Atkore Inc. (ATKR) shares plummeted 8.56% in pre-market trading on Tuesday after the company reported disappointing third-quarter results for fiscal year 2025 and announced the retirement of its CEO, Bill Waltz.
The company's Q3 net sales decreased by 14.0% year-over-year to $521.3 million, falling short of analyst expectations of $737 million. Net income saw a significant drop of 65.2% to $43.0 million, compared to $123.4 million in the same period last year. Adjusted earnings per share came in at $1.63, down from $3.80 in the prior-year quarter, though slightly above the single analyst estimate of $1.58.
Adding to investor concerns, Atkore announced that CEO Bill Waltz has decided to retire. The Board of Directors has initiated a search for his successor, with Waltz continuing in his role until a replacement is appointed. This unexpected leadership change, coupled with the weak financial results, appears to have shaken investor confidence. Despite narrowing its full-year 2025 adjusted EPS guidance to $6.25-$6.75 from the previous $5.75-$6.85, the market reaction suggests that investors are focusing more on the near-term challenges and uncertainty surrounding the leadership transition.