ATI Announces Third Quarter 2026 Results

Advanced Alloys & Solutions expanded its quarterly earnings margin to 25.8%, while High Performance Materials & Components margins declined.

Rhea-AI Summary

ATI (ATI) reported third-quarter 2026 sales growth of 26% year over year and raised its full-year adjusted earnings outlook. Sales reached $1,423.7 million, while net income attributable to ATI rose 73% to $189.8 million. GAAP diluted earnings per share increased to $1.37 from $0.78.

Adjusted EBITDA, a non-GAAP earnings measure excluding interest, taxes, depreciation and amortization plus specified adjustments, increased 46% to $327.9 million. Its margin reached 23.0%, versus 20.0% a year earlier. ATI expects full-year adjusted EBITDA of $1,190 million–$1,200 million, up from $1,135 million–$1,185 million, and adjusted EPS of $5.17–$5.23. Both operating segments increased sales, although High Performance Materials & Components margins declined. Operating cash flow was $154.6 million, capital spending was $92.8 million, and share repurchases totaled $70.0 million.

25 points · 1 major

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0 major · 9 points

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Positive

• Major point. Forward-looking: it has not happened yet and may not happen.ATI raised full-year adjusted EBITDA guidance to $1,190 million–$1,200 million from $1,135 million–$1,185 million.
• Moderate pointThird-quarter sales rose 26% year over year and 13% sequentially to $1,423.7 million.
• Moderate pointThird-quarter net income attributable to ATI rose 73% year over year to $189.8 million.
• Moderate pointThird-quarter adjusted EBITDA rose 46% year over year to $327.9 million, exceeding guidance's high end by $13 million.
• Moderate pointThird-quarter adjusted EBITDA margin expanded to 23.0% from 20.0% a year earlier.

20 minor points

• Minor pointThird-quarter GAAP diluted EPS increased to $1.37 from $0.78 a year earlier.
• Minor pointThird-quarter adjusted net income rose 69% year over year to $201.9 million.
• Minor pointThird-quarter adjusted EPS increased to $1.46 from $0.85 a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.ATI raised full-year adjusted EPS guidance to $5.17–$5.23 from $4.90–$5.18.
• Minor point. Forward-looking: it has not happened yet and may not happen.ATI expects fourth-quarter adjusted EBITDA of $345 million–$355 million and adjusted EPS of $1.51–$1.57.
• Minor point. Forward-looking: it has not happened yet and may not happen.ATI maintained full-year adjusted free cash flow guidance at $550 million–$600 million.
• Minor pointHigh Performance Materials & Components sales reached $721.4 million, up 20% year over year and 13% sequentially.
• Minor pointHigh Performance Materials & Components commercial jet engine sales increased 34% year over year.
• Minor pointHigh Performance Materials & Components segment EBITDA reached $167.3 million, versus $145.8 million a year earlier.
• Minor pointAdvanced Alloys & Solutions sales reached $702.3 million, up 34% year over year and 13% sequentially.
• Minor pointAdvanced Alloys & Solutions aerospace and defense sales rose 34% year over year; commercial jet engine sales almost doubled.
• Minor pointAdvanced Alloys & Solutions segment EBITDA increased to $181.3 million from $90.4 million a year earlier.
• Minor pointAdvanced Alloys & Solutions EBITDA margin reached 25.8%, versus 23.7% sequentially and 17.3% a year earlier.
• Minor pointThird-quarter operating activities generated $154.6 million of cash.
• Minor pointManaged working capital fell 140 basis points sequentially to 32.9% of annualized sales.
• Minor pointThird-quarter repurchases of $70.0 million retired approximately 0.4 million shares at an average $199.62 per share.
• Minor pointThird-quarter net interest expense declined to $22.6 million from $26.1 million a year earlier.
• Minor pointYear-to-date sales increased to $3,836.3 million from $3,410.3 million a year earlier.
• Minor pointYear-to-date net income attributable to ATI increased to $459.0 million from $307.7 million a year earlier.
• Minor pointYear-to-date diluted EPS increased to $3.31 from $2.16 a year earlier.

Negative

• Minor pointHigh Performance Materials & Components EBITDA margin declined to 23.2%, versus 24.1% sequentially and 24.2% a year earlier.
• Minor pointTransformation-related costs totaled $8.4 million in the third quarter.
• Minor pointLosses on sales of customer receivables totaled $2.9 million in the third quarter.
• Minor pointStart-up and transaction-related costs totaled $2.2 million in the third quarter.
• Minor pointRestructuring-related costs for severance and facility rationalization totaled $0.9 million in the third quarter.

4 minor points

• Minor pointDebt extinguishment generated a third-quarter charge of $1.2 million.
• Minor pointThird-quarter corporate expenses rose to $18.8 million, versus $14.9 million sequentially and $15.6 million a year earlier.
• Minor pointClosed operations and other expense was $1.9 million, versus $4.5 million income a year earlier.
• Minor pointThird-quarter capital expenditures required $92.8 million of spending.

News Explained

At quarter-end, ATI had $425 million of share-repurchase authorization remaining—a potential future repurchase capacity, not an amount reported as already repurchased.

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Market move: ATI -3.21% vs previous close. 3Q26 earnings report

$160.00 – $178.23 Day Range

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On Oct 29, the day this news came out, the latest delayed price for ATI is 3.21% below the previous close. The latest delayed price is $160.00. Relative volume is exceptionally heavy at 22.2x the average.

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Key Figures

Sales: $1,423.7 million, up 26% year-over-year Net income attributable to ATI: $189.8 million, up 73% year-over-year Diluted EPS: $1.37, up 76% year-over-year +4 more

Sales

$1,423.7 million, up 26% year-over-year

Third quarter 2026

Net income attributable to ATI

$189.8 million, up 73% year-over-year

Third quarter 2026

Diluted EPS

$1.37, up 76% year-over-year

Third quarter 2026; GAAP

Adjusted EBITDA

$327.9 million, up 46% year-over-year

Third quarter 2026

Adjusted EBITDA margin

23.0%, up 300 basis points

Third quarter 2026

Full-year adjusted EBITDA guidance

$1,190M–$1,200M

FY 2026 current guidance; prior guidance was $1,135M–$1,185M

Full-year adjusted EPS guidance

$5.17–$5.23

FY 2026 current guidance; prior guidance was $4.90–$5.18

Previous Earnings Reports

2 past events · Latest: Aug 06

Same Type 2 events

1. Aug 06

   Quarterly earnings

   24h Move

   +8.9%

   Reported Q2 results and raised full-year adjusted EBITDA, EPS and free-cash-flow guidance.

2. Apr 30

   Quarterly earnings

   24h Move

   +6.3%

   Reported Q1 results and raised full-year adjusted EBITDA, EPS and free-cash-flow guidance.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, debt extinguishment charge

2 terms

gaap financial

"accounting principles generally accepted in the United States (GAAP)"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

debt extinguishment charge financial

"a $1.2 million debt extinguishment charge"

A debt extinguishment charge is an expense a company records when it retires, repurchases, refinances, or otherwise settles debt before its scheduled maturity; it equals the difference between the debt's carrying value (including any unamortized discounts, premiums, or deferred financing costs) and the amount paid to settle it, plus any related penalties. It is typically reported as a one-time, often non-cash or partly non-cash, loss on the income statement and commonly arises from early repayment, debt exchanges, or refinancing that legally releases the borrower from its original obligation.

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Exceeded high-end of Q3 Adjusted EBITDA guide by $13 million

Sales increased 26% with growth in all key markets; GAAP-diluted EPS up 76% year-over-year

Adjusted EBITDA increased 46% year-over-year, with margin expanding 300 bps to 23.0%

Raising full-year 2026 guide by $35 million to $1.195 billion; follows raise of $125 million last quarter

Third Quarter 2026 GAAP Financial Results

• Sales of $1.42 billion, up 26% year-over-year
• Net income attributable to ATI of $190 million, up 73% year-over-year
• Earnings per share of $1.37 compared to $0.78 per share in third quarter 2025

Third Quarter 2026 Non-GAAP Financial Information^(a)

• Adjusted net income attributable to ATI^(a) of $202 million, up 69% year-over-year
• Adjusted earnings per share^(a) of $1.46, compared to $0.85 per share in third quarter 2025
• Adjusted EBITDA^(a) of $328 million, an increase of 46% year-over-year
• Adjusted EBITDA^(a) as a percentage of sales of 23.0%, compared to 20.0% in third quarter 2025

Guidance

The Company is providing fourth quarter and updated full year 2026 guidance in the table below.

	Current Guidance		Prior Guidance
	Q4 2026	Full Year 2026	Full Year 2026
Adjusted EBITDA(b)	$345M - $355M	$1,190M - $1,200M	$1,135M - $1,185M
Adjusted Earnings Per Share(b)	$1.51 - $1.57	$5.17 - $5.23	$4.90 - $5.18
Adjusted Free Cash Flow(b)		$550M - $600M	$550M - $600M

(a) Reconciliations of the reported information under accounting principles generally accepted in the United States (GAAP) to non-GAAP financial measures are included in accompanying financial tables. 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.

(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.

DALLAS, Oct. 29, 2026 /PRNewswire/ -- ATI Inc. (NYSE: ATI) reported third quarter 2026 results, with sales of $1.42 billion and net income attributable to ATI of $190 million, or $1.37 per share.

"We had a strong third quarter, exceeding the high-end of our guidance. We are raising our full-year outlook for adjusted EBITDA by $35 million. This follows the $125 million increase in our outlook just last quarter," said Kimberly A. Fields, Board Chair, President and CEO. "Sales in the quarter grew 26% year-over-year, while adjusted EBITDA increased by 46% year-over-year. Our results reflect three main drivers: strong demand backed by long-term agreements, differentiated capabilities that make us the partner of choice, and disciplined execution across our operations.

"These results show the strength and balance of ATI's portfolio and reinforce our growth outlook," Fields continued. "We're delivering on our commitments and positioning ATI for even stronger performance in 2027."

					Sequential				Y-O-Y
($ in millions except per share amounts)	Q3 2026		Q2 2026		Change		Q3 2025		Change
Sales	$1,423.7		$1,261.1		13 %		$1,125.5		26 %
Net income attributable to ATI	$189.8		$151.0		26 %		$110.0		73 %
Earnings per share	$1.37		$1.09		26 %		$0.78		76 %
Non-GAAP information(a)
Adjusted net income attributable to ATI(a)	$201.9		$169.7		19 %		$119.4		69 %
Adjusted earnings per share(a)	$1.46		$1.23		19 %		$0.85		72 %
ATI adjusted EBITDA(a)	$327.9		$284.4		15 %		$225.1		46 %

Third quarter 2026 GAAP earnings per share were $1.37 and adjusted earnings per share^(a) were $1.46. Net income attributable to ATI was $189.8 million and ATI adjusted EBITDA^(a) was $327.9 million, or 23.0% of sales. Third quarter 2026 adjusted results exclude pre-tax charges of $15.6 million for special items consisting of $14.4 million for restructuring and other charges and a $1.2 million debt extinguishment charge. The after-tax impact of these special items was a charge of $12.1 million, or $0.09 per share.

The third quarter 2026 restructuring and other charges include $8.4 million of transformation-related costs, $2.9 million of losses on the sale of customer accounts receivable, $2.2 million of start-up and transaction-related costs, and $0.9 million of restructuring-related costs.

Second quarter 2026 adjusted results exclude pre-tax charges of $23.6 million for special items for restructuring and other charges. These charges consist of $10.1 million of start-up and transaction-related costs, $7.0 million of transformation-related costs, $3.9 million of restructuring-related costs, and $2.6 million of losses on the sale of customer accounts receivable. The after-tax impact of these special items was a charge of $18.7 million, or $0.14 per share.

Third quarter 2025 adjusted results exclude pre-tax charges of $11.8 million for special items consisting of $12.9 million for restructuring and other charges and a $1.1 million gain on the sale of a non-core business. The after-tax impact of these special items was a charge of $9.4 million, or $0.07 per share. The Non-GAAP tables included within this release provide the reconciliations of the GAAP to Non-GAAP financial measures and additional details on the special items noted above.

Operating Results by Segment

High Performance Materials & Components (HPMC)
($ millions)	Q3 2026		Q2 2026		Q3 2025
Sales	$721.4		$637.1		$602.9
Segment EBITDA(a)	$167.3		$153.5		$145.8
% of Sales	23.2 %		24.1 %		24.2 %

• HPMC's third quarter 2026 sales increased $84.3 million, or 13%, compared to second quarter 2026, primarily due to strong demand and pricing for commercial jet engine products as well as demand for defense products. Aerospace & defense sales represented 94% of total HPMC sales in third quarter 2026, which was up slightly compared to second quarter 2026.
• Third quarter 2026 sales increased 20% compared to third quarter 2025, primarily driven by a 34% increase in sales of commercial jet engine products due to strong demand and pricing.
• HPMC third quarter 2026 segment EBITDA^(a) was $167.3 million, or 23.2% of sales. The sequential and year-over-year decline in segment EBITDA margin was primarily due to higher manufacturing and period costs, including costs associated with ramping commercial production of a new nickel-based superalloy.

Advanced Alloys & Solutions (AA&S)
($ millions)	Q3 2026		Q2 2026		Q3 2025
Sales	$702.3		$624.0		$522.6
Segment EBITDA(a)	$181.3		$147.6		$90.4
% of Sales	25.8 %		23.7 %		17.3 %

• AA&S third quarter 2026 sales increased $78.3 million, or 13%, compared to the second quarter 2026, primarily due to higher sales in the aerospace & defense and specialty energy markets. Aerospace & defense sales increased 17%, driven by higher demand and pricing for both commercial jet engine and airframe products. Aerospace & defense represented 45% of total AA&S sales in the third quarter of 2026.
• Third quarter 2026 sales increased $179.7 million, or 34%, compared to third quarter 2025, primarily due to higher sales to the aerospace & defense, specialty energy, and conventional energy markets. On a year-over-year basis, aerospace & defense sales grew by 34%, as sales of commercial jet engine products almost doubled, reflecting both higher demand and pricing.
• AA&S third quarter 2026 segment EBITDA^(a) was $181.3 million, or 25.8% of sales. The sequential and year-over-year increase in segment EBITDA margin was primarily driven by higher pricing and volumes as well as a favorable sales mix. Also, second quarter 2026 segment EBITDA margin included a $9.9 million gain from the sale of a previously closed manufacturing facility.

Corporate Items and Cash

• Restructuring and other charges:
  • Third quarter 2026: $14.4 million includes pre-tax charges consisting of $8.4 million of transformation-related costs, $2.9 million of losses on the sale of customer accounts receivable, $2.2 million of start-up and transaction-related costs, and $0.9 million of restructuring-related costs for severance and facility rationalization activities.
  • Second quarter 2026: $23.6 million includes pre-tax charges consisting of $10.1 million of start-up and transaction-related costs, $7.0 million of transformation-related costs, $3.9 million of restructuring-related costs for severance and facility rationalization activities, and $2.6 million of losses on the sale of customer accounts receivable. 
  • Third quarter 2025: $12.9 million includes pre-tax charges consisting of $7.2 million of start-up and transaction-related costs, $3.6 million of transformation-related costs, and $2.5 million of losses on the sale of customer accounts receivable, partially offset by restructuring-related credits of $0.4 million.
• Third quarter 2026 includes a $1.2 million debt extinguishment charge and third quarter 2025 includes a $1.1 million gain on the sale of a non-core business previously reported in the HPMC segment.
• Corporate expenses in the third quarter 2026 were $18.8 million, compared to $14.9 million in the second quarter 2026, and $15.6 million in the prior year quarter. The increase compared to second quarter 2026 was primarily due to a benefit from an insurance claim in that quarter. The increase compared to third quarter 2025 was primarily due to higher professional fees and insurance costs.
• Closed operations and other income/expense was expense of $1.9 million in the third quarter 2026 compared to expense of $1.8 million in the second quarter 2026, and income of $4.5 million in the prior year quarter. Third quarter 2025 benefited from a $10.5 million gain from the sale of oil and gas rights.
• Third quarter 2026 results included a $51.5 million income tax provision, or an effective rate of 21.0%, which was slightly higher than the second quarter 2026 effective tax rate of 20.0%. Third quarter 2025 results included a $31.0 million income tax provision, or an effective tax rate of 21.4%.
• Cash provided by operating activities was $154.6 million for the third quarter 2026, while capital expenditures were $92.8 million.
• Managed working capital as a percent of annualized sales was 32.9% at the end of third quarter 2026, a decrease of 140 basis points compared to the end of second quarter 2026.
• In the third quarter 2026, the Company repurchased $70.0 million of its common stock at an average price per share of $199.62, retiring approximately 0.4 million shares. As of the end of third quarter 2026, total share repurchase authorization remaining was $425 million.

ATI will conduct a conference call with investors and analysts on Thursday, October 29, 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 28, 2025, 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 Period Ended
	September 27,		June 28,		September 28,		September 27,		September 28,
	2026		2026		2025		2026		2025
Sales	$        1,423.7		$     1,261.1		$        1,125.5		$        3,836.3		$        3,410.3
Cost of sales	1,043.5		951.3		870.2		2,883.4		2,676.7
Gross profit	380.2		309.8		255.3		952.9		733.6
Selling and administrative expenses	107.7		95.7		94.6		295.5		262.4
Restructuring charges (credits)	0.9		3.9		(0.4)		11.8		(1.7)
(Gain) loss on asset sales and sales of businesses, net	(0.3)		(9.8)		(1.3)		(10.1)		2.6
Operating income	271.9		220.0		162.4		655.7		470.3
Nonoperating retirement benefit expense	(4.2)		(4.3)		(3.9)		(12.8)		(11.9)
Interest expense, net	(22.6)		(23.9)		(26.1)		(70.2)		(74.5)
Debt extinguishment charge	(1.2)		—		—		(1.2)		—
Other income, net	0.9		1.1		12.2		2.8		15.5
Income before income taxes	244.8		192.9		144.6		574.3		399.4
Income tax provision	51.5		38.6		31.0		106.2		81.3
Net income	$          193.3		$        154.3		$          113.6		$          468.1		$          318.1
Less: Net income attributable to noncontrolling interests	3.5		3.3		3.6		9.1		10.4
Net income attributable to ATI	$          189.8		$        151.0		$          110.0		$          459.0		$          307.7
Basic net income attributable to ATI per common share	$            1.39		$         1.11		$            0.80		$            3.37		$            2.21
Diluted net income attributable to ATI per common share	$            1.37		$         1.09		$            0.78		$            3.31		$            2.16

 

ATI Inc. Selected Financial Data (Unaudited, dollars in millions)
	Fiscal Quarter Ended						Fiscal Year-To-Date Period Ended
	September 27,		June 28,		September 28,		September 27,		September 28,
	2026		2026		2025		2026		2025
Sales:
High Performance Materials & Components	$        721.4		$        637.1		$        602.9		$     1,972.8		$     1,795.8
Advanced Alloys & Solutions	702.3		624.0		522.6		1,863.5		1,614.5
Total external sales	$     1,423.7		$     1,261.1		$     1,125.5		$     3,836.3		$     3,410.3
Segment EBITDA(a):
High Performance Materials & Components	$        167.3		$       153.5		$       145.8		$       473.7		$       420.8
% of Sales	23.2 %		24.1 %		24.2 %		24.0 %		23.4 %
Advanced Alloys & Solutions	181.3		147.6		90.4		425.9		250.5
% of Sales	25.8 %		23.7 %		17.3 %		22.9 %		15.5 %
Corporate, Closed Operations and Other (income) expense(b):
Corporate expense	$          18.8		$         14.9		$         15.6		$         50.7		$         48.4
Closed operations and other (income) expense	1.9		1.8		(4.5)		4.9		(4.5)
Total Corporate, Closed Operations and Other expense	$         20.7		$         16.7		$         11.1		$         55.6		$         43.9
Depreciation & Amortization:
High Performance Materials & Components	$         21.1		$         20.6		$         21.2		$         61.3		$         61.8
Advanced Alloys & Solutions	21.9		21.8		19.7		67.4		58.3
Other	1.9		1.6		1.7		5.2		4.9
Total depreciation & amortization	$         44.9		$         44.0		$         42.6		$       133.9		$       125.0
Percentage of Total ATI Sales(c):
Nickel-based alloys and specialty alloys	52 %		51 %		44 %		51 %		47 %
Precision forgings, castings and components	17 %		18 %		22 %		18 %		21 %
Titanium and titanium-based alloys	16 %		15 %		19 %		16 %		18 %
Zirconium and related alloys	10 %		11 %		9 %		10 %		9 %
Precision rolled strip products	5 %		5 %		6 %		5 %		5 %
Total	100 %		100 %		100 %		100 %		100 %

(a) The Company's Chief Operating Decision Maker ("CODM") utilizes 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)
	September 27, 2026		December 28, 2025
ASSETS
Current Assets:
Cash and cash equivalents	$                  442.3		$                  416.7
Accounts receivable, net of allowances for doubtful accounts	733.4		686.1
Short-term contract assets	112.8		72.8
Inventories, net	1,657.2		1,403.2
Prepaid expenses and other current assets	101.5		101.2
Total Current Assets	3,047.2		2,680.0
Property, plant and equipment, net	2,045.0		1,940.6
Goodwill	225.2		225.2
Other assets	249.4		253.8
Total Assets	$               5,566.8		$               5,099.6
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$                  632.1		$                  568.2
Accrued liabilities	273.0		240.5
Short-term contract liabilities	127.4		146.4
Short-term debt and current portion of long-term debt	49.7		31.1
Other current liabilities	16.3		20.1
Total Current Liabilities	1,098.5		1,006.3
Long-term debt	1,807.8		1,718.3
Accrued postretirement benefits	147.8		158.5
Pension liabilities	40.1		41.4
Other long-term liabilities	340.7		258.4
Total Liabilities	3,434.9		3,182.9
Total ATI stockholders' equity	2,005.2		1,804.5
Noncontrolling interests	126.7		112.2
Total Equity	2,131.9		1,916.7
Total Liabilities and Equity	$               5,566.8		$               5,099.6

 

ATI Inc. Condensed Consolidated Statements of Cash Flows (Unaudited, dollars in millions)
		Fiscal Year-To-Date Period Ended
		September 27, 2026		September 28, 2025
Operating Activities:
	Net income	$                 468.1		$                 318.1
	Depreciation and amortization	133.9		125.0
	Non-cash restructuring charges, net	5.1		—
	Share-based compensation	23.3		22.3
	Deferred taxes	35.4		36.5
	Debt extinguishment charge	1.2		—
	Net gain from disposal of property, plant and equipment	(10.1)		(10.6)
	Net loss on sales of businesses	—		2.6
	Changes in operating assets and liabilities:
	Inventories	(255.1)		(57.5)
	Accounts receivable	(46.6)		1.7
	Accounts payable	59.9		(94.4)
	Retirement benefits	(4.0)		(6.0)
	Pension plan contributions	(4.0)		—
	Accrued liabilities and other	7.5		(39.2)
Cash provided by operating activities		414.6		298.5
Investing Activities:
	Purchases of property, plant and equipment	(216.6)		(187.9)
	Proceeds from disposal of property, plant and equipment	16.7		10.9
	Proceeds from sales of businesses, net of transaction costs	1.6		21.2
	Other	2.5		6.8
Cash used in investing activities		(195.8)		(149.0)
Financing Activities:
	Proceeds from issuance of senior notes	450.0		—
	Repayment of long-term debt and finance lease obligations	(375.7)		(24.2)
	Net borrowings under international credit facilities	15.3		11.3
	Debt issuance costs	(6.9)		—
	Purchase of treasury stock	(195.0)		(470.0)
	Shares repurchased for income tax withholding on share-based compensation and other	(82.2)		(29.7)
Cash used in financing activities		(194.5)		(512.6)
Effect of exchange rate changes on cash and cash equivalents		1.3		14.1
Increase (decrease) in cash and cash equivalents		25.6		(349.0)
Cash and cash equivalents at beginning of period		416.7		721.2
Cash and cash equivalents at end of period		$                 442.3		$                 372.2

 

ATI Inc. Revenue by Market (Unaudited, dollars in millions)
	Fiscal Quarter Ended									Fiscal Year-To-Date Period Ended
	September 27, 2026			June 28, 2026			September 28, 2025			September 27, 2026			September 28, 2025
Aerospace & Defense:
Jet Engines- Commercial	$  603.2	42 %		$  508.3	40 %		$  433.6	38 %		$          1,583.5	41 %		$          1,302.8	38 %
Airframes- Commercial	219.4	15 %		191.7	15 %		197.7	18 %		597.7	16 %		598.7	18 %
Defense	171.9	12 %		162.0	13 %		161.4	14 %		472.9	12 %		407.4	12 %
Total Aerospace & Defense	994.5	69 %		862.0	68 %		792.7	70 %		2,654.1	69 %		2,308.9	68 %
Other Markets:
Specialty Energy	80.4	6 %		59.2	5 %		53.9	5 %		201.2	5 %		167.9	5 %
Electronics	46.5	3 %		38.2	3 %		48.4	4 %		113.0	3 %		131.7	4 %
Medical	25.6	2 %		23.0	2 %		30.9	3 %		76.1	2 %		112.2	3 %
Automotive	78.9	6 %		72.3	6 %		61.3	6 %		212.7	6 %		186.7	5 %
Conventional Energy	82.3	6 %		103.5	8 %		56.8	5 %		270.0	7 %		271.5	8 %
Construction/Mining	39.4	3 %		34.9	3 %		36.8	3 %		113.3	3 %		103.0	3 %
Other	76.1	5 %		68.0	5 %		44.7	4 %		195.9	5 %		128.4	4 %
Total Other Markets	$  429.2	31 %		$  399.1	32 %		$  332.8	30 %		$          1,182.2	31 %		$          1,101.4	32 %
Total	$          1,423.7	100 %		$          1,261.1	100 %		$          1,125.5	100 %		$          3,836.3	100 %		$          3,410.3	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 Period Ended
		September 27,		June 28,		September 28,		September 27,		September 28,
		2026		2026		2025		2026		2025
Numerator for Basic net income per common share -
	Net income attributable to ATI	$         189.8		$    151.0		$         110.0		$         459.0		$         307.7
Denominator for Basic net income per common share -
	Weighted average shares outstanding	136.1		136.3		137.0		136.4		139.5
Effect of dilutive securities:
	Share-based compensation	2.3		2.0		3.5		2.1		3.1
Denominator for Diluted net income per common share -
	Adjusted weighted average shares and assumed conversions	138.4		138.3		140.5		138.5		142.6
Basic net income attributable to ATI per common share		$          1.39		$     1.11		$          0.80		$          3.37		$          2.21
Diluted net income attributable to ATI per common share		$          1.37		$     1.09		$          0.78		$          3.31		$          2.16

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 the United States of America ("GAAP"). This report includes financial performance measures that are not defined by GAAP, including Adjusted net income attributable to ATI, Adjusted EPS, Adjusted EBITDA, Segment EBITDA, Adjusted free cash flow and Managed working capital. The Company uses these non-GAAP financial measures to assist in assessing operating performance on a consistent basis across multiple reporting periods by removing the impact of special items, which can vary from period to period, that management does not believe are directly reflective of the Company's core operations. The Company defines special items as significant non-recurring or non-operational charges or credits, restructuring and other charges/credits, gains or losses from the sale of accounts receivable, strike related costs, goodwill and long-lived asset impairments, debt extinguishment charges, pension remeasurement gains and losses, other postretirement/pension curtailment and settlement gains and losses, and gains or losses on sales of businesses.

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
	September 27, 2026				June 28, 2026				September 28, 2025
			EPS				EPS				EPS
Net income attributable to ATI	$     189.8		$  1.37		$     151.0		$  1.09		$     110.0		$  0.78
Adjustments for special items, pre-tax:
Restructuring and other charges(a)	14.4				23.6				12.9
Gain on sales of businesses(b)	—				—				(1.1)
Debt extinguishment charge(c)	1.2				—				—
Total pre-tax adjustments for special items	15.6		0.11		23.6		0.17		11.8		0.08
Income tax on adjustments for special items	(3.5)		(0.02)		(4.9)		(0.03)		(2.4)		(0.01)
Adjusted Net income attributable to ATI	$     201.9		$  1.46		$     169.7		$  1.23		$     119.4		$  0.85

Earnings before interest, taxes, depreciation and amortization (EBITDA)
	Fiscal Quarter Ended
	September 27, 2026		June 28, 2026		September 28, 2025
Net income attributable to ATI	$                   189.8		$                   151.0		$                   110.0
Net income attributable to noncontrolling interests	3.5		3.3		3.6
Net income	193.3		154.3		113.6
(+) Depreciation and amortization	44.9		44.0		42.6
(+) Interest expense	22.6		23.9		26.1
(+) Income tax provision	51.5		38.6		31.0
EBITDA	312.3		260.8		213.3
Adjustments for special items, pre-tax:
(+) Restructuring and other charges(a)	14.4		23.6		12.9
(+/-) (Gain) loss on sales of businesses(b)	—		—		(1.1)
(+) Debt extinguishment charge(c)	1.2		—		—
Adjusted EBITDA	$                   327.9		$                   284.4		$                   225.1

(a) Third quarter 2026 includes pre-tax charges of $14.4 million consisting of $8.4 million of transformation-related costs, $2.9 million of losses on the sale of customer accounts receivable, $2.2 million of start-up and transaction-related costs, and $0.9 million of restructuring-related costs. Second quarter 2026 includes pre-tax charges of $23.6 million consisting of $10.1 million of start-up and transaction-related costs, $7.0 million of transformation-related costs, $3.9 million of restructuring-related costs, and $2.6 million of losses on the sale of customer accounts receivable. Third quarter 2025 includes pre-tax charges of $12.9 million primarily for start-up and transaction-related costs.

(b) Third quarter 2025 included a $1.1 million gain on the sale of a non-core business previously reported in the HPMC segment.

(c) Third quarter 2026 includes a pre-tax debt extinguishment charge of $1.2 million for the write-off of unamortized debt issuance costs related to the redemption of $350 million of 5.875% Senior Notes due 2027.

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 U.S. qualified defined benefit pension plan. 

Management utilizes this measure to assess the cash flow generation performance of its business as it excludes cash contributions to the Company's U.S. qualified benefit pension plan that are periodic rather than recurring. The impact of cash generated from the sale of assets and non-core businesses is included in the measure as the proceeds of such transactions are contemplated by Management in setting capital budgets to fund capital expenditures. Management believes this measure provides investors with additional meaningful insights as to the Company's ability to generate cash in excess of operational and investing needs. Adjusted free cash flow is not intended to be a measure of free cash flow for management's discretionary use, as it does not consider certain cash requirements such as interest, tax, or other contractually required payments. Further, adjusted free cash flow 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.

	Fiscal Quarter Ended				Fiscal Year-To-Date Period Ended
	September 27, 2026		September 28, 2025		September 27, 2026		September 28, 2025
Cash provided by operating activities	$          154.6		$          229.5		$          414.6		$          298.5
Add back: Cash contributions to U.S. qualified defined benefit pension plan	4.0		—		4.0		—
Cash provided by operating activities excluding pension contributions	158.6		229.5		418.6		298.5
Cash used in investing activities	(79.0)		(29.8)		(195.8)		(149.0)
Adjusted Free Cash Flow	$            79.6		$          199.7		$          222.8		$          149.5

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. 

	September 27, 2026		June 28, 2026		December 28, 2025
Accounts receivable	$                733.4		$                646.6		$               686.1
Short-term contract assets	112.8		95.9		72.8
Inventory	1,657.2		1,667.5		1,403.2
Accounts payable	(632.1)		(656.6)		(568.2)
Short-term contract liabilities	(127.4)		(143.5)		(146.4)
Subtotal	1,743.9		1,609.9		1,447.5
Allowance for doubtful accounts	4.7		4.2		4.2
Inventory reserves	125.6		117.2		80.4
Net managed working capital held for sale	—		—		—
Managed working capital	$              1,874.2		$             1,731.3		$             1,532.1
Annualized prior 3 months sales	$              5,694.7		$             5,044.5		$             4,708.2
Managed working capital as a
% of annualized sales	32.9 %		34.3 %		32.5 %
Change in managed working capital:
Year-to-date 2026	$                342.1
Q3 2026	$                142.9

 

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SOURCE ATI

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were ATI's third-quarter 2026 earnings and sales?

ATI reported $1,423.7 million in sales and GAAP diluted EPS of $1.37 for the third quarter of 2026. Sales increased 26% year over year, and diluted EPS increased from $0.78. Net income attributable to ATI rose 73% to $189.8 million.

What is ATI's updated full-year 2026 guidance?

ATI expects full-year 2026 adjusted EBITDA of $1,190 million–$1,200 million and adjusted EPS of $5.17–$5.23. The prior ranges were $1,135 million–$1,185 million and $4.90–$5.18, respectively. Adjusted free cash flow guidance remains $550 million–$600 million.

Why did ATI's High Performance Materials & Components margin decline in the third quarter of 2026?

ATI attributed the margin decline primarily to higher manufacturing and period costs, including costs associated with ramping commercial production of a new nickel-based superalloy. Segment EBITDA margin was 23.2%, compared with 24.1% in the second quarter of 2026 and 24.2% a year earlier.

How much share repurchase authorization did ATI have remaining after the third quarter of 2026?

ATI had $425 million of share repurchase authorization remaining at the end of the third quarter of 2026.