10 Best Electrical Equipment Stocks to Buy Now

6. Atkore Inc. (NYSE:ATKR)

Number of Hedge Fund Holders: 32

Atkore Inc. (NYSE:ATKR) is engaged in the manufacturing and selling of electrical, mechanical, safety, and infrastructure products and solutions. For Q2 2025, the company expects net sales of ~$695 million – $705 million and adjusted EBITDA of ~$115 million – $118 million. Atkore Inc. (NYSE:ATKR)’s preliminary Q2 2025 estimates demonstrate mid-single-digit volume growth and better-than-expected manufacturing productivity. The Safety & Infrastructure segment results include the favorable benefits associated with construction services projects.

Atkore Inc. (NYSE:ATKR) remains well-placed to benefit from strong prospects in electrical equipment industry, mainly via its involvement in critical infrastructure projects and adoption of digital technologies. Its product portfolio consists of conduit, metal framing, and cable management systems. Atkore Inc. (NYSE:ATKR)’s infrastructure portfolio is expected to be aided by EV charging buildout, strong growth prospects in data centers (due to AI and 5G), and grid modernization efforts. Such trends paint a favourable picture for the demand of the company’s products, spanning from electrical conduits to mechanical tubing.

River Road Asset Management, an investment management company, published its Q4 2024 investor letter. Here is what the fund said:

“The holding with the lowest contribution to active return in the portfolio during Q3 was Atkore Inc. (NYSE:ATKR), a branded manufacturer of products that protect and frame electric circuitry (including PVC conduit). ATKR delivered worse-than-expected Q3 2024 results and lowered 2024 EBITDA guidance by -11% due to higher amounts of imported steel conduit entering the market and a slower summer construction season. Steel conduit imports from Mexico have risen sharply over the past year in violation of existing trade agreements. ATKR has lost market share and has cut pricing in steel conduit, which is roughly 20% of total ATKR revenues. A Donald Trump administration is likely needed for effective trade enforcement. Weakness in residential, construction, and utility end markets led to lower-than-expected volumes and pricing. We believe ATKR’s balance sheet remains in great shape with net leverage of only 0.6x and year-to-date free cash flow generation of $245MM has largely been used to fund $281MM of year-to-date share repurchases. We took no action on the position during the quarter.”