Atkore Stock

Atkore Inc. (Atkore) is a leading manufacturer of electrical products primarily for the non-residential construction and renovation markets, as well as residential markets, and safety and infrastructure products for the construction and industrial markets.

Segments

The company operates in two segments, Electrical and Safety & Infrastructure.

Electrical

This segment manufactures high quality products used in the construction of electrical power systems, including conduit, cable, and installation accessories. It serves contractors in partnership with the electrical wholesale channel.

Safety & Infrastructure

This segment designs and manufactures solutions, including metal framing, mechanical pipe, perimeter security, and cable management for the protection and reliability of critical infrastructure. These solutions are marketed to contractors, original equipment manufacturers (OEMs), and end users.

Products

Atkore is committed to providing the company's customers with a safe, sustainable, and innovative portfolio of high quality electrical, mechanical, safety, and infrastructure products and solutions. In total, the company serves several end-markets, including new non-residential construction, maintenance, repair and remodel (MR&R), residential, OEM, and international markets.

The company continuously seeks to improve its product offerings and develops innovative new products that meet the changing needs of its customers, which include industry trends toward digital design tools and labor saving solutions. The majority of Atkore products have Building Information Modeling (BIM) models available for the company's customers' use.

Significant product categories within the company's Electrical segment include metal electrical conduit and fittings, plastic pipe conduit and fittings, electrical cable and flexible conduit, and international cable management systems, which are critical components of the electrical infrastructure for new construction and MR&R markets. Significant product categories within the company's Safety & Infrastructure segment include mechanical tube, metal framing and fittings, construction services and perimeter security. The company's metal framing products are used in the installation of electrical systems and various support structures, and its mechanical tube products can commonly be found in solar applications.

Atkore continues to invest to add capabilities and capacity to develop innovative products and solutions to make installation faster and easier. Examples of the company's innovation include the patented MC Glide Tuff armored cable, the winner of the EC&M 2022 Product of the Year in the Wire & Cable category, which facilitates faster and smoother pull through during installations; Eagle Basket, which quickly latches together; and Cellular Core Conduit, which bends easier than polyvinyl chloride (PVC) conduit.

Customers

The company is acutely aware of the importance of its equipment operating reliably, and it strives to deliver the safest, highest quality products. The company's sales and marketing processes focus on serving its customers, including electrical, industrial and specialty distributors, who sell to contractors and OEMs.

Atkore has a well-established customer base, which includes many of the largest companies in their categories. In fiscal 2023, the company's top ten customers accounted for approximately 38% of net sales. For the fiscal year ended September 30, 2023 (fiscal 2023), one customer, Sonepar USA accounted for more than 10% of sales.

The company's customers include global electrical distributors (such as Consolidated Electrical Distributors, Inc., Graybar Electric Company, Rexel, Sonepar S.A., and Wesco International, Inc.), independent electrical distributors, including super-regional electrical distributors (such as U.S. Electrical Services Inc., Crescent Electric Supply Co. and United Electric Supply Company, Inc.) and members of buying groups (such as Affiliated Distributors, Inc., IMARK Group, Inc. and STAFDA), as well as industrial distributors and big-box retailers. The company also supports alternative energy OEMs, with many applications used in solar system infrastructure.

Competition

Electrical: This segment's main competitors are Zekelman Industries, Inc.; Mitsubishi Corporation; Nucor Corporation; Southwire Company, LLC; Dura-Line Corporation; and Encore Wire Corporation plc.

Safety & Infrastructure: This segment's main competitors are Zekelman Industries, Inc.; Eaton Corporation plc; ABB Ltd.; Hubbell Incorporated; nVent Electric plc.; and Haydon Corporation.

Manufacturing

The company's subsidiary, Allied Tube & Conduit Corporation (Allied Tube), developed an in-line galvanizing technique (Flo-Coat) in which zinc is applied in a continuous process when the tube and pipe are formed.

Suppliers

The company's primary suppliers of steel are Cleveland-Cliffs, Steel Dynamics and Nucor Corporation; its primary suppliers of copper are AmRod, SDI LaFarga, and Nexans; its primary suppliers of PVC resin are Westlake, Formosa, and Oxy Vinyls; and its primary suppliers of high density polyethylene (HDPE) resin are LyondellBasell and Baystar.

Distribution

Additionally, the company drives value for its customers through a single order across its broad product portfolio coupled with services like its ReliaRoutes hub-and-spoke fixed trucking lanes and technologies like its mobile app to track orders and schedule pickups.

The company primarily sells and distributes its products through electrical, industrial and specialty distributors, and OEMs. For many of the more than 13,000 electrical-distributor branches in the United States, the company's products are must-stock lines that form a staple of their business. The company serves a diverse group of end markets, including new construction, MR&R and infrastructure, diversified industrials, alternative power generation, healthcare, data centers and government. End-users, who are typically electrical, industrial and mechanical contractors, as well as OEMs, install its products during non-residential, residential and infrastructure construction and renovation projects or in assembly and manufacturing processes.

The company distributes its products to electrical and industrial distributors from its manufacturing and distribution facilities, as well as from over 38 dedicated distribution facilities operated by its agents. The company's products are also stocked by electrical and industrial distributors who are located across the United States. Some of the company's products are purchased by OEMs and used as part of their products and solutions in applications, such as utility solar framing and conveyor systems. Distribution-based sales accounted for approximately 83% of the company's net sales in fiscal 2023. OEM sales accounted for approximately 13% of the company's net sales for fiscal 2023. The company's distribution footprint is concentrated in North America (the United States and Canada), with additional facilities in Australia, New Zealand, and the United Kingdom.

Seasonality

In a typical year, the company's operating results are impacted by seasonality. Sales of the company's products have historically been higher in the third and fourth quarters of each fiscal year (the year ended September 30, 2023) due to favorable weather and longer daylight conditions during these periods.

Marketing

The company's marketing efforts focus on key stakeholder audiences, including electrical and industrial distributors, contractors, engineers, government entities, and OEM customers. These combined efforts communicate the value proposition of the overall Atkore brand by bringing together complementary solutions in its portfolio while reinforcing the individual value propositions of its leading sub-brands, such as Allied Tube & Conduit; AFC Cable Systems, Inc.; Kaf-Tech; Heritage Plastics; Unistrut; Power-Strut; Cope; US Tray; FRE Composites Group; United Poly Systems; Calbond; and Calpipe Industries, LLC.

Atkore sales are enabled through external commissioned sales agents and internal sales teams that drive customer acquisition and retention. The company's comprehensive portfolio of products and solutions is continually enhanced by driving innovation into its markets with new product introductions, such as the digital tools that support project design and selection.

Regulatory Matters

In October 2013, the state of Illinois filed a complaint against the company's subsidiary Allied Tube, alleging violations of the Illinois Environmental Protection Act (IEPA), relating to discharges to a storm sewer system that terminates at Allied Tube's Harvey, Illinois manufacturing facility.

In August 2014, the company received from the IEPA the terms of a proposed new stormwater discharge permit for its Harvey, Illinois manufacturing facility.

In October 2016, the company received the final permit. The company has maintained good working relationships with the state of Michigan Department of Environment, Great Lakes, Energy, the city of Wayne and the residents surrounding its facility.

History

The company was founded in 1959. It was incorporated in the state of Delaware in 2010. The company was formerly known as Atkore International Group Inc. and changed its name to Atkore Inc. in 2021.