Atkore (ATKR) Citi's Global Industrial Tech & Mobility Conference 2026 summary

Strategic review and portfolio actions

• Undergoing a strategic review, considering options including divestitures and a potential sale, with no set timeline for decisions.

• Recent divestitures include the sale of Tectron and a recycling business, both dilutive to margins.

• Exploring alternatives for the HDPE business, citing strong demand but margin pressure due to high inventory and supply.

• Focus shifting more toward core electrical markets and away from non-core segments.

• Ongoing evaluation of global assets to ensure alignment with margin and strategic goals.

Market trends and business performance

• Data centers, healthcare, manufacturing, and multifamily housing are driving mid-single-digit organic growth.

• Single-family residential remains weak, with no recovery yet visible in land development or new construction.

• Solar business is ramping up, with strong orders and increasing factory efficiency, expected to contribute meaningfully in the second half of 2026 and into 2027.

• Municipal water segment is expanding, with product certifications and market share gains targeted.

• Channel inventories are considered normal, with seasonal stocking underway and no signs of over- or under-stocking.

Operational initiatives and margin improvement

• Three manufacturing facilities are being closed, expected to yield $10–12 million in annual savings, with most benefits realized by fiscal 2027.

• SKU rationalization (80/20 initiative) is underway, aiming to drop 10% of active SKUs and improve factory productivity and margins.

• Productivity gains and cost control are ongoing, with leverage expected from higher volumes and improved operational efficiency.

• Margin improvement also supported by divestitures of lower-margin businesses and ongoing self-help initiatives.

• Price versus cost headwinds are moderating, with potential for positive contribution in the second half of 2026.