ATI Announces Second Quarter 2025 Results
ATI Inc. (NYSE: ATI) reported strong Q2 2025 financial results, with sales reaching $1.14 billion, up 4% year-over-year. The company's performance was primarily driven by aerospace & defense sales of $762 million, representing 67% of Q2 sales with notable 27% YoY growth in commercial jet engine sales.
Net income attributable to ATI increased 23% YoY to $101 million, with earnings per share of $0.70. The company demonstrated solid operational metrics with Adjusted EBITDA of $208 million, a 14% increase YoY, representing 18.2% of sales. During Q2, ATI completed $250 million in share repurchases at an average price of $76.79 per share.
The company raised its full-year 2025 guidance, projecting adjusted EBITDA of $810M-$840M and adjusted earnings per share of $2.90-$3.07.
ATI Inc. (NYSE: ATI) ha riportato solidi risultati finanziari per il secondo trimestre del 2025, con vendite pari a 1,14 miliardi di dollari, in aumento del 4% rispetto all'anno precedente. La performance dell'azienda è stata principalmente trainata dalle vendite nel settore aerospaziale e della difesa, che hanno raggiunto 762 milioni di dollari, rappresentando il 67% delle vendite del secondo trimestre, con una crescita significativa del 27% su base annua nelle vendite di motori a getto commerciali.
L'utile netto attribuibile ad ATI è aumentato del 23% su base annua, raggiungendo 101 milioni di dollari, con un utile per azione di 0,70 dollari. L'azienda ha mostrato solidi indicatori operativi con un EBITDA rettificato di 208 milioni di dollari, in crescita del 14% rispetto all'anno precedente, pari al 18,2% delle vendite. Nel corso del secondo trimestre, ATI ha completato riacquisti di azioni per 250 milioni di dollari a un prezzo medio di 76,79 dollari per azione.
L'azienda ha alzato le previsioni per l'intero anno 2025, prevedendo un EBITDA rettificato compreso tra 810 e 840 milioni di dollari e un utile rettificato per azione tra 2,90 e 3,07 dollari.
ATI Inc. (NYSE: ATI) reportó sólidos resultados financieros en el segundo trimestre de 2025, con ventas que alcanzaron los 1.14 mil millones de dólares, un aumento del 4% interanual. El desempeño de la compañía estuvo impulsado principalmente por las ventas en aeroespacial y defensa, que sumaron 762 millones de dólares, representando el 67% de las ventas del segundo trimestre con un notable crecimiento interanual del 27% en ventas de motores a reacción comerciales.
El ingreso neto atribuible a ATI aumentó un 23% interanual a 101 millones de dólares, con ganancias por acción de 0.70 dólares. La empresa mostró sólidos indicadores operativos con un EBITDA ajustado de 208 millones de dólares, un aumento del 14% interanual, representando el 18.2% de las ventas. Durante el segundo trimestre, ATI completó recompras de acciones por 250 millones de dólares a un precio promedio de 76.79 dólares por acción.
La compañía elevó su guía para todo el año 2025, proyectando un EBITDA ajustado de 810 a 840 millones de dólares y ganancias ajustadas por acción de 2.90 a 3.07 dólares.
ATI Inc. (NYSE: ATI)는 2025년 2분기 강력한 재무 실적을 보고했으며, 매출은 11억 4천만 달러로 전년 동기 대비 4% 증가했습니다. 회사의 실적은 주로 항공우주 및 방위 부문의 매출 7억 6,200만 달러에 의해 견인되었으며, 이는 2분기 매출의 67%를 차지하고 상업용 제트 엔진 매출이 27% 전년 대비 성장한 것이 특징입니다.
ATI에 귀속되는 순이익은 전년 대비 23% 증가한 1억 100만 달러를 기록했으며, 주당순이익은 0.70달러였습니다. 회사는 조정 EBITDA 2억 800만 달러로 견고한 운영 지표를 보여주었고, 이는 전년 대비 14% 증가하여 매출의 18.2%에 해당합니다. 2분기 동안 ATI는 주당 평균 76.79달러에 2억 5천만 달러 규모의 자사주 매입을 완료했습니다.
회사는 2025년 전체 가이던스를 상향 조정하여 조정 EBITDA를 8억 1천만 달러에서 8억 4천만 달러, 조정 주당순이익을 2.90달러에서 3.07달러로 전망했습니다.
ATI Inc. (NYSE: ATI) a annoncé de solides résultats financiers pour le deuxième trimestre 2025, avec des ventes atteignant 1,14 milliard de dollars, en hausse de 4 % par rapport à l'année précédente. La performance de l'entreprise a été principalement portée par les ventes dans le secteur aérospatial et de la défense, qui se sont élevées à 762 millions de dollars, représentant 67 % des ventes du deuxième trimestre, avec une croissance notable de 27 % en glissement annuel des ventes de moteurs à réaction commerciaux.
Le bénéfice net attribuable à ATI a augmenté de 23 % en glissement annuel, atteignant 101 millions de dollars, avec un bénéfice par action de 0,70 dollar. L'entreprise a démontré des indicateurs opérationnels solides avec un EBITDA ajusté de 208 millions de dollars, en hausse de 14 % par rapport à l'année précédente, représentant 18,2 % des ventes. Au cours du deuxième trimestre, ATI a réalisé des rachats d'actions pour 250 millions de dollars au prix moyen de 76,79 dollars par action.
L'entreprise a relevé ses prévisions pour l'ensemble de l'année 2025, prévoyant un EBITDA ajusté compris entre 810 et 840 millions de dollars et un bénéfice ajusté par action entre 2,90 et 3,07 dollars.
ATI Inc. (NYSE: ATI) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Umsatz von 1,14 Milliarden US-Dollar, was einem Anstieg von 4 % im Jahresvergleich entspricht. Die Unternehmensleistung wurde hauptsächlich durch den Bereich Luft- und Raumfahrt & Verteidigung mit einem Umsatz von 762 Millionen US-Dollar getragen, der 67 % des Quartalsumsatzes ausmacht, mit einem bemerkenswerten Wachstum von 27 % im Jahresvergleich bei den Verkäufen von kommerziellen Jettriebwerken.
Der dem Unternehmen zurechenbare Nettogewinn stieg um 23 % im Jahresvergleich auf 101 Millionen US-Dollar, bei einem Gewinn je Aktie von 0,70 US-Dollar. Das Unternehmen zeigte solide operative Kennzahlen mit einem bereinigten EBITDA von 208 Millionen US-Dollar, ein Anstieg von 14 % im Jahresvergleich, was 18,2 % des Umsatzes entspricht. Im zweiten Quartal führte ATI Aktienrückkäufe im Wert von 250 Millionen US-Dollar zu einem durchschnittlichen Preis von 76,79 US-Dollar pro Aktie durch.
Das Unternehmen hob seine Prognose für das Gesamtjahr 2025 an und erwartet ein bereinigtes EBITDA von 810 bis 840 Millionen US-Dollar sowie bereinigte Gewinne je Aktie von 2,90 bis 3,07 US-Dollar.
- Sales increased 4% YoY to $1.14 billion, driven by 11% aerospace & defense growth
- Net income grew 23% YoY to $101 million with EPS of $0.70
- Commercial jet engine sales increased 27% YoY
- Adjusted EBITDA margins improved to 18.2% from 16.7% YoY
- Completed $250 million share repurchase program with $270 million authorization remaining
- Raised full-year guidance for adjusted earnings and cash flow
- 18% decrease in commercial airframe sales due to customer inventory destocking
- AA&S segment EBITDA margins declined to 14.4% from 16.4% YoY
- Sequential 5% decrease in AA&S sales due to lower conventional energy and defense product demand
Insights
ATI posts strong Q2 with 4% sales growth driven by aerospace, 23% higher EPS, and raised guidance reflecting commercial aviation strength.
ATI delivered impressive Q2 2025 results, highlighted by continued momentum in its core aerospace and defense markets. The company reported
The performance was primarily driven by the company's aerospace and defense segment, which accounted for
ATI's segmental performance reveals the strength of its positioning. The High Performance Materials & Components (HPMC) segment, which is heavily aerospace-focused at
Management's decision to raise full-year guidance signals confidence in continued strength through year-end. The company now projects adjusted EBITDA of
The capital allocation strategy shows discipline, with ATI repurchasing
Recent long-term contract extensions with major airframe manufacturers provide revenue visibility and reinforce ATI's strategic positioning within the aerospace supply chain. These contracts help insulate the company from short-term demand fluctuations and create a stable foundation for future growth as commercial aircraft production rates continue to increase.
Continued year-over-year sales growth driven by aerospace & defense
Aerospace and defense sales of
Strong demand for commercial jet engines - YoY sales growth of
Raising mid-point of full year adjusted earnings and cash flow guidance
Second Quarter 2025 GAAP Financial Results
- Sales of
$1.14 billion 4% year-over-year, driven by an11% aerospace & defense increase - Net income attributable to ATI of
$101 million 23% year-over-year - Earnings per share of
$0.70 $0.58
Second Quarter 2025 Non-GAAP Financial Information*
- Adjusted net income attributable to ATI* of
$106 million 24% year-over-year - Adjusted earnings per share* of
$0.74 $0.60 - Adjusted EBITDA* of
$208 million 14% year-over-year - Adjusted EBITDA* as a percentage of sales of
18.2% , compared to16.7% in the second quarter 2024
Guidance
The Company is providing third quarter and updated full year 2025 guidance in the table below.
Guidance | ||
Q3 2025 | Full Year 2025 | |
Adjusted EBITDA** | ||
Adjusted Earnings Per Share** | ||
Adjusted Free Cash Flow** | ||
Capital expenditures | ||
* Reconciliations of the reported information under accounting principles generally accepted in |
** Detailed reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures are not available without unreasonable effort due to the complexity of the excluded components. |
Sequential | Y-O-Y | ||||||||
($ in millions except per share amounts) | Q2 2025 | Q1 2025 | Change | Q2 2024 | Change | ||||
Sales | — % | 4 % | |||||||
Net income attributable to ATI | 4 % | 23 % | |||||||
Earnings per share | 4 % | 21 % | |||||||
Non-GAAP information* | |||||||||
Adjusted net income attributable to ATI* | 2 % | 24 % | |||||||
Adjusted earnings per share* | 3 % | 23 % | |||||||
ATI adjusted EBITDA* | 7 % | 14 % |
GAAP earnings per share for the second quarter 2025 were
First quarter 2025 adjusted results excluded pre-tax charges of
"Our second quarter performance demonstrates strong, sustained demand in ATI's aerospace and defense end markets. Consistent operational performance drove double-digit growth in net income, EPS and adjusted EBITDA* on a year-over-year basis," said Kimberly A. Fields, President and CEO. "We see demand increasing from our A&D customers as the industry looks toward ramping production and deliveries through the remainder of 2025 and continuing into 2026. Recent long-term contract extensions with both major airframe companies further underscore ATI's unique position in this industry.
"ATI continues to take a disciplined approach to capital allocation, balancing investments to support growth and reliability with returning capital to shareholders. During the second quarter, we delivered on our commitment to repurchase
Operating Results by Segment
High Performance Materials & Components (HPMC) | |||||
($ millions) | Q2 2025 | Q1 2025 | Q2 2024 | ||
Sales | |||||
Segment EBITDA* | |||||
% of Sales | 23.7 % | 22.4 % | 20.2 % | ||
- HPMC's second quarter 2025 sales increased
$24.7 million 4% , compared to first quarter 2025, primarily due to increased demand for commercial jet engine products. Overall aerospace & defense sales represented92% of total HPMC sales in both second quarter 2025 and first quarter 2025. Second quarter 2025 sales improved8% compared to second quarter 2024. The year-over-year sales growth includes a negative impact of$30.0 million Europe . Overall, the increase in sales was primarily due to a26% increase in commercial jet engine sales, partially offset by an18% decrease in sales of commercial airframes, which included the impact of inventory destocking by current customers. Sales were also lower to the medical and specialty energy markets. - HPMC second quarter 2025 segment EBITDA* was
$144.0 million 23.7% of sales. The sequential increase in margins was primarily due to higher sales volume as well as favorable pricing of nickel based alloys and specialty alloys. Also, second quarter 2025 margin benefited from the recognition of$4.4 million - HPMC second quarter 2024 segment EBITDA* was
$113.8 million 20.2% of sales, which included a benefit of$3.5 million
Advanced Alloys & Solutions (AA&S) | |||||
($ millions) | Q2 2025 | Q1 2025 | Q2 2024 | ||
Sales | |||||
Segment EBITDA* | |||||
% of Sales | 14.4 % | 14.9 % | 16.4 % |
- AA&S second quarter 2025 sales decreased
$28.7 million 5% , compared to the first quarter 2025, primarily due to lower sales of conventional energy and defense products. These decreases were partially offset by higher sales in the specialty energy market as well as higher demand for commercial jet engine and electronics products. Overall aerospace & defense sales were38% of total AA&S sales in the second quarter of 2025. Compared to the prior year quarter, second quarter 2025 sales were relatively flat, decreasing$1.7 million 1% . - AA&S second quarter 2025 segment EBITDA* was
$76.7 million 14.4% of sales. The sequential decrease in margins was primarily due to lower sales volume. Second quarter 2025 margin benefited from the recognition of$2.6 million $2.6 million - AA&S second quarter 2024 segment EBITDA* was
$87.5 million 16.4% of sales, which included a benefit of$5.1 million
Corporate Items and Cash
- Restructuring and other charges:
- Second quarter 2025:
$8.7 million $7.1 million $1.6 million $1.3 million - First quarter 2025:
$5.6 million $4.0 million $1.6 million - Second quarter 2024:
$5.4 million $5.5 million $1.8 million $1.9 million
- Second quarter 2025:
- Corporate expenses in the second quarter 2025 were
$15.4 million $17.4 million $19.4 million - Closed operations and other income/expense was income of
$2.4 million $2.4 million $0.7 million $1.8 million $1.1 million $2.3 million - Second quarter 2025 results include a
$29.3 million 22.0% , which was higher than the first quarter 2025 effective tax rate of17.3% . The first quarter 2025 income tax provision included$5.1 million $25.3 million 22.8% . - Cash provided by operating activities was
$162 million $69 million $72 million - Managed working capital as a percent of annualized sales was
36.5% at the end of second quarter 2025, which increased slightly from35.9% at the end of first quarter 2025. - In the second quarter 2025, the Company repurchased
$250 million $76.79 $270 million
***********
ATI will conduct a conference call with investors and analysts on Thursday, July 31, 2025, 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-To-Date | ||||||||
June 29, | March 30, | June 30, | June 29, | June 30, | |||||
2025 | 2025 | 2024 | 2025 | 2024 | |||||
Sales | $ 1,140.4 | $ 1,144.4 | $ 1,095.3 | $ 2,284.8 | $ 2,138.2 | ||||
Cost of sales | 897.9 | 908.6 | 867.9 | 1,806.5 | 1,713.4 | ||||
Gross profit | 242.5 | 235.8 | 227.4 | 478.3 | 424.8 | ||||
Selling and administrative expenses | 82.8 | 85.0 | 88.9 | 167.8 | 170.9 | ||||
Restructuring charges | (1.3) | — | (1.9) | (1.3) | (1.7) | ||||
Loss (gain) on asset sales and sales of businesses, net | — | 3.9 | (2.2) | 3.9 | (2.2) | ||||
Operating income | 161.0 | 146.9 | 142.6 | 307.9 | 257.8 | ||||
Nonoperating retirement benefit expense | (4.1) | (3.9) | (3.7) | (8.0) | (7.4) | ||||
Interest expense, net | (25.4) | (23.0) | (28.4) | (48.4) | (55.0) | ||||
Other income, net | 1.8 | 1.5 | 0.4 | 3.3 | 0.8 | ||||
Income before income taxes | 133.3 | 121.5 | 110.9 | 254.8 | 196.2 | ||||
Income tax provision | 29.3 | 21.0 | 25.3 | 50.3 | 42.2 | ||||
Net income | $ 104.0 | $ 100.5 | $ 85.6 | $ 204.5 | $ 154.0 | ||||
Less: Net income attributable to noncontrolling interests | 3.3 | 3.5 | 3.7 | 6.8 | 6.0 | ||||
Net income attributable to ATI | $ 100.7 | $ 97.0 | $ 81.9 | $ 197.7 | $ 148.0 | ||||
Basic net income attributable to ATI per common share | $ 0.72 | $ 0.68 | $ 0.66 | $ 1.40 | $ 1.18 | ||||
Diluted net income attributable to ATI per common share | $ 0.70 | $ 0.67 | $ 0.58 | $ 1.38 | $ 1.04 | ||||
ATI Inc. Selected Financial Data (Unaudited, dollars in millions) | |||||||||
Fiscal Quarter Ended | Fiscal Year-To-Date | ||||||||
June 29, | March 30, | June 30, | June 29, | June 30, | |||||
2025 | 2025 | 2024 | 2025 | 2024 | |||||
Sales: | |||||||||
High Performance Materials & Components | $ 608.8 | $ 584.1 | $ 562.0 | $ 1,192.9 | $ 1,091.9 | ||||
Advanced Alloys & Solutions | 531.6 | 560.3 | 533.3 | 1,091.9 | 1,046.3 | ||||
Total external sales | $ 1,140.4 | $ 1,144.4 | $ 1,095.3 | $ 2,284.8 | $ 2,138.2 | ||||
Segment EBITDA(a): | |||||||||
High Performance Materials & Components | $ 144.0 | $ 131.0 | $ 113.8 | $ 275.0 | $ 211.4 | ||||
% of Sales | 23.7 % | 22.4 % | 20.2 % | 23.1 % | 19.4 % | ||||
Advanced Alloys & Solutions | 76.7 | 83.4 | 87.5 | 160.1 | 159.3 | ||||
% of Sales | 14.4 % | 14.9 % | 16.4 % | 14.7 % | 15.2 % | ||||
Corporate, Closed Operations and Other (income) expense(b): | |||||||||
Corporate expense | $ 15.4 | $ 17.4 | $ 19.4 | $ 32.8 | $ 36.5 | ||||
Closed operations and other (income) expense | (2.4) | 2.4 | (0.7) | — | 0.6 | ||||
Total Corporate, Closed Operations and Other expense | $ 13.0 | $ 19.8 | $ 18.7 | $ 32.8 | $ 37.1 | ||||
Depreciation & Amortization: | |||||||||
High Performance Materials & Components | $ 20.9 | $ 19.7 | $ 17.9 | $ 40.6 | $ 34.2 | ||||
Advanced Alloys & Solutions | 19.1 | 19.5 | 18.3 | 38.6 | 36.3 | ||||
Other | 1.6 | 1.6 | 1.7 | 3.2 | 3.4 | ||||
Total depreciation & amortization | $ 41.6 | $ 40.8 | $ 37.9 | $ 82.4 | $ 73.9 | ||||
Percentage of Total ATI Sales(c): | |||||||||
Nickel-based alloys and specialty alloys | 48 % | 48 % | 44 % | 48 % | 44 % | ||||
Precision forgings, castings and components | 21 % | 20 % | 19 % | 21 % | 19 % | ||||
Titanium and titanium-based alloys | 17 % | 19 % | 20 % | 18 % | 19 % | ||||
Zirconium and related alloys | 9 % | 8 % | 8 % | 8 % | 9 % | ||||
Precision rolled strip products | 5 % | 5 % | 9 % | 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-Q 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) | |||
June 29, | December 29, | ||
2025 | 2024 | ||
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | $ 319.6 | $ 721.2 | |
Accounts receivable, net of allowances for doubtful accounts | 787.9 | 709.2 | |
Short-term contract assets | 86.4 | 75.6 | |
Inventories, net | 1,412.6 | 1,353.0 | |
Prepaid expenses and other current assets | 96.0 | 86.0 | |
Total Current Assets | 2,702.5 | 2,945.0 | |
Property, plant and equipment, net | 1,818.0 | 1,776.9 | |
Goodwill | 227.2 | 227.2 | |
Other assets | 273.3 | 281.5 | |
Total Assets | $ 5,021.0 | $ 5,230.6 | |
LIABILITIES AND EQUITY | |||
Current Liabilities: | |||
Accounts payable | $ 532.3 | $ 609.1 | |
Short-term contract liabilities | 171.7 | 169.4 | |
Short-term debt and current portion of long-term debt | 179.3 | 180.4 | |
Other current liabilities | 189.3 | 249.6 | |
Total Current Liabilities | 1,072.6 | 1,208.5 | |
Long-term debt | 1,710.7 | 1,714.9 | |
Accrued postretirement benefits | 157.1 | 164.3 | |
Pension liabilities | 35.7 | 37.2 | |
Other long-term liabilities | 186.9 | 150.5 | |
Total Liabilities | 3,163.0 | 3,275.4 | |
Total ATI stockholders' equity | 1,743.4 | 1,850.4 | |
Noncontrolling interests | 114.6 | 104.8 | |
Total Equity | 1,858.0 | 1,955.2 | |
Total Liabilities and Equity | $ 5,021.0 | $ 5,230.6 | |
ATI Inc. Condensed Consolidated Statements of Cash Flows (Unaudited, dollars in millions) | ||||
Fiscal Year-To-Date Period Ended | ||||
June 29, | June 30, | |||
2025 | 2024 | |||
Operating Activities: | ||||
Net income | $ 204.5 | $ 154.0 | ||
Depreciation and amortization | 82.4 | 73.9 | ||
Share-based compensation | 14.6 | 17.2 | ||
Deferred taxes | 33.5 | 30.3 | ||
Net loss (gain) from disposal of property, plant and equipment | 0.2 | (2.1) | ||
Loss on sales of businesses | 3.7 | — | ||
Changes in operating assets and liabilities: | ||||
Inventories | (50.6) | (94.2) | ||
Accounts receivable | (71.9) | (103.4) | ||
Accounts payable | (56.0) | 16.7 | ||
Retirement benefits | (4.1) | (5.7) | ||
Accrued liabilities and other | (87.3) | (84.4) | ||
Cash used in operating activities | 69.0 | 2.3 | ||
Investing Activities: | ||||
Purchases of property, plant and equipment | (125.4) | (126.0) | ||
Proceeds from disposal of property, plant and equipment | 0.1 | 5.9 | ||
Proceeds from sales of businesses, net of transaction costs | 2.0 | — | ||
Other | 4.1 | 3.0 | ||
Cash used in investing activities | (119.2) | (117.1) | ||
Financing Activities: | ||||
Payments on long-term debt and finance leases | (16.3) | (14.1) | ||
Net payments under credit facilities | — | (4.9) | ||
Purchase of treasury stock | (320.0) | (150.0) | ||
Taxes on share-based compensation and other | (29.5) | (24.9) | ||
Cash used in financing activities | (365.8) | (193.9) | ||
Effect of exchange rate changes on cash and cash equivalents | 14.4 | — | ||
Less: Cash held for sale | — | (9.6) | ||
Decrease in cash and cash equivalents | (401.6) | (318.3) | ||
Cash and cash equivalents at beginning of period | 721.2 | 743.9 | ||
Cash and cash equivalents at end of period | $ 319.6 | $ 425.6 | ||
ATI Inc. Revenue by Market (Unaudited, dollars in millions)
| ||||||||||||||
Fiscal Quarter Ended | Fiscal Year-To-Date Period Ended | |||||||||||||
June 29, | March 30, | June 30, | June 29, | June 30, | ||||||||||
2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||
Market | ||||||||||||||
Aerospace & Defense: | ||||||||||||||
Jet Engines- Commercial | $ 447.8 | 39 % | $ 421.4 | 37 % | $ 352.8 | 32 % | $ 869.2 | 38 % | $ 664.0 | 31 % | ||||
Airframes- Commercial | 195.2 | 17 % | 205.8 | 18 % | 210.8 | 19 % | 401.0 | 17 % | 400.9 | 19 % | ||||
Defense | 118.8 | 11 % | 127.2 | 11 % | 120.3 | 11 % | 246.0 | 11 % | 234.7 | 11 % | ||||
Total Aerospace & Defense | 761.8 | 67 % | 754.4 | 66 % | 683.9 | 62 % | 1,516.2 | 66 % | 1,299.6 | 61 % | ||||
Specialty Energy | 63.5 | 6 % | 50.5 | 4 % | 76.6 | 7 % | 114.0 | 5 % | 132.7 | 6 % | ||||
Electronics | 43.7 | 4 % | 39.6 | 3 % | 40.8 | 4 % | 83.3 | 4 % | 93.7 | 4 % | ||||
Medical | 38.9 | 3 % | 42.4 | 4 % | 61.7 | 6 % | 81.3 | 4 % | 120.8 | 6 % | ||||
Other Core Markets | 146.1 | 13 % | 132.5 | 11 % | 179.1 | 17 % | 278.6 | 13 % | 347.2 | 16 % | ||||
Core End Markets | 907.9 | 80 % | 886.9 | 77 % | 863.0 | 79 % | 1,794.8 | 79 % | 1,646.8 | 77 % | ||||
Conventional Energy | 92.9 | 8 % | 121.8 | 11 % | 66.1 | 6 % | 214.7 | 9 % | 168.6 | 8 % | ||||
Automotive | 64.8 | 6 % | 60.6 | 5 % | 70.8 | 7 % | 125.4 | 5 % | 126.8 | 6 % | ||||
Construction/Mining | 33.3 | 3 % | 32.9 | 3 % | 44.2 | 4 % | 66.2 | 3 % | 71.4 | 3 % | ||||
Other | 41.5 | 3 % | 42.2 | 4 % | 51.2 | 4 % | 83.7 | 4 % | 124.6 | 6 % | ||||
Industrial Markets | $ 232.5 | 20 % | $ 257.5 | 23 % | $ 232.3 | 21 % | $ 490.0 | 21 % | $ 491.4 | 23 % | ||||
Total | $ 1,140.4 | 100 % | $ 1,144.4 | 100 % | $ 1,095.3 | 100 % | $ 2,284.8 | 100 % | $ 2,138.2 | 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-To-Date | |||||||||
June 29, | March 30 | June 30, | June 29, | June 30, | ||||||
2025 | 2025 | 2024 | 2025 | 2024 | ||||||
Numerator for Basic net income per common share - | ||||||||||
Net income attributable to ATI | $ 100.7 | $ 97.0 | $ 81.9 | $ 197.7 | $ 148.0 | |||||
Effect of dilutive securities: | ||||||||||
— | — | 2.2 | — | 4.3 | ||||||
Numerator for Diluted net income per common share - | ||||||||||
Net income attributable to ATI after assumed conversions | $ 100.7 | $ 97.0 | $ 84.1 | $ 197.7 | $ 152.3 | |||||
Denominator for Basic net income per common share - | ||||||||||
Weighted average shares outstanding | 139.8 | 141.7 | 124.4 | 140.7 | 125.3 | |||||
Effect of dilutive securities: | ||||||||||
Share-based compensation | 3.3 | 2.5 | 3.1 | 3.0 | 2.8 | |||||
— | — | 18.8 | — | 18.8 | ||||||
Denominator for Diluted net income per common share - | ||||||||||
Adjusted weighted average shares and assumed conversions | 143.1 | 144.2 | 146.3 | 143.7 | 146.9 | |||||
Basic net income attributable to ATI per common share | $ 0.72 | $ 0.68 | $ 0.66 | $ 1.40 | $ 1.18 | |||||
Diluted net income attributable to ATI per common share | $ 0.70 | $ 0.67 | $ 0.58 | $ 1.38 | $ 1.04 | |||||
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 | |||||||||||
June 29, 2025 | March 30, 2025 | June 30, 2024 | |||||||||
EPS | EPS | EPS | |||||||||
Net income attributable to ATI | $ 100.7 | $ 0.70 | $ 97.0 | $ 0.67 | $ 81.9 | $ 0.58 | |||||
Adjustments for special items, pre-tax: | |||||||||||
Restructuring and other charges (a) | 7.4 | 5.6 | 5.4 | ||||||||
Loss on sales of businesses (b) | — | 3.7 | — | ||||||||
Total pre-tax adjustments for special items | 7.4 | 0.05 | 9.3 | 0.06 | 5.4 | 0.03 | |||||
Income tax on adjustments for special items | (1.7) | (0.01) | (1.9) | (0.01) | (1.3) | (0.01) | |||||
Adjusted Net income attributable to ATI | $ 106.4 | $ 0.74 | $ 104.4 | $ 0.72 | $ 86.0 | $ 0.60 | |||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) | |||||
Fiscal Quarter Ended | |||||
June 29, 2025 | March 30, 2025 | June 30, 2024 | |||
Net income attributable to ATI | $ 100.7 | $ 97.0 | $ 81.9 | ||
Net income attributable to noncontrolling interests | 3.3 | 3.5 | 3.7 | ||
Net income | 104.0 | 100.5 | 85.6 | ||
(+) Depreciation and amortization | 41.6 | 40.8 | 37.9 | ||
(+) Interest expense | 25.4 | 23.0 | 28.4 | ||
(+) Income tax provision | 29.3 | 21.0 | 25.3 | ||
EBITDA | 200.3 | 185.3 | 177.2 | ||
Adjustments for special items, pre-tax: | |||||
(+) Restructuring and other charges (a) | 7.4 | 5.6 | 5.4 | ||
(+) Loss on sales of businesses (b) | — | 3.7 | — | ||
Adjusted EBITDA | 207.7 | 194.6 | 182.6 | ||
(a) Second quarter 2025 includes pre-tax charges of |
(b) First quarter 2025 results include 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-To-Date Period Ended | ||||||
June 29, 2025 | June 30, 2024 | June 29, 2025 | June 30, 2024 | ||||
Cash provided by operating activities | $ 161.5 | $ 101.1 | $ 69.0 | $ 2.3 | |||
Add back: Cash contributions to | — | — | — | — | |||
Cash provided by operating activities excluding | 161.5 | 101.1 | 69.0 | 2.3 | |||
Cash used in investing activities | (68.6) | (53.3) | (119.2) | (117.1) | |||
Adjusted Free Cash Flow | $ 92.9 | $ 47.8 | $ (50.2) | $ (114.8) | |||
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 are classified as held for sale.
June 29, | March 30, | December 29, | |||
2025 | 2025 | 2024 | |||
Accounts receivable | $ 787.9 | $ 827.0 | $ 709.2 | ||
Short-term contract assets | 86.4 | 85.9 | 75.6 | ||
Inventory | 1,412.6 | 1,396.9 | 1,353.0 | ||
Accounts payable | (532.3) | (563.2) | (609.1) | ||
Short-term contract liabilities | (171.7) | (187.1) | (169.4) | ||
Subtotal | 1,582.9 | 1,559.5 | 1,359.3 | ||
Allowance for doubtful accounts | 3.4 | 11.6 | 15.0 | ||
Inventory reserves | 80.3 | 74.2 | 68.5 | ||
Net managed working capital held for sale | — | — | 8.5 | ||
Managed working capital | $ 1,666.6 | $ 1,645.3 | $ 1,451.3 | ||
Annualized prior 3 months sales | $ 4,561.4 | $ 4,577.7 | $ 4,690.5 | ||
Managed working capital as a | |||||
% of annualized sales | 36.5 % | 35.9 % | 30.9 % | ||
Change in managed working capital: | |||||
Year-to-date 2025 | $ 215.3 | ||||
Q2 2025 | $ 21.3 |
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SOURCE ATI
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