Q3 2025 Atkore Inc Earnings Call

You, you may begin.

Matthew Kline: Thank you and good morning, everyone. I am joined today by Bill Waltz, President and CEO, John Deitzer, Chief Financial Officer, and John Pregenzer, Chief Operating Officer and President of Electrical. We will take questions at the conclusion of the call. I would like to remind everyone that during this call, we may make projections or forward-looking statements regarding future events or from financial performance of the company. Such statements involve risks and uncertainties such that actual results may differ materially. Please refer to our SEC filings and today's press releases, which identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. In addition, any reference in our discussion today to EBITDA means adjusted EBITDA, and any reference to EPS or adjusted EPS means adjusted diluted earnings per share. Adjusted EBITDA and adjusted diluted earnings per share are non-GAAP measures.

Thank you and good morning everyone.

I'm joined today by Bill, Waltz president and CEO.

John diter Chief Financial Officer and John penser Chief Operating Officer and president of Electrical.

We will take questions at the conclusion of the call.

I would like to remind everyone that during this call, we may make projections or forward-looking statements regarding future events or from financial performance of the company.

Such statements involve risks and uncertainties such that actual results may differ materially.

Please refer to our FCC filings in. Today's press releases, which identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements.

In addition, any reference in our discussion today to IBIDA means adjusted IBIDA. And any reference to EPS, or adjusted EPS, means adjusted, diluted earnings per share.

Matthew Kline: Reconciliations of non-GAAP measures and a presentation of the most comparable GAAP measures are available in the appendix to today's presentation. With that, I will turn it over to Bill.

Adjusted IBAA and adjusted diluted earnings per share are non-GAAP measures.

Reconciliations of non-gaap measures and a presentation of the most comparable gaap measures are available in the appendix to today's presentation.

William Waltz: Thanks, Matt, and good morning, everyone. Thank you for joining us today for our fiscal 2025 third quarter earnings call. Before I address our third quarter results, I want to discuss the announcement made earlier today. I have informed the board of my decision to retire from Atkore Inc. After much reflection, I know that now is the time to start a new phase of my life with my family. I have had the privilege of spending 12 years with Atkore Inc., including seven as CEO, as part of a 40-year career. I am proud of all the accomplishments that the team has achieved. Although the work is never fully complete, it is time for the board to engage their succession planning process. The board supports me in this decision. I am focused on a seamless transition and plan to lead Atkore Inc.

With that, I'll turn it over to Bill.

Thanks, Matt. And good morning everyone. Thank you for joining us today. For our fiscal 2025, third quarter earnings call

Before I address our third quarter results, I want to discuss the announcement made earlier today.

I've informed the board of my decision to retire from aore after much reflection. I know that now is the time to start a new phase of my life with my family.

I've had the privilege of spending 12 years with aitor including 7 as CEO as part of a 40-year career. I'm proud of. All the accomplishments of the team has achieved. All the work is never fully complete. It is time for the board to engage their succession planning process. The board supports me in this decision.

William Waltz: in my current role until a successor is appointed. Our strength as a company has always come from our strategy, process, and most importantly, our people, and that will not change. Our Atkore Inc. business system is about the team, and I have the utmost confidence in what our teams can achieve going forward. While we are making this announcement today, I am committed as ever to our strategy, our nearly 5,600 employees, and our shareholders until the next CEO is appointed. With that, I will turn to our third quarter results starting on slide three. We delivered strong performance in the quarter, achieving net sales, adjusted EBITDA, and adjusted EPS toward the top end of the ranges we presented in May. Our net sales of $735 million included 2% organic volume growth. Beyond our volume growth, results were supported by continued productivity gains, particularly in our S&I segment.

I am focused on a seamless transition and plan to lead a core in my current role until a successor is appointed.

Our strength as a company has always come from our strategy process and most importantly our people and that will not change our. Our Core Business System is about the team and I have the utmost confidence in what our teams can achieve going forward.

While we are making this announcement today, I am committed as ever to our strategy, our nearly 5600 employees and our shareholders until the next CEOs. Appointed with that, I'll turn to our third quarter results. Starting on slide 3.

We delivered strong performance in the quarter achieving net, sales adjusted, EBA and adjusted EPS toward the top. End of the ranges. We presented in May our net sales of 735 million included, 2%, organic, volume growth,

William Waltz: Year-over-year declines in average selling prices were in line with our expectations, and we are pleased to see a second consecutive quarter of sequential pricing improvement in our steel conduit products. As we started our third quarter this past April, we were just beginning to operate in a new tariff environment. Over the last 90 days, the environment has continued to evolve with multiple modifications to initial tariffs and the introduction of new ones. Notably, imported steel conduit and PVC products volumes have both declined year over year in the third quarter compared to the prior year. As we started the third quarter, the Dodge Momentum Index indicated a slowdown in planning activity across several non-residential categories. Since then, construction sentiment has been mixed. We've observed pockets of strength in certain verticals, while other key sectors have been more subdued.

The honor of volume growth results were supported by continued productivity gains, particularly in our Sni. Segment year-over-year declines in average selling prices were in line with our expectations and we are pleased to see a second consecutive quarter a sequential pricing approvement and our steel conduit products.

As we started our third quarter this past April, we were just beginning to operate in the new tariff environment over the last 90 days. The environment has continued to evolve with multiple modifications to initial tariffs and the introduction of new ones.

Notably imported steel conduit and PVC conduit volumes. Have both declined year-over-year in the third quarter compared to the prior year.

As we started the third quarter, the Dodge, momentum index, indicated a Slowdown in planning activity across several non-residential categories.

William Waltz: Tariffs are influencing not just input costs, but also market pricing dynamics and broader demand patterns. Taking all this into account, we are maintaining our full-year adjusted EBITDA midpoint of $400 million and are raising the midpoint of our adjusted EPS to $6.50, reflecting improved visibility and stronger earnings leverage. Looking ahead to FY26, we continue to refine our estimates. We anticipate several headwinds, some of which have been previously communicated, such as the expected year-over-year impact from lower selling prices. Others, like the broader tariff effects, which have both direct and indirect elements, have emerged more recently and introduced greater complexity. We expect these pressures to persist into next year, and we are actively evaluating various levers to help mitigate their impact. In closing, I want to thank our teams across the organization for their continued execution and discipline.

Since then construction sentiment has been mixed. We've observed pockets of strength. In certain verticals while other key sectors have been more subdued.

Are maintaining our full year adjusted e betta midpoint of 400 million and are raising the midpoint of our adjusted EPS to 6.50 reflecting improved visibility in stronger earnings Leverage.

Looking ahead to FY 2026, we continue to refine our estimates.

We anticipate several headwinds, some of which have been previously communicated, such as the expected year-over-year impact from lower selling prices.

Others like the broader tariff effects, which have both direct and indirect elements have emerged more recently in introduced greater complexity.

We expect these pressures to persist into next year and we are actively evaluating various flavors to help mitigate their impact.

William Waltz: Their dedication to the Atkore business system remains central to how we deliver value to our customers and shareholders. With that, I'll turn the call over to John Deitzer to talk through the results from the quarter in our full-year outlook.

In closing, I want to thank our teams across the organization for their continued, execution and discipline, their dedication, to the actor business system, remains Central, to how we deliver value to our customers and shareholders.

John Deitzer: Thank you, Bill, and good morning, everyone. Moving to our consolidated results on slide four. In the third quarter, we achieved net sales of $735 million and adjusted EBITDA of $100 million. Adjusted EPS was $1.63. Turning to slide five in our consolidated bridges, organic volumes increased 2% compared to the third quarter of fiscal 2024. Average selling prices declined 12% year over year, driven primarily by our PVC conduit and steel conduit products. These year-over-year price declines for both product categories were expected, and as Bill mentioned, we are pleased to report the second consecutive quarter of sequential pricing improvement in our steel conduit products. We also saw sequential pricing improvement across the enterprise, including for electrical cable and flexible conduit, mechanical, and metal framing products. However, pricing has not kept pace with raw material cost increases.

With that, I'll turn the call over to John Dyer to talk through the results from the quarter and our full-year outlook.

Thank you, Bill, and good morning everyone.

Moving to our Consolidated results on slide 4.

In the third quarter, we achieved net sales of 735 million in adjusted ebata of 100 million dollars. Adjusted EPS was $163.

Turning to slide 5 and our Consolidated Bridges.

Organic volumes increased 2% compared to the third quarter of fiscal 2024.

Average selling prices decline. 12% year-over-year, driven primarily by our PVC, conduit and steel conduit products.

These year-over-year price declines for both product categories were expected. And, as Bill mentioned, we are pleased to report the second consecutive quarter of sequential pricing improvement in our steel and conduit products.

We also saw sequential pricing Improvement across the Enterprise, including for electrical cable and flexible, conduit mechanical and metal Framing Products.

John Deitzer: This has been particularly true with respect to copper, which has seen cost volatility for most of the quarter. Moving to slide six, year to date, our volume is now up slightly, having been flat for the first six months compared to the prior year. Our year-to-date volume reflects growth across three product areas. Our metal framing, cable management, and construction services have grown low single digits year to date, driven by our ongoing focus on construction services as well as cable management. Year to date, our plastic pipe conduit and fittings category is now flat year over year, having overcome a mid-single-digit decline in the first half of fiscal 25. Growth in the third quarter came from our PVC and fiberglass conduit products. Our metal electrical conduit and fittings product area has grown low single digits year to date, having overcome flat volume performance in the first half.

However, pricing is not kept pace with raw material cost increases. This has been particularly true with respect to Copper which is seen cost volatility for most of the quarter.

Moving to slide 6 year to date. Our volume is now up slightly having been flat for the first 6 months compared to the prior year.

Our year-to-date volume reflects growth across 3, product areas, our metal framing cable management and Construction Services has grown low single digits, year to date.

Driven by our ongoing focus on construction services, as well as cable management.

Year to date our plastic pipe conduit and fittings category is now flat year-over-year. Having overcome a mid single digit decline in the first half of fiscal 25.

Growth in the third quarter came from our PVC and fiberglass conduit products.

John Deitzer: We estimate that demand for domestically made steel conduit has increased due to enacted tariffs on imported steel. Our electrical cable and flexible conduit category also continues to grow, up low single digits year to date, which we believe is in part due to the success of our differentiated products. Turning to slide seven, adjusted EBITDA margins compressed year over year in our electrical segment, primarily due to pricing declines related to our PVC and steel conduit products. Adjusted EBITDA margins improved in our S&I segment year over year, driven by volume growth and overall better productivity. The productivity gains were primarily due to better cost management in our North American operations.

Our metal electrical conduit and fittings product area. Has grown low single digits, year to date, having overcome flat volume performance, in the first half.

We estimate that the demand for domestically made steel conduit has increased due to enacted tariffs on imported steel.

Our electrical cable and flexible conduit category also continues to grow, up below single digits year to date, which we believe is in part due to the success of our differentiated products.

Turning to slide 7.

Adjusted IBA. Margins compressed year-over-year in our electrical segment. Primarily due to pricing, declines related to our PVC and steel conduit products.

Adjusted ebit of margins, improved in our Sni. Segment year-over-year driven by volume growth and overall better productivity.

A productivity gain was primarily due to better cost management in our North American operations.

John Deitzer: Turning to slide eight, year to date, our business has generated $192 million in cash flow from operations, and we have received $14 million in proceeds this year from a previously announced divestiture of the Northwest Polymers business and the sale of some excess equipment. We remain committed to executing a balanced capital deployment model with an emphasis on returning cash to shareholders. Our balance sheet is in a strong position with no maturity repayments required until 2028, and a recently refinanced asset-based lending agreement remains undrawn, contributing to a net leverage ratio of approximately one time. Next, on slide nine, we are maintaining the full-year outlook midpoint for adjusted EBITDA. However, with better line of sight to the fourth quarter, we have narrowed the range and expect full-year adjusted EBITDA between $390 to $410 million.

Turning the slide 8 year to date. Our business has generated 192 million in cash flow from operations and we've received 14 million dollars in precedes. This year from the previously announced the vesture of the Northwest polymers business

And the sale of some excess equipment.

We remain committed to executing a balanced, Capital deployment model with an emphasis on returning cash to shareholders.

Our balance sheet is in a strong position with no maturity repayments required until 2028.

Ultimately 1 time.

Next on slide 9. We are maintaining the full-year outlook midpoint for adjusted EBITDA.

John Deitzer: We are also pleased to be increasing the midpoint of our full-year outlook for adjusted EPS and now expect to achieve adjusted EPS within the range of $6.25 and $6.75. With this, we expect our fourth quarter adjusted EBITDA to be in the range of $75 to $95 million. Our adjusted EPS is expected to be in the range of $1.05 and $1.35. We are also adjusting our outlook for our full-year tax rate. As a reminder, the impairment recorded in the second quarter will reduce our full-year tax rate, which we now expect to be in the range of 19% to 21%. This means we would expect our tax rate in the fourth quarter to be within a range of 20% to 23%. As we mentioned earlier, the forward-looking sentiment on construction activity appears mixed depending on the end market.

however, with better line of sight to the fourth quarter, we have narrowed the range and expect full year adjusted, EBA between 390 to 410 million,

We are also pleased to be increasing the midpoint of our full year. Outlook for adjusted EPs and now expected adjusted EPS within the range of 6 dollars and $6.75.

With this, we expect our fourth quarter adjusted, EBA to be in the range of 75 to 95 million.

Our adjusted EPS is expected to be in the range of $1.50 and $1.35.

We are also adjusting our outlook for our full year tax rate.

As a reminder, the impairment recorded in the second quarter will reduce our full year tax rate, which we now expect to be in the range of 19 to 21%.

This means we'd expect our tax rate in the fourth quarter to be within a range of 20% to 23%.

John Deitzer: Through our first nine months, we have grown just under 1%. For the full year, we would expect our volume to be flat to slightly positive. With that, I will turn it over to John Pregenzer.

as we mentioned earlier, the forward-looking sentiment on construction activity appears mixed depending on the End Market,

Through our first 9 months, we have grown just under 1%.

For the full year, we would expect our volume to be flat to slightly positive.

With that, I'll turn it over to John Pagan.

John Pregenzer: Thank you, John. Moving to slide 10. As William Waltz touched on in the beginning of the call, the topic of tariffs remains fluid with no definitive certainty on their duration or size. As we manage the business, we recognize that tariffs have both a direct and indirect impact on our company. A central theme supporting tariffs is an increase in onshoring of manufacturing across the U.S. There have been positive indicators that onshoring investment momentum is starting to pick up. However, these efforts take time with various factors impacting the rate of change. A potential direct benefit from tariffs for Atkore Inc. primarily centers on our ability to recapture lost market share from imports for certain product categories over time. This is especially true for our steel conduit products. We believe this will occur over time as market demand shifts back toward more domestically sourced products.

Thank you, John.

Moving the slide 10 as Bill touched on. In the beginning of the call, the topic of tariffs remains fluid with no definitive certainty on their duration or size.

As we manage the business, we recognize that terrorists, have both a direct and indirect impact on our company.

A central theme supporting tariffs is an increase in on-shoring of manufacturing across the US.

There have been positive indicators that onshoring investment momentum is starting to pick up however, these efforts take time with various factors impacting the rate of change.

A potential direct benefit from terrorists for at core. Primarily centers on our ability to recapture lost market share from Imports for certain product categories over time,

This is especially true for our steel conduit products.

We believe this will occur over time as market demand shifts back toward more domestically sourced products.

John Pregenzer: Since last quarter, the administration announced several changes to existing tariffs and new tariffs. The most relevant change for Atkore Inc. was the increase to the original steel and aluminum tariff on Mexico and Canada from 25% to 50%. The recently announced 50% tariff on imported copper that became effective on August 1st is not expected to negatively impact Atkore Inc. due to our domestic supply partners. As we look beyond FY25 to FY26, we are estimating various factors that are likely to impact us. As we have previously communicated, due to the rate of change in our average selling prices for our PVC products in FY25, we expect to experience a year-over-year headwind into FY26. We expect that unfavorable impact to occur throughout the duration of the year, starting with our exit rate in FY25, but having a lesser impact as the year progresses.

Since last quarter, the administration announced several changes to existing tariffs and new tariffs.

The most relevant change for atcore was the increase to the original steel and aluminum tariffs on Mexico and Canada from 25% to 50%.

The recently announced 50% tariff on imported, copper that became effective on August, 1st is not expected to negatively impact atcore due to our domestic Supply partners.

As we look beyond FY 2025 to FY 2026, 2028.

As we have previously communicated due to the rate of change in our average selling prices for a PVC, conduit products in fy2. We expect to experience a year-over-year headwind into FY 26.

John Pregenzer: The recently expanded aluminum tariffs from 25% to 50% creates a new cost challenge for the market, which could also slow demand activity for our products. The combination of these factors suggests that there are approximately $50 million of unmitigated headwinds in FY26. Although we have not finalized our full-year guidance for FY26, we are actively working to offset the effects of these anticipated headwinds. Now, turning to slide 11. As we've often said, the electrical industry is a great place to be. Our strategy addresses items that we are focused on today while also looking toward the future. We remain committed to maintaining a strong balance sheet and financial profile that enables us to return capital to shareholders while also pursuing strategic actions that enhance our portfolio of domestically manufactured electrical products.

we expect that unfavorable impact to occur throughout the duration of the year starting with our exit rate in FY 255, but having a lesser impact as the year progresses,

The recently expanded aluminum tariffs from 25% to 50% create a new cost challenge for the market, which could also slow demand activity for our products.

The combination of these factors suggests there are approximately 50 million dollars of unmitigated, headwinds in FY, 26.

although we have not finalized our full year guidance for FY 26, we are actively working to offset the effects of these anticipated headwinds

Now, turning to slide 11, as we've often said, the electrical industry is a great place to be.

Our strategy, addresses items that we are focused on today while also looking toward the future.

John Pregenzer: Our teams continue to drive operational excellence through the Atkore business system, our disciplined, data-driven approach to managing growth, productivity, and customer value. Despite near-term challenges, our positioning in key electrical end markets gives us confidence in our ability to grow volume over the mid to long term. Today and in the future, Atkore Inc. is providing comprehensive solutions to deploy, isolate, and protect critical electrical infrastructure over the long term, while on a mission to be the customer's first choice by providing unmatched quality, delivery, and value to help our customers achieve their goals. With that, we sincerely thank you for joining our call and for your interest in our company. Now, we will turn it to the operator to open the line for questions.

We remain committed to maintaining a strong balance sheet and financial profile. That enables us to return Capital to shareholders while also pursuing strategic actions that enhance our portfolio of domestically manufactured electrical products.

Our teams continue to drive, operational excellence through the atcore business system. Our disciplined data-driven approach to managing growth productivity, and customer value.

Despite near-term, challenges our positioning and key electrical and markets, gives us confidence in our ability, to grow volume, over the mid to long term.

Isolate and protect critical electrical infrastructure over the long term. While on a mission to be the customer's First Choice by providing unmatched quality delivery and value to help our customers achieve their goals.

With that, we sincerely thank you for joining our call and for your interest in our company. Now we'll turn it to the operator to open the line for questions.

Rob: At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. Your first question today comes from the line of Andy Kaplowitz from Citigroup. Your line is open.

At this time, I would like to remind everyone in order to ask a question. Press star, then the number 1 on your telephone keypad,

Your first question today comes from the line of Andy kaplowitz from City. Your line is open

Piyush: Good morning, guys. This is Piyush on behalf of Andy Kaplowitz.

William Waltz: Yeah. Hey, good morning.

Good morning, guys. This is D from behalf of Andy.

Piyush: Morning, Piyush. Congrats, Bill, on the retirement announcement. Well deserved.

Yeah. Hey good morning morning fish, congrats. Bill on the retirement announcement.

William Waltz: Wow. Thank you, Piyush, and look forward to still talking with you for a while here, but enjoy.

Well deserved.

Piyush: Absolutely. So, I just wanted to touch on volume growth. It seems that forecasting volumes has been a little bit challenging, and I understand it has been a dynamic macro environment. But based on your conversations with your customers and the mega projects and the mega trends that you have talked about, do you have enough visibility on demand trends to provide some puts and takes on your volume expectations for 2026?

Well, thank you, Paush, and I look forward to still talking with you for a while here. But enjoy.

Absolutely. So um I just wanted to touch on volume growth. It seems that forecasting volumes has been a little bit challenging and I understand it's been a dynamic macro environment. But based on your conversations with your customers and the mega projects and the mega trends that you have talked about, do you have enough visibility on? Uh the visibility on demand prints to provide some goods and takes on your volume expectations for 26.

William Waltz: Do you want to, like, I have a feel let me do it this way. End markets like data centers are exploding. That should be good from a vertical. Also, specifically for us, and this is the difference between, let's say, fiscal Q2, fiscal Q3, when we get into what we call global mega projects, working specifically with a customer, that's lumpier. Like timing of jobs for the last quarter or two, as you wrap up jobs and start another large project, have been a little slower from year over year comp. But us talking to, I'll just say, very well-known global data center-driven data companies, we're optimistic for the future there. Solar, same thing. You can go check with the people we sell to, and they're optimistic. I think from there, other than residential, reasonable markets going forward. We can get into our quarter and so forth.

I John do you want? Like I I have a feel. Let me do it this way. So end markets, like, um, data centers are exploding. Um, so that should be good from a vertical and also specifically for us. And this is difference between, let's say the, you know, fiscal Q2 fiscal Q3 when we get into what we call Global Mega projects working specifically with a customer, that's the lumpier. So you know, like time unit of jobs for the last quarter to you, wrap up jobs and start another large projects have been a little slower from a year-over-year comp. But us talking to I'll just say very well-known global data center driven data companies. Um, you know, we're optimistic for the future their solar, same thing. You can go check with, um, you know, the people we sell to and they're optimistic and I think from there,

William Waltz: But Piyush, I, we're not giving estimates for next year. That's why I first mentioned John Deitzer. But it should be reasonable growth going into next year.

Other than residential, you know, reasonable markets going forward. So um, you know, we can get into our quarter and so forth but payout I you know,

John Deitzer: Yeah, I totally agree with Bill here. I think we had a little bit of choppiness in our international business from some of the global mega projects rolling off and new ones starting potentially as we look forward. I think we felt good there. There is a, we've called that out before. In the North American business, I think that's performed as we expected or somewhat in line with some expectations at the end market level. But the timing of it has been a little bit choppy here between some of the months. Looking forward, I think we're pretty, that low single-digit type environment seems to be pretty reasonable.

We're not giving estimates for next year. That's when I first mentioned John Kiser, but it should be reasonable growth going into next year. Yeah, I I totally agree with Bill here. I think we had a little bit of choppiness in our international business from some of the mega projects rolling off and new ones starting potentially, as we look forward. So, I think we felt good there. I mean,

There is a we've called that out before. Um so but in the North American Business I think you know that's performed as we expected or or you know somewhat in line with some expectations at the End Market level. But the the timing of it has been a little bit choppy here, um, between some of the months. So but looking forward I think we're pretty, you know.

Piyush: Got it. Helpful. Just touching on your water end market, I think you have talked about increasing focus on water, but it seems that the water end markets are a bit mixed here. Maybe expand on the demand trends that you are seeing across the end market, and is water still a vertical where you are planning on investing?

That low single digit type environment, seems to be pretty reasonable.

William Waltz: Well, I would say at this stage, a majority, there is always a couple of things to finish. But the investments we made now, it is just growing within customers, and that seems to be going on pace. As we called out in previous quarters, we, whatever word you want to use, fired, maybe too strong a word, but specific customers that were resellers or retail-oriented and plumbing and things like that tied to residential is down. But where we are focused, the municipal is picking up. We are filling that void year over year, and I think it should be a reasonable market for us going forward.

Got it helpful and just like, touching on, uh, your water and Market. I think you have talked about increasing focus on water but seems that the water water and markets are a bit mixed here. Maybe expand on the demand trends that you are seeing across the End Market. And is still is water still a vertical where you're planning on investing.

Yeah, well, I say at this stage the majority, there are always a couple of things to finish, but the investments have been made. Now it's just about growing within customers, and that seems to be going at pace again. As we called out in previous quarters, we, um, whatever word you want to use—fired, uh, maybe too strong a word—but, you know, specific customers that were resellers or retail-oriented, and, you know, plumbing and things like that tied to residentials down, but where we're focused, the municipal segment is picking up. We're showing that void year-over-year, and I think it should be a reasonable market for us going forward.

Piyush: Gotcha. Helpful. One last one on HTPE expansion. I think last quarter you mentioned potential for increase in competition from satellites. How has that dynamic evolved so far, and how is the current inventory in the channel, and if you have started to see this money making its way into the projects?

William Waltz: Yeah, so I will start, but anybody jump in here. Again, I should probably turn it over to our COO that is closer to these things. Last quarter, I do not think with the one big beautiful bill and everything else that is still the option to use satellites. Somebody can give me more details on the specific parts of what laws, but the states are required to do the most effective thing out there. That has not changed one way or the other. I am not aware, but maybe it is my knowledge of specific jobs we won with the BEADS Act. I do think you can triangulate this with, again, other people in the industry that overall fiber is starting to go up because of the data center growth and things like that.

Gotcha helpful. One last one on HDPE. I think last quarter you mentioned potential for increased competition from satellites. How has that dynamic evolved so far and how's the current inventory in the channel? And have you started to see these money-making opportunities making their way into the projects?

Yeah, so I'll start with anybody. Jump in here again. I should probably turn it over to our COO, who is closer to these things, but, um, so.

William Waltz: Long-winded answer, Piyush, that nothing has really changed from our last quarter guidance other than we are starting to see the business volumes pick up as we go forward. Again, another should be a good thing over the longer term.

Part of what laws. But there, you know, the states are required to, um, do the most effective thing out there so that hasn't changed 1 way or the other. Um, I'm not aware but maybe it's my knowledge of specific jobs. We won with the beads act but I do think you can triangulate this with, you know, again other people in the industry that overall fiber, um, is starting to go up because of the data center growth and things like that. So, long-winded answer pauses that nothing's really changed from our last quarter guidance other than we are starting to see the business volumes pick up, um, you know, as we go forward. So again, another should be good thing over the longer term.

Piyush: Very helpful. Thank you, guys.

Very helpful. Thank you guys.

William Waltz: Thank you, Piyush.

Thank you, push.

Rob: Your next question comes from the line of Deane Dray from RBC Capital Markets. Your line is open.

Your next question comes from the line of Dean Dre from RBC Capital markets. Your line is open.

Deane Dray: Thank you. Good morning, everyone.

William Waltz: Good morning, Deane.

Thank you. Good morning everyone.

Deane Dray: Hey, Bill, also have my congrats on the announcement. I know you're still in the seat, but I appreciate everything you've done here and congrats.

Good morning, Dean.

William Waltz: Oh, Deane, thank you. And yeah, I am still in the seat and nothing changes. But working with you, obviously, through Atkore Inc. in previous careers, it has been a great relationship.

Hey, Phil. Awesome. At my congrats on the the announcement. I know you're still in the seat, but uh uh, appreciate it. Uh, everything you've done here and congrats

Deane Dray: Absolutely. Can we start with, you have given some good updates here on the tariff kind of from a high level. Can you take us down to the ground level, especially on the steel conduit imports from Mexico? How has that changed with the introduction of the tariffs? Has that stopped the flow of Mexican steel conduit? The same question for the PVC products that were coming in from Latin America. Has that stopped, or can you size any of that for us, please?

Uh, Dean, thank you. And yeah, I'm still on the seat and nothing changes. But, um, but yeah, working with you, obviously, through accor and previous careers. Um, it's been a great relationship.

Absolutely. So yeah can we start with you've gave you've given some good updates here on the Tariff kind of from a high level? Can you take us down to the ground level especially on the steel. Conduit imports from Mexico. So

William Waltz: Yeah, so I will do both here. Again, I think I should look over at John. Any of us, John Pregenzer, any of us could answer these questions. But I will mix the two together to go overall for the year, and I am using fiscal year just to even go back farther through October. For the year to date, for both, they are either flat to maybe up 2%. We are like noise level that I would call flat. But again, before someone says, oh, the one was up 2%. Now, the key thing to your point, and then I will give caveats, Deane, is in this last fiscal quarter, both were down significant double digits. So what does that mean? I would say well over 20%, maybe getting up to 30% down for the quarter.

Has that changed, you know, with the induction introduction of the tariffs, you know, has that stopped the flow of Mexican, steel conduit and then same question for the PVC that was coming in from Latin America. Um just has has has that stopped or can you size any of that for us please? Yeah. So I'll do both here again. I keep I should look over at John, any of us John pagans, or any of us. Could answer these questions but um, I'll mix the 2 together to go overall for the year. And I'm using fiscal year, just to even go back farther through October there for the year to date for both or either flat to maybe up to percent. We're like noise level that I would call flat but again before someone says, oh, the 1 was up 2%. Now the key thing to your point and then I'll give caveats. Dean is, isn't this last fiscal quarter both were down?

William Waltz: Only caveat to that is what no one would know is obviously I think the tariffs are working, but also in the beginning of the year when after President Trump was elected and we talked, did some people buy up and they are burning through inventories and so forth. So how much is tariff? How much is pre-buy? But either way, the tariffs, I think especially with steel conduit, as John Pregenzer mentioned in his opening, our opening remarks, up 50% is having an impact. PVC products at 10% for most countries. And you got to realize, or my perception, that what people claim for their imported value can be subjective. So, you know, is that having it, like let us call it a 5% CEO math here impact. But both are down and tariffs in those areas, especially steel, seem to be effective.

Significant double digits when. So what does that mean? I would say, well over 20%, maybe getting up to 30% down for the quarter, only caveat to that is what? No 1 would know is obviously I think the tariffs are working, but also in the beginning of the year, when after president Trump was elected and we talked and some people buy up and they're burning through inventories and so forth. So how much is tariff? How much is pre buy but either way, um,

The tariffs, I think, especially with seal conduit is John friggin mentioned in his Opening. Our opening remarks up, 50% is having an impact PVC at 10% for most countries. And you got to realize are my perception that what people claim for, um, their imported value can be subjective. So, you know, is that having it like this called a 5% CEO? Matt here, impact, but both her down and tariffs in those areas, especially steel seem to be effective.

Deane Dray: Got it. Second question, can you take us through and update us on your demand visibility as it stands today? At one time there was a meaningful backlog. That has all been burned off, I would presume. So are you down to like a two-week visibility? Just kind of give us a sense there because I know that shortened timeframe adds more volatility. You have to gauge what's going on in the construction markets. Just frame for us the earnings visibility in any dimension that you could.

Got it. Um and then second question, can you take us through an update us on your demand visibility as it stands today? You know, at 1 time there was a meaningful backlog uh that has all been burned off, I would presume so

William Waltz: Yeah, I will try to, and again, team jump in here if need be. But again, Deane Dray, our backlog is two weeks or so, give or take, because again, we aspire to ship in four days. So by definition, if we are, now there are some make-to-order products and so forth. That really hasn't changed much. Out with the customers, again, we do, this is more anecdotal, but talking to all of our customer base, inventories are average with distributors to slightly lower. There are lots of reasons for that. One is we have commented in our prepared remarks, things like PVC products pricing has dropped. So distributors on thinner margins don't want to be buying a product at a high price, lower margin, try to pass that along. So logical there. The last month has been pretty chaotic in the copper market.

William Waltz: I think it was July 7th, July 8th that President Trump announced he was planning on a tariff. Do not lock me into these prices, but copper just jumped from the mid-fours, let us say, to almost $6 a pound. Maybe not quite there, but probably wise contractors, wise distributors waited to hold off. That is just what is announced on what the copper tariffs were on last week on August 1. So they are probably holding a lighter inventory. The last data insight talking from customers, and again, each customer may have a slightly different view of this. In the utility market, my perception is that the end demand has been good. In other words, contractors installing, but at least some of our distributors have mentioned, they were still burning off inventory that is now throughout.

Hasn't changed much out with the customers. Again we do this is more anecdotal but talking to all of our customer base inventories are average with Distributors to slightly lower um and there's lots of reasons for that. 1 is we've you know commented in our prepared, remarks things like PVC pricing is dropped so you know, distributor is on thinner margins. Don't want to be buying a product at a high price lower margin. Try to pass that on so logical there. Um, and then the last month has been pretty chaotic in the copper Market. When I think it was July 7th, July 8th, that President, Trump announced. He was planning on a tariff of copper. Don't lock me into these prices but copper just jumped from the mid fours. Let's say to almost 6 dollars a pound, maybe not quite there but, you know, probably wise contractors wise Distributors, waited to hold off. And that's just was um announced on what the

William Waltz: So again, slight more optimism for us in the utility market as we go forward from this date. But the market at a manufacturer or distributor may have been slightly less.

Proper Terrors was on, um, last week on August 1. So, you know, they're probably holding a lighter inventory. In the last data insight, talking from customers, and again, each customer may have a slightly different view of this, but in the utility market, my perception is that the end demand has been good. In other words, contractors installing, but at least some of our distributors have mentioned, you know, they were still burning off inventory. That's now throughout.

And slightly more optimism for us in the utility Market as we go forward from this date. But the market had a manufacturer distributor maintenance slightly less,

Deane Dray: Okay, that's helpful. Just last one, a lot of good detail as always on pricing. Can you just step back and give us a perspective of any surprises in the quarter on how pricing played out? It was actually both for PVC products and steel a little bit better than what we had been estimating. Now you got two quarters of better steel pricing. Just from your perspective, what has surprised you, if anything, about how pricing is playing out from here?

Okay, that's helpful and just last 1. Um, a lot of good detail is always on pricing and can you just step back and give us a perspective of

William Waltz: Yeah, so I will start with Deane Dray and kind of echo your comments with a little bit more color. To your point, since our, and again, team correct, but since our January earnings call, the price guide, price versus cost has been right in the middle of our estimate. So no surprises. It ties with our numbers and reaffirming guide and raising EPS and everything else there. To your point, metal conduit probably slightly better than we expected. PVC products maybe is slightly better than we expected. But then, as John Pregenzer in our earnings announcements here earlier, some of the aluminum at 50%, we import aluminum from Canada. So that has kind of hit us there purely because of the fact that we are paying the tariff.

Any surprises in the quarter on how pricing played out? It was actually, uh, both for PVC and steel a little bit better than what we had been estimating. And now you’ve got two quarters of, uh, better steel pricing. But just from your perspective, what a surprise you, if anything, about how pricing is playing out from here? Yeah. So I'll start with Dean and to kind of echo your comments with a little bit more color to your points and, you know, our -- and again, team correct. But since our January earnings call, you know, the price guide price versus cost has been right in the middle of our estimates. So no surprises, it ties with our numbers and reaffirming guide and raising EPS and everything else there. Um, to your point, metal conduit probably slightly better than we expected; PVC maybe slightly better than we expected. But then, as John Perkins, our -- in the, um, you know, our earnings...

William Waltz: At least to date, we have not seen, there is a lot of chaos, as I just mentioned, with both copper and aluminum. But we do not feel, it is hard to measure this to go which is what or what the market is doing, but we do not feel like we are able to recoup the aluminum costs to date.

Announcements here earlier some of the aluminum at 50% we import aluminum from candida. So that is kind of hit us there purely because of the fact that you know, we're paying the Tariff and at least today we have not seen. There's a lot of chaos as I just mentioned with both copper and aluminum. But we don't feel it's hard to measure this to go which is wider than what the market is doing. But we don't feel like we're able to recoup

so today,

Deane Dray: Got it. Thank you.

Got it. Thank you.

William Waltz: Thanks, Dean.

Thanks Dean.

Rob: Your next question comes from a line of David Tarantino from KeyBanc Capital Markets. Your line is open.

Your next question comes from the line of David Tarantino from KeyBanc Capital Markets. Your line is open.

David Tarantino: Good morning, everyone. Bill, congrats on the upcoming retirement.

William Waltz: Cool. Thanks, David.

Good morning everyone. And uh, Bill congrats on the upcoming retirement.

Cool. Thanks. David.

David Tarantino: Maybe to put a finer point on the fiscal 2026 comments, could you walk us through generally how you are thinking about the underlying assumptions within the $50 million headwinds? Walk through PVC products, steel, and what looks to be bubbling up aluminum headwinds. What do you think the mitigating actions would look like? I think you mentioned that this was unmitigated.

William Waltz: Yeah, so I will, great question, David, obviously. I will start. John Deitzer, if there is any, again, the key caveat here is we wanted to give some fuel for next year now versus waiting to November or as we talk to different shareholders and models to go, hey, let us at least think through some of this. We are not here to give guidance that we would or specificity in November. That said, as we have called out literally in our November guide of last year, our January guide that we should, shareholders in the company expect year-over-year headwinds for things like PVC purely because as pricing dropped this year, it is a much lower starting off point even if PVC pricing held for all of next year.

Um, maybe to put a finer point on the fiscal 2026 comments, could you walk us through generally how you're thinking about the underlying assumptions within the $50 million headwind? Maybe walk through PVC, steel, and what looks to be bubbling up, aluminum headwinds, and what do you think the mitigating actions would look like? I think you mentioned that this was an unmitigated. Yes. So, I'll...

Yeah, great question David obviously. And then I'll start in John dates or if there's any again, it's the key caveat here is we wanted to give some feel for next year now versus waiting to November as we talked to, you know, different shareholders and models to go. Hey let's at least think through some of this. But we're not here to give

William Waltz: Rough numbers without breaking out, unless John Deitzer wants to get this level of specificity, but I doubt it, is we are probably, and these are estimates here, but they are probably looking, let us say, at $70 million a year over year, just mathematically, as pricing has dropped this year without calling out which commodity. You kind of called out, though, PVC down, steel conduit is still down at the moment. With two quarters, and we are expecting three quarters, this quarter here, sequential improvement, that could be a slight uptick as we go into next year. Beyond that, getting so specific.

William Waltz: At this stage to go, you know, hey, John Pregenzer mentioned $50 million or, and you know, on page two of the deck or whatever page I spoke to, had a $50 million there, assuming normal productivity, normal, as John Deitzer and I just mentioned, normal, you know, 2%, 3% volume growth for next year. As we also mentioned, obviously we are working hard now on every and any facet of how do we get more productivity, how do you get more volume, what other cost controls we could do. Obviously, we are analyzing things like, you know, we sold one or two small businesses, this year and going, is there other things we can do to create more shareholder value?

Pricing held for all of next year. So rough numbers without breaking out list. John dael wants to get this level of specificity by doubt. It is we're probably and these are estimates here but they're probably looking. Let's say a 70 million dollars a year over year, just mathematically is pricing dropped this year without calling out which commodity you kind of called out the opvc down steel. Conduit is still down at the moment. Um but with 2 quarters and we're expecting 3/4, you know, next, this quarter here is sequential Improvement. That could be a slight uptick as we go into next year beyond that getting so specific. And then at this stage, the go, you know, hey, John Perkins or mentioned 50 million or and you know on page 2 of the deck or whatever page. I spoke to you know had a 50 million there is assuming normal productivity normal as um John Dyer and I just mentioned normal. You know, 2 3% volume growth

William Waltz: At this stage, though, David, that as much as we can dementialize something to comments even John Pregenzer made, it is hard in this current environment, tariffs changing all around up and down to be any more precise than that.

Growth for next year. Now, as we also mentioned, you know, obviously, we're working hard now on every and any facet of how do we get more productivity? How do you get more volume? What other cost controls we could do? Um, obviously we're analyzing things like, you know, we sold 1 or 2 small businesses, you know, um, this year and going is there other things we can do to create more shareholder value. So, at this stage, though, David, that is, as much as we can dimensional something to

Deane Dray: Yeah, I am totally aligned here with Bill. David, there is a lot of volatility on certain items. We have seen that even just play out here in the month recently with copper, where it spiked to close to $6 a pound and dropped pretty significantly. The net headwinds we are expecting are right around $50 million, but that includes some level of our normal productivity improvement and volume expectation to get us back to that net 50. To Bill's point, we have a variety of headwinds in excess of that. There are the normal measures here to kind of get us back to the net 50 as the expectation into next year. We wanted to try to get ahead of that communication if we could.

Comments, even John for ginsor made, it's hard in this current environment tariffs changing all round up and down to be any more precise than that.

Yeah, I'm totally aligned here with Bill. Uh, David there's there's a lot of volatility on certain items whether you know we've seen that. Even just play out here in the month recently with copper um where it spiked to, you know, post to 6 dollars a pound and dropped pretty significantly. So you know the the net headwinds were expecting are right around 50 million dollars but that includes some level of our normal productivity Improvement and volume uh expectation to get us back to that net 50. We we probably to Bill's point. We have a variety of headwinds in excess of that. Um and so there are, you know, the normal measures, you know, here to kind of get us back to the net 50 um as the the expectation into next year. So um, we wanted to try to get ahead of that communication if we could

David Tarantino: Okay, great. Thank you. That is helpful. Then maybe just to dig into steel just a little bit more, it sounds like the import pressures are beginning to relax, and pricing is improving sequentially. So what would give you the confidence that pricing trends are bottoming out and heading to more sustainable improvement?

Okay great. Thank you. That's helpful and then maybe just to dig into steel just a little bit more. It sounds like the import pressures are beginning to relax and pricing is improving sequentially. So what would give you the confidence that pricing Trends are bottoming out and heading to more sustainable Improvement?

William Waltz: Well, let's do it this way, David. Let me maybe correct. You are correct with steel conduit. As I mentioned with, I think it was Deane's question, PVC imports seem to be down. On the same hand, whether it is, again, it is hard to always factor what is driving things, but with domestic competition and so forth, PVC pricing, we are still looking forward to its estimates, but will continue to go down here, at least through the end of the year and probably some into next year. Again, we are not at that level. So I just want to level set that.

Um, well let's do it this way. David, Let Me Maybe correct, you're you're correct with steel conduit. Um,

William Waltz: Now, for the products, yeah, it is not rapidly going up with steel, but steel conduit, we had two quarters of sequential increases in our margins, and we are thinking that margins will go up again, what we have seen so far for the first month of July. So hopefully I answered your question, David.

And as I mentioned was, I think it was Dean's. Um, question PVC Imports seem to be down, but on the same hand whether it's again, it's hard to always Factor what's driving things but with domestic competition and so forth. PVC pricing, you know, we're still looking forward, its estimates. But um we'll continue to go down here at least through the end of the year and probably some of the next year. Again we're not at that level so I just wanted to level set that now for the products.

Yeah, it's not rapidly going up with steel, but steel can't do it. You know, we had 2 quarters of sequential increases and our, you know, margins and we're thinking that margins will go up again. You know what we've seen so far for the first month of July. So hopefully I answered your question, David. If

David Tarantino: Yeah, that's helpful. If I could sneak one more in, could you just refresh us on how we should be thinking about capital allocation, particularly around the share buyback pause this quarter, both near and long term?

Yeah. Yeah, that's helpful. And then maybe, if I could sneak 1 more in, could you just refresh Us and how we should be thinking about Capital, allocation, just particularly around the share buyback. Pause, uh, this quarter both near and in long term,

William Waltz: To our guide here of the $150 million, nothing's really changed. Let's put it this way. We spent $100 million. Somebody could debate, should we have done $25 million in the last quarter, $25 million in the next quarter, or spent, I say spent it all, but got to $150 million or done more. We, without, there's no commitment to anything, but our guide still is to spend $150 million this year. Beyond that, we have not met with the board. I would think stock buyback will always be a strong part of our thing, but we just haven't done a capital allocation for next year to give a range for next year yet.

Deane Dray: Yeah, a line there. I think in terms of the framework, though, we have talked about this for a while. The capital expenditures are a key part of the capital allocation perspective there, the dividend, share repurchases, and M&A. Those have always kind of been the four pillars of our capital allocation model. As we get to November and moving on, we will probably give an update on how those expectations look for 2026. But those have been the key components of our capital allocation framework, David.

Yeah. So um to our guide here, the 150, you know, we nothing's really changed. Let's put it this way. We spent 100%, I say spend it all but got to 150, you're done more. But, um, we without there's no commitment to anything, but our guide still suspend 150 million this year and beyond that, we have not met with the board. I mean, I would think stock buyback will always be a strong part of our thing, but we just haven't done a capital allocation for next year to give a range for next year yet. Yeah. A line there. I think in terms of the the framework though, I mean we've talked about this for a while, you know, the capital expenditures are a key part of the, you know.

David Tarantino: Okay, great. Thanks, guys.

Been the 4 pillars of our Capital allocation model, um, as we get to November and moving on, we'll, we'll probably we'll give an update on, you know how those expectations look for 26, but but those have been the key components of our Capital allocation framework. David

William Waltz: Yeah, thank you, David.

Okay, great. Thanks, guys.

Rob: Your next question comes from a line of Chris Dankert from Loop Capital. Your line is open.

Your next question comes from a line of Chris Dankert from loop capital. Your line is open.

Chris Dankert: Hey, good morning. I just echo the congratulations again here, Bill. I guess this first question here, as far as the impact of the lost IRA tax credits on kind of next 12-month earnings, I know it's fairly small, but is that included in the $50 million headwind?

Hey, good morning and uh just Echo the congratulations again here. Bill.

Um I I guess this first question here. As far as the impact of these the Lost Ira tax credits on. Kind of next 12-month earnings I know it's fairly small but is that included in the 50 million headwind

Deane Dray: You were breaking up there for a second, Chris. Can you mention that again?

Chris Dankert: Yeah, apologies. Just on the IRA tax credit, that is going away, I believe, here. Is that headwind included in that $50 million you call out of headwinds for 2026?

You were breaking up there for a second. Chris, can you mention that again?

Deane Dray: Yeah, I will take a step back. I think we try to dimension that on one of the slides. I think from our perspective on the relevant portions of the Inflation Reduction Act, I think our maintaining, at least here in the near to midterm, there might be some longer-term dynamics around accelerating, you know, into the late 2020s and things like that or 2030s. But I think the near to midterm, our understanding or current operating assumption is that the tax credits for the solar torque tubes are largely intact here in the near to midterm. So we had some modest headwinds. I think the dynamics more from our volume with that market this year around, you know, where solar credits had a modest, slight impact. I think we called out on one of the volume bridges along the way this year.

Yeah, apologies. Um just on the the IRA tax credit, you know, that's going away. I believe here is that headwind included in that $50 million you call out of of headwinds for 26.

Yeah, I I'll take a step back. I mean I think we try to Dimension that on 1 of the slides. I think the from our perspective on the relevant portions of the inflation reduction act, I think our main maintaining at least here in the near to mid-term, there might be some longer term Dynamics, um, around accelerating, you know, into the late 2020s and things like that are 2030s, but I think the near to mid-term our understanding or current operating us

assumption, is that the

Deane Dray: But the operating plan, I think, is by and large the same with that one.

William Waltz: I know your question was specifically, Chris, around the, or at least I perceive the torque tube tax credit. But again, if I didn't mention it, one of the earlier questions for the market itself, it's always spotty job by job. I don't want to be speaking for our customers, but with or without the recent different bills and legislation, our voice of customers' solar without even tax credits is optimistic. I'm speaking for them, so to speak. Just from the standpoint of they do have good backlogs, there's a lot of stats they can tell you that still they can start up a new energy source quicker than any other form of energy. Obviously, I don't think anybody, hopefully in the U.S., is debating the extreme need for energy as we continue to drive data centers and things like that.

Tax credits, for the solar torque tubes are largely intact here in the near to mid-term. So uh we we had some modest headwinds. I think the the Dynamics more from our volume with that market. This year around you know our solar credits set up modest you know slight impact. I think we called out on 1 of the volume Bridges along the way this year but the the operating plan I think is by and large the same with that 1. Yeah. Or I know your question was specifically Chris around the

William Waltz: My personal view from talking with customers and so forth is that solar, like almost any form of energy, will grow above, well above GDP going forward.

Or at least I perceive that talk to tax credit but for again, if I didn't mention it at 1 of the earlier, questions for the market itself, it's it's always spotty job by job. I don't want to be speaking for our customers but um with or without the recent different bills and legislation our voice of customers Solar without even tax credits is optimistic. I'm speaking for them so to speak. But just from the standpoint of they do have good backlogs. There's a lot of stats. They can tell you that so they can start up a new energy source quicker than any other form of energy. And obviously, I don't think anybody hopefully in the US is debating, the extreme need for energy as we continue to drive um you know, data centers and things like that. So my personal view from talking with customers and so forth. Is that solar like almost any form of

Energy will grow above well above GDP going forward.

Chris Dankert: Got it. Thank you for that. I guess the only other question I would have on that particular point is if the market is still growing nicely, how do the margins in that business look for Atkore Inc.? Is that still an attractive market going forward after adjusting for all the moving parts here?

William Waltz: Yeah, I think so. We are especially going forward. What we talked about, which I hesitate to bring up again, it is more about productivity in our factories right now. As we look, again, I do not want to get down to each customer, but as customers have talked to us about 2026 and so forth, our productivity is good, our throughput, our scrap is good. It is those types of things that I think are in our control, Chris. The volume comes like we expected. It should be a good market going or good vertical, however you want to say it for us going forward.

Got it. Thank you for that. So I guess the only other question I'd have on that particular point is, if the Market's still growing nicely how do the margins in that business? Look for for at Coors? That's still an attractive Market. Going forward after adjusting for. For all the moving Parts here,

Yeah, I think so. Especially going forward what we talked about was, which I hesitate to bring up again but it's more about productivity in our factories, right? Well, so as we look, again, I don't want to get down to each customer but as customers have talked to us about 2026 and so forth, our productivity is good. Our throughput, our scrap is good. So it's those type of things that I think are in our control Chris and you know the volume comes like we expected. It's should be a good Market going or good vertical, however, you want to say it for us, going forward.

Chris Dankert: Got it. Thanks so much for the color.

William Waltz: Yeah, thank you.

Got it. Well, thanks so much for the color.

Yeah, thank you.

Rob: Your next question comes from a line of Chris Moore from CJS Securities. Your line is open.

You're our next question. Comes from the line of Chris Moore from CGS, Securities. Your line is open.

Chris Dankert: Hi, this is William Waltz for Chris. Can you just add any color or talk about any puts and takes to free cash flow generation in FY25 versus FY24? Thanks.

Hi. This is Will and for Chris uh can you just add any color to talk about any puts and takes to free cash flow generation and fi25 versus fy24?

Deane Dray: Yeah, absolutely. So, good question. We had a little bit of dynamics ending on the 27th here versus the 28th, and we have some AR that comes through. I think you kind of noticed that. I think someone else had kind of called that out from a free cash flow, so a little bit weaker. That being said, we do anticipate inventories have been coming down slightly. That's probably an opportunity as we look forward to continue to make sure that we can optimize our inventory. We've been trying to add, whether it's the support to service centers or some of these other initiatives, selectively over the past, it's called 18 months, but that's probably an opportunity as we look forward into 2026 that we can continue to improve free cash flow generation.

Thanks.

Deane Dray: Some of those AR dynamics that we showed ending on the June 27th have largely kind of played themselves out into July and August, and I'm pretty pleased here. I think we had just had a little bit of a timing element here right at the end of June, but I think we'll be back on track with some of the expectations of the free cash flow generation or the cash from ops generation really as we look forward into the fourth quarter.

Centers or some of these other initiatives, um, you know, selectively over the past. You know, it's called 18 months but that's probably an opportunity as we look forward into 2026 that we can continue to improve free, cash flow generation. But you know, some of those are dynamics, um, that that we showed on ending on the June 27th of largely kind of played themselves out in into July, and August and, and pretty pleased here. So, I think, you know, we had just had a little bit of a timing element here, right at the end of the June, but I think we'll be back on track with some of the, the expectations of the free cash flow generation or the cash from opiates generation really as we look forward into the fourth quarter.

Chris Dankert: Thank you very much.

Thank you very much.

Rob: Your next question comes from a line of Justin Clair from Roth Capital Partners. Your line is open.

You are next question.

From Roth Capital Partners, your line is open.

David Tarantino: Hey, guys, thanks for taking the questions here. I wanted to ask about the headwind that you had mentioned moving into fiscal 2026 here. Wondering if you could just speak to how much of that headwind is really a function of just the pricing decline that you have already experienced in fiscal 2025 versus the anticipation of further price declines in 2026. I know raw materials and the increased costs in aluminum is also a factor there. So wondering if you could just maybe elaborate on the different factors.

William Waltz: Yeah, so great question, Justin. Obviously, I am going to de-emphasize to just a small degree because again, we will give more specificity in November. But I think the majority now, whether that is 51% or 85%, I am not de-emphasizing, is the year-over-year. In other words, to go, hey, if we ended flat in September, we would still have a large number. Again, that hopefully should not be news to anybody going back to November or January discussions. From there, we have not de-emphasized to go, hey, could some products still go down more? Or to your point, calling out the aluminum tariff, that specific niche does not seem to be working for us. At this stage, again, without it is not November and giving next year's guide, I would think steel conduit should be up year-over-year. Again, all these things are qualified with the administration, what they do.

Hey guys, thanks for taking the questions here. Uh, so I wanted to ask about the, uh, the headwind that you had mentioned, uh, moving into fiscal 26 here wondering if you could just speak to, you know, how much of that headwind is really a function of just, the pricing decline that you've already experienced in fiscal 25 versus the anticipation of further price, declines in 26. And then I know raw materials, uh, and the increase costs in aluminum is also a factor there. So wondering if you could just uh, maybe elaborate on on the different factors.

Yeah, so a great question. Justin, obviously I'm going to Dimension to just a small degree because again we'll give more specifics in November. But I think the the majority now whether that's 51% or 85% um I'm not dimensionalizing is the year-over-year. Um in other words to go, hey, if we ended flat in September, we would still have a large number and again that hopefully should not be news to anybody going back to

November or January discussions. Um, but from there, I, we have a dimensionalized to go. Hey, could some products still go down more, or to your point calling out the aluminum tariff, that that specific Niche is, doesn't seem to be be working for us. But at this stage again without, it's not November, and giving. Next year's guide I would think

William Waltz: Do they change tariffs? Do they give a quota before tariffs? That is why it is like we want to give as much guide or feelings as we can. It is just, as you can appreciate, things change maybe weekly with the administration and so forth. Hopefully, it answers, I think a lot is the impact we have always seen this year.

Steel conduit should be up year-over-year and again all these things are qualified with you know with the administration what they do do do they change tariffs. They give a quota before terrorists.

So that's why it's like we want to give as much guide or feelings as we can, but it's just it's as you can appreciate things change. Um,

Maybe weekly with Administration and so forth. But hopefully it answers. I think a lot, is the, with the impact we've already seen this year,

David Tarantino: Got it. That is helpful. Just wanted to follow up on steel here. Import volumes have declined. Wondering if you could speak to the potential you see to recapture some market share in steel conduit, and how much that affects your volume assumptions going forward here.

Got it. No, that that's helpful and then just wanted to follow up on on steel here. So import volumes have declined wondering if you could speak to the potential you see to uh recapture some market share in steel conduit and um,

William Waltz: Yeah, I think Justin is spot on. I do think, and again, it's not going to be crazy. It's the steel conduit other than somewhat driven by maybe data centers as one of our more steady GDP-ish product lines compared to things like metal framing or what we're doing with specific initiatives and so forth. But yeah, I would hope over time, aspire, whatever word you want to use, that we, assuming that the importers continue to do a couple of things. One, just less volume coming in or they, you know, less ability to undercut because they are paying that markup with margins, no matter what they claim is an imported value, will help us continue to see the margins that we just spoke about and share go up as we move forward. So yes.

And you know how much that affects your volume assumptions going forward here.

Yeah, I think that's just been spot on. I do think, and again, it's not going to be crazy. The steel conduit, other than somewhat driven by maybe data centers, is one of our more steady GDP product lines compared to things like metal framing or what we're doing with specific initiatives and so forth. But yeah, I would hope over time, Aspire, whatever word you want to use for that, we, as long as the importers continue to do a couple of things: one, just less volume coming in, or they, you know, have less ability to undercut because they are paying.

You know that Mark up with margins, no matter what they claim is, imported value, will help us continue to see the margins that we just spoke about and share go up as we move forward. So,

David Tarantino: Okay. Okay, appreciate it. Thank you.

William Waltz: Thank you, Justin.

Yes. Okay. Okay, appreciate it. Thank you.

Thank you, Justin.

Rob: This concludes the question and answer session. I would now like to turn the call back over to William Waltz for closing remarks.

Deane Dray: Thank you. Let me take a moment to summarize my three key takeaways from today's discussion. First, Atkore Inc. had a solid third quarter of financial performance. Second, we are maintaining our full year 2025 outlook midpoint for adjusted EBITDA and raising our outlook for adjusted EPS. Finally, it has been and continues to be my honor to serve in this role, and I look forward to supporting Atkore Inc. during this time of transition over the upcoming months. With that, thank you for your support and interest in our company. This concludes the call for today.

And this concludes the question and answer session, I would now like to turn the call back over to Bill Waltz for closing remarks.

Thank you. Let me take a moment to summarize my 3 key. Takeaways from today's discussion.

First atcore had a solid third quarter of financial performance.

Second, we are maintaining our full year 2025 Outlook midpoint for adjusted. EBA and raising our outlook for adjusted eps.

This time of transition, over the upcoming months,

With that, thank you for your support and interest in our company. This concludes the call for today.

Rob: This concludes today's conference call. Thank you for joining. You may now disconnect. Please wait. The conference will begin shortly.

This concludes today's conference call, thank you for joining. You may now disconnect

Please wait the conference will begin shortly.