A maker of electrical conduit, cable, metal framing, and security products that keep buildings and critical infrastructure powered and protected. Its brands—including Allied Tube & Conduit, AFC Cable Systems, and Unistrut—are sold through wholesalers to contractors working on non-residential construction. The company grew out of Allied Tube & Conduit, founded in 1959 in Illinois and later spun out of Tyco in 2010. Its name is a play on "core," reflecting its place at the heart of the building trade, and its early invention of inline galvanizing for steel conduit remains a hallmark.
Atkore's Q3 revenue rose 8.1% on higher volume and pricing, but a $50M litigation settlement and divestiture losses pushed net income down 98.3% to $0.7M.
returned to growth, but a litigation settlement erased nearly all profit. Revenue rose 8.1% to $794.8 million on an 8.9% volume increase and a 3.0% rise in average selling prices, yet fell 98.3% to $0.7 million as a $50.0 million PVC antitrust settlement charge and $12.6 million in divestiture losses overwhelmed the operating gain. The company is growing again, but the pending Prysmian merger and the cost of resolving legacy legal claims now dominate the story.
Key takeaways
A $50.0 million charge for settling a PVC antitrust litigation class was the primary driver of the 98.3% decline in to $0.7 million, alongside $12.6 million in other expense from divestiture losses.
Consolidated rose 8.1% to $794.8 million, the second consecutive quarter of growth, driven by an 8.9% increase in volume and a 3.0% rise in average selling prices, partially offset by divestitures.
improved 3.6 percentage points sequentially to 22.2%, but remained 1.2 points below the prior-year quarter as cost of sales rose 9.9%, with higher input costs and volume largely offsetting the sales gain.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 net sales rose 8.1% on higher volume and pricing, but net income fell 98.3% due to a $50M litigation settlement and divestiture losses.
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Consolidated grew 8.1% to $794.8M, driven by an 8.9% volume increase and a 3.0% rise in average selling prices, partially offset by divestitures.
The Electrical grew 10.9% on higher volume, but its margin slipped to 15.4% from 15.6% a year ago as input cost increases outpaced selling price gains.
The Safety & Infrastructure saw edge up 1.3%, while fell 8.4% and margin contracted to 13.0% from 14.4%, also pressured by input costs exceeding price increases.
Cash used in operations was $90.3 million for the first nine months of the fiscal year, a $282.7 million swing from the prior year, driven by legal settlement payments and outflows; the company held $346.2 million in cash with full availability on its $325 million .
What changed
Average selling prices, which earlier filings flagged to watch for a potential bottom, rose 3.0% — the first increase since Q1 FY2024 and an acceleration from the 1.5% rise in Q2 FY2026, suggesting the multi-year pricing decline may be ending.
, which had fallen to 18.6% in Q2 FY2026 — the lowest quarterly level in the data provided — rebounded to 22.2%, though it remains well below the 23.4% recorded in Q3 FY2025, indicating input cost pressure persists.
The HDPE divestiture flagged in FY2025 appears to have progressed, with $12.6 million in divestiture losses recorded this quarter, though the filing does not disclose whether the sale has closed or its proceeds.
The Board's strategic review, disclosed in Q1 FY2026, has culminated in the announced Prysmian merger, which now introduces material execution, regulatory, and termination-fee risks that earlier filings did not contemplate.
What to watch
Average selling prices next quarter to see whether the 3.0% increase is sustained or accelerates, confirming that the multi-year pricing cycle has turned.
trajectory to see if the sequential improvement to 22.2% continues, or if input cost inflation keeps the spread between selling prices and costs compressed.
Progress on the Prysmian merger, specifically antitrust approvals in the U.S., Austria, Australia, and Canada, and any divestiture conditions imposed by regulators.
to see whether the $90.3 million use for the first nine months reverses as litigation settlement payments taper and normalizes.
increased only 2.4% to $176.3M as cost of sales rose 9.9%, with higher input costs and volume largely offsetting the sales gain.
was nearly flat at $64.0M as a $10.5M rise in (driven by $9.8M in transaction and litigation costs) and lower offset growth.
plunged to $0.7M from $43.0M, primarily due to a $50.0M charge for settling a PVC antitrust litigation class and $12.6M in other expense from divestiture losses.
Electrical rose 10.9% on strong volume, but slipped to 15.4% as input cost increases outpaced selling price gains.
Safety & Infrastructure edged up 1.3%, while fell 8.4% and margin contracted to 13.0%, also pressured by input costs exceeding price increases.
Cash used in operations was $90.3M for the nine months, a $282.7M swing from the prior year, driven by legal settlement payments and outflows; liquidity remains supported by $346.2M in cash and full availability on a $325M .
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes to the quantitative and qualitative disclosures about market risks previously disclosed in our Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the quarter ended December 26, 2025.
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There have been no material changes to the quantitative and qualitative disclosures about market risks previously disclosed in our Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the quarter ended December 26, 2025.
For a discussion of certain litigation involving the Company, see Note 16, “Commitments and Contingencies” to our unaudited condensed consolidated financial statements.
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For a discussion of certain litigation involving the Company, see Note 16, “Commitments and Contingencies” to our unaudited condensed consolidated financial statements.
Pending Prysmian merger creates material execution, regulatory, and termination-fee risks that could disrupt Atkore's business.
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The merger may not close if antitrust approvals in the U.S., Austria, Australia, and Canada are delayed, denied, or impose costly divestiture conditions.
Merger-related uncertainty and contractual restrictions could harm customer, supplier, and employee relationships and prevent Atkore from pursuing other strategic opportunities.
Stockholder litigation challenging the merger could divert management attention, delay closing, or result in material judgments or settlements.
If the merger fails, Atkore's stock price may decline, sunk transaction costs would be unrecovered, and negative investor perception could follow.
In certain termination scenarios, Atkore must pay Prysmian a $115.9 million , depleting cash otherwise available for corporate purposes.