Atkore Surges Ahead: Record Volume Growth, Share Repurchases, and a Strong Outlook
Atkore, a leading provider of electrical, EHV, and mechanical products for the global construction market, has just reported its strongest quarterly performance yet. The company's Q4 2024 earnings call transcript reveals exciting highlights from the quarter, solidifying Atkore's position as a leader in the industry.
According to William Waltz, President and CEO of Atkore, the company achieved volume growth in each of its key product categories, with an overall volume growth of 3.5% for the year. This impressive feat was made possible by the company's strategic approach to market trends, including the adoption of renewable energy, rent hardening, digitization, and electrification.
"We're encouraged by the performance of certain products in the fourth quarter as we head into FY '25," said Waltz during the earnings call. The company's S&I team recorded double-digit sequential growth in sales for solar torque tubes in Q4, further solidifying Atkore's position in the renewable energy space.
Atkore also made significant strides in its capital deployment strategy, repurchasing over $380 million of stock in FY 2024. Since initiating its share repurchase program in November 2021, the company has repurchased over $1.3 billion of its stock, which equates to approximately 20% of the outstanding shares.
The company's strong operating cash flow allowed it to return over 50% of the cash flow to shareholders through its quarterly dividend and share repurchase program. Atkore remains committed to its capital deployment strategy, with a remaining authorization of $428 million under its $500 million repurchase program.
"We've also identified areas where we can leverage our manufacturing and commercial capabilities to capture growth opportunities from other economic trends," noted Waltz during the earnings call. This forward-thinking approach positions Atkore for continued success in an increasingly competitive market.
The company's focus on sustainability was also highlighted during the earnings call, with the release of environmental product declarations for battery products. Atkore continues to be recognized as an employer of choice, solidifying its reputation as a leader in the industry.
As the construction market continues to evolve, Atkore is well-positioned to take advantage of emerging trends and capitalize on growth opportunities. With its strong track record of volume growth, share repurchases, and a commitment to sustainability, the company is poised for continued success in the years to come.
