Atkore Inc. (NYSE: ATKR) saw its shares plummet 8.31% in pre-market trading on Thursday following the release of disappointing fourth-quarter results and the announcement of an expanded strategic review. The electrical products manufacturer 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 earnings of $0.69 per share significantly missed analyst estimates of $1.26, representing a 45.06% shortfall. 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 $752.011 million slightly exceeded expectations of $733.970 million.
Adding to investor concerns, Atkore 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 a new board member, has likely contributed to market uncertainty. The company also provided its fiscal year 2026 outlook, projecting net sales between $3.0 and $3.1 billion and adjusted EBITDA between $340.0 and $360.0 million. As investors digest these developments, the stock's significant pre-market decline reflects growing apprehension about Atkore's near-term prospects and potential structural changes.
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