Atkore Inc. Q1 FY2025 earnings call

• Q1 performance was in line with expectations, with net sales of $662M and adjusted EBITDA of $99M. - Focus on growth initiatives related to water and global construction services, on track to come online later in the year. - $50M share repurchase in Q1 and quarterly dividend payment to return cash to shareholders. - Released 2024 Sustainability Report and additional environmental product declarations for core products. - Faced challenges from increased foreign and domestic competition impacting PVC conduit and steel conduit businesses, with volume declines in these segments. - Revised full-year 2025 adjusted EBITDA midpoint to $400M due to greater impact from previously outlined challenges. - Announcement of tariffs on Mexico may positively impact business, but outlook not expecting material benefit from tariffs on imported conduit. - Advancing initiatives to expand in new market areas and prudently reviewing enterprise-wide cost structure to mitigate headwinds. - Improved operational performance in S&I team and Hobart, Indiana facility.

In the first quarter, Atkore achieved net sales of $662 million and adjusted EBITDA of $99 million. Organic volume declined 5% compared to strong volume in Q1 FY2024. The Electrical segment saw adjusted EBITDA margins compressed due to pricing and volume declines. The S&I segment margins declined primarily due to lower volume but improved sequentially from Q4 2024. The plastic pipe and conduit product category declined mid-single digits in Q1 but water-related products are expected to drive growth in the back half. Metal framing, cable management, and construction services grew mid-single digits in Q1, driven by global mega projects and new capacity for metal framing. The plastic pipe category's growth in water-related products is anticipated to contribute to full-year volume growth.

• Full year 2025 expects low to mid-single-digit percentage volume growth. - Q2 net sales expected in range of $685M to $715M, adjusted EBITDA $85M to $95M, adjusted EPS $1.30 to $1.50. - Full year 2025 adjusted EBITDA range $375M to $425M, adjusted EPS range $5.75 to $6.85. - Anticipates back half of the year to be stronger due to spring/summer construction season and ramping up of initiatives.

• Increased foreign and domestic competition affecting PVC conduit and steel conduit businesses, with imports from countries having weak quantity limitations. - Volume declines in PVC and steel conduit due to imports and downstream constraints in utility scale solar market. - Continued headwinds impacting PVC pricing anticipated. - Imported products may not meet specifications, posing safety and compliance concerns.

Q: Elaborate on import competition in PVC and metal conduit volume decline A: Imports of PVC have grown over 20% year-over-year, driving down prices and competition. Metal conduit volume decline is due to tough comparisons, project delays, and new capacity. Forecast for PVC is the worst year for year-over-year declines in decades Q: Break out guidance cut between PVC and steel conduit A: Roughly $75M delta on the PVC side and ~$25M on the steel conduit side, overwhelmingly driven by changes in PVC conduit expectations Q: PVC imports and domestic capacity A: Imports are a significant part, but also some domestic expansion; it's a mix of import growth and domestic market presence expansion Q: Hobart production levels and IRA incentives A: Operations at Hobart are doing well with productivity on track. IRA incentives are bipartisan and unlikely to significantly shift the profit pool as most incentives are passed to customers Q: Profitability reset and Hobart operations A: Profitability reset due to import competition and cost factors. Hobart operations are in a good spot with productivity and speed, now focusing on increasing volume