ATI signs multi-year agreement with Airbus for titanium plate, sheet and billet
Rhea-AI Summary
ATI Inc. (NYSE: ATI) has secured a significant multi-year agreement with Airbus to supply titanium plate, sheet, and billet products, positioning ATI as a top supplier for the aircraft manufacturer. The guaranteed share contract more than doubles ATI's previous support of Airbus, supporting the airframer's production ramp-up of narrow and widebody aircraft.
The agreement leverages ATI's integrated production capabilities, from melting to finished products, with alloy titanium sheet production at their new Pageland, South Carolina facility. ATI's materials are currently used in virtually every commercial aircraft platform, demonstrating their established presence in aerospace manufacturing.
Positive
- More than doubles ATI's previous support volume to Airbus
- Secures long-term revenue stream through guaranteed share contract
- Leverages new production facility in Pageland, South Carolina
- Strengthens ATI's position as a top supplier in aerospace industry
Negative
- None.
Insights
ATI secures major Airbus supply contract, doubling previous business and strengthening its aerospace market position.
This multi-year agreement with Airbus represents a significant commercial breakthrough for ATI in the aerospace materials sector. By more than doubling their previous business relationship with Airbus, ATI has secured a premier position in the titanium supply chain for one of the world's largest aircraft manufacturers during a critical production ramp-up phase.
The timing is particularly strategic as Airbus works to increase production of both narrow and widebody aircraft. ATI's ability to leverage its integrated production capabilities—from melting to finished product—positions them as a comprehensive supplier capable of meeting Airbus's stringent requirements for high-purity titanium products.
The contract's significance extends beyond immediate revenue benefits. It validates ATI's recent capital investments, particularly in their new Pageland, South Carolina operation for alloy titanium sheet production. These investments in expanded titanium capacity appear well-timed to capitalize on the aerospace industry's post-pandemic recovery and production increases.
From a competitive standpoint, this agreement strengthens ATI's market position as they've now successfully diversified to serve all major aircraft OEMs across both airframes and engines. This reduces dependency on any single customer and mitigates market exposure risk. The guaranteed share nature of the contract also provides valuable production volume predictability, allowing for improved operational planning and efficiency.
While specific financial terms aren't disclosed, the multi-year structure delivers revenue stability that shareholders typically value highly, especially in the cyclical aerospace materials sector. This agreement reinforces ATI's strategic positioning as a premium supplier in the high-performance materials space with significant exposure to the recovering commercial aerospace market.
Positions ATI as a top supplier to Airbus of titanium flat rolled and long products
"We are honored to partner with Airbus on this guaranteed share contract, which more than doubles ATI's prior support of Airbus," said ATI President and CEO Kimberly A. Fields. "Our investments in titanium capacity give us the ability to respond to our customer's increased need for high purity melt and exceptional titanium products as they grow their production," she said.
ATI's industry-leading production capabilities across its integrated flow paths, from melting to finished products, will be available to Airbus. Enabled by strategic investments in melting, plate, sheet and billet production, ATI provides a reliable and unified supply solution. Alloy titanium sheet will be produced at ATI's new operation in
ATI's materials and components are on virtually every commercial platform flying today. "As we further strengthen our position as an aerospace and defense leader, we've diversified to serve every original equipment manufacturer on both airframes and engines," said Fields. "This long-term agreement demonstrates the confidence Airbus places in ATI to deliver the highest quality, high performing materials on-time. ATI is proud to support Airbus and looks forward to growing together."
ATI: Proven to Perform
ATI (NYSE: ATI) is a producer of high-performance materials and solutions for the global aerospace and defense markets, and critical applications in electronics, medical and specialty energy. We're solving the world's most difficult challenges through materials science. We partner with our customers to deliver extraordinary materials that enable their greatest achievements: their products fly higher and faster, burn hotter, dive deeper, stand stronger and last longer. Our proprietary process technologies, unique customer partnerships and commitment to innovation deliver materials and solutions for today and the evermore challenging environments of tomorrow. We are proven to perform anywhere. Learn more at ATImaterials.com.
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Certain statements in this news release relate to future events and expectations and, as such, constitute forward-looking statements. Forward-looking statements, which may contain such words as "anticipates," "believes," "estimates," "expects," "would," "should," "will," "will likely result," "forecast," "outlook," "projects," and similar expressions, are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which we are unable to predict or control. Our performance or achievements may differ materially from those expressed or implied in any forward-looking statements due to the following factors, among others: (a) material adverse changes in economic or industry conditions generally, including global supply and demand conditions and prices for our specialty materials and changes in international trade duties and other aspects of international trade policy; (b) material adverse changes in the markets we serve; (c) our inability to achieve the level of cost savings, productivity improvements, synergies, growth or other benefits anticipated by management from strategic investments and the integration of acquired businesses; (d) volatility in the price and availability of the raw materials that are critical to the manufacture of our products; (e) declines in the value of our defined benefit pension plan assets or unfavorable changes in laws or regulations that govern pension plan funding; (f) labor disputes or work stoppages; (g) equipment outages; (h) business and economic disruptions associated with extraordinary events beyond our control, such as war, terrorism, international conflicts, public health issues, such as epidemics or pandemics, natural disasters and climate-related events that may arise in the future and (i) other risk factors summarized in our Annual Report on Form 10-K for the year ended December 29, 2024, and in other reports filed with the Securities and Exchange Commission. We assume no duty to update our forward-looking statements.
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SOURCE ATI
FAQ
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