Atkore (ATKR) 21 Nov 242024 Q4 Earnings call transcript

Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to Atkore's Fourth Quarter Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Matt Kline, Vice President of Treasury and Investor Relations. Thank you.

begin. may You

good Waltz, and Deitzer, I'm today joined Financial Thank and morning, CEO; Bill President John as by Officer. you, everyone. well Chief as

comments We Bill questions take after will and your John. by

make to of remind such to that and future during we statements like that results would Such projections which financial our cause statements materially. may refer everyone SEC release, forward-looking differ factors Please performance I today's or or uncertainties, or company. forward-looking this to contained actual identify and that results statements. important call, those in could projections may filings the events actual risks regarding press from involve differ materially our

to our today means appendix adjusted the reference EPS of presentation. EBITDA most comparable are share. any adjusted a the diluted in measures addition, measures today's earnings available Reconciliations measures. of In share EBITDA our earnings discussion per or non-GAAP in diluted to EPS and are and per non-GAAP adjusted adjusted any to reference Adjusted means EBITDA, GAAP and presentation

turn Bill. over to With that, I'll it

morning, good and and X, results. on year Starting both our Matt, Thanks, quarterly we will full financial Slide discuss everyone.

longer-term update the and position business, a of Atkore deployment. for on trends. provide markets take we our the secular FY of serve for basis also will updates will We and projections our approach our an capital for as intentions our These serve XXXX advantage financial to

cash the for share shareholders in company. to the our our categories of repurchase returned product to the We dividend. Turning our want of I growth growth quarterly our through program XX% reflect of We X.X% highlights Slide X. each overall volume and operating approximately and year. certain introduction flow to achieved volume on from key

by product recognized to a of environmental also for environmental an and products, continue as in releasing declarations be batteries we impact awareness employer Atkore became leader choice.

Atkore business a teams competitive true system to advantage the part processes, and company. our for fundamental strategy of and In talent the a our are addition

Thank to you. take like dedication. recognize their I'd a moment to

Turning Slide X. to

the providing our perspective Atkore quarter up demand review full future. drive contributions will we from year, fourth stronger most with and for in quarter We X% recent was volume the on Organic factors will believe into both forward-looking while segments. the also

encouraged range are performance in adjusted by the pleased that quarter Overall, were products were into the we of fourth FY We head EBITDA certain of expectations. EPS within and we our sales, all net adjusted as 'XX.

driver the year-over-year in of Pricing change was our results. the primary

are double-digit manufacturing over We S&I material fourth operations. in in S&I team the some solar sales torque our also consumption in impacted by tubes within conversion quarter. Separately, our recorded unanticipated sequential growth in

over operating flow quarter shareholders. to generated which of cash the to flow us XX% Atkore the allowed strong fourth in our return cash

saw areas year, of HDPE due across product key we As we volume demand all to the continue the the we in while on market. totality for to projects telecom softness our experience reflect strength challenges

located centers the enables our growth We complete committed of company's are service have pleased XXXX, announced of in Texas important stock to regional to customers that our deployment milestone Atkore's we I'm as of repurchased us footprint shares. more November, Georgia. journey in year XXXX. in XX% that we repurchase of service a centers. and This have of service We $X.X FY over our billion which servicing of our equates from in X expansion efficiently. in all having to share over million outstanding to remain is repurchased customers initiating we $XXX our network Atkore's strategy, over program stock, capital Since now earlier now the announce regional

remaining of the year. was which authorized earlier program, $XXX had we our $XXX repurchase Currently, approximately in million million

to related Atkore's on look long-term digitization trends we renewable rent and we the energy, remain focused electrification. demand of As surging forward, to for the ability adoption in hardening, participate

leverage identified also opportunities from capture capabilities commercial and other growth areas economic to can our manufacturing where we We've trends.

of The end first to PVC HDPE markets. additional and opportunity expand offering grow our water-related products have identified for we is and

our to an it Second, to for projects, growing our and balanced construction services chip capital centers, have include shareholders. with demand opportunity executing strong remain existing U.S. we to strategy capability support we focused and the manufacturing both deployment a a leverage projects, returning which mega abroad. cash to plants large other on commitment data global Through in all,

year Now John I'll through to the from quarter more the detail. to talk turn in full call results fourth and over the

everyone. morning, good and Bill, you, Thank

X on results. Slide and In without stayed to softness related its pricing [indiscernible] to in we XXXX, strategy. fiscal markets. The end consolidated predominantly year was not and Turning certain focused our our executing challenges,

For year, our net $X.X was adjusted EPS $XX.XX. full Adjusted sales was for the full and EBITDA billion, $XXX were year million. the

$XXX on X. consolidated were adjusted Turning was bridges net In the $XXX million. Slide $X.XX. of adjusted achieved to We our our EPS EBITDA fourth million, and quarter, sales

at increased EBITDA year, full Looking million XX% adjusted $XX at growth incremental volume the contributing sales due margins. $XXX to million net of

decreased average by $XXX million. selling prices Our

been the in 'XX. the started business through years, of As continued at over several PVC discussing end past we 'XX FY FY our have primarily price and normalization,

our HDPE Softness the the throughout of challenging the market environment telecom contributed products in price a course year. for

pricing call steel imported to products. of face competition in quarter pressure conduit to third indicated August, our increased we business that was due beginning our During

between As and expected, experience QX. we sequential did price QX declines

Moving X. to Slide

X not new deliberate to headwinds also of to bring how product product only expanding we've One our in the been the us new ways but has find helped of breadth diversity Indeed, continuously our particular both of additional end offerings. value and existing for portfolio us customers. strengths exposure in to allowed approached portfolio, Atkore's market, entering it we've is markets and very has any manage product our

and grew business, electrical PVC products. FY our 'XX, included which we In both water-related

abroad. Keep management well. double the framing, in and year and U.S. grew support mind, area grew projects in digits prior metal services this in to products increased business Our cable as construction the mid-single mega for digits due

flexible to 'XX. FY best-in-class and our continue which and to be success of cable patented in electrical enabled conduit differentiated grow the products line, product with Our us

double mechanical our have X of to our the business. tube tube due grown expansion digits the of Finally, years last solar products torque each

with of Indiana continued our at pleased Hobart, improvement are We the facility. output our

in segment to products, the products. and to X Net fourth adjusted Turning steel results sales normalization from quarter. EBITDA Electrical pricing million, our and our import in $XXX due and Slide in our conduit were in margins our compressed segment pressure competition our PVC continued

S&I prior over X% under Net just compared during quarter sales to Shifting year. the our increased to segment. the

both largely with third were and from EBITDA dollars line were sequentially in Although the our margin quarter. down prior the year,

mentioned material manufacturing consumption conversion experienced operations. around headwinds we earlier, and Bill some As over cost in our

in Turning our low FY now Page to volume and growth 'XX mid-single-digit anticipate had expectations from We market the initiatives. our on outlook growth contributions to XX.

EBITDA of in For the $X.X EPS the adjusted the expect full billion billion $X.XX. sales net year, $X.XX and range $X.X and $XXX and we to to Adjusted $XXX in FY range million. million of between 'XX be expected is

components both outlined to there our are net few the XX. critical adjusted sales Slide We EBITDA. impacts we've outlook to and in 'XX. Moving dynamics a Therefore, recognize performance FY and of between FY for key some and our 'XX

versus price expect to year-over-year. cost to continue be We unfavorable

spoke August. expected when Our previously we than we estimate in is higher

One As additional entering conduit to new pricing be 'XX, PVC aspect market. forward our contributing in the is FY look pricing our domestic competition for conduit we PVC challenged. continues to

face continues conduit pressure steel import Secondly, from competition. to

planned of in As possibility our of now, we pricing. year-over-year the for have declines

However, with various working in we groups continue engage this address. with are actively to monitoring to parties who third various important topic

to give Bill to back it strategic turn our including business, an I'll that, With on our update initiatives.

Thanks, John.

proposition. approach our secular following shaping the Atkore our identity. portfolio invested been relatively a a for us and highlight company made are to cash value maintain focused position has in new XXXX, to future. organically supported we Whether creating take both and want for returning compelling We've Turning tremendous strong on by diverse opportunity XX. to to to profile many progress capital to shareholders. our you've IPO strong deployment through story, to pilot heavily inorganically the tailwinds We disciplined Slide financial years and this Atkore's . Since

of summarizes the profile. our financial XX strength Slide

Our cash always strength, a has sheet. generation balance flow helped a which support been healthy

enables Our execute the to capital liquidity opportunities returning that while us foundation shareholders. to strategic provides key

XX. Slide to Turning

is in certain market instances, structured and grow grow faster a rate. the Our at portfolio with to

construction supports portfolio wide supported across extensive growth long-term a of markets, by end macroeconomic variety Our trends. tailwinds mega and

are located the our customers. service strategically designed colo U.S. capabilities, across centers X enable service regional high-quality and to Our to providing

additional As competition, capacity landscape. categories with imports or or from impacting any whether the dynamics evolving experiencing business, there domestic are new expansion. Certain competitive are product

HDP piping success as to has and As to continue electrical choice. expand Having we our into been national we adjacent plumbing a to such differentiate example key our business. markets, capabilities PVC manufacturing to ourselves the these monitor with works find and ability is a first PVC developments, for water customer's One opportunities our footprint products. as conduit

markets water-related which begun. very was narrow investment in small represented radius our Historically, in participation and of presence. outside further geographical Growing we've requires current end a

team positioned brand. mega with manufacturing substantial recognized megatrends with infrastructure, expanding globally projects been that projects. and services centers, by products support ability support data has Further, plants well our of its related portion to construction a mega is driving to other global of Atkore electrification construction electrical are Unistrut our Atkore's these the leading to global chip

Turning Slide XX. to

horizon. strong capture some are growth remain markets our to well invest trends These new multiyear we stimulus offerings from supported government augment the large to infrastructure. a While positioned we have for need funding secular by of trends which the related more service and benefit to product and opportunities -- in electrical programs

storage, of Turning are Modern the data to low Intelligence crucial data increased in XXXX. XXx has Slide from $X.X data grow XX which AI. centers, the existing developers growth data capacity continued in next billion just XX. need trillion steadily AI generative the To $XX new capacity to growing a for over supporting is to often the market have the meet market of centers size Bloomberg of years generative for centers. projected

alone, XX% 'XX by Construction in in centers XX% in and data footage dollar square value. Network of FY of And terms to terms expects grow

precise for any to Atkore, market. exposure products our In means generally construction, to of what end this terms follows of for dimension demand category it's market the while challenging our

and during should concentration key followed by contributors our we call, expectations centers 'XX. previous for highest data our be As shared healthcare have Atkore of manufacturing and the growth FY to products

XX. Slide to Turning

intention our with will business Our reflect cash to and mindset to invest capital continue deployment has a our grow to and shareholders. of model returning been

quarterly is an During capital our model. FY Directors of which Atkore's dividend, of element deployment authorized Board 'XX, a additional cash

have billion, over future XXXX, underscoring of also repurchased through Since our our cash program. over of executing we return November our commitment Atkore's buyback We or stock the business. been the a $X.X XX% in robust to on to of confidence equipment shareholders

portfolio. in to We finding our remain that selective further but our M&A, committed are approach enhance opportunities would to

We capital XX. as Slide projects. spent those 'XX we expansion with our as solar, supporting over in made approximately to in initiatives, $XXX in Turning XX% new investment that to and the water-related in global areas support million our mega growth well FY including product expenditures related the RFPs

these services. Looking construction ahead to continue for to FY we and invest initiatives 'XX, will water in

decisions with investment will capital return mindset. future made Our be disciplined a on

to PVC and HCP XX. end growing about more share water-related thrilled related our to Turning markets offerings. detail initiatives to of our I'm through Slide our expansion

Atkore As but highlighted, complementary. products we it's of are our to they variety of important while offers a products underscore construction-related also to diversified are markets, serve diversified, set have that end a

in enabled synergy Until and meet now, markets. we Growing these complement broad When of end needs new these line water an of we offering our to further to of opportunity to and HCP portfolio. capabilities markets this pipe water-related markets product assets, is recognize our expand participate our in existing limited offerings existing PVC a our us HCP for acquired the both a way.

grow us funding water the aging national benefiting have investment Our emphasis of on both federal our funding markets. also us broader known related the use Act already allows in Atkore the has plumbing applications water Also this to replacement projects. Construction footprint FY serve billion $XX infrastructure. to X% products our greater 'XX. products of with end geography markets. infrastructure to to way. this in water-related program an works and even IIJ, in will and products a Jobs are in estimates reach Several These allows municipal water commercial growing the the an and from benefit in federal in residential authorized plumbing market approximately as end for

legacy our Slide to we've to On Turning construction the leverage with prior unique a calls, global projects. discussed XX. way mega to participate business services potential in

As have FY we we sight better opportunities. of enter for 'XX line these

which footprint, manufacturing off-site efficiently. installed to designs, support scalable, to projects, construct global including We design then have legacy leveraging be these manufacturing made Atkore's off-site able certain global investments modular we are operations and mega by can services, to manufacturing utilize engineering

tremendous Atkore's centers most recognized fab presence has done job the supporting the world, of both data team companies a with The growing some chip in companies. and

Slide to Turning XX.

FY While core challenges various navigated capital future on initiatives, our and 'XX, we have we focused growth deployment in business, productivity strategic remain opportunities. our

there as materialize course projections, we future could potential could factors year impact well beyond with are As year. our the which what as over initially of outlined that positively the challenges various

outlined topics what These actively on the provide associated and here it may our we monitoring insight impact on are adjusted have EPS.

our earlier, competitive imported from continued impacts various new we dynamics, price versus domestic As reflect competition assumptions cost discussed products. including and

with the clarity is pricing on there the import the believe we However, that potentially and stabilize improve allowable population. possibility could

rebound specifically multifamily, believe certain position benefit to end in to Our hospital we're great that expectations incremental a in volume volume. begins upside have from we could markets, construction additional single-family, the

end been higher interest years. have environment by impacted the of a over past Several markets these several rate

decline, rates data indicators be third-party began for markets. for end interest As leading to watching will we these construction

turning Atkore's outstanding making product Slide opportunity. compelling profile Finally, emphasize portfolio, a investment enough XX. and financial us to can't I differentiated

team primary lot customers importantly, accomplished that and John serving we of management the on done. -- value. focus and shareholder more are several however, Our work I as past the there's as we've creating to years be a what be still well in proud to our recognize of continues entire

and we process trajectory. Our continue framework commitment and move the to people for strategy, strong Atkore's is forward how

to for line questions. turn open to the the we'll With operator it that, over

And your Capital from line KeyBanc first Tarantino comes today Instructions] of Markets. from the [Operator question David

cost prior Maybe just the million like on frame it in you us to framework, for $XX than Could implies out start a the the looks looks pricing drivers on more headwind of pricing. that, remain pressure change expected? becoming that guide input you like the are previously versus input pricing more costs seeing Where And acute? changes the then it headwind. maybe the

Yes.

here about the we further expectations talked the on as we've conduit of quarter. on side. well. degradation dynamics Let some think PVC We see than some anticipated electrical me say And David, it's extrapolation expectation. change I softness into then beyond entrants start, forward, look and prior in the an here we prior other give for seen potential market new as fourth even initially some versus the Bill can I'd pricing the coming the that

fourth conduit continued steel the see And declines and start on to as quarter fiscal the the here of in some side, in XXXX we've the well.

from moderate of into -- government Now occur but from largely the benefit fiscal we be there do be and until benefits half the and XXXX anticipate a perspective. could potential then those a those the it's back intervention to like could whether things steel -- potentially and that wouldn't into a some that, year

side. So but those are probably the expectation on changes material more the versus PVC the X here prior driven largely

our as changed, prepared we remarks, PVC and at with versus I Yes. just going what's same starting just we gave -- for earnings in informed was other imports slight have said call, beginning is said, of example, David, -- at there's John people add question in coming and the answer, that the to been follow-up as factories since increase John in. our I a states had still the we've are in think, August

we that know, from here things run therefore, do to is So we're want to hopefully, get the anticipating communicated. And don't so our out those that we information, game we as ready what numbers plan. we -- here,

initiatives the torque driven how versus to markets much growth like the Okay. some internal tubes? the up by of is Then solar on guess assumptions. Great. follow volume I just the maybe of end

Yes.

there. go, other we digits, distribution going to at words split report, now being low basically the mid-single all the say markets we anticipating -- a digits. out look if the from things to I could XX-XX. it low by In single us are see grow I to to to of I I'm think last you mean with lot

I'm almost right that a year. it's -- naming that some in for time Atkore. really probably going different from And ones. But you going then look broke it's with to at growth into XX walk now, basically I say just slow there's could market. months, next there, without very XX ABI the first names flat. ever And

-- water can running all the have from take people's this global things now, that mega pricing, challenges in in But here you is we that picking Hobart solar probably now we sales where the where -- solar ecstatic the develop up well pretty I'm with the to products, up questions pretty it's the I'm we operation mentioned, things so other just projects. about as and that jump with but coming all about covered just we

of kick and starting the -- like global some So in things "backlog huge wins. -- get we're more to backlog think, lot these a I mega a projects, in in

again, start take forth. least so also But off in couple things reasons basis of But seeing by the at growing the probably these or we a anticipate there market faster will the more than definitely hundred summertime we are where points. revenue

line next from RBC. the Your comes question Deane Dray of from

I to same and we of add hopefully little more lines the precision a could. follow want on up questions if

attractive of So from competitors getting in good sign the coming returns, always market. new into when Look, you it's people wouldn't in otherwise, a and a see perspective market you're you're an come

So too that surprising. part is not

intelligence you online. new competition? or Is -- But would expecting from can capacity gives what it today PVC you in much just are from capacity you competitors but in market coming percent competitor terms X new X how -- what of this your be

forth. so wing high it me be unfortunately, up starting real tell doesn't competition will but I'll where it, about Deane, level and my try with, factories to they're

different one. you next like have down go factories, facilities. the largest I X X our X again, the X want order and you're if probably XX, XX pecking But assume specific we have to having for, or sizes don't -- Here's name

to perceive X it's eventually I at with person, maybe X, least X. going

up, of again, how of a me. But but with if X%, growing X%, that as think with maybe just XX% sharing many space, their pretty were One X%. much always lines how you -- it's but a to I growing not facilities to maybe that large seems transparent, ramp putting Again, that adjusted imports that in. have one, But imports I here. then we're you're Dean

It's an is amount. extra XX%. So a not massive

the that it. it's but tried to the competitors I when just next don't XXX. around into they it's think the here, price said, want make. do question go I'll sell that you volume than challenge why almost Deane, you those challenges "Hey, And year, blunt that, to as and product Dean, just we be more that's sat David's the last

XXX new "Oh, we're dynamic. I'm a saying, I Now as is saying can, there's much as of tired

So as getting this figure soon as front we're in of this. out, we

and, now switch to And investment. water value after are i.e., share, excited up, investments about let's solar of but in sales just capital the global mega projects now I'm for years capital do are lot products let's not shareholders start of want gears taking I start our running go are products are adding up our now a and

right. to say, you were you just XXX didn't the it I like dynamic. about midpoint new bridge want be All said coming a and you there's want back, XXX to the between as clarify the "Hey, because sounded talking and

that course So could I during just cushion down you Go of come 'XX? does to XXX of for get... that path, and give the kind up wanted dynamics other some fiscal that

Yes. fair question. It's a

XXX XX It down XXX clear, as adjusted the range for to XXX. XXX. is Slide has midpoint the be versus So so EBITDA the outlook, FY at just 'XX that to

is being also Bill teams very I a view but to we the on here. is the of get the year are what do mean, what rest -- working clear looks trying with very like. we're forward-looking I think realistic

did we amount quarter, From trying said, here, X backlog these have product change have hopefully, on of being fourth are We want a best our of here pretty lines, and is dynamics weeks back, forward those time. to quarters. of we future short we we don't a be which But coming can. several the we're versus as regularly, have. but perspective do the that they in only But relatively extrapolate to change

don't still ramp And things to are So as I a The our in these done hit I lot have new into a -- teams we mentioned, is way, that no there's products the Bill that in built balanced. have some a think -- of operational. that, do back I guide here here. are We job. great half have think

Now we've both sure operationally to got we execute make and commercially.

just going we I'm a in half. profits but John, number. to grow And it Yes. the repeat, balanced not second have obviously, And is to Deane, say,

then things normal quarter-over-quarter forth. if the number we it Page up. that we come like Obviously, year, Now volumes is price balanced -- in did it try more some are get we'll sequential with anticipate in if a that still a besides make could win things you but a are have XX, to document almost hit and what deck, stronger, we the the so than what is

over but -- I'll to it turn you, So back sir.

And just you All to That reset into the a believe guide. imports. right. reference that your color me. And for I around X exactly made last thinking the was

So when I'm thinking steel. import, say you

does so explicitly, it's single that? low up? above is did where digit surprised the It And Did was that last percent, that quarter then stand? like go steel it And and XX%. go Mexican

was No, PVC. I Deane. for answering I apologize,

PVC So With for percentage say even there's get the as through market. what's denominator I'll go don't like, also, know of both, exactly first transparency. again, what's the we the answer the your spirit or we realized in

the pipe. much There's will guess. into PVC actually to is they and manufacturers guess we have We conglomerate, sharing how for get sell, nobody resin -- best just say example,

extrapolate then trying us market's to it's plumbing. much versus how of municipal And the pipe

little stuff And are, the steel are keep they're still driver above probably which the there China growing. slightly XX%, of maybe probably still imports all are with following around example, itself, Mexico all a because for conduit, then is imports XX% and like for I that. primary is steel estimates. So things. these are would less But bit because than

administration has XX% to starting conduit when now like XXX I China XX%. an up like predict in It dropped. it's would as last extra feels for recently, with coming free tariffs, exactly tariff Biden of I'm to the couple added months the Now steel

overall, slightly that. below considered all above XX% can max from So though Deane we at tell what but XX%, maybe things

on data, around saw there's U.S. several and -- imports. hundred -- bit data by saw between We government in this little September. imports large, As Deane. in to 'XX 'XX. other slight little month and totality down right the the the I were in up here, they We steel a think a for conduit of But is on basis points year-over-year

So it hopefully, genesis before is really PVC, And that is just up. then year-over-year month-over-month go again, I of down, date a question, was the to September. your latest

that November, So we here sitting communicate we have we're as information the use and available. in

What covering I and we referencing, like something lot have Atkore you like, a you a have Deane, I'll imports and decade, we so bridge a it's facilities back day, go Deane, over to hey, there have Deane, and referenced the Tycos imports, you try the days. but is know less I advantage, is obviously, you PBC serve and been deliver for that's can country, to is X where was X in well if Atkore in forth, the across

ship in. a the I'm is, PVC or versus XXX margins be to digits, and XXX XX% to low XX% could had that extra if up making mid-single competitor a But when low margin it teens in And within were you number, use miles.

example, and a drops, from But and Colombia see, coming less imports pricing becomes Republic Dominican some we that economically couple feasible. of do as obviously, other Now for countries.

kind don't the if of single who's cheek, precisely, is that knows what -- let here administration low referenced and digits, will to I probably that where but talking new we Page every on me And anyone we the in and to that's by changing formula treasury head back that's do XX, know, mid-single don't please getting have one. tariffs. I know what and with tongue then And in commerce baked into digits

thing down go, Or do any it tariff negotiating a I'm but it the days percent So we think tariff other a solved? really it, I thing what does going to Is these not products. happen? out assumption things is have it get to what also start, forecasts, from XX is in

start it's it year-over-year at the to least an guidance thing of not think 'XX, logical So bring get you be those this and could most could a as that, into include at giving that we type out not tariffs other point. we call that upside than I optimism to FY from want

Your of next Chris Moore line Securities. the from CJS question from comes

So maybe the just S&I EBITDA margin.

unanticipated conversion. a You couple double-digit thing? the quarter get talked back it quarters about that is X Or to range. of material a take into going to Is

here. I'll euphemisms through get

always the and happened majority. -- our is of with zinc, or what Hobart new a So again, it dip it's or There's like a spray then couple materials, take and it. factory so like other a factors with we we steel in forth galvanizes which

product can And cycle our thousands something we much is zinc on tune. it's which is you material. pool size something every when an day galvanization you how of expensive count swimming find goes to a an exactly zinc, fine-tuned of inch, Having have not

our slightly being was did much So probably were we honestly, when consumed. year, on zinc throughout we went physical through the missing how -- inventory

caught up. it We

it. is we're issue an this of news what's that good in -- supply, But we it's forecast it's we're how real. not reported still better we news I No, mean do here. job good a do exactly So making I been quarter. mean, sure

team accounting event. of those things. doing no, So our a it's type onetime is But

it. Got

embedded the the further a what's assumption guide? rate interest ago, than a of So cuts, rate today in interest perhaps couple current months less certainty of certainly

I I'd Yes. interest electrical of is I digits. single kind products, where fair to say, think projecting. that are expected Bill's the question, think Chris. we're for to rate And It's the mean a expecting I core point, people market that's the low reflective grow is environment of that

we're we're a now does to interest So single seeing generally, built-in activity picking clarity around funds maybe the what -- some that and mentioned, administration here seem some ABI. seeing the up, the here happening is rates, right on the on There's there election. as with forecast. isn't but be there Fed progress what's clarity Bill into probably But less

some other that global rate interest like the you as projects, that. Then water projects, municipal are mega not have things sensitive items

So in sensitivity that. areas are of that there's are a to the dynamic between that less interest areas rate market sensitive

Got it. the big I bottom be revenue a from fiscal takes standpoint. and EBITDA just could appreciate the that. puts adjusted maybe to and And about you 'XX picture. more talk why as Can

Yes. Great here. question

again, but So I here do think it 'XX guide. to give is, not we're

product, even So PVC for declines off, that again, we it year if decline. and/or for year-over-year levels there if several pricing have and other on as pricing pros cons, 'XX any factors implicitly, to you this is get

So it have even we get a price 'XX a it wouldn't me surprise of QX year-over-year it's levels a comp. to when because if off negative to

to pricing said, things importers, it market. as an down, PVC, attractive should for just as that in it following. Dean point, it's help At it point new hey, competitors mentioned, doesn't will the will, become goes void That feasible. as of At some or some

help some also things XX% As building cabinets China thoughts I all on where read. -- and the is significant year, we use the that I on -- all mean, administration it's in the be the manufacturing, go there's that, that administration should tariffs puts new price for domestic don't some us. we what different what's which and different I products, that in will whether leaders higher for XX% read of to when I declines have tariffs, it this

'XX extrusion now the products, where believe, half through, everything see you'll going forward, as we the in the in year we and From into go walk water there, lines we this FY ready sales year is of is up they're then I this have hand. truly basically second

Hobart always improvement our interjected, any I solar. well, continuous is for, can asked like plant have Some for running

very the 'XX, very in probably it's a we're that goes in out it called reviews, there but to would I have I clearly go confident sales. business his end in by that here. specifics, that now win large job hands again, get of knows additional the into global that wouldn't now mostly thought nice 'XX, projects. be our -- into mega actually have have like our salesperson but would of backlog to been So

ability our small service for we made in also I regional co-load now. remarks, even as as the called to we as the investments as out then And with the things, prepared centers say

getting to X having got regional Now footprint customer excellent. promise or delivered is products the the we've in shipped it's, okay, and get these days,

different of did of declining. the couple a about pricing to CapEx, you at know think is way, then we this was And last Chris, years look if

Now now guide million this significantly the they're coming obviously, declined more It's to the But investments have million of investments have why lower pay to we go, expected. it's these than $XXX starting middle $XXX and than we year in COVID, been we back because and the years made previous made. a on indirectly purposely off that's in in CapEx. to

up. are moving accountability accountable now And There let's I and products is they're FY we well and to forward. metrics we're Atkore second start make into a and we I mean, The the the those right occur. 'XX year think go into half positioned as get things the chart. business of CapEx the with who team still people system, But it's tweaking. -- the more have right

of Your the Capital. Chris Dankert from line next Loop question comes from

the case pressure to being Or roll context it's there think about Hobart here, think without of do Hobart those that? about profitable Can do the we but don't incentives? facility we some back how the think -- the rate? IR in how I base be

awesome every But question been absolutely. has great. Well, Yes, question.

or facility good we into the So IRA started came the place. bad, Hobart before actually ever

it it on cake getting the that. so was call and -- icing So

have is been of their into that customer. year teams I Now what claim our passed solar the that people with tax the has majority the financial ways all end that to over with the would actually modeled you the make credits, and on pain guys

us, a thing. of that So large not it's for

would do on with quite that products before IRA We market the most with China some us the the helped coming feel was still Biden of comfortable Trump if we coming it administration first it. was Then frankly, now from the anything, go the to X fact I XX% tariffs doubt half China that, from in change and that. I have get is, administration increase where thing

the not public. needed And se asking But comfortable was skimming to still with team concerns is is me, and very and short-term are ahead. per obviously, So their through. them the all they're And question, array that companies in is, And still you're where make stuff all, getting the not they're -- labor several permits from earnings what on lined but products everything the up. therefore, solar states. now we growth in we're years some each there's that for dealing working the they're our going talking, and sales and double-digit all into reports

there of of individual but that the get It's call for it's without out and more top Vice let's factory. Sales, my not X. build So things, all maybe the different President it my

give each in but looking That's incredibly million how about And missed then if I color. we're the at think steel versus you all just have piece? $XXX pricing of we it, year, back PVC the helpful forgive delineated proportionately should when

on here Chris, referencing 'XX you in basis. or -- go-forward the are

I think largely guys guided for the 'XX, was versus what number... you In

Yes, opposed dynamic weighted heavily basis, to weighted on PVC the 'XX heavily versus 'XX built more versus steel. price cost there is a towards as in significantly

opposed an market the driving dynamic X exactly on forward bit to extrapolation here moving that ahead We're little seeing look So in is to we're that on that's impact. that and trying of as we're the today. here, a more what

comes question of Rygiel next from . Riley. Alex from Your the B. line

project depth playing You opportunities? so see morning, as this go line little far you it into in a more but future for date little success a can bit if and to that to touched bit you mega opportunities upon how time your maybe out

Yes.

bought out kind -- things double-digit again, companies And which and as I well-recognized growth. here, models again, the caveats of hoping think test purchase some now, order track, to from us anytime. large give forth. on They and receive basically that alluded I'll tied like so all definitely I we're we're in we're to is

So committed I think we're there.

the -- short-term opportunities And projects as just optimistic some to future. and then of the out trying with still having delay future. so for should one, give things, they're we figure some that So challenges the and but redesign

long we're good think very a I So spot. in term,

but quote up, rates can don't specific, get the I is if I know the more up. backlog

down again, some it. we projects or is which X the is XX% we us, have wins marking it's multiple have if large large -- don't where XX% We ones order, of team XX-XX probability but to X here, on from sales my

of where have actually X-month in "Hey, predict John X-day to Atkore's things starts we before a rest advance, and -- backlog then trying least stuff. a a year delay not to it's out Dicer products, X-, it if in at the process, up XX-week work bidding you unlike these there's mentioned, a our with then Unfortunately, have are and longer,

optimistic. FY optimism 'XX, it's 'XX last half, and back quarter of very the maybe more the FY but So for

Yes.

on think where on framing, that at global metal Slide these year. I build look just double mid-single really if would construction projects. and this because I I X, mega year, this grew business digits last cable That we that's have management the services, team focused digits that's

business story. incrementally building And it's that years area. several that ago, and over probably the products maybe X, did and product this we been if globally visibility probably say area really stack that I'd then page But a largest in our actually we or third you was second fourth our plastics even X the it's was been growing today, we steadily. brand that stepped it, It's years behind that have backlog. product Clearly, nice largest right up that have we've Unistrut how

tie -- the plastic, largest of product do then the but product our we're look into investing lot those projects, is this the key of here. inside other the area second a investment largest category. at We we're how second that with to water category trying

and growing, brands, the combat the in we the more is where dynamics. some to have been of do future. dynamics what So trying we to to have the areas other backlog we're ability with the short-cycle This pricing we win have

what mean we this about like the I here. is into So business this future

Page I'm this is XX, is if there's a that into back Atkore, water to service FY the in questions If without lot or regional of we're where center, to But Yes. I you proud things of products. low speak. specifically so point truly this team, i.e., add about -- getting 'XX can also doing went to unique,

there in this industry. 'XX, But if are -- at you people look it's other

hey, your like I global unique, corporations versus, you So a framing us. I won't of it's no want price just, recognized. what's but don't to well-known well, our metal that's something brand for it's totally longer but globally have mention say competitors, versus

as this And proven worked We for off-site in the done example, and double growing it's have is percent, still forward. have factory. with down, together ABS have after across it multiple plus us and a that, states growing lean you us, we we -- have our get get but where single of and an in example, Aviv the is we it for best in things thing unique manufacturing, Tel operations on can that their world take with products, our companies them definitely the go practice in digits a with use shortlist is

to is where this make several where for but it gives this taking So reshaping takes it happen, me Atkore, corporation. that obviously years we're optimism

products quarters erosion more pricing helpful. couple as have to stabilized versus just processing a but correctly coming that for feel in of And then That's today, clarify, see is pricing therefore. you standpoint, hear comps I basically more negative a say you I the year-over-year did is from would

market. I that's biggest China, answered no, John, declining said, say into August the year-over-year closer earlier, the new Yes, and we and Steel rate we still And in Matt in $XXX the for when it's forecasting would to change at would declining way because had, this entrants John what in is a I we example, PVC. I of, again, but "Hey, the apologize. But when numbers. have was is million. talked

be going we're not PVC, stronger I tariffs do get in that to optimism it's give year quarter, they year something help somehow But half down that change 'XX back the up is dramatically forecasting that we both assuming more question X 'XX. the over other that it's will out. FY as again, to than we even would our would into the go by declining. administration in new fiscal is latter but the me -- are -- not a get is as the But that hope forecast year-over-year. to of no,

final line question Citigroup. the Andy from Your comes Kaplowitz of . from

This behalf Andy Kaplowitz. is on of

on would versus sure on I in volume extent opportunities. how any doing? productivity control quantify what you, But you you And not appreciated. are dependent growth? be these you but your actions can much I'm highlighted if think helping color you they're to are can what elaborate

directly a of year. But that's We're been our I year install don't just It's of great. forecasting -- this expecting this dollars tens actually saying we great millions a year. we're question. the if -- productivities, productivity productivity highest Yes, net didn't no, of

we've but dozens And I people. there's enough want hired just I'll amount helps again, added, but -- tens don't we've of -- of back to investments, obviously, of get volume several people, specific where things say to just we've people to a or and not for I'm PVC it line. -- scrap takes it's hour to from that and changeover in example, everything work, lean this X up, when an but making do productivity, line reduction, streamline you line but jobs,

material, uptime regrind can you and some better yes, the same with preventive maintenance. a how efficient. older do And thing we in with job let's get but that of factories our The more

we're making So going volume good a get help, from without would volume, net forward. but should this investment without still we productivity

X for just Got Okay. helpful. it. me. then very That's And question more

is to a -- to start at start, guidance just bigger not softer you just leading the XQ, be the low. other a Can or factors ramp it's you of But said XQ headwind past up in a thinking relatively Your seems back if all the seasonality there year. are elaborate pricing half.

pricing of provide think versus the impact should could color some we year. you If on how throughout volume

put logical country foot and and a like and when PVC, to we forth. I'll the Extreme our have go for of you mean back, will by company that there's The always for follow optimistic And to products normal them summer where that, people half it's stronger. in start. which to hard a ground I'm that what plus. QX If in QX we months the snow get reasons the Yes, so and you I for are seasons HDP decade

when and windy in and it's skyscraper summertime. just conduit So more building even out freezing it's construction if it's some -- general, on floor, steel some and versus the efficient,

of So us XX% is talked that we it, will there therefore call the things help other growth all volume more and these always then is, kind thing summer. different about. And X%, profit the in

and you're this of the like permutation a example, ag be main Detroit or now season municipal and nice going kicks when products, not as to water a as them going things probably getting in For a a a foot but new there's the different hypothetical, down same or products snow the to way water foot. the in go, putting out there's off

initiatives So some the is of kicking off. it

it's markets Some should the things but always stronger second the just half worked fine-tuning the those have of initiatives, us and give a the way of year.

is Yes, the I year-over-year against is add other would difficult only absolutely. comparable And the QX in the item comp. more

Our level QX highest of year, cetera. the XXXX in of et of highest was probably level EBITDA, our pricing

we So as and in the largest. investments volume, throughout the year-over-year some in then that improve to of start But do comparison the progress then we first the the these and quarter projects expect is year. we've those ramp probably that made should

earnings story if an looking half it is perspective, from a the really year-over-year start. a is than different you're little embedded the here at it probably But higher sequentially. in it's back between bit here of So dynamically

remarks. And turn for the the now I this to question-and-answer back session. call concludes to Waltz over like closing would Bill

our let me key from Before we conclude, discussion. today's takeaways summarize

First, as by our evolve product evidenced continues portfolio. Atkore to expanding

built we've years. for what extensions natural are over initiatives many Our

to believe overall positive and throughout competitive continue year. the market us the could as we for impact we factors move landscape and monitor a Second, dynamics several have

your during look thank with that, committed support This remain company, to long next capital strategy shareholder for we deployment forward you our over to our quarterly value call we our With today. speaking Finally, call. interest in you and the concludes and the to term. create for

call. conference today's concludes This

disconnect. You may now