10-Q · May 5, 2026
Atkore reported Q2 2026 results with revenues of $731.4 million, surpassing estimates and reflecting a 4.2% year-over-year increase. The company achieved an adjusted EPS of $1.23, exceeding expectations significantly.…
Earnings analysis · 10-Q
ATKR earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Atkore delivered an 8.1% year-over-year revenue increase to $794.8 million, led by 10.9% Electrical growth, and sequentially improved gross margin by 3.6 points to 22.2% and operating margin by 6.7 points to 8.1%.…
Read full summary
Atkore delivered an 8.1% year-over-year revenue increase to $794.8 million, led by 10.9% Electrical growth, and sequentially improved gross margin by 3.6 points to 22.2% and operating margin by 6.7 points to 8.1%. However, margins remained below the prior-year quarter, Safety & Infrastructure EBITDA declined 8.4%, and a $50.0 million litigation settlement drove GAAP diluted EPS down to $0.02 from $1.25. Liquidity is strong, but nine-month operating cash flow was a $90.3 million outflow and the pending $95.00-per-share Prysmian acquisition supersedes a standalone outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.02
What stood out
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Revenue growth led by volumes
Third-quarter net sales rose $59.8 million, or 8.1% year over year, to $794.8 million, driven by $65.7 million of volume growth, $22.4 million of higher average selling prices, and $8.0 million of favorable FX, partly offset by $39.0 million from divestitures.
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Sequential margin and revenue recovery
Revenue increased $63.8 million sequentially from $731.0 million in fiscal Q2 to $794.8 million in fiscal Q3. Gross margin improved to 22.2% from 18.6% sequentially, while operating margin recovered to 8.1% from 1.4%.
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Electrical segment drove the quarter
Electrical revenue increased $57.0 million, or 10.9%, to $578.3 million, and Adjusted EBITDA increased $8.1 million, or 10.0%, to $89.3 million. The segment's sales increase included $62.8 million of volume growth.
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Operating income held year over year
Operating income was essentially stable year over year at $64.0 million, versus $63.8 million, despite $9.8 million of higher transaction and litigation costs within SG&A.
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Liquidity remains ample
Liquidity was substantial at $346.2 million of cash and cash equivalents, plus approximately $325.0 million of availability under the ABL facility; there were no ABL borrowings or letters of credit outstanding.
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Cash merger agreement announced
Atkore agreed to be acquired by Prysmian for $95.00 per share in cash. The company expects cash on hand, operating cash flow, and ABL capacity to fund operations and expected capital expenditures for at least the next 12 months.
What to watch
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Input costs continue to pressure margins
Gross margin contracted 1.2 percentage points year over year to 22.2%, as cost of sales rose 9.9% to $618.5 million, faster than the 8.1% increase in sales. Management attributed the $55.5 million cost increase principally to $48.9 million of higher input costs.
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Litigation and divestiture charges hit GAAP EPS
GAAP net income fell 98.3% to $0.7 million, or $0.02 per diluted share, from $43.0 million a year earlier. The quarter included a $50.0 million PVC antitrust litigation settlement and $12.6 million of other expense, including $10.5 million of loss on the HDPE divestiture.
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Operating cash flow turned negative
For the first nine months, operating cash flow swung to a $90.3 million outflow from $192.4 million of inflow, a $282.7 million deterioration. Management cited $57.9 million of working-capital cash outflows, primarily legal settlements and higher receivables and income taxes, partly offset by lower inventory.
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Safety & Infrastructure profitability declined
Safety & Infrastructure revenue grew only $2.9 million, or 1.3%, to $216.8 million, while Adjusted EBITDA declined $2.6 million, or 8.4%, to $28.1 million and margin fell to 13.0% from 14.4%. Higher input costs outpaced price increases.
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Merger completion and termination-fee risk
The new merger-related risk factors state that the Prysmian transaction may not close by August 3, 2027 and remains subject to stockholder approval and regulatory clearances. If terminated in specified circumstances, Atkore could owe Prysmian an approximately $115.9 million termination fee.
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Pending merger restricts business flexibility
While the merger is pending, contractual restrictions limit actions without Prysmian consent, including strategic and significant financing transactions. The merger agreement permits regular quarterly dividends only up to $0.33 per share, and uncertainty could disrupt customer, supplier, and employee relationships.
Management's outlook
No quantitative outlook was provided in the 10-Q. Management states that the pending Prysmian merger will convert each outstanding share into $95.00 in cash at closing, subject to stockholder and regulatory approvals; the prior earnings release said Atkore would not update or reaffirm its prior financial outlook.
Earlier filings 4
10-Q · February 3, 2026
Atkore reported net sales of $655.5M for the quarter ended December 26, 2025, down slightly from $661.6M a year ago. Margins compressed materially (gross profit $125.9M; gross margin 19.2%), driven in part by a $126.3M…
10-K · November 26, 2025
Atkore positions itself as a leading manufacturer of electrical and safety & infrastructure products with #1 or #2 U.S. share in many product lines and a broad national footprint (38 facilities; ~8.6 million sq. ft.).…
10-Q · August 5, 2025
Atkore reported net sales of $735,045,000 and diluted EPS of $1.25 for the quarter ended June 27, 2025. Gross margin compressed to 23.4% and operating income fell to $63,813,000, while the company generated $192,359,000…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.