billion, down 13.1% from $2.4 billion in the prior year. This decline was attributed to a $328.1 million decrease in average selling prices, partially offset by a $10.9 million increase in sales volume. The company's gross profit for the nine months also decreased significantly, falling to $528.3 million from $861.8 million, while net income plummeted by 90.2% to $39.2 million. The company recorded asset impairment charges of $127.7 million during this period, which contributed to the overall decline in profitability.

Strategically, Atkore did not engage in any acquisitions during the nine months ended June 27, 2025, but it did divest Northwest Polymers, resulting in a loss of $6.1 million. The company continues to focus on its core segments: Electrical and Safety & Infrastructure, which saw varied performance. The Electrical segment reported a 14.0% decrease in net sales to $521.3 million, while the Safety & Infrastructure segment experienced a smaller decline of 1.4%, with net sales of $214.0 million. Adjusted EBITDA for the Electrical segment fell by 55.5%, while the Safety & Infrastructure segment saw a slight increase of 2.3%.

Operationally, Atkore's total assets decreased to $2.9 billion as of June 27, 2025, down from $3.0 billion at the end of the previous fiscal year. The company reported a cash balance of $331.0 million, with no outstanding borrowings under its asset-based credit facility. Looking ahead, Atkore's management expressed cautious optimism, noting that they expect to leverage their liquidity and operational capabilities to navigate the current market uncertainties, including inflation and supply chain challenges. The company plans to continue focusing on cost management and operational efficiency to improve profitability in the upcoming quarters.