ATI (NYSE: ATI) lifts 2026 guidance after strong Q1 margins, cash flow
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
ATI Inc. reported solid first quarter 2026 results, fueled by aerospace and defense demand and stronger margins. Sales were $1.15 billion, up 1% year-over-year, with net income attributable to ATI of $118.2 million and GAAP diluted EPS of $0.85, up 27% from $0.67.
Adjusted net income was $139.2 million and adjusted EPS $1.00, up 39% year-over-year. Adjusted EBITDA was $231.7 million, a 19% increase, giving a 20.1% margin versus 17.0% a year ago. Operating cash flow improved sharply to $128.2 million from a use of cash in the prior-year quarter.
Management raised full-year 2026 guidance, targeting adjusted EBITDA of $1.01–$1.06 billion, adjusted EPS of $4.20–$4.48, and adjusted free cash flow of $465–$525 million. The company repurchased $75 million of stock in the quarter and the Board authorized an additional $500 million, leaving $545 million total repurchase capacity outstanding.
Positive
- Strong profitability and margin expansion: Q1 2026 adjusted EBITDA was $231.7M, up 19% year-over-year, with margin improving to 20.1% from 17.0%, supported by mix and pricing strength, especially in aerospace and defense.
- Raised full-year 2026 outlook and robust capital returns: Management increased adjusted EBITDA, EPS, and free cash flow guidance and combined this with $75M of Q1 share repurchases and an additional $500M buyback authorization, signaling confidence in ongoing cash generation.
Negative
- None.
Insights
ATI delivered strong Q1 margin, earnings and cash flow, and raised 2026 guidance.
ATI posted Q1 2026 revenue of $1.15B, up 1% year-over-year, but the real story is profitability. GAAP EPS rose to $0.85 and adjusted EPS to $1.00, while adjusted EBITDA reached $231.7M with a 20.1% margin.
Both segments contributed: HPMC delivered a 24.9% EBITDA margin and AA&S 18.1%, reflecting favorable mix and pricing, especially into aerospace and defense. Operating cash flow improved to $128.2M, supporting capital spending of $55.2M and share repurchases of $75M.
The company raised full-year 2026 targets to adjusted EBITDA of $1.01–$1.06B, adjusted EPS of $4.20–$4.48, and adjusted free cash flow of $465–$525M. Combined with an additional $500M buyback authorization, this points to confidence in sustained earnings and cash generation, subject to macro and end-market conditions outlined in their risk factors.
8-K Event Classification
8 items: 0.06, 0.19, 0.30, 2.02, 9.01, 9.3, 26.4, 41.8
8 items
Item 0.06
Item 0.06
Item 0.19
Item 0.19
Item 0.30
Item 0.30
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Item 9.3
Item 9.3
Item 26.4
Item 26.4
Item 41.8
Item 41.8
Key Figures
Q1 2026 Sales: $1,151.5 million
Q1 2026 Net Income attributable to ATI: $118.2 million
Q1 2026 GAAP diluted EPS: $0.85 per share
+5 more
8 metrics
Q1 2026 Sales
$1,151.5 million
Up 1% year-over-year in the first quarter 2026
Q1 2026 Net Income attributable to ATI
$118.2 million
Up 22% year-over-year in the first quarter 2026
Q1 2026 GAAP diluted EPS
$0.85 per share
Increased from $0.67 in Q1 2025, up 27%
Q1 2026 Adjusted EPS
$1.00 per share
Up from $0.72 in Q1 2025, a 39% increase
Q1 2026 Adjusted EBITDA
$231.7 million
Adjusted EBITDA margin 20.1% vs 17.0% in Q1 2025
Q1 2026 Operating Cash Flow
$128.2 million
Cash provided by operating activities in the quarter
FY 2026 Adjusted EBITDA Guidance
$1,010–$1,060 million
Raised from prior $975–$1,025 million range
FY 2026 Adjusted EPS Guidance
$4.20–$4.48
Raised from prior $3.99–$4.27 range
Key Terms
Adjusted EBITDA, Adjusted free cash flow, Segment EBITDA, Non-GAAP financial measures, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA(a) of $232 million, an increase of 19% year-over-year"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted free cash flow financial
"Adjusted Free Cash Flow (b) | | $465M - $525M | $430M - $490M"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
Segment EBITDA financial
"Our measure of segment EBITDA, which we use to analyze the performance"
Segment EBITDA measures how much profit a specific part of a company generates from its core operations, before accounting for interest, taxes and long-term accounting items like depreciation and amortization. Investors use it like inspecting a single slice of a pie to compare which business units are most profitable, track performance trends, and decide where to allocate capital because it highlights underlying operating results without financing or accounting differences.
Non-GAAP financial measures financial
"This report includes financial performance measures that are not defined by GAAP, including Non-GAAP financial measures"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Managed working capital financial
"we focus on Managed working capital, a non-GAAP financial measure that we define as gross accounts receivable"
Restructuring and other charges financial
"First quarter 2026: $26.4 million includes pre-tax charges consisting of $4.8 million of transformation-related costs"
Restructuring and other charges are one-time costs a company records when it reorganizes operations or deals with special situations—examples include layoffs, closing facilities, cancelling contracts, or writing down assets. For investors these items matter because they can sharply lower reported earnings or cash in the short term while aiming to reduce costs or fix problems long-term; think of it as paying to renovate a shop now so it runs cheaper and cleaner later, and you should check whether the savings actually materialize.
Earnings Snapshot
Revenue: $1,151.5 million · Guidance included
Q1 2026
Revenue
$1,151.5 million
+1% year-over-year
Net income attributable to ATI
$118.2 million
+22% year-over-year
GAAP diluted EPS
$0.85
+27% year-over-year
Adjusted EPS
$1.00
+39% year-over-year
Adjusted EBITDA
$231.7 million
+19% year-over-year
Guidance
For full year 2026, ATI guides to adjusted EBITDA of $1,010–$1,060 million, adjusted EPS of $4.20–$4.48, and adjusted free cash flow of $465–$525 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
______________________
FORM 8-K
______________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 30, 2026
______________________
(Exact name of registrant as specified in its charter)
______________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
Registrant’s telephone number, including area code (800 ) 289-7454
N/A
(Former name or former address, if changed since last report).
______________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On April 30, 2026, ATI Inc. ("the Company") issued a press release (the "Earnings Press Release") announcing its financial results for the first quarter 2026. The text of the Press Release is included as Exhibit 99.1 to this Current Report on Form 8-K.
The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not deemed incorporated by reference into any filing under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.
Item 9.01. Exhibit.
| (d) | Exhibit 99.1 | Press release dated April 30, 2026. | ||||||
| Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ATI Inc. | ||||||||||||||
| By: | /s/ James Robert Foster | |||||||||||||
| James Robert Foster | ||||||||||||||
| Senior Vice President, Finance and Chief Financial Officer | ||||||||||||||
| Dated: | April 30, 2026 | |||||||||||||
NEWS RELEASE| ATI Inc. | Investor Contact: | Media Contact: | ||||||
| Corporate Headquarters | David Weston | Natalie Gillespie | ||||||
| 2021 McKinney Avenue | 412-394-2908 | 412-394-2850 | ||||||
| Dallas, TX 75201 U.S.A. | david.weston@ATImaterials.com | natalie.gillespie@ATImaterials.com | ||||||
| www.ATImaterials.com | ||||||||
ATI Announces First Quarter 2026 Results
Margin expansion and aerospace demand drive double-digit earnings growth
GAAP EPS up 27% year-over-year; Operating cash flow up $221 million
Adjusted EBITDA margin 20.1%, up 310 bps. year-over-year
Raising full year adjusted earnings and cash flow guidance
First Quarter 2026 GAAP Financial Results
◦ Sales of $1.15 billion, up 1% year-over-year, driven by a 6% aerospace & defense increase
◦ Net income attributable to ATI of $118 million, up 22% year-over-year
◦ Earnings per share of $0.85 compared to $0.67 per share in first quarter 2025
First Quarter 2026 Non-GAAP Financial Information(a)
◦Adjusted net income attributable to ATI(a) of $139 million, up 33% year-over-year
◦Adjusted earnings per share(a) of $1.00, compared to $0.72 per share in first quarter 2025
◦Adjusted EBITDA(a) of $232 million, an increase of 19% year-over-year
◦Adjusted EBITDA(a) as a percentage of sales of 20.1%, compared to 17.0% in first quarter 2025
Guidance
The Company is providing second quarter and updated, full year 2026 guidance in the table below.
| Current Guidance | Prior Guidance | ||||||||||
| Q2 2026 | Full Year 2026 | Full Year 2026 | |||||||||
Adjusted EBITDA(b) | $245M - $255M | $1,010M - $1,060M | $975M - $1,025M | ||||||||
Adjusted Earnings Per Share(b) | $0.98 - $1.04 | $4.20 - $4.48 | $3.99 - $4.27 | ||||||||
Adjusted Free Cash Flow(b) | $465M - $525M | $430M - $490M | |||||||||
(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.
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DALLAS, TX--(PR Newswire)--April 30, 2026--ATI Inc. (NYSE: ATI) reported first quarter 2026 results, with sales of $1.15 billion and net income attributable to ATI of $118 million, or $0.85 per share.
| Sequential | Y-O-Y | ||||||||||||||||||||||||||||
| ($ in millions except per share amounts) | Q1 2026 | Q4 2025 | Change | Q1 2025 | Change | ||||||||||||||||||||||||
| Sales | $1,151.5 | $1,177.1 | (2) | % | $1,144.4 | 1 | % | ||||||||||||||||||||||
| Net income attributable to ATI | $118.2 | $96.6 | 22 | % | $97.0 | 22 | % | ||||||||||||||||||||||
| Earnings per share | $0.85 | $0.69 | 23 | % | $0.67 | 27 | % | ||||||||||||||||||||||
Non-GAAP information(a) | |||||||||||||||||||||||||||||
Adjusted net income attributable to ATI(a) | $139.2 | $129.8 | 7 | % | $104.4 | 33 | % | ||||||||||||||||||||||
Adjusted earnings per share(a) | $1.00 | $0.93 | 8 | % | $0.72 | 39 | % | ||||||||||||||||||||||
ATI adjusted EBITDA(a) | $231.7 | $231.9 | — | % | $194.6 | 19 | % | ||||||||||||||||||||||
First quarter 2026 GAAP earnings per share were $0.85 and adjusted earnings per share(a) were $1.00. Net income attributable to ATI was $118.2 million and ATI adjusted EBITDA(a) was $231.7 million, or 20.1% of sales. First quarter 2026 adjusted results exclude pre-tax charges of $26.4 million for special items consisting of $11.1 million of start-up and transaction-related costs, $8.1 million of restructuring-related severance and impairment costs, $4.8 million of transformation-related costs, and $2.4 million of losses on the sale of customer accounts receivable. The after-tax impact of these special items was a charge of $21.0 million, or $0.15 per share.
Fourth quarter 2025 adjusted results exclude pre-tax charges of $22.9 million for special items, an $18.6 million pre-tax pension remeasurement loss, and a loss of $0.3 million associated with a prior business disposition. The after-tax impact of these special items was a charge of $33.2 million, or $0.24 per share. First quarter 2025 adjusted results exclude pre-tax charges of $9.3 million for special items. The after-tax impact of these special items was a charge of $7.4 million, or $0.05 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.
“We delivered a strong start to 2026, exceeding the upper end of our first quarter earnings guidance range,” said Kimberly A. Fields, President and CEO. “On a year-over-year basis, we achieved double-digit earnings growth, expanded segment margins, and improved first quarter operating cash flow by more than $220 million – our best quarterly performance in fifteen years. Our laser focus on operational discipline is delivering.
“While there are macro uncertainties, demand for our highly differentiated materials remains strong and customer production continues to ramp. Our disciplined execution, long-term contractual positions, and critical role across aerospace and defense markets position us well to navigate the environment. Based on our performance and outlook, we are raising our full-year adjusted earnings and free cash flow guidance.
“We’re delivering sustained operating efficiencies, with strong year-over-year margin and cash flow improvement,” said Fields. “That performance supports the Board’s additional $500 million share repurchase authorization. We continue to allocate capital in a disciplined way—investing for growth and returning cash to shareholders, including $75 million of repurchases in the first quarter.”
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Operating Results by Segment
| High Performance Materials & Components (HPMC) | |||||||||||||||||
| ($ millions) | Q1 2026 | Q4 2025 | Q1 2025 | ||||||||||||||
| Sales | $614.3 | $645.9 | $584.1 | ||||||||||||||
Segment EBITDA(a) | $152.9 | $155.0 | $131.0 | ||||||||||||||
| % of Sales | 24.9 | % | 24.0 | % | 22.4 | % | |||||||||||
•HPMC’s first quarter 2026 sales decreased $31.6 million, or 5%, compared to fourth quarter 2025, primarily due to lower sales to the aerospace & defense and specialty energy markets, largely driven by planned maintenance outages and seasonality. Aerospace & defense sales represented 93% of total HPMC sales in the first quarter of 2026, up slightly from 91% in the fourth quarter of 2025.
•First quarter 2026 sales improved 5% compared to first quarter 2025, primarily driven by an 8% increase in the sale of commercial jet engine.
•HPMC first quarter 2026 segment EBITDA(a) was $152.9 million, or 24.9% of sales. The sequential increase in the segment margin rate was primarily due to favorable sales mix and pricing, partially offset by lower volume. The year-over-year increase in the segment margin rate was primarily due to higher volume and favorable sales mix and pricing.
| Advanced Alloys & Solutions (AA&S) | |||||||||||||||||
| ($ millions) | Q1 2026 | Q4 2025 | Q1 2025 | ||||||||||||||
| Sales | $537.2 | $531.2 | $560.3 | ||||||||||||||
Segment EBITDA(a) | $97.0 | $98.5 | $83.4 | ||||||||||||||
| % of Sales | 18.1 | % | 18.5 | % | 14.9 | % | |||||||||||
•AA&S first quarter 2026 sales increased $6 million, or 1%, compared to the fourth quarter 2025, primarily due to higher sales in the aerospace & defense sale markets, driven by increased demand for commercial jet engine products. Increased demand from the conventional energy markets also contributed to stronger sequential sales. These increases were partially offset by lower sales of electronics and specialty energy products. Aerospace & defense sales were 43% of total AA&S sales in the first quarter of 2026.
•First quarter 2026 sales decreased $23.1 million, or 4%, compared to the prior year quarter, primarily due to lower sales to the conventional energy market. These decreases were partially offset by a 6% increase in aerospace & defense sales, driven by increased demand for commercial jet engine and defense products.
•AA&S first quarter 2026 segment EBITDA(a) was $97.0 million, or 18.1% of sales, which was down slightly on a sequential basis compared to fourth quarter 2025. The increase in the segment margin rate compared to first quarter 2025 was primarily due to favorable sales mix changes and favorable pricing of exotic alloys.
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Corporate Items and Cash
•Restructuring and other charges:
◦First quarter 2026: $26.4 million includes pre-tax charges consisting of $4.8 million of transformation-related costs, $11.1 million of start-up and transaction-related costs, $8.1 million of restructuring-related severance and impairment costs due to the rationalization of certain facilities, and $2.4 million of losses on the sale of customer accounts receivable.
◦Fourth quarter 2025: $22.9 million includes pre-tax charges consisting of $12.3 million of transformation-related costs, $8.5 million of start-up and transaction-related costs, and $2.1 million of losses on the sale of customer accounts receivable.
◦First quarter 2025: $5.6 million includes pre-tax charges consisting of $4.0 million for start-up and transaction-related costs and $1.6 million of losses on the sale of customer accounts receivable.
•Corporate expenses in the first quarter 2026 were $17.0 million, compared to $19.4 million in the fourth quarter 2025, and $17.4 million in the prior year quarter. The decrease compared to fourth quarter 2025 was primarily due to lower incentive compensation costs.
•Closed operations and other income/expense was expense of $1.2 million in the first quarter 2026 compared to expense of $2.2 million in the fourth quarter 2025, and expense of $2.4 million in the prior year quarter. The reduction in expense on a sequential and year-over-year basis was primarily due to foreign exchange losses and changes in environmental reserves.
•First quarter 2026 results included a $16.1 million income tax provision, or an effective rate of 11.8%, compared to fourth quarter 2025 effective tax rate of 18.2% and first quarter 2025 effective tax rate of 17.3%. The lower effective tax rate on a sequential and year-over-year basis was primarily due to the timing and amount of discrete tax benefits.
•Cash provided by operating activities was $128.2 million for the first quarter 2026 period. Capital expenditures for the first quarter 2026 were $55.2 million.
•Managed working capital as a percent of annualized sales was 34.8% at the end of first quarter 2026, an increase of 230 basis points compared to the end of fourth quarter 2025.
•In the first quarter 2026, the Company repurchased $75.0 million of its common stock at an average price per share of $157.84, retiring approximately 0.5 million shares. As of the end of first quarter 2026, total share repurchase authorization remaining was $545 million.
***********
ATI will conduct a conference call with investors and analysts on Thursday, April 30, 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
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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.
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ATI Inc.
Consolidated Statements of Operations
(Unaudited, dollars in millions, except per share amounts)
| Fiscal Quarter Ended | |||||||||||||||||
| March 29, | December 28, | March 30, | |||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||
| Sales | $ | 1,151.5 | $ | 1,177.1 | $ | 1,144.4 | |||||||||||
| Cost of sales | 888.6 | 903.7 | 908.6 | ||||||||||||||
| Gross profit | 262.9 | 273.4 | 235.8 | ||||||||||||||
| Selling and administrative expenses | 92.1 | 102.7 | 85.0 | ||||||||||||||
| Restructuring (credits) charges | 7.0 | (0.2) | — | ||||||||||||||
Loss on asset sales and sales of businesses, net | — | 0.3 | 3.9 | ||||||||||||||
| Operating income | 163.8 | 170.6 | 146.9 | ||||||||||||||
| Nonoperating retirement benefit expense | (4.3) | (22.7) | (3.9) | ||||||||||||||
| Interest expense, net | (23.7) | (24.1) | (23.0) | ||||||||||||||
Other income (loss), net | 0.8 | (0.9) | 1.5 | ||||||||||||||
| Income before income taxes | 136.6 | 122.9 | 121.5 | ||||||||||||||
| Income tax provision | 16.1 | 22.4 | 21.0 | ||||||||||||||
| Net income | $ | 120.5 | $ | 100.5 | $ | 100.5 | |||||||||||
| Less: Net income attributable to noncontrolling interests | 2.3 | 3.9 | 3.5 | ||||||||||||||
| Net income attributable to ATI | $ | 118.2 | $ | 96.6 | $ | 97.0 | |||||||||||
| Basic net income attributable to ATI per common share | $ | 0.86 | $ | 0.71 | $ | 0.68 | |||||||||||
| Diluted net income attributable to ATI per common share | $ | 0.85 | $ | 0.69 | $ | 0.67 | |||||||||||
6
ATI Inc.
Selected Financial Data
(Unaudited, dollars in millions)
| Fiscal Quarter Ended | |||||||||||||||||
| March 29, | December 28, | March 30, | |||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||
| Sales: | |||||||||||||||||
| High Performance Materials & Components | $ | 614.3 | $ | 645.9 | $ | 584.1 | |||||||||||
| Advanced Alloys & Solutions | 537.2 | 531.2 | 560.3 | ||||||||||||||
| Total external sales | $ | 1,151.5 | $ | 1,177.1 | $ | 1,144.4 | |||||||||||
Segment EBITDA(a): | |||||||||||||||||
| High Performance Materials & Components | $ | 152.9 | $ | 155.0 | $ | 131.0 | |||||||||||
| % of Sales | 24.9 | % | 24.0 | % | 22.4 | % | |||||||||||
| Advanced Alloys & Solutions | 97.0 | 98.5 | 83.4 | ||||||||||||||
| % of Sales | 18.1 | % | 18.5 | % | 14.9 | % | |||||||||||
Corporate, Closed Operations and Other Expense(b): | |||||||||||||||||
| Corporate expense | $ | 17.0 | $ | 19.4 | $ | 17.4 | |||||||||||
Closed operations and other expense | 1.2 | 2.2 | 2.4 | ||||||||||||||
| Total Corporate, Closed Operations and Other expense | $ | 18.2 | $ | 21.6 | $ | 19.8 | |||||||||||
| Depreciation & Amortization: | |||||||||||||||||
| High Performance Materials & Components | $ | 19.6 | $ | 22.4 | $ | 19.7 | |||||||||||
| Advanced Alloys & Solutions | 23.7 | 19.1 | 19.5 | ||||||||||||||
| Other | 1.7 | 1.6 | 1.6 | ||||||||||||||
| Total depreciation & amortization | $ | 45.0 | $ | 43.1 | $ | 40.8 | |||||||||||
Percentage of Total ATI Sales(c): | |||||||||||||||||
| Nickel-based alloys and specialty alloys | 49 | % | 45 | % | 48 | % | |||||||||||
| Precision forgings, castings and components | 20 | % | 22 | % | 20 | % | |||||||||||
| Titanium and titanium-based alloys | 17 | % | 18 | % | 19 | % | |||||||||||
| Zirconium and related alloys | 9 | % | 9 | % | 8 | % | |||||||||||
| Precision rolled strip products | 5 | % | 6 | % | 5 | % | |||||||||||
| Total | 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.
7
ATI Inc.
Condensed Consolidated Balance Sheets
(Unaudited, dollars in millions)
| March 29, | December 28, | ||||||||||
| 2026 | 2025 | ||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 401.7 | $ | 416.7 | |||||||
| Accounts receivable, net of allowances for doubtful accounts | 664.4 | 686.1 | |||||||||
| Short-term contract assets | 63.1 | 72.8 | |||||||||
| Inventories, net | 1,580.3 | 1,403.2 | |||||||||
| Prepaid expenses and other current assets | 95.1 | 101.2 | |||||||||
| Total Current Assets | 2,804.6 | 2,680.0 | |||||||||
| Property, plant and equipment, net | 1,951.5 | 1,940.6 | |||||||||
| Goodwill | 225.2 | 225.2 | |||||||||
| Other assets | 252.8 | 253.8 | |||||||||
| Total Assets | $ | 5,234.1 | $ | 5,099.6 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Accounts payable | $ | 654.9 | $ | 568.2 | |||||||
Accrued liabilities | 189.1 | 240.5 | |||||||||
| Short-term contract liabilities | 154.4 | 146.4 | |||||||||
| Short-term debt and current portion of long-term debt | 33.2 | 31.1 | |||||||||
| Other current liabilities | 17.9 | 20.1 | |||||||||
| Total Current Liabilities | 1,049.5 | 1,006.3 | |||||||||
| Long-term debt | 1,794.7 | 1,718.3 | |||||||||
| Accrued postretirement benefits | 154.2 | 158.5 | |||||||||
| Pension liabilities | 42.3 | 41.4 | |||||||||
| Other long-term liabilities | 307.1 | 258.4 | |||||||||
| Total Liabilities | 3,347.8 | 3,182.9 | |||||||||
| Total ATI stockholders' equity | 1,770.5 | 1,804.5 | |||||||||
| Noncontrolling interests | 115.8 | 112.2 | |||||||||
| Total Equity | 1,886.3 | 1,916.7 | |||||||||
| Total Liabilities and Equity | $ | 5,234.1 | $ | 5,099.6 | |||||||
8
ATI Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, dollars in millions)
| Fiscal Year-To-Date Period Ended | ||||||||||||||
| March 29, | March 30, | |||||||||||||
| 2026 | 2025 | |||||||||||||
| Operating Activities: | ||||||||||||||
| Net income | $ | 120.5 | $ | 100.5 | ||||||||||
| Depreciation and amortization | 45.0 | 40.8 | ||||||||||||
Non-cash restructuring charges, net | 4.8 | — | ||||||||||||
| Share-based compensation | 6.4 | 7.2 | ||||||||||||
| Deferred taxes | 5.5 | 9.0 | ||||||||||||
| Net gain from disposal of property, plant and equipment | 0.1 | 0.3 | ||||||||||||
| Net loss on sales of businesses | — | 3.7 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Inventories | (179.0) | (40.8) | ||||||||||||
| Accounts receivable | 21.5 | (115.0) | ||||||||||||
| Accounts payable | 94.8 | (34.6) | ||||||||||||
| Retirement benefits | (3.1) | (2.3) | ||||||||||||
| Accrued liabilities and other | 11.7 | (61.3) | ||||||||||||
| Cash used in operating activities | 128.2 | (92.5) | ||||||||||||
| Investing Activities: | ||||||||||||||
| Purchases of property, plant and equipment | (55.2) | (53.3) | ||||||||||||
| Proceeds from sales of businesses, net of transaction costs | 1.6 | — | ||||||||||||
| Other | — | 2.7 | ||||||||||||
| Cash used in investing activities | (53.6) | (50.6) | ||||||||||||
| Financing Activities: | ||||||||||||||
Borrowings on long-term debt | 105.0 | — | ||||||||||||
| Payments on long-term debt and finance leases | (38.6) | (8.0) | ||||||||||||
| Net borrowings (payments) under credit facilities | 0.9 | — | ||||||||||||
| Purchase of treasury stock | (75.0) | (70.0) | ||||||||||||
| Taxes on share-based compensation and other | (81.1) | (29.5) | ||||||||||||
| Cash used in financing activities | (88.8) | (107.5) | ||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (0.8) | 5.2 | ||||||||||||
| Decrease in cash and cash equivalents | (15.0) | (245.4) | ||||||||||||
| Cash and cash equivalents at beginning of period | 416.7 | 721.2 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 401.7 | $ | 475.8 | ||||||||||
9
ATI Inc.
Revenue by Market
(Unaudited, dollars in millions)
| Fiscal Quarter Ended | ||||||||||||||||||||||||||
| March 29, | December 28, | March 30, | ||||||||||||||||||||||||
| 2026 | 2025 | 2025 | ||||||||||||||||||||||||
| Aerospace & Defense: | ||||||||||||||||||||||||||
| Jet Engines- Commercial | $ | 472.0 | 41 | % | $ | 460.1 | 39 | % | $ | 421.4 | 37 | % | ||||||||||||||
| Airframes- Commercial | 186.6 | 16 | % | 192.2 | 16 | % | 205.8 | 18 | % | |||||||||||||||||
| Defense | 139.0 | 12 | % | 150.3 | 13 | % | 127.2 | 11 | % | |||||||||||||||||
| Total Aerospace & Defense | 797.6 | 69 | % | 802.6 | 68 | % | 754.4 | 66 | % | |||||||||||||||||
| Other Markets: | ||||||||||||||||||||||||||
| Specialty Energy | 61.6 | 5 | % | 89.4 | 8 | % | 50.5 | 4 | % | |||||||||||||||||
| Electronics | 28.3 | 3 | % | 53.1 | 5 | % | 39.6 | 3 | % | |||||||||||||||||
| Medical | 27.5 | 3 | % | 27.2 | 2 | % | 42.4 | 4 | % | |||||||||||||||||
| Automotive | 61.5 | 5 | % | 57.9 | 5 | % | 60.6 | 5 | % | |||||||||||||||||
| Conventional Energy | 84.2 | 7 | % | 56.9 | 5 | % | 121.8 | 11 | % | |||||||||||||||||
| Construction/Mining | 39.0 | 3 | % | 42.4 | 3 | % | 32.9 | 3 | % | |||||||||||||||||
| Other | 51.8 | 5 | % | 47.6 | 4 | % | 42.2 | 4 | % | |||||||||||||||||
| Total Other Markets | $ | 353.9 | 31 | % | $ | 374.5 | 32 | % | $ | 390.0 | 34 | % | ||||||||||||||
| Total | $ | 1,151.5 | 100 | % | $ | 1,177.1 | 100 | % | $ | 1,144.4 | 100 | % | ||||||||||||||
10
ATI Inc.
Computation of Basic and Diluted Earnings Per Share Attributable to ATI
(Unaudited, dollars in millions, except per share amounts)
| Fiscal Quarter Ended | ||||||||||||||||||||
| March 29, | December 28, | March 30, | ||||||||||||||||||
| 2026 | 2026 | 2025 | ||||||||||||||||||
| Numerator for Basic net income per common share - | ||||||||||||||||||||
Net income attributable to ATI | $ | 118.2 | $ | 96.6 | $ | 97.0 | ||||||||||||||
| Denominator for Basic net income per common share - | ||||||||||||||||||||
| Weighted average shares outstanding | 136.7 | 135.9 | 141.7 | |||||||||||||||||
| Effect of dilutive securities: | ||||||||||||||||||||
| Share-based compensation | 1.9 | 3.5 | 2.5 | |||||||||||||||||
| Denominator for Diluted net income per common share - | ||||||||||||||||||||
| Adjusted weighted average shares and assumed conversions | 138.6 | 139.4 | 144.2 | |||||||||||||||||
| Basic net income attributable to ATI per common share | $ | 0.86 | $ | 0.71 | $ | 0.68 | ||||||||||||||
| Diluted net income attributable to ATI per common share | $ | 0.85 | $ | 0.69 | $ | 0.67 | ||||||||||||||
11
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 | |||||||||||||||||||||||||||||||||||
| March 29, 2026 | December 28, 2025 | March 30, 2025 | |||||||||||||||||||||||||||||||||
| EPS | EPS | EPS | |||||||||||||||||||||||||||||||||
| Net income attributable to ATI | $ | 118.2 | $ | 0.85 | $ | 96.6 | $ | 0.69 | $ | 97.0 | $ | 0.67 | |||||||||||||||||||||||
| Adjustments for special items, pre-tax: | |||||||||||||||||||||||||||||||||||
Restructuring and other charges(a) | 26.4 | 22.9 | 5.6 | ||||||||||||||||||||||||||||||||
Pension remeasurement loss(b) | — | 18.6 | — | ||||||||||||||||||||||||||||||||
Loss (gain) on sales of businesses(c) | — | 0.3 | 3.7 | ||||||||||||||||||||||||||||||||
| Total pre-tax adjustments for special items | 26.4 | 0.19 | 41.8 | 0.30 | 9.3 | 0.06 | |||||||||||||||||||||||||||||
| Income tax on adjustments for special items | (5.4) | (0.04) | (8.6) | (0.06) | (1.9) | (0.01) | |||||||||||||||||||||||||||||
| Adjusted Net income attributable to ATI | $ | 139.2 | $ | 1.00 | $ | 129.8 | $ | 0.93 | $ | 104.4 | $ | 0.72 | |||||||||||||||||||||||
12
Earnings before interest, taxes, depreciation and amortization (EBITDA) | |||||||||||||||||
| Fiscal Quarter Ended | |||||||||||||||||
| March 29, 2026 | December 28, 2025 | March 30, 2025 | |||||||||||||||
| Net income attributable to ATI | $ | 118.2 | $ | 96.6 | $ | 97.0 | |||||||||||
| Net income attributable to noncontrolling interests | 2.3 | 3.9 | 3.5 | ||||||||||||||
| Net income | 120.5 | 100.5 | 100.5 | ||||||||||||||
| (+) Depreciation and amortization | 45.0 | 43.1 | 40.8 | ||||||||||||||
| (+) Interest expense | 23.7 | 24.1 | 23.0 | ||||||||||||||
| (+) Income tax provision | 16.1 | 22.4 | 21.0 | ||||||||||||||
| EBITDA | 205.3 | 190.1 | 185.3 | ||||||||||||||
| Adjustments for special items, pre-tax: | |||||||||||||||||
(+) Restructuring and other charges(a) | 26.4 | 22.9 | 5.6 | ||||||||||||||
(+) Pension remeasurement loss(b) | — | 18.6 | — | ||||||||||||||
(+/-) Loss (gain) on sales of businesses(c) | — | 0.3 | 3.7 | ||||||||||||||
| Adjusted EBITDA | $ | 231.7 | $ | 231.9 | $ | 194.6 | |||||||||||
(a) First quarter 2026 includes pre-tax charges of $26.4 million consisting of $11.1 million of start-up and transaction-related costs, $4.8 million of transformation-related costs, $8.1 million of restructuring-related severance and impairment costs primarily due to the rationalization of certain facilities, and $2.4 million of losses on the sale of customer accounts receivable. Fourth quarter 2025 includes pre-tax charges of $22.9 million consisting of $8.5 million of start-up and transaction-related costs, $12.3 million of transformation-related costs, and $2.1 million of losses on the sale of customer accounts receivable. First quarter 2025 includes pre-tax charges of $5.6 million primarily for start-up and transaction-related costs.
(b) Fourth quarter 2025 includes $18.6 million of actuarial losses arising from the remeasurement of the Company's pension assets and obligations.
(c) Fourth quarter 2025 includes a $0.3 million loss and first quarter 2025 includes a $3.7 million loss related to the sale of a non-core business previously reported in the HPMC segment.
13
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 | |||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||
Cash provided by (used in) operating activities | $ | 128.2 | $ | (92.5) | |||||||
| Add back: Cash contributions to U.S. qualified defined benefit pension plan | — | — | |||||||||
| Cash provided by (used in) operating activities excluding pension contributions | 128.2 | (92.5) | |||||||||
| Cash used in investing activities | (53.6) | (50.6) | |||||||||
| Adjusted Free Cash Flow | $ | 74.6 | $ | (143.1) | |||||||
14
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.
| March 29, | December 28, | ||||||||||
| 2026 | 2025 | ||||||||||
| Accounts receivable | $ | 664.4 | $ | 686.1 | |||||||
| Short-term contract assets | 63.1 | 72.8 | |||||||||
| Inventory | 1,580.3 | 1,403.2 | |||||||||
| Accounts payable | (654.9) | (568.2) | |||||||||
| Short-term contract liabilities | (154.4) | (146.4) | |||||||||
| Subtotal | 1,498.5 | 1,447.5 | |||||||||
| Allowance for doubtful accounts | 3.9 | 4.2 | |||||||||
| Inventory reserves | 100.0 | 80.4 | |||||||||
| Net managed working capital held for sale | — | — | |||||||||
| Managed working capital | $ | 1,602.4 | $ | 1,532.1 | |||||||
| Annualized prior 3 months sales | $ | 4,606.0 | $ | 4,708.2 | |||||||
| Managed working capital as a | |||||||||||
| % of annualized sales | 34.8 | % | 32.5 | % | |||||||
| Change in managed working capital: | |||||||||||
Year-to-date 2026 | $ | 70.3 | |||||||||
15
FAQ
How did ATI (ATI) perform financially in the first quarter of 2026?
ATI delivered higher earnings and margins in Q1 2026. Sales were $1.15 billion, up 1% year-over-year, while net income attributable to ATI rose to $118.2 million. GAAP diluted EPS reached $0.85 and adjusted EPS reached $1.00, both up strongly versus 2025.
What were ATI (ATI) non-GAAP results and margins in Q1 2026?
ATI’s Q1 2026 adjusted net income was $139.2 million and adjusted EPS was $1.00. Adjusted EBITDA totaled $231.7 million, up 19% year-over-year. This equated to an adjusted EBITDA margin of 20.1%, improving from 17.0% in the first quarter of 2025.
How did ATI’s aerospace and defense markets contribute in Q1 2026?
Aerospace and defense remained ATI’s largest market in Q1 2026, generating $797.6 million of revenue, or 69% of total sales. Growth was driven by higher demand for commercial jet engine and defense products, supporting margin expansion in both operating segments.
What 2026 guidance did ATI (ATI) provide for adjusted earnings and cash flow?
For full-year 2026, ATI guided to adjusted EBITDA of $1.01–$1.06 billion and adjusted earnings per share of $4.20–$4.48. The company also projected adjusted free cash flow between $465 million and $525 million, higher than its prior guidance ranges.
How did ATI’s operating segments perform in Q1 2026?
In Q1 2026, HPMC sales were $614.3 million with segment EBITDA of $152.9 million, a 24.9% margin. AA&S delivered sales of $537.2 million and segment EBITDA of $97.0 million, an 18.1% margin, reflecting favorable mix and pricing despite some market softness.