Detailed narrative
Acquisition Announcement
Atkore has entered into a definitive agreement to be acquired by Prysmian in an all-cash transaction valued at $95 per share, representing an enterprise value of approximately $3.8 billion. This transaction is viewed as delivering value to Atkore shareholders and is a testament to the team's focus and dedication.
Q3 FY26 Financial Highlights
The company achieved net sales of $795 million, adjusted EBITDA of $105 million, and adjusted EPS of $1.92 for the third quarter of fiscal year 2026. All three metrics demonstrated sequential improvement over Q2 performance and represented an increase compared to the prior year. Organic volume growth contributed 9% year-over-year to this performance.
Divestitures Completed
During the third quarter, Atkore completed the divestitures of its high-density polyethylene (HDPE) business and the sale of its surface protection and powder coating business in Belgium, both of which were announced in May. These followed the earlier divestiture of the Tectron mechanical tube business. The combined impact of these divestitures partially offset sales gains by $39 million.
Litigation Settlement
Atkore entered into a settlement agreement for $50 million with the last of three punitive classes in an ongoing litigation matter. The total combined settlements for all three classes amounted to $186.5 million. This $50 million expense was the primary factor driving the decline in GAAP net income for the quarter.
Electrical Segment Performance
The Electrical segment delivered strong growth, with net sales increasing 10.9% to $578.3 million compared to the prior year. This increase was primarily driven by higher sales volume, favorable foreign exchange effects, and increased average selling prices. Adjusted EBITDA for the segment grew 10% to $89.3 million, although the adjusted EBITDA margin was modestly affected, decreasing to 15.4% from 15.6% in the prior year, as higher input costs outpaced pricing improvements.
Safety & Infrastructure Segment Performance
The Safety & Infrastructure segment reported a 1.3% increase in net sales to $216.8 million. This growth was supported by higher average selling prices, increased volume, and lower solar credit rebates, partially offset by the impact of recent divestitures. However, adjusted EBITDA for the segment decreased to $28.1 million from $30.7 million in the prior year quarter, resulting in a lower adjusted EBITDA margin of 13% compared to 14.4%.
Cash, Liquidity, and Dividend
The company concluded the third quarter with a cash and cash equivalents balance of $346.2 million. Additionally, the Board of Directors approved a quarterly dividend of $0.33 per share, which is scheduled to be paid on August 28, 2026, to shareholders of record as of August 18, 2026.