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Atkore International Group (ATKR)
NYSE:ATKR
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Atkore International Group (ATKR) AI Stock Analysis

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ATKR

Atkore International Group

(NYSE:ATKR)

Rating:65Neutral
Price Target:
$62.00
â–²(6.55% Upside)
The overall stock score of 65.2 reflects a combination of financial challenges, bearish technical indicators, and a moderate valuation. The earnings call provided some optimism with strong third-quarter results and maintained guidance, but ongoing challenges such as declining margins, price declines, and tariff impacts weigh on the score.

Atkore International Group (ATKR) vs. SPDR S&P 500 ETF (SPY)

Atkore International Group Business Overview & Revenue Model

Company DescriptionAtkore International Group (ATKR) is a leading manufacturer and distributor of electrical, plumbing, and mechanical products, primarily serving the construction and industrial sectors. The company operates through several business segments including Electrical Products, Mechanical Products, and Plumbing Products, offering a wide range of core products such as conduit, fittings, supports, and cable management solutions. With a focus on innovation and quality, Atkore aims to provide high-performance products that enhance safety and efficiency in various applications.
How the Company Makes MoneyAtkore International Group generates revenue primarily through the sale of its extensive product offerings in the electrical, plumbing, and mechanical markets. The company has multiple key revenue streams, including direct sales to contractors, wholesalers, and distributors. Additionally, Atkore benefits from strong relationships with major contractors and builders, which contribute to its consistent sales volume. The company also engages in strategic partnerships and acquisitions to expand its product lines and market reach, further enhancing its earnings potential. Economic trends, construction activity, and infrastructure spending are significant factors influencing Atkore's revenue, as demand for its products is closely tied to these elements.

Atkore International Group Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Nov 14, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view of Atkore's performance. While the company showcased strong third-quarter results, sequential pricing improvements, and solid financial stability, it also faces challenges from price declines in key product categories, tariff impacts, and mixed construction sentiment. The full-year outlook remains optimistic, but future complexities from tariffs and material costs present ongoing challenges.
Q3-2025 Updates
Positive Updates
Strong Third Quarter Performance
Net sales reached $735 million with 2% organic volume growth. Adjusted EBITDA was $100 million, and adjusted EPS was $1.63, achieving results toward the top end of the ranges presented earlier.
Sequential Pricing Improvement
The company experienced a second consecutive quarter of sequential pricing improvement in steel conduit products.
Volume Growth in Key Product Areas
Year-to-date volume growth was observed in metal framing, cable management, and construction services, driven by specific focus areas.
Financial Stability and Cash Flow
Generated $192 million in cash flow from operations year-to-date, with a strong balance sheet and no maturity repayments required until 2028.
Full Year Outlook Midpoint Maintained
Maintained full-year adjusted EBITDA midpoint of $400 million and increased the midpoint of adjusted EPS to $6.50, reflecting improved visibility and stronger earnings leverage.
Negative Updates
Price Declines in Key Product Categories
Average selling prices declined 12% year-over-year, primarily in PVC conduit and steel conduit products.
Tariff Impact on Input Costs
Tariffs are influencing input costs, market pricing dynamics, and demand patterns, causing complexity in future planning.
Mixed Construction Sentiment
The Dodge Momentum Index indicated a slowdown in planning activity across several nonresidential categories, resulting in mixed construction sentiment.
Challenges with Aluminum Tariffs
The expanded aluminum tariffs from 25% to 50% present a new cost challenge for the market, potentially slowing demand activity.
Company Guidance
During Atkore's Third Quarter Fiscal Year 2025 Earnings Conference Call, the company provided guidance indicating strong performance with net sales of $735 million, achieving 2% organic volume growth. Adjusted EBITDA was reported at $100 million, and adjusted EPS reached $1.63, both towards the high end of the previously provided ranges. Despite year-over-year declines in average selling prices, particularly for PVC and steel conduit, the company noted sequential pricing improvement in these categories. Atkore maintained its full-year adjusted EBITDA midpoint at $400 million and raised its adjusted EPS midpoint to $6.50, reflecting improved earnings visibility. Looking into FY '26, they anticipate headwinds due to lower selling prices and tariffs, estimating approximately $50 million of unmitigated headwinds. The company is actively evaluating strategies to mitigate these impacts, ensuring continued focus on growth and productivity through its business system.

Atkore International Group Financial Statement Overview

Summary
Atkore International Group faces challenges in maintaining revenue and profitability, as evidenced by declining margins and revenue growth. While the balance sheet remains stable with a manageable debt level, the significant drop in return on equity raises concerns about the company's ability to efficiently generate profits. Cash flow generation is adequate, but the negative growth in free cash flow indicates potential liquidity issues. Overall, the company needs to address its declining profitability and improve operational efficiency to enhance financial performance.
Income Statement
65
Positive
Atkore International Group's income statement shows a declining trend in revenue and profitability. The TTM data indicates a negative revenue growth rate of -2.94%, and margins have significantly decreased compared to previous years. The gross profit margin has dropped from 41.90% in 2022 to 25.79% in TTM, and the net profit margin has decreased from 23.34% to 3.89%. This decline in profitability suggests challenges in maintaining cost efficiency and pricing power.
Balance Sheet
72
Positive
The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.62 in TTM. The equity ratio remains healthy, indicating a solid capital structure. However, the return on equity has decreased from 73.09% in 2022 to 7.59% in TTM, highlighting a significant reduction in profitability relative to shareholder equity. This suggests potential inefficiencies in utilizing equity to generate profits.
Cash Flow
68
Positive
Cash flow analysis reveals a decline in free cash flow growth, with a negative growth rate of -19.26% in TTM. The operating cash flow to net income ratio is 0.77, indicating a moderate level of cash generation relative to net income. The free cash flow to net income ratio of 0.67 suggests that the company is generating sufficient cash to cover its net income, but the declining trend in free cash flow growth is a concern.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.89B3.20B3.52B3.91B2.93B1.77B
Gross Profit744.33M1.08B1.34B1.64B1.13B491.31M
EBITDA285.68M774.03M1.02B1.33B905.97M331.33M
Net Income112.36M472.87M689.90M913.43M587.86M152.30M
Balance Sheet
Total Assets2.92B3.02B2.94B2.60B2.21B1.56B
Cash, Cash Equivalents and Short-Term Investments331.02M351.38M388.11M388.75M576.29M284.47M
Total Debt910.60M951.20M884.43M832.30M800.41M843.66M
Total Liabilities1.45B1.48B1.47B1.35B1.35B1.18B
Stockholders Equity1.47B1.54B1.47B1.25B864.74M378.41M
Cash Flow
Free Cash Flow261.75M399.17M588.75M651.06M508.43M214.99M
Operating Cash Flow391.44M549.03M807.63M786.84M572.90M248.76M
Investing Cash Flow-112.96M-154.34M-302.15M-442.80M-97.96M-27.51M
Financing Cash Flow-253.84M-435.28M-506.78M-524.21M-184.46M-61.18M

Atkore International Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price58.19
Price Trends
50DMA
67.61
Negative
100DMA
66.02
Negative
200DMA
70.77
Negative
Market Momentum
MACD
-2.72
Negative
RSI
39.52
Neutral
STOCH
62.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATKR, the sentiment is Negative. The current price of 58.19 is below the 20-day moving average (MA) of 58.33, below the 50-day MA of 67.61, and below the 200-day MA of 70.77, indicating a bearish trend. The MACD of -2.72 indicates Negative momentum. The RSI at 39.52 is Neutral, neither overbought nor oversold. The STOCH value of 62.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATKR.

Atkore International Group Risk Analysis

Atkore International Group disclosed 50 risk factors in its most recent earnings report. Atkore International Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Atkore International Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$3.85B11.7119.13%0.94%3.73%32.29%
80
Outperform
$3.21B18.4834.00%0.40%14.32%33.76%
80
Outperform
$14.55B25.727.53%0.87%-4.84%2.33%
75
Outperform
$5.64B67.917.04%0.27%8.49%-7.65%
74
Outperform
$940.99M22.329.66%0.42%7.95%4.48%
65
Neutral
$1.96B18.687.29%2.23%-12.09%-78.18%
64
Neutral
$10.75B15.738.16%1.99%2.83%-14.82%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ATKR
Atkore International Group
58.19
-27.28
-31.92%
AEIS
Advanced Energy
149.68
52.25
53.63%
ENS
EnerSys
102.65
5.11
5.24%
POWL
Powell Industries
266.16
113.64
74.51%
PLPC
Preformed Line Products Company
191.07
74.99
64.60%
NVT
nVent Electric
90.39
28.26
45.49%

Atkore International Group Corporate Events

Executive/Board ChangesFinancial Disclosures
Atkore Reports Q3 Sales Decline Amid Leadership Change
Negative
Aug 5, 2025

Atkore Inc. reported its fiscal 2025 third-quarter results, showing a 10.6% decline in net sales to $735 million compared to the previous year, primarily due to decreased selling prices and divestitures. Despite these challenges, Atkore maintained its full-year Adjusted EBITDA outlook and increased its adjusted net income per diluted share midpoint, while CEO Bill Waltz announced his retirement, emphasizing a seamless leadership transition.

Executive/Board ChangesBusiness Operations and Strategy
Atkore CEO William Waltz Announces Retirement Plans
Neutral
Aug 5, 2025

On August 5, 2025, Atkore Inc. announced that its CEO and President, William E. Waltz, Jr., plans to retire, with the company initiating a search for his successor. Waltz, who has been with Atkore for 12 years and served as CEO for seven, expressed pride in the company’s achievements and commitment to its strategic goals. Under his leadership, Atkore expanded its product portfolio to meet growing demands in electrification and digitization, contributing to the company’s strong foundation. The Board of Directors acknowledged Waltz’s contributions and emphasized the company’s continued commitment to its mission and smooth leadership transition.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025