ATI Announces Fourth Quarter and Fiscal Year 2025 Results
Rhea-AI Summary
ATI (NYSE: ATI) reported Q4 2025 sales of $1.18 billion and net income attributable to ATI of $96.6 million ($0.69 per share). Fiscal 2025 sales were $4.59 billion, with net income of $404.3 million ($2.85 per share) and operating cash flow of $614 million.
Q4 adjusted EBITDA was $231.9 million (19.7% of sales). Management provided FY2026 guidance including adjusted EBITDA of $975M–$1,025M and adjusted EPS of $3.99–$4.27.
Positive
- Fiscal 2025 sales of $4.59B, highest since 2012
- Fiscal 2025 operating cash flow of $614M, up >50% year-over-year
- Fiscal 2025 adjusted EBITDA of $859.3M (+18% vs 2024)
- Repurchased $470M of shares in 2025, supporting shareholder returns
- Q4 adjusted EBITDA margin of 19.7% indicates strong profitability
- FY2026 guidance: adjusted EBITDA $975M–$1,025M and adjusted EPS $3.99–$4.27
Negative
- Q4 2025 net income attributable to ATI declined 30% YoY to $96.6M
- Q4 2025 GAAP EPS fell 27% YoY to $0.69
- Q4 2025 special pre-tax charges of $22.9M reduced reported results
- Pension remeasurement loss of $18.6M in Q4 2025 impacted earnings
- Next meaningful debt maturity of $350M due December 2027
News Market Reaction – ATI
In the Feb 3 session, ATI gained 5.40%, reflecting a notable positive market reaction. Argus tracked a peak move of +7.7% during that session. Argus tracked a trough of -4.5% from its starting point during tracking. Our momentum scanner triggered 13 alerts that day, indicating notable trading interest and price volatility. Trading volume was very high at 3.4x the daily average, suggesting strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Dec 22 | Earnings webcast | Neutral | +2.2% | Scheduled Q4 and full-year 2025 earnings call and webcast details. |
| Oct 28 | Quarterly earnings | Positive | +7.4% | Q3 2025 beat with higher A&D sales and raised full-year guidance. |
| Sep 30 | Earnings webcast | Neutral | +2.6% | Announced timing and access details for Q3 2025 earnings call. |
| Jul 31 | Quarterly earnings | Positive | -18.4% | Strong Q2 2025 results and raised guidance despite subsequent price drop. |
| Jul 02 | Earnings webcast | Neutral | +2.1% | Set schedule for Q2 2025 earnings release and conference call. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
ATI earnings and related communications have often coincided with positive single-day moves, though one strong quarter drew a sharp negative reaction.
Across recent earnings-related events, ATI has repeatedly highlighted growing aerospace & defense exposure and rising profitability. Q2 and Q3 2025 results featured higher sales, strong adjusted EBITDA and multiple guidance raises. Webcast announcements on Jul 02, Sep 30, and Dec 22, 2025 were typically followed by modest gains of ~2–3%. The Q3 2025 results on Oct 28 led to a larger 7.44% increase, while Q2 2025 results on Jul 31 preceded a -18.36% move, showing that even strong earnings can draw volatile reactions.
Key Terms
non-gaap financial measures financial
adjusted ebitda financial
effective tax rate financial
actuarial losses financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Annual sales of
- Q4 2025 sales of
$1.2 billion $4.6 billion - Q4 2025 net income attributable to ATI of
$97 million $0.69 $404 million $2.85 - Sales to the aerospace & defense market represent
68% of Q4 2025 sales, up from65% of Q4 2024 sales - Fiscal year 2025 operating cash flow of
$614 million $407 million - Non-GAAP Information(a)
- Q4 2025 adjusted net income attributable to ATI(a) of
$130 million $0.93 - Q4 2025 adjusted EBITDA(a) of
$232 million 19.7% of sales - Fiscal year 2025 adjusted free cash flow(a) of
$380 million 53% over fiscal year 2024
- Q4 2025 adjusted net income attributable to ATI(a) of
Guidance
The Company is providing first quarter and fiscal year 2026 guidance in the table below.
Current Guidance | ||
Q1 2026 | Fiscal Year 2026 | |
Adjusted EBITDA(b) | ||
Adjusted Earnings Per Share(b) | ||
Adjusted Free Cash Flow(b) | ||
(a) Reconciliations of the reported information under accounting principles generally accepted in |
(b) Detailed reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures are not available without unreasonable effort due to the complexity of the excluded components. |
Sequential | Y-O-Y | ||||||||
($ in millions except per share amounts) | Q4 2025 | Q3 2025 | Change | Q4 2024 | Change | ||||
Sales | 5 % | — % | |||||||
Net income attributable to ATI | (12) % | (30) % | |||||||
Earnings per share | (12) % | (27) % | |||||||
Non-GAAP information(a) | |||||||||
Adjusted net income attributable to ATI(a) | 9 % | 13 % | |||||||
Adjusted earnings per share(a) | 9 % | 18 % | |||||||
ATI adjusted EBITDA(a) | 3 % | 11 % |
GAAP earnings per share for the fourth quarter 2025 were
Third quarter 2025 adjusted results exclude pre-tax charges of
"As we projected, we finished 2025 with strong momentum, exceeding the upper range of our fourth quarter and full-year earnings and cash flow guidance. Demand for ATI's differentiated products and solutions continues to be robust as we support our customers' production ramps and critical missions. I am more confident than ever in ATI's position as an integral part of our customers' supply chains," said Kimberly A. Fields, President and CEO.
"Our full-year 2026 guidance reflects this sustained demand in our core markets. Combined with our strong operational execution, ATI is positioned to drive higher earnings, margins, and cash flows in the year ahead and over the long term.
"We also delivered strong cash flow results driven by continued focus on disciplined working capital management," Fields said. "Full-year operating cash flow of
Operating Results by Segment
High Performance Materials & Components (HPMC) | |||||
($ millions) | Q4 2025 | Q3 2025 | Q4 2024 | ||
Sales | |||||
Segment EBITDA(a) | |||||
% of Sales | 24.0 % | 24.2 % | 20.0 % | ||
- HPMC's fourth quarter 2025 sales increased
$43 million 7% , compared to third quarter 2025, primarily due to higher sales of commercial jet engine and airframe products. In addition, specialty energy sales increased in fourth quarter 2025 on higher demand compared to third quarter 2025. Overall aerospace & defense sales represented91% of total HPMC sales in fourth quarter 2025, down slightly from92% in third quarter 2025. - Fourth quarter 2025 sales improved
2% compared to fourth quarter 2024. Aerospace & defense sales increased4% on a year-over-year basis on strong demand for commercial jet engine and defense products. These increases were partially offset by lower sales of commercial airframe and medical products. Overall aerospace & defense sales represented91% of total HPMC sales in fourth quarter 2025, an increase from89% in fourth quarter 2024. - HPMC fourth quarter 2025 segment EBITDA(a) was
$155.0 million 24.0% of sales. Sequentially, margins were relatively unchanged from third quarter 2025. - HPMC fourth quarter 2024 segment EBITDA(a) was
$126.8 million 20.0% of sales. Fourth quarter 2024 margin was impacted by a charge of approximately$6.3 million $2.6 million
Advanced Alloys & Solutions (AA&S) | |||||
($ millions) | Q4 2025 | Q3 2025 | Q4 2024 | ||
Sales | |||||
Segment EBITDA(a) | |||||
% of Sales | 18.5 % | 17.3 % | 16.3 % |
- AA&S fourth quarter 2025 sales increased
$9 million 2% , compared to third quarter 2025. Higher sales to the specialty energy market were partially offset by lower aerospace & defense sales. Overall aerospace & defense sales were40% of total AA&S sales in fourth quarter 2025. - Fourth quarter 2025 sales decreased
$7 million 1% , compared to the prior year quarter. Lower sales for medical, defense, and industrial products were partially offset by increased sales of commercial airframe and specialty energy products. - AA&S fourth quarter 2025 segment EBITDA(a) was
$98.5 million 18.5% of sales. The sequential increase in margins was primarily due to favorable manufacturing costs and pricing of exotic alloys. - AA&S fourth quarter 2024 segment EBITDA(a) was
$88.0 million 16.3% of sales. The fourth quarter 2024 margin benefited from a$10.4 million $5.5 million
Corporate Items and Cash
- Restructuring and other charges:
- Fourth quarter 2025:
$22.9 million $12.3 million $8.5 million $2.1 million - Third quarter 2025:
$12.9 million $7.2 million $3.6 million $2.5 million $0.4 million - Fourth quarter 2024:
$9.3 million $5.3 million $4.0 million
- Fourth quarter 2025:
- The remeasurement of pension plan assets and obligations resulted in actuarial losses of
$18.6 million $14.1 million - Corporate expenses in the fourth quarter 2025 were
$19.4 million $15.6 million $14.1 million $2.7 million - Closed operations and other income/expense was expense of
$2.2 million $4.5 million $9.1 million $10.5 million $7.9 million - The fourth quarter 2025 income tax provision of
$22.4 million 18.2% , compared to the third quarter 2025 effective tax rate of21.4% . The effective tax rate for fourth quarter 2025 included discrete tax benefits of$4.3 million - Cash provided by operating activities was
$316 million $614 million $93 million $281 million - The Company repaid
$150 million $350 million - Managed working capital as a percentage of annualized sales was
32.5% at the end of fourth quarter 2025, a decline of 390 basis points compared to the end of third quarter 2025.
Fiscal Year 2025 Results
Fiscal Year | Y-O-Y | ||||
($ in millions except per share amounts) | 2025 | 2024 | Change | ||
Sales | 5 % | ||||
Net income attributable to ATI | 10 % | ||||
Earnings per share | 12 % | ||||
Non-GAAP information(a) | |||||
Adjusted net income attributable to ATI(a) | 30 % | ||||
Adjusted earnings per share(a) | 32 % | ||||
ATI adjusted EBITDA(a) | 18 % | ||||
Fiscal year 2025 net income attributable to ATI and earnings per share increased by
Adjusted results for 2024 exclude pre-tax special items that were a benefit of
***********
ATI will conduct a conference call with investors and analysts on Tuesday, February 3, 2026, at 8:30 a.m. ET to discuss the financial results. The conference call will be broadcast, and accompanying presentation slides will be available, at ATImaterials.com. To access the broadcast, click on "Conference Call." Replay of the conference call will be available on the ATI website.
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; (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.
ATI: Proven to Perform.
ATI (NYSE: ATI) is a global producer of high performance materials and solutions for the global aerospace & 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.
ATI Inc. | |||||||||
Consolidated Statements of Operations | |||||||||
(Unaudited, dollars in millions, except per share amounts) | |||||||||
Fiscal Quarter Ended | Fiscal Year Ended | ||||||||
December 28, | September 28, | December 29, | December 28, | December 29, | |||||
2025 | 2025 | 2024 | 2025 | 2024 | |||||
Sales | $ 1,177.1 | $ 1,125.5 | $ 1,172.7 | $ 4,587.4 | $ 4,362.1 | ||||
Cost of sales | 903.7 | 870.2 | 924.1 | 3,580.4 | 3,463.9 | ||||
Gross profit | 273.4 | 255.3 | 248.6 | 1,007.0 | 898.2 | ||||
Selling and administrative expenses | 102.7 | 94.6 | 89.0 | 365.1 | 342.3 | ||||
Restructuring (credits) charges | (0.2) | (0.4) | 5.3 | (1.9) | 4.1 | ||||
Loss (gain) on asset sales and sales | 0.3 | (1.3) | (54.6) | 2.9 | (57.1) | ||||
Operating income | 170.6 | 162.4 | 208.9 | 640.9 | 608.9 | ||||
Nonoperating retirement benefit | (22.7) | (3.9) | (17.9) | (34.6) | (29.0) | ||||
Interest expense, net | (24.1) | (26.1) | (25.2) | (98.6) | (108.2) | ||||
Other income (loss), net | (0.9) | 12.2 | 9.2 | 14.6 | 14.4 | ||||
Income before income taxes | 122.9 | 144.6 | 175.0 | 522.3 | 486.1 | ||||
Income tax provision | 22.4 | 31.0 | 32.9 | 103.7 | 103.4 | ||||
Net income | $ 100.5 | $ 113.6 | $ 142.1 | $ 418.6 | $ 382.7 | ||||
Less: Net income attributable to | 3.9 | 3.6 | 5.0 | 14.3 | 14.9 | ||||
Net income attributable to ATI | $ 96.6 | $ 110.0 | $ 137.1 | $ 404.3 | $ 367.8 | ||||
Basic net income attributable to | $ 0.71 | $ 0.80 | $ 0.97 | $ 2.92 | $ 2.82 | ||||
Diluted net income attributable to | $ 0.69 | $ 0.78 | $ 0.94 | $ 2.85 | $ 2.55 | ||||
ATI Inc. | |||||||||
Selected Financial Data | |||||||||
(Unaudited, dollars in millions) | |||||||||
Fiscal Quarter Ended | Fiscal Year Ended | ||||||||
December 28, | September 28, | December 29, | December 28, | December 29, | |||||
2025 | 2025 | 2024 | 2025 | 2024 | |||||
Sales: | |||||||||
High Performance Materials & | $ 645.9 | $ 602.9 | $ 634.2 | $ 2,441.7 | $ 2,278.5 | ||||
Advanced Alloys & Solutions | 531.2 | 522.6 | 538.5 | 2,145.7 | 2,083.6 | ||||
Total external sales | $ 1,177.1 | $ 1,125.5 | $ 1,172.7 | $ 4,587.4 | $ 4,362.1 | ||||
Segment EBITDA(a): | |||||||||
High Performance Materials & | $ 155.0 | $ 145.8 | $ 126.8 | $ 575.8 | $ 461.4 | ||||
% of Sales | 24.0 % | 24.2 % | 20.0 % | 23.6 % | 20.3 % | ||||
Advanced Alloys & Solutions | 98.5 | 90.4 | 88.0 | 349.0 | 320.9 | ||||
% of Sales | 18.5 % | 17.3 % | 16.3 % | 16.3 % | 15.4 % | ||||
Corporate, Closed Operations and Other (income) expense(b): | |||||||||
Corporate expense | $ 19.4 | $ 15.6 | $ 14.1 | $ 67.8 | $ 64.0 | ||||
Closed operations and other | 2.2 | (4.5) | (9.1) | (2.3) | (10.8) | ||||
Total Corporate, Closed | $ 21.6 | $ 11.1 | $ 5.0 | $ 65.5 | $ 53.2 | ||||
Depreciation & Amortization: | |||||||||
High Performance Materials & | $ 22.4 | $ 21.2 | $ 18.8 | $ 84.2 | $ 71.6 | ||||
Advanced Alloys & Solutions | 19.1 | 19.7 | 18.7 | 77.4 | 73.2 | ||||
Other | 1.6 | 1.7 | 1.6 | 6.5 | 6.7 | ||||
Total depreciation & | $ 43.1 | $ 42.6 | $ 39.1 | $ 168.1 | $ 151.5 | ||||
Percentage of Total ATI Sales(c): | |||||||||
Nickel-based alloys and specialty | 45 % | 44 % | 45 % | 46 % | 45 % | ||||
Precision forgings, castings and | 22 % | 22 % | 20 % | 22 % | 19 % | ||||
Titanium and titanium-based | 18 % | 19 % | 18 % | 18 % | 18 % | ||||
Zirconium and related alloys | 9 % | 9 % | 9 % | 9 % | 9 % | ||||
Precision rolled strip products | 6 % | 6 % | 8 % | 5 % | 9 % | ||||
Total | 100 % | 100 % | 100 % | 100 % | 100 % | ||||
(a) The Company's Chief Operating Decision Maker ("CODM") utilizes the Segment EBITDA as a key metric to evaluate segment performance. Our measure of segment EBITDA, which we use to analyze the performance and results of our business segments, excludes net interest expense, income taxes, depreciation and amortization, special charges, unallocated corporate expenses, closed operations and other income (expense). See the company's Form 10-K for the reconciliation of Segment EBITDA to Income before taxes. |
(b) Amounts exclude depreciation & amortization expense. |
(c) Hot-Rolling and Processing Facility conversion service sales in the AA&S segment are excluded from this presentation. |
ATI Inc. | |||
Condensed Consolidated Balance Sheets | |||
(Unaudited, dollars in millions) | |||
December 28, | December 29, | ||
2025 | 2024 | ||
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | $ 416.7 | $ 721.2 | |
Accounts receivable, net of allowances for doubtful accounts | 686.1 | 709.2 | |
Short-term contract assets | 72.8 | 75.6 | |
Inventories, net | 1,403.2 | 1,353.0 | |
Prepaid expenses and other current assets | 101.2 | 86.0 | |
Total Current Assets | 2,680.0 | 2,945.0 | |
Property, plant and equipment, net | 1,940.6 | 1,776.9 | |
Goodwill | 225.2 | 227.2 | |
Other assets | 253.8 | 281.5 | |
Total Assets | $ 5,099.6 | $ 5,230.6 | |
LIABILITIES AND EQUITY | |||
Current Liabilities: | |||
Accounts payable | $ 568.2 | $ 609.1 | |
Short-term contract liabilities | 146.4 | 169.4 | |
Short-term debt and current portion of long-term debt | 31.1 | 180.4 | |
Other current liabilities | 260.6 | 249.6 | |
Total Current Liabilities | 1,006.3 | 1,208.5 | |
Long-term debt | 1,718.3 | 1,714.9 | |
Accrued postretirement benefits | 158.5 | 164.3 | |
Pension liabilities | 41.4 | 37.2 | |
Other long-term liabilities | 258.4 | 150.5 | |
Total Liabilities | 3,182.9 | 3,275.4 | |
Total ATI stockholders' equity | 1,804.5 | 1,850.4 | |
Noncontrolling interests | 112.2 | 104.8 | |
Total Equity | 1,916.7 | 1,955.2 | |
Total Liabilities and Equity | $ 5,099.6 | $ 5,230.6 | |
ATI Inc. | ||||
Condensed Consolidated Statements of Cash Flows | ||||
(Unaudited, dollars in millions) | ||||
Fiscal Year Ended | ||||
December 28, | December 29, | |||
2025 | 2024 | |||
Operating Activities: | ||||
Net income | $ 418.6 | $ 382.7 | ||
Depreciation and amortization | 168.1 | 151.5 | ||
Share-based compensation | 29.0 | 34.1 | ||
Deferred taxes | 59.1 | 86.4 | ||
Net gain from disposal of property, plant and equipment | (10.7) | (15.7) | ||
Net loss (gain) on sales of businesses | 2.9 | (52.9) | ||
Changes in operating assets and liabilities: | ||||
Inventories | (52.8) | (118.5) | ||
Accounts receivable | 27.1 | (85.0) | ||
Accounts payable | (43.4) | 87.6 | ||
Retirement benefits | 11.2 | 4.4 | ||
Accrued income taxes | (26.4) | (0.3) | ||
Accrued liabilities and other | 31.6 | (67.1) | ||
Cash provided by operating activities | 614.3 | 407.2 | ||
Investing Activities: | ||||
Purchases of property, plant and equipment | (280.6) | (239.1) | ||
Proceeds from disposal of property, plant and equipment | 11.1 | 27.6 | ||
Proceeds from sales of businesses, net of transaction costs | 26.8 | 48.0 | ||
Other | 8.2 | 3.9 | ||
Cash used in investing activities | (234.5) | (159.6) | ||
Financing Activities: | ||||
Payments on long-term debt and finance leases | (182.6) | (29.6) | ||
Net payments under credit facilities | — | (4.9) | ||
Receipt of convertible note capped call | — | 76.1 | ||
Purchase of treasury stock | (470.0) | (260.0) | ||
Dividends paid to noncontrolling interests | (13.2) | (16.0) | ||
Taxes on share-based compensation and other | (34.1) | (26.0) | ||
Cash used in financing activities | (699.9) | (260.4) | ||
Effect of exchange rate changes on cash and cash equivalents | 15.6 | (7.6) | ||
Less: Cash held for sale | — | (2.3) | ||
Decrease in cash and cash equivalents | (304.5) | (22.7) | ||
Cash and cash equivalents at beginning of period | 721.2 | 743.9 | ||
Cash and cash equivalents at end of period | $ 416.7 | $ 721.2 | ||
ATI Inc. | ||||||||||||||
Revenue by Market | ||||||||||||||
(Unaudited, dollars in millions) | ||||||||||||||
Fiscal Quarter Ended | Fiscal Year Ended | |||||||||||||
December 28, | September 28, | December 29, | December 28, | December 29, | ||||||||||
2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||
Aerospace & Defense: | ||||||||||||||
Jet Engines- | $ 460.1 | 39 % | $ 433.6 | 38 % | $ 427.9 | 36 % | $ 1,762.9 | 39 % | $ 1,457.8 | 33 % | ||||
Airframes-Commercial | 192.2 | 16 % | 197.7 | 18 % | 191.2 | 16 % | 790.9 | 17 % | 772.9 | 18 % | ||||
Defense | 150.3 | 13 % | 161.4 | 14 % | 148.4 | 13 % | 557.7 | 12 % | 490.2 | 11 % | ||||
Total Aerospace & | 802.6 | 68 % | 792.7 | 70 % | 767.5 | 65 % | 3,111.5 | 68 % | 2,720.9 | 62 % | ||||
Other Markets: | ||||||||||||||
Specialty Energy | 89.4 | 8 % | 53.9 | 5 % | 82.0 | 7 % | 257.3 | 6 % | 284.6 | 7 % | ||||
Electronics | 53.1 | 5 % | 48.4 | 4 % | 51.5 | 5 % | 184.8 | 4 % | 194.3 | 4 % | ||||
Medical | 27.2 | 2 % | 30.9 | 3 % | 51.0 | 4 % | 139.4 | 3 % | 224.9 | 5 % | ||||
Automotive | 57.9 | 5 % | 61.3 | 6 % | 68.8 | 6 % | 244.6 | 5 % | 259.4 | 6 % | ||||
Conventional Energy | 56.9 | 5 % | 56.8 | 5 % | 60.8 | 5 % | 328.4 | 7 % | 302.0 | 7 % | ||||
Construction/Mining | 42.4 | 3 % | 36.8 | 3 % | 45.3 | 4 % | 145.4 | 3 % | 158.5 | 4 % | ||||
Other | 47.6 | 4 % | 44.7 | 4 % | 45.8 | 4 % | 176.0 | 4 % | 217.5 | 5 % | ||||
Total Other Markets | 374.5 | 32 % | 332.8 | 30 % | 405.2 | 35 % | 1,475.9 | 32 % | 1,641.2 | 38 % | ||||
Total | $ 1,177.1 | 100 % | $ 1,125.5 | 100 % | $ 1,172.7 | 100 % | $ 4,587.4 | 100 % | $ 4,362.1 | 100 % | ||||
ATI Inc. | ||||||||||
Computation of Basic and Diluted Earnings Per Share Attributable to ATI | ||||||||||
(Unaudited, dollars in millions, except per share amounts) | ||||||||||
Fiscal Quarter Ended | Fiscal Year Ended | |||||||||
December 28, | September 28, | December 29, | December 28, | December 29, | ||||||
2025 | 2025 | 2024 | 2025 | 2024 | ||||||
Numerator for Basic net income per | ||||||||||
Net income attributable to ATI | $ 96.6 | $ 110.0 | $ 137.1 | $ 404.3 | $ 367.8 | |||||
Effect of dilutive securities: | ||||||||||
| — | — | — | — | 5.9 | |||||
Numerator for Diluted net income | ||||||||||
Net income attributable to ATI | $ 96.6 | $ 110.0 | $ 137.1 | $ 404.3 | $ 373.7 | |||||
Denominator for Basic net income | ||||||||||
Weighted average shares | 135.9 | 137.0 | 142.0 | 138.6 | 130.4 | |||||
Effect of dilutive securities: | ||||||||||
Share-based compensation | 3.5 | 3.5 | 3.6 | 3.2 | 3.2 | |||||
| — | — | — | — | 13.0 | |||||
Denominator for Diluted net income | ||||||||||
Adjusted weighted average | 139.4 | 140.5 | 145.6 | 141.8 | 146.6 | |||||
Basic net income attributable to ATI | $ 0.71 | $ 0.80 | $ 0.97 | $ 2.92 | $ 2.82 | |||||
Diluted net income attributable to | $ 0.69 | $ 0.78 | $ 0.94 | $ 2.85 | $ 2.55 | |||||
ATI Inc.
Non-GAAP Financial Measures
(Unaudited, dollars in millions, except per share amounts)
The Company reports its financial results in accordance with accounting principles generally accepted in
Adjusted net income attributable to ATI and related Adjusted EPS are calculated by adjusting net income attributable to ATI for the tax-effected impact of special items. We define Adjusted EBITDA as net income, excluding net interest expense, income taxes, depreciation and amortization, and special items. Our measure of segment EBITDA, which we use to analyze the performance and results of our business segments, excludes net interest expense, income taxes, depreciation and amortization, special charges, corporate expenses, closed operations and other income (expense). Our methods of calculating Adjusted free cash flow and Managed working capital are discussed in greater detail below under the headings "Adjusted Free Cash Flow", and "Managed Working Capital," respectively.
Management believes presenting these non-GAAP financial measures is useful to investors because it (1) provides investors with meaningful supplemental information regarding financial and operating performance by excluding certain items management believes do not directly impact the Company's core operations, (2) permits investors to view performance using the same metrics that management uses to forecast, evaluate performance, and make operating and strategic decisions, and (3) provides additional information useful to investors on a period-to-period consistent basis that are commonly used to analyze companies' operating performance. Management believes that consideration of these non-GAAP financial measures, together with our GAAP financial measures and the corresponding reconciliations, provides investors with additional understanding of the Company's performance and trends that would be absent such disclosures.
Non-GAAP financial measures should be viewed in addition to, and not superior to or as an alternative for, the Company's reported results prepared in accordance with GAAP. The following tables provide the calculation of the non-GAAP financial measures discussed in this press release:
Net Income Attributable to ATI | |||||||||||
Fiscal Quarter Ended | |||||||||||
December 28, 2025 | September 28, 2025 | December 29, 2024 | |||||||||
EPS | EPS | EPS | |||||||||
Net income attributable to ATI | $ 96.6 | $ 0.69 | $ 110.0 | $ 0.78 | $ 137.1 | $ 0.94 | |||||
Adjustments for special items, pre-tax: | |||||||||||
Restructuring and other charges (a) | 22.9 | 12.9 | 9.3 | ||||||||
Pension remeasurement loss (b) | 18.6 | — | 14.1 | ||||||||
Loss (gain) on sales of businesses (c) | 0.3 | (1.1) | (52.9) | ||||||||
Total pre-tax adjustments for special items | 41.8 | 0.30 | 11.8 | 0.08 | (29.5) | (0.20) | |||||
Income tax on adjustments for special items | (8.6) | (0.06) | (2.4) | (0.01) | 7.0 | 0.05 | |||||
Adjusted Net income attributable to ATI | $ 129.8 | $ 0.93 | $ 119.4 | $ 0.85 | $ 114.6 | $ 0.79 | |||||
Fiscal Year Ended | |||||||
December 28, 2025 | December 29, 2024 | ||||||
EPS | EPS | ||||||
Net income attributable to ATI | $ 404.3 | $ 2.85 | $ 367.8 | $ 2.55 | |||
Adjustments for special items, pre-tax: | |||||||
Restructuring and other charges (a) | 48.8 | 22.1 | |||||
Pension remeasurement loss (b) | 18.6 | 14.1 | |||||
Loss (gain) on sales of businesses (c) | 2.9 | (52.9) | |||||
Total pre-tax adjustments for special items | 70.3 | 0.50 | (16.7) | (0.11) | |||
Income tax on adjustments for special items | (14.5) | (0.11) | 3.9 | 0.02 | |||
Adjusted Net income attributable to ATI | $ 460.1 | $ 3.24 | $ 355.0 | $ 2.46 | |||
Earnings before interest, taxes, depreciation and | |||||||||
Fiscal Quarter Ended | Fiscal Year Ended | ||||||||
December 28, | September 28, | December 29, | December 28, | December 29, | |||||
Net income attributable to ATI | $ 96.6 | $ 110.0 | $ 137.1 | $ 404.3 | $ 367.8 | ||||
Net income attributable to | 3.9 | 3.6 | 5.0 | 14.3 | 14.9 | ||||
Net income | 100.5 | 113.6 | 142.1 | 418.6 | 382.7 | ||||
(+) Depreciation and amortization | 43.1 | 42.6 | 39.1 | 168.1 | 151.5 | ||||
(+) Interest expense | 24.1 | 26.1 | 25.2 | 98.6 | 108.2 | ||||
(+) Income tax provision | 22.4 | 31.0 | 32.9 | 103.7 | 103.4 | ||||
EBITDA | 190.1 | 213.3 | 239.3 | 789.0 | 745.8 | ||||
Adjustments for special items, pre-tax: | |||||||||
(+) Restructuring and other charges (a) | 22.9 | 12.9 | 9.3 | 48.8 | 22.1 | ||||
(+) Pension remeasurement loss (b) | 18.6 | — | 14.1 | 18.6 | 14.1 | ||||
(+/-) Loss (gain) on sales of businesses | 0.3 | (1.1) | (52.9) | 2.9 | (52.9) | ||||
Adjusted EBITDA | $ 231.9 | $ 225.1 | $ 209.8 | $ 859.3 | $ 729.1 | ||||
(a) Fourth quarter 2025 includes pre-tax charges of |
(b) Fourth quarter and fiscal year 2025 and 2024 results include losses of |
(c) Fourth quarter 2025 includes a |
Adjusted Free Cash Flow
Management utilizes a non-GAAP measure, Adjusted free cash flow, to assess the cash flow generation of the Company's operations. Adjusted free cash flow is defined as the total cash provided by (used in) operating activities and investing activities as presented on the consolidated statements of cash flows, adjusted to exclude cash contributions to the Company's
Management utilizes this measure to assess the cash flow generation performance of its business as it excludes cash contributions to the Company's
Fiscal Quarter Ended | Fiscal Year Ended | ||||||
December 28, | December 29, | December 28, | December 29, | ||||
Cash provided by operating activities | $ 315.8 | $ 380.9 | $ 614.3 | $ 407.2 | |||
Add back: Cash contributions to | — | — | — | — | |||
Cash provided by operating activities excluding | 315.8 | 380.9 | 614.3 | 407.2 | |||
Cash used in investing activities | (85.5) | 18.6 | (234.5) | (159.6) | |||
Adjusted Free Cash Flow | $ 230.3 | $ 399.5 | $ 379.8 | $ 247.6 | |||
Managed Working Capital
As part of managing the performance of our business, we focus on Managed working capital, a non-GAAP financial measure that we define as gross accounts receivable, short-term contract assets and gross inventories, excluding the effects of reserves for uncollectible accounts receivable and inventory valuation reserves, less accounts payable and short-term contract liabilities. We assess Managed working capital performance as a percentage of the prior three months annualized sales. Managed working capital is not intended to replace working capital or other GAAP financial measures or to be used as a measure of liquidity.
Management believes this non-GAAP financial measure focuses on the assets and liabilities most closely attributable to our core operations, allowing Management to quantify and evaluate the asset intensity of our business. Further, Management believes this non-GAAP financial measure provides investors with additional insights into the Company's effectiveness in balancing the need to maintain appropriate asset levels to support sales growth and operations while deploying our cash effectively. The December 29, 2024 amounts include management working capital balances that were classified as held for sale.
December 28, | September 28, | December 29, | |||
2025 | 2025 | 2024 | |||
Accounts receivable | $ 686.1 | $ 709.9 | $ 709.2 | ||
Short-term contract assets | 72.8 | 94.3 | 75.6 | ||
Inventory | 1,403.2 | 1,405.6 | 1,353.0 | ||
Accounts payable | (568.2) | (493.5) | (609.1) | ||
Short-term contract liabilities | (146.4) | (159.2) | (169.4) | ||
Subtotal | 1,447.5 | 1,557.1 | 1,359.3 | ||
Allowance for doubtful accounts | 4.2 | 4.7 | 15.0 | ||
Inventory reserves | 80.4 | 77.5 | 68.5 | ||
Net managed working capital held for sale | — | — | 8.5 | ||
Managed working capital | $ 1,532.1 | $ 1,639.3 | $ 1,451.3 | ||
Annualized prior 3 months sales | $ 4,708.2 | $ 4,502.2 | $ 4,690.5 | ||
Managed working capital as a | |||||
% of annualized sales | 32.5 % | 36.4 % | 30.9 % | ||
Change in managed working capital: | |||||
Year-to-date 2025 | $ 80.8 | ||||
Q4 2025 | $ (107.2) |
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SOURCE ATI