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Rhea-AI Summary

ATI Inc. (NYSE: ATI) has been reclassified under the Global Industry Classification Standard (GICS) from Metals and Mining to Aerospace and Defense effective May 1, 2025. This change reflects ATI's strategic transformation into a leading A&D supplier, with approximately 66% of Q1 2025 revenue coming from the aerospace and defense sector.

The company has been executing its A&D-focused strategy since 2020, concentrating on producing highly differentiated materials for aerospace and defense customers while exiting lower-value metal products. ATI's materials support all commercial platforms, airframes, engines, and significant national defense programs.

Positive

• A&D revenue represents 66% of total revenue in Q1 2025, showing successful market focus
• Strategic transformation from metals and mining to higher-value aerospace and defense completed
• Company serves all commercial platforms and significant defense programs
• Successful streamlining of operations and strategic capacity additions to meet A&D demand

Negative

• None.

Insights

Industrial Sector Analyst

ATI's reclassification to Aerospace & Defense validates its strategic pivot from metals, reflecting its 66% A&D revenue and enhancing investor visibility.

This GICS reclassification represents the culmination of ATI's five-year strategic transformation from a general metals and mining company to a specialized aerospace and defense supplier. With 66% of Q1 2025 revenue now derived from A&D customers, this isn't merely a labeling change – it formally acknowledges ATI's successful pivot toward higher-margin, specialized materials.

The reclassification carries substantial implications for ATI's investor base and valuation metrics. Aerospace and defense companies typically command higher multiples than traditional metals producers due to their specialized capabilities, longer-term contracts, and higher barriers to entry. This sector shift potentially exposes ATI to a different investor universe – those focused on defense and aerospace rather than commoditized metals.

ATI's strategy has involved deliberately exiting lower-value metal products while enhancing capabilities for sophisticated A&D applications. This includes development of proprietary cast, wrought, and powder alloys used in mission-critical applications. The company has strategically restructured its manufacturing footprint to align with this focus, which should improve operational efficiency and margin profile compared to its previous business mix.

The timing is particularly notable given the robust demand environment in commercial aerospace and defense sectors, with aircraft manufacturers struggling to meet production targets and defense spending increasing globally. ATI's repositioning demonstrates forward-thinking strategic execution that aligns with these powerful long-term industry tailwinds.

DALLAS, May 1, 2025 /PRNewswire/ -- ATI Inc. (NYSE: ATI) announces that effective May 1, 2025, its Global Industry Classification Standard (GICS) code has been reclassified to Aerospace and Defense, providing further recognition of the Company's transformation into a world-class A&D supplier. Previously, ATI was categorized as Metals and Mining under the standardized industry classification system administered by S&P Dow Jones Indices and MSCI.

"This reclassification reaffirms ATI's continued transformation in aerospace and defense leadership," said Don Newman, Executive Vice President and Chief Financial Officer. "Over the last five years, we've taken strategic action to build shareholder value by strengthening ATI's position in these high-growth markets where our differentiated materials are highly valued. This official classification is one more reinforcement of our progress."

In the first quarter of 2025, A&D revenue for ATI was approximately 66%. As an A&D supplier, ATI's differentiated materials and solutions help customers fly higher and faster, burn hotter, and power and protect troops. The materials ATI produces – from proprietary cast, wrought, and powder alloys for jet engine and airframe, to the world's best iso-thermal forged components, to rolled plate and sheet products – support every commercial platform, airframe and engine, as well as significant national defense programs.

Since 2020, ATI has been executing its strategy to grow its A&D core. Leveraging its strengths in materials science and integrated process technologies, ATI concentrated on producing highly differentiated materials for A&D customers, exiting lower value metal products. The Company has streamlined its footprint and purposefully added key capabilities and capacity to meet ramping A&D demand.

ATI Inc. (GVKEY 010405) has been assigned GICS code '20101010' (Aerospace & Defense).

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.

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SOURCE ATI

FAQ

What is ATI's new GICS classification code and what does it mean?

ATI's new GICS code is '20101010' (Aerospace & Defense), reflecting its transformation from Metals and Mining to an aerospace and defense supplier.

What percentage of ATI's revenue comes from aerospace and defense in Q1 2025?

Approximately 66% of ATI's revenue in Q1 2025 came from the aerospace and defense sector.

How has ATI transformed its business since 2020?

Since 2020, ATI has focused on producing highly differentiated materials for A&D customers, exited lower-value metal products, streamlined operations, and added capabilities to meet A&D demand.

What types of products does ATI manufacture for the aerospace sector?

ATI produces proprietary cast, wrought, and powder alloys for jet engines and airframes, iso-thermal forged components, and rolled plate and sheet products for commercial and defense platforms.

When does ATI's GICS reclassification take effect?

ATI's GICS reclassification to Aerospace and Defense takes effect on May 1, 2025.