ATI and Boeing extend and expand titanium supply long-term agreement
Rhea-AI Summary
ATI (NYSE: ATI) has announced a significant expansion and extension of its long-term titanium supply agreement with Boeing. The expanded agreement covers Boeing's complete commercial airplane portfolio, including both narrowbody and widebody aircraft, with growth opportunities and potential to serve Boeing's third-party subsidiaries.
Under the agreement, ATI will provide a comprehensive range of high-performance titanium materials, including long products (ingots, billets, rectangles, and bars) and flat-rolled products (plate, sheet, and coil). The deal will utilize ATI's new Pageland, South Carolina facility for titanium alloy sheet production, leveraging both Specialty Materials and Specialty Rolled Products divisions.
Positive
- Expanded partnership with Boeing strengthens ATI's position as a leading aerospace structures supplier
- Agreement covers Boeing's full commercial airplane portfolio with growth opportunities
- Leverages ATI's new Pageland facility and strategic investments in titanium capabilities
- Potential additional business from Boeing's third-party subsidiaries
Negative
- Success dependent on aerospace production rates and market demand
- Subject to raw materials price and availability volatility
- Exposed to potential industry risks including labor disputes and equipment outages
Insights
ATI strengthens market position with expanded Boeing titanium agreement, supporting all commercial aircraft programs with growth potential.
This agreement marks a significant expansion of ATI's aerospace materials partnership with Boeing, covering the entire commercial aircraft lineup and potentially extending to Boeing's subsidiaries. The deal covers both traditional titanium products like ingots and bars as well as higher-value flat-rolled products including sheet and coil.
The timing is particularly strategic as it coincides with accelerating production rates in commercial aerospace after several challenging years. Boeing has been working to increase 737 MAX output while managing supply chain constraints, making this long-term agreement a stabilizing factor for both companies.
What's noteworthy is ATI's emphasis on higher-margin specialized products, particularly titanium alloy sheet from their new Pageland facility. This aligns with ATI's strategic shift toward more differentiated, higher-value materials rather than commodity products. The agreement validates ATI's capital investments in expanding capacity and developing advanced titanium capabilities.
For context, titanium remains critical in aerospace applications due to its exceptional strength-to-weight ratio and corrosion resistance. Modern commercial aircraft use increasing amounts of titanium, especially in structural components that interface with composite materials. This agreement positions ATI to benefit from both current production increases and next-generation aircraft development.
This partnership reinforces ATI's standing as a tier-one aerospace materials supplier during a period when the aerospace supply chain is being restructured for reliability and capacity. The deal's scope across narrowbody and widebody programs provides ATI with balanced exposure to different segments of the commercial aviation market.
Agreement strengthens ATI's role as leading aerospace structures supplier
The agreement supports Boeing's full suite of commercial airplane programs—both narrowbody and widebody—with opportunity to grow. ATI is also positioned to serve Boeing's third-party subsidiaries under terms of the agreement.
"We're proud to expand our decades-long partnership with Boeing," said Kimberly Fields, ATI President and CEO. "This agreement reaffirms ATI's leadership in titanium at a time of accelerating aerospace production and growing demand for differentiated materials. It also deepens our position in high-strength titanium alloys and sheet products—strategic focus areas for ATI and our customers."
Under the terms of the agreement, ATI will supply a comprehensive portfolio of high-performance titanium materials, including long products—such as ingots, billets, rectangles, and bars—and flat-rolled products, including plate, sheet, and coil.
"This agreement highlights ATI's critical role in the titanium supply chain and validates our strategic investments—especially in expanding capacity and advancing titanium alloy sheet capabilities," Fields added. "It includes titanium alloy sheet from our new
ATI's materials and components are on virtually every commercial platform flying today.
ATI: Proven to Perform
ATI (NYSE: ATI) is a producer of high-performance materials and solutions for the global aerospace and defense markets, and critical applications in electronics, medical and specialty energy. We're solving the world's most difficult challenges through materials science. We partner with our customers to deliver extraordinary materials that enable their greatest achievements: their products fly higher and faster, burn hotter, dive deeper, stand stronger and last longer. Our proprietary process technologies, unique customer partnerships and commitment to innovation deliver materials and solutions for today and the evermore challenging environments of tomorrow. We are proven to perform anywhere. Learn more at ATImaterials.com.
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Certain statements in this news release relate to future events and expectations and, as such, constitute forward-looking statements. Forward-looking statements, which may contain such words as "anticipates," "believes," "estimates," "expects," "would," "should," "will," "will likely result," "forecast," "outlook," "projects," and similar expressions, are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which we are unable to predict or control. Our performance or achievements may differ materially from those expressed or implied in any forward-looking statements due to the following factors, among others: (a) material adverse changes in economic or industry conditions generally, including global supply and demand conditions and prices for our specialty materials and changes in international trade duties and other aspects of international trade policy; (b) material adverse changes in the markets we serve; (c) our inability to achieve the level of cost savings, productivity improvements, synergies, growth or other benefits anticipated by management from strategic investments and the integration of acquired businesses; (d) volatility in the price and availability of the raw materials that are critical to the manufacture of our products; (e) declines in the value of our defined benefit pension plan assets or unfavorable changes in laws or regulations that govern pension plan funding; (f) labor disputes or work stoppages; (g) equipment outages; (h) business and economic disruptions associated with extraordinary events beyond our control, such as war, terrorism, international conflicts, public health issues, such as epidemics or pandemics, natural disasters and climate-related events that may arise in the future and (i) other risk factors summarized in our Annual Report on Form 10-K for the year ended December 29, 2024, and in other reports filed with the Securities and Exchange Commission. We assume no duty to update our forward-looking statements.
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FAQ
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