Shares of Atkore Inc. (NYSE: ATKR) plummeted 14.05% in intraday trading on Thursday following the release of disappointing fourth-quarter results, a weak outlook for fiscal year 2026, and the announcement of an expanded strategic review. The electrical products manufacturer's stock price decline reflects growing investor concerns about the company's financial performance and future direction.
Atkore reported a net loss of $54.4 million for Q4 2025, a stark contrast to the $73.1 million profit recorded in the same period last year. The company's quarterly adjusted earnings per share of $0.69 significantly missed analyst estimates of $1.26. This disappointing performance was primarily attributed to a $66.7 million non-cash impairment of certain long-lived assets in its HDPE business and an $18.9 million non-cash goodwill impairment in the Mechanical reporting unit. Despite the earnings miss, Atkore's quarterly sales of $752 million slightly exceeded expectations of $734 million.
Adding to investor concerns, Atkore provided a lower-than-expected fiscal year 2026 outlook, projecting adjusted earnings per share between $5.05 and $5.55, below the average analyst expectation of $5.48. The company also announced an expansion of its strategic alternatives review, with the board and management team now considering options including a potential sale or merger of the entire company. This move, coupled with the entry into a cooperation agreement with Irenic Capital Management and the appointment of Franklin Edmonds to the board, signals a period of potential significant changes for Atkore. The combination of weak financial results, cautious forward guidance, and uncertainty surrounding the company's future direction appears to be driving the sharp stock decline.
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