Atkore Posts $124M Loss Despite Sales Growth, Hit by Legal Settlement

HARVEY, Ill. – May 05, 2026 – Atkore Inc. (NYSE: ATKR) today announced a second quarter marked by stark contrasts, reporting a 4.2% increase in year-over-year net sales while simultaneously absorbing a staggering $124.1 million net loss. The significant loss was primarily driven by a massive $136.5 million legal settlement related to a PVC pipe antitrust lawsuit, which overshadowed positive organic volume growth and strategic maneuvers designed to reshape the company for the future.

Despite the jarring headline numbers, the electrical products manufacturer maintained its full-year financial outlook, signaling confidence in its underlying business and strategic direction. The company's results highlight a complex period of transition, as it navigates costly legal headwinds and inflationary pressures while aggressively streamlining its portfolio to focus on the high-growth electrical infrastructure market.

“We were pleased with our second quarter results. We delivered approximately 5% year-over-year organic volume growth and solid productivity gains,” said Bill Waltz, Atkore President and Chief Executive Officer, in the company's press release. He noted that net sales, Adjusted EBITDA, and Adjusted EPS all improved sequentially from the first quarter, reflecting both internal initiatives and “solid end-market demand.”

The High Cost of Litigation

The most significant factor impacting Atkore's second-quarter financials was the $136.5 million expense to settle claims with two plaintiff groups in the In re PVC Pipe Antitrust Litigation. The lawsuit alleges that Atkore and other manufacturers engaged in an anticompetitive scheme to fix prices for PVC pipe sold in the United States. The legal challenges gained public attention following a short-seller report in mid-2024 and subsequent reports of a Department of Justice antitrust investigation.

The settlement, reached on April 28, resolves claims with the Direct Purchaser Plaintiffs and the Non-Converter Seller Purchaser Plaintiffs. While this marks a significant step toward resolving the costly legal battle, it is not the final chapter. Claims from a third group, the End User Plaintiffs, remain pending, indicating that further legal expenses or liabilities could arise. Atkore plans to fund the current settlement with cash on hand.

The settlement charge was the primary reason for the dramatic swing to a net loss of $124.1 million, or $(3.65) per diluted share, compared to a net loss of $50.1 million, or $(1.46) per share, in the same period last year. Excluding the settlement and other one-time items, the company's adjusted net income per diluted share was $1.23, a decrease from $2.04 in the prior-year quarter but reportedly above analyst expectations, which may explain a pre-market stock surge following the announcement.

Streamlining for an Electrical Future

Beyond the legal drama, Atkore has been actively reshaping its business. The company is doubling down on its core electrical products business, which serves booming sectors like data centers, telecommunications, and solar. This strategy involves shedding non-core assets, a process that continued in the second quarter.

Atkore finalized three previously announced plant closures and completed two key divestitures. On April 8, it sold its High-Density Polyethylene Pipe & Conduit (HDPE) business to Infra Pipes. As part of the deal, Atkore retained a 10% equity stake in the newly combined entity and will provide it with approximately $28 million in cash over time. The company also completed the sale of its surface protection and powder coatings businesses in Belgium on April 30.

“Each of these completed actions represent our commitment to support the electrical infrastructure market which we believe will enable long-term shareholder value creation,” Waltz stated. This strategic pivot, however, came with its own short-term costs. The divestitures contributed to a $12.6 million reduction in net sales for the quarter, and the sale of the HDPE business resulted in a recognized loss on assets held for sale of $25.7 million.

Navigating Inflationary Headwinds

While strategic shifts and legal issues dominated the headlines, persistent economic pressures also squeezed Atkore's profitability. The company's gross profit fell 26.5% to $136.1 million as increased input costs of $82.1 million significantly outpaced the $10.2 million benefit from increased average selling prices. This margin compression was evident across both of the company's operating segments.

The Electrical segment, the focus of Atkore's future, performed well on the top line, with net sales growing 8.1% to $532.5 million, driven by strong sales volume. However, its Adjusted EBITDA fell 18.2% to $74.4 million as higher input costs, likely including key materials like steel and PVC resin, ate into profits. Its Adjusted EBITDA margin contracted from 18.5% to 14.0%.

The Safety & Infrastructure segment faced a tougher quarter. Net sales decreased 4.9% to $199.1 million, impacted by the recent divestitures. The segment's profitability was hit even harder, with Adjusted EBITDA plummeting 52.0% to $17.3 million and its margin being cut in half, from 17.2% to just 8.7%, largely due to the same input cost pressures.

Despite these headwinds, Atkore reaffirmed its full-year fiscal 2026 outlook, maintaining its forecast for Adjusted EBITDA between $340 million and $360 million and Adjusted net income per diluted share between $5.05 and $5.55. This guidance, along with the board's approval of a regular quarterly dividend of $0.33 per share, suggests that management views the quarter's substantial net loss as a temporary setback on its path toward a more focused and profitable future.