Atkore shares surge on revenue beat despite litigation charge

Atkore (NYSE:ATKR) shares climbed in early trading after the electrical products manufacturer reported second-quarter revenue that exceeded expectations and reaffirmed its annual profit targets, despite booking a heavy charge to resolve long-standing class-action litigation.

The Harvey, Illinois-based company posted net sales of $731.4 million for the fiscal quarter ended March 27, a 4.2% increase from a year earlier.

The top-line growth was fueled by a 5% increase in organic volume, as demand for electrical infrastructure remained resilient.

However, the company reported a net loss of $124.1 million, or $3.65 per share, primarily due to $136.5 million in settlement agreements reached after the quarter’s end regarding an ongoing antitrust matter.

On an adjusted basis, which strips out the legal charges and impacts from asset sales, Atkore earned $1.23 per share.

While this was down from $2.04 in the prior-year period due to higher input costs, it comfortably beat the average analyst estimate.

Adjusted EBITDA for the quarter was $81.1 million.

The quarter marked a period of significant portfolio reshaping for the manufacturer.

Following the close of the period, Atkore finalized the sale of its High-Density Polyethylene (HDPE) Pipe & Conduit business and its Vergokan Galva and coatings operations in Belgium.

Meanwhile, Atkore maintained its full-year 2026 guidance, projecting adjusted EBITDA in the range of $340 million to $360 million and adjusted earnings per share between $5.05 and $5.55.

Reflecting confidence in its cash position despite the legal payouts, Atkore’s board approved a quarterly dividend of $0.33 per share, payable on May 29.

The company has also continued its share repurchase program, buying back approximately $262 million in stock year-to-date.