Street Calls of the Week
HARVEY, Ill. - Atkore Inc. (NYSE:ATKR), a $2.05 billion market cap electrical products manufacturer, announced Monday it is evaluating strategic alternatives to strengthen its focus on core electrical infrastructure operations, including potential divestiture of its HDPE pipe and conduit business that primarily serves the telecommunications market. According to InvestingPro analysis, the company maintains strong financial health with a current ratio of 3.09, indicating robust liquidity.
The electrical products manufacturer is working with financial and legal advisors to review select assets that may not fit its core portfolio, which includes product lines from both its Electrical and Safety & Infrastructure segments.
"We remain focused on continuous improvement," said Bill Waltz, Atkore President and CEO, in a press release statement.
As part of its restructuring efforts, Atkore has already implemented a reduction in headcount and identified three manufacturing facilities for consolidation in 2026. Earlier this year, the company divested its Northwest Polymers business.
The board of directors stated these actions aim to improve the company’s cost structure and position it for future success. Atkore reported $3.2 billion in sales for fiscal year 2024 and currently employs 5,600 people.
The company has engaged Citi as financial advisor, Debevoise & Plimpton LLP as legal advisor, and Joele Frank, Wilkinson Brimmer Katcher as strategic communications advisor for this process.
Atkore noted there is no deadline for completion of the strategic review and no guarantee that the process will result in any specific outcome. The company indicated it does not plan to make further public comments on the process unless necessary.
In other recent news, Atkore International Group Inc. reported its third-quarter earnings for 2025, surpassing analysts’ expectations with an adjusted earnings per share of $1.63, compared to the forecast of $1.56. The company’s revenue reached $735 million, slightly above the anticipated $734.2 million. Despite these positive earnings results, the company faced challenges, as reflected in the stock’s movement. Atkore also completed the refinancing of its subsidiary’s senior secured term loan facility with a new $373 million facility, extending the maturity to September 29, 2032.
Analysts have reacted to these developments with mixed evaluations. RBC Capital maintained a Sector Perform rating on Atkore but lowered its price target from $83.00 to $60.00, following the company’s fiscal third-quarter results and below-consensus guidance. Additionally, KeyBanc Capital Markets downgraded Atkore from Overweight to Sector Weight, citing concerns over the company’s fiscal year 2026 framework and the Steel Conduit business. These recent developments have contributed to a complex outlook for the company among investors and analysts.
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