Atkore's Q3 2025: Unraveling Contradictions in Market Share, Tariff Impact, and Cash Flow Insights

PVC conduit market share and import trends, impact of tariffs on PVC and steel imports, and free cash flow generation are the key contradictions discussed in Atkore's latest 2025Q3 earnings call.



Financial and Operational Performance:
- Atkore reported net sales of $735 million for Q3, with 2% organic volume growth, achieving the top end ranges for adjusted EBITDA and adjusted EPS.
- The growth was supported by productivity gains, particularly in the S&I segment, and sequential improvements in steel conduit pricing.

Impact of Tariffs and Trade Dynamics:
- The introduction of tariffs on imported steel and PVC conduit volumes led to a 2-30% decline in these imports year-over-year in Q3.
- This decline is attributed to the increased tariffs, especially the 50% increase in steel tariffs from Canada and Mexico, influencing market dynamics and demand patterns.

Construction Activity and Market Sentiment:
- The Dodge Momentum Index indicated a slowdown in planning activity across several nonresidential construction categories, with mixed construction sentiment.
- Tariffs are influencing input costs and market pricing dynamics, affecting broader demand patterns and future visibility.

Solar and Electrical Demand Growth:
- Atkore anticipates growth in the solar and electrical sectors, driven by strong demand from data centers and optimistic customer projections.
- The company benefits from its strategy to focus on high-demand verticals, such as data centers, and expects ongoing growth in electrical cable and flexible conduit products.