ATI Inc【ATI】株式ニュース

ATI Announces First Quarter 2026 ResultsApril 30, 2026 7:30 AM
PR Newswire (US)

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 ResultsSales of $1.15 billion, up 1% year-over-year, driven by a 6% aerospace & defense increaseNet income attributable to ATI of $118 million, up 22% year-over-yearEarnings per share of $0.85 compared to $0.67 per share in first quarter 2025First Quarter 2026 Non-GAAP Financial Information(a)Adjusted net income attributable to ATI(a) of $139 million, up 33% year-over-yearAdjusted earnings per share(a) of $1.00, compared to $0.72 per share in first quarter 2025Adjusted EBITDA(a) of $232 million, an increase of 19% year-over-yearAdjusted EBITDA(a) as a percentage of sales of 20.1%, compared to 17.0% in first quarter 2025Guidance
The Company is providing second quarter and updated, full year 2026 guidance in the table below.
Current GuidancePrior Guidance
Q2 2026Full Year 2026Full Year 2026Adjusted 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.DALLAS, April 30, 2026 /PRNewswire/ -- 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
ChangeSales$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."Operating Results by Segment High Performance Materials & Components (HPMC)

($ millions)Q1 2026
Q4 2025
Q1 2025Sales$614.3
$645.9
$584.1

Segment EBITDA(a)$152.9
$155.0
$131.0% of Sales24.9 %
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 2025Sales$537.2
$531.2
$560.3

Segment EBITDA(a)$97.0
$98.5
$83.4% of Sales18.1 %
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.Corporate Items and CashRestructuring 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 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
March 29,
December 28,
March 30,
2026
2025
2025

Sales$ 1,151.5
$ 1,177.1
$ 1,144.4

Cost of sales888.6
903.7
908.6Gross profit262.9
273.4
235.8

Selling and administrative expenses92.1
102.7
85.0Restructuring (credits) charges7.0
(0.2)
—Loss on asset sales and sales of businesses, net—
0.3
3.9Operating income 163.8
170.6
146.9Nonoperating retirement benefit expense(4.3)
(22.7)
(3.9)Interest expense, net(23.7)
(24.1)
(23.0)Other income (loss), net0.8
(0.9)
1.5Income before income taxes136.6
122.9
121.5Income tax provision16.1
22.4
21.0Net income$         120.5
$         100.5
$         100.5Less: Net income attributable to noncontrolling interests2.3
3.9
3.5Net 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 ATI Inc.Selected Financial Data(Unaudited, dollars in millions)

Fiscal Quarter Ended
March 29,
December 28,
March 30,
2026
2025
2025Sales:

High Performance Materials & Components$       614.3
$       645.9
$       584.1Advanced Alloys & Solutions537.2
531.2
560.3Total 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 Sales24.9 %
24.0 %
22.4 %Advanced Alloys & Solutions97.0
98.5
83.4% of Sales18.1 %
18.5 %
14.9 %

Corporate, Closed Operations and Other Expense(b):

Corporate expense$         17.0
$         19.4
$         17.4Closed operations and other expense1.2
2.2
2.4Total Corporate, Closed Operations and Other expense$         18.2
$         21.6
$         19.8

Depreciation & Amortization:

High Performance Materials & Components$         19.6
$         22.4
$         19.7Advanced Alloys & Solutions23.7
19.1
19.5Other1.7
1.6
1.6Total depreciation & amortization$         45.0
$         43.1
$         40.8

Percentage of Total ATI Sales(c):

Nickel-based alloys and specialty alloys49 %
45 %
48 %Precision forgings, castings and components20 %
22 %
20 %Titanium and titanium-based alloys17 %
18 %
19 %Zirconium and related alloys9 %
9 %
8 %Precision rolled strip products5 %
6 %
5 %Total100 %
100 %
100 %
(a) The Company's Chief Operating Decision Maker ("CODM") utilizes the Segment EBITDA as a key metric to evaluate segment performance. Our measure of segment EBITDA, which we use to analyze the performance and results of our business segments, excludes net interest expense, income taxes, depreciation and amortization, special charges, unallocated corporate expenses, closed operations and other income (expense). See the company's Form 10-Q for the reconciliation of Segment EBITDA to Income before taxes.
(b) Amounts exclude depreciation & amortization expense.
(c) Hot-Rolling and Processing Facility conversion service sales in the AA&S segment are excluded from this presentation. ATI Inc.Condensed Consolidated Balance Sheets(Unaudited, dollars in millions)

March 29,
December 28,
2026
2025ASSETS

Current Assets:

Cash and cash equivalents$                  401.7
$                  416.7Accounts receivable, net of allowances for doubtful accounts664.4
686.1Short-term contract assets63.1
72.8Inventories, net1,580.3
1,403.2Prepaid expenses and other current assets95.1
101.2   Total Current Assets2,804.6
2,680.0

Property, plant and equipment, net1,951.5
1,940.6Goodwill225.2
225.2Other assets252.8
253.8

Total Assets$               5,234.1
$               5,099.6

LIABILITIES AND EQUITY

Current Liabilities:

Accounts payable$                  654.9
$                  568.2Accrued liabilities189.1
240.5Short-term contract liabilities154.4
146.4Short-term debt and current portion of long-term debt33.2
31.1Other current liabilities17.9
20.1   Total Current Liabilities1,049.5
1,006.3

Long-term debt1,794.7
1,718.3Accrued postretirement benefits154.2
158.5Pension liabilities42.3
41.4Other long-term liabilities307.1
258.4Total Liabilities3,347.8
3,182.9

Total ATI stockholders' equity1,770.5
1,804.5Noncontrolling interests115.8
112.2Total Equity1,886.3
1,916.7

Total Liabilities and Equity$               5,234.1
$               5,099.6 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 amortization45.0
40.8
Non-cash restructuring charges, net4.8
—
Share-based compensation6.4
7.2
Deferred taxes5.5
9.0
Net gain from disposal of property, plant and equipment0.1
0.3
Net loss on sales of businesses—
3.7
Changes in operating assets and liabilities:

Inventories(179.0)
(40.8)
Accounts receivable21.5
(115.0)
Accounts payable94.8
(34.6)
Retirement benefits(3.1)
(2.3)
Accrued liabilities and other11.7
(61.3)Cash used in operating activities128.2
(92.5)Investing Activities:

Purchases of property, plant and equipment(55.2)
(53.3)
Proceeds from sales of businesses, net of transaction costs1.6
—
Other—
2.7Cash used in investing activities(53.6)
(50.6)Financing Activities:

Borrowings on long-term debt105.0
—
Payments on long-term debt and finance leases(38.6)
(8.0)
Net borrowings (payments) under credit facilities0.9
—
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)
5.2Decrease in cash and cash equivalents(15.0)
(245.4)Cash and cash equivalents at beginning of period416.7
721.2Cash and cash equivalents at end of period$                  401.7
$                  475.8 ATI Inc.Revenue by Market(Unaudited, dollars in millions)

Fiscal Quarter Ended
March 29,
December 28,
March 30,
2026
2025
2025Aerospace & Defense:

Jet Engines- Commercial$     472.041 %
$     460.139 %
$     421.437 %Airframes- Commercial186.616 %
192.216 %
205.818 %Defense139.012 %
150.313 %
127.211 %Total Aerospace & Defense797.669 %
802.668 %
754.466 %

Other Markets:

Specialty Energy61.65 %
89.48 %
50.54 %Electronics28.33 %
53.15 %
39.63 %Medical27.53 %
27.22 %
42.44 %Automotive61.55 %
57.95 %
60.65 %Conventional Energy84.27 %
56.95 %
121.811 %Construction/Mining39.03 %
42.43 %
32.93 %Other51.85 %
47.64 %
42.24 %Total Other Markets$     353.931 %
$     374.532 %
$     390.034 %

Total$ 1,151.5100 %
$ 1,177.1100 %
$ 1,144.4100 % 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
2025Numerator 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 outstanding136.7
135.9
141.7Effect of dilutive securities:

Share-based compensation1.9
3.5
2.5Denominator for Diluted net income per common share -

Adjusted weighted average shares and assumed
conversions138.6
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
$               0.67ATI 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
$   0.67Adjustments 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 items26.4
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 Earnings before interest, taxes, depreciation and amortization
(EBITDA)

Fiscal Quarter Ended
March 29, 2026
December 28,
2025
March 30, 2025Net income attributable to ATI$                 118.2
$                  96.6
$                  97.0Net income attributable to noncontrolling
interests2.3
3.9
3.5Net income 120.5
100.5
100.5(+) Depreciation and amortization45.0
43.1
40.8(+) Interest expense 23.7
24.1
23.0(+) Income tax provision16.1
22.4
21.0EBITDA205.3
190.1
185.3Adjustments 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
3.7Adjusted 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 $3.7 million loss related to the sale of a non-core business previously reported in the HPMC segment.Adjusted Free Cash FlowManagement utilizes a non-GAAP measure, Adjusted free cash flow, to assess the cash flow generation of the Company's operations. Adjusted free cash flow is defined as the total cash provided by (used in) operating activities and investing activities as presented on the consolidated statements of cash flows, adjusted to exclude cash contributions to the Company's U.S. qualified defined benefit pension plan. Management utilizes this measure to assess the cash flow generation performance of its business as it excludes cash contributions to the Company's U.S. qualified benefit pension plan that are periodic rather than recurring. The impact of cash generated from the sale of assets and non-core businesses is included in the measure as the proceeds of such transactions are contemplated by Management in setting capital budgets to fund capital expenditures. Management believes this measure provides investors with additional meaningful insights as to the Company's ability to generate cash in excess of operational and investing needs. Adjusted free cash flow is not intended to be a measure of free cash flow for management's discretionary use, as it does not consider certain cash requirements such as interest, tax, or other contractually required payments. Further, adjusted free cash flow should be viewed in addition to, and not superior to or as an alternative for, the Company's reported results prepared in accordance with GAAP.
Fiscal Quarter Ended
March 29, 2026
March 30, 2025Cash provided by (used in) operating activities$                 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
contributions128.2
(92.5)Cash used in investing activities(53.6)
(50.6)Adjusted Free Cash Flow $                  74.6
$               (143.1)Managed Working CapitalAs 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
$                   686.1Short-term contract assets63.1
72.8Inventory1,580.3
1,403.2Accounts payable(654.9)
(568.2)Short-term contract liabilities(154.4)
(146.4)Subtotal1,498.5
1,447.5

Allowance for doubtful accounts3.9
4.2Inventory reserves100.0
80.4Net 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 sales34.8 %
32.5 %

Change in managed working capital:

Year-to-date 2026$                    70.3

View original content to download multimedia:https://www.prnewswire.com/news-releases/ati-announces-first-quarter-2026-results-302758187.htmlSOURCE ATI

Original: ATI Announces First Quarter 2026 Results

ATI Announces Fourth Quarter and Fiscal Year 2025 ResultsFebruary 3, 2026 7:30 AM
PR Newswire (US)

Annual sales of $4.6 billion represent highest total since 2012Q4 2025 sales of $1.2 billion and fiscal year 2025 sales of $4.6 billionQ4 2025 net income attributable to ATI of $97 million, or $0.69 per share; fiscal year 2025 net income attributable to ATI of $404 million, or $2.85 per share Sales to the aerospace & defense market represent 68% of Q4 2025 sales, up from 65% of Q4 2024 salesFiscal year 2025 operating cash flow of $614 million, up from $407 million for fiscal year 2024 Non-GAAP Information(a)Q4 2025 adjusted net income attributable to ATI(a) of $130 million, or $0.93 per share Q4 2025 adjusted EBITDA(a) of $232 million, or 19.7% of sales Fiscal year 2025 adjusted free cash flow(a) of $380 million, up 53% over fiscal year 2024Guidance
The Company is providing first quarter and fiscal year 2026 guidance in the table below.
Current Guidance
Q1 2026Fiscal Year 2026Adjusted EBITDA(b)$216M - $226M$975M - $1,025M

Adjusted Earnings Per Share(b)$0.83 - $0.89$3.99 - $4.27

Adjusted Free Cash Flow(b)
$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.DALLAS, Feb. 3, 2026 /PRNewswire/ -- ATI Inc. (NYSE: ATI) reported fourth quarter 2025 results, with sales of $1.18 billion and net income attributable to ATI of $96.6 million, or $0.69 per share.

Sequential

Y-O-Y($ in millions except per share amounts)Q4 2025
Q3 2025
Change
Q4 2024
Change

Sales$1,177.1
$1,125.5
5 %
$1,172.7
— %Net income attributable to ATI$96.6
$110.0
(12) %
$137.1
(30) %Earnings per share$0.69
$0.78
(12) %
$0.94
(27) %Non-GAAP information(a)

Adjusted net income attributable to ATI(a)$129.8
$119.4
9 %
$114.6
13 %Adjusted earnings per share(a)$0.93
$0.85
9 %
$0.79
18 %ATI adjusted EBITDA(a)$231.9
$225.1
3 %
$209.8
11 %GAAP earnings per share for the fourth quarter 2025 were $0.69 and adjusted earnings per share(a) were $0.93. Net income attributable to ATI was $96.6 million and ATI adjusted EBITDA(a) was $231.9 million, or 19.7% of sales. Fourth quarter 2025 adjusted results exclude pre-tax charges of $22.9 million for special items 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. Fourth quarter 2025 results also exclude 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. Third quarter 2025 adjusted results exclude pre-tax charges of $12.9 million for special items and a $1.1 million gain on the sale of a non-core business previously reported in the HPMC segment. The after-tax impact of these special items was a charge of $9.4 million, or $0.07 per share. Fourth quarter 2024 adjusted results exclude a $52.9 million pre-tax gain on the sale of certain precision rolled strip operations and a $14.1 million pre-tax pension remeasurement loss. Fourth quarter 2024 adjusted results also exclude pre-tax charges of $9.3 million, consisting of $5.3 million of severance costs, primarily related to cost reduction actions in our domestic operations, and $4.0 million of other charges, primarily for start-up and transaction related costs. The after-tax impact of these special items is a benefit of $22.5 million, or $0.15 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."As we projected, we finished 2025 with strong momentum, exceeding the upper range of our fourth quarter and full-year earnings and cash flow guidance. Demand for ATI's differentiated products and solutions continues to be robust as we support our customers' production ramps and critical missions. I am more confident than ever in ATI's position as an integral part of our customers' supply chains," said Kimberly A. Fields, President and CEO."Our full-year 2026 guidance reflects this sustained demand in our core markets. Combined with our strong operational execution, ATI is positioned to drive higher earnings, margins, and cash flows in the year ahead and over the long term."We also delivered strong cash flow results driven by continued focus on disciplined working capital management," Fields said. "Full-year operating cash flow of $614 million increased more than 50% year-over-year. This enabled us to repurchase $470 million in shares and to fund growth, all while further strengthening our balance sheet. During the fourth quarter, we repaid $150 million of outstanding debt, reducing annualized interest expense by approximately $10 million. ATI's strong balance sheet and cash flow generation provide flexibility to support growth and return capital to shareholders."Operating Results by Segment High Performance Materials & Components (HPMC)

($ millions)Q4 2025
Q3 2025
Q4 2024Sales$645.9
$602.9
$634.2

Segment EBITDA(a)$155.0
$145.8
$126.8% of Sales24.0 %
24.2 %
20.0 %HPMC's fourth quarter 2025 sales increased $43 million, or 7%, compared to third quarter 2025, primarily due to higher sales of commercial jet engine and airframe products. In addition, specialty energy sales increased in fourth quarter 2025 on higher demand compared to third quarter 2025. Overall aerospace & defense sales represented 91% of total HPMC sales in fourth quarter 2025, down slightly from 92% in third quarter 2025.Fourth quarter 2025 sales improved 2% compared to fourth quarter 2024. Aerospace & defense sales increased 4% on a year-over-year basis on strong demand for commercial jet engine and defense products. These increases were partially offset by lower sales of commercial airframe and medical products. Overall aerospace & defense sales represented 91% of total HPMC sales in fourth quarter 2025, an increase from 89% in fourth quarter 2024.HPMC fourth quarter 2025 segment EBITDA(a) was $155.0 million, or 24.0% of sales. Sequentially, margins were relatively unchanged from third quarter 2025.HPMC fourth quarter 2024 segment EBITDA(a) was $126.8 million, or 20.0% of sales. Fourth quarter 2024 margin was impacted by a charge of approximately $6.3 million due to a commercial negotiation with a customer, partially offset by a benefit of $2.6 million for the recognition of previously deferred employee retention credits.Advanced Alloys & Solutions (AA&S)

($ millions)Q4 2025
Q3 2025
Q4 2024Sales$531.2
$522.6
$538.5

Segment EBITDA(a)$98.5
$90.4
$88.0% of Sales18.5 %
17.3 %
16.3 %AA&S fourth quarter 2025 sales increased $9 million, or 2%, compared to third quarter 2025. Higher sales to the specialty energy market were partially offset by lower aerospace & defense sales. Overall aerospace & defense sales were 40% of total AA&S sales in fourth quarter 2025.Fourth quarter 2025 sales decreased $7 million, or 1%, compared to the prior year quarter. Lower sales for medical, defense, and industrial products were partially offset by increased sales of commercial airframe and specialty energy products.AA&S fourth quarter 2025 segment EBITDA(a) was $98.5 million, or 18.5% of sales. The sequential increase in margins was primarily due to favorable manufacturing costs and pricing of exotic alloys.AA&S fourth quarter 2024 segment EBITDA(a) was $88.0 million, or 16.3% of sales. The fourth quarter 2024 margin benefited from a $10.4 million credit related to the Advanced Manufacturing Production Credit that was the result of the issuance of final regulations, which was partially offset by charges of approximately $5.5 million, primarily resulting from a commercial negotiation with a customer.Corporate Items and CashRestructuring and other charges: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.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 credits of $0.4 million due to a reduction in severance-related reserves for our previous European restructuring.Fourth quarter 2024: $9.3 million includes pre-tax charges consisting of $5.3 million of severance costs, primarily related to cost reduction actions in our domestic operations, and $4.0 million of other charges, primarily for start-up and transaction related costs.The remeasurement of pension plan assets and obligations resulted in actuarial losses of $18.6 million in fourth quarter 2025 and $14.1 million in fourth quarter 2024. The Company's pension accounting policy is to record actuarial gains and losses in the current period.Corporate expenses in the fourth quarter 2025 were $19.4 million, compared to $15.6 million in third quarter 2025, and $14.1 million in the prior year quarter. The sequential and year-over-year increase was primarily due to higher incentive compensation costs. Fourth quarter 2024 also included a $2.7 million benefit for insurance proceeds.Closed operations and other income/expense was expense of $2.2 million in fourth quarter 2025 compared to income of $4.5 million in the third quarter 2025 and income of $9.1 million in the prior year quarter. Third quarter 2025 and fourth quarter 2024 included gains from the sale of oil & gas rights of $10.5 million and $7.9 million, respectively.The fourth quarter 2025 income tax provision of $22.4 million resulted in an effective tax rate of 18.2%, compared to the third quarter 2025 effective tax rate of 21.4% . The effective tax rate for fourth quarter 2025 included discrete tax benefits of $4.3 million, primarily related to the release of valuation allowances and foreign tax restructuring actions.Cash provided by operating activities was $316 million and $614 million for fourth quarter and fiscal year 2025, respectively. Capital expenditures were $93 million and $281 million for fourth quarter and fiscal year 2025, respectively.The Company repaid $150 million of debentures in fourth quarter 2025. Our next meaningful debt maturity is $350 million of Senior Notes due in December 2027.Managed working capital as a percentage of annualized sales was 32.5% at the end of fourth quarter 2025, a decline of 390 basis points compared to the end of third quarter 2025.Fiscal Year 2025 Results
Fiscal Year
Y-O-Y($ in millions except per share amounts)2025
2024
Change

Sales$4,587.4
$4,362.1
5 %Net income attributable to ATI$404.3
$367.8
10 %Earnings per share$2.85
$2.55
12 %Non-GAAP information(a)

Adjusted net income attributable to ATI(a)$460.1
$355.0
30 %Adjusted earnings per share(a)$3.24
$2.46
32 %ATI adjusted EBITDA(a)$859.3
$729.1
18 %Fiscal year 2025 net income attributable to ATI and earnings per share increased by 10% and 12%, respectively, compared to 2024. Fiscal year 2025 adjusted net income attributable to ATI(a) and adjusted earnings per share(a) increased 30% and 32%, respectively, compared to fiscal 2024. Adjusted results for 2025 exclude pre-tax charges for special items of $70.3 million, primarily consisting of restructuring and other charges and pension-related remeasurement losses. The excluded special charges were $55.8 million on an after-tax basis, or $0.39 per share. Adjusted results for 2024 exclude pre-tax special items that were a benefit of $16.7 million, primarily consisting of gains on the sale of businesses, partially offset by pension related remeasurement losses and restructuring and other charges. The excluded special items were a benefit of $12.8 million on an after-tax basis, or $0.09 per share. The reconciliations within the non-GAAP tables provide additional details on special items.***********ATI will conduct a conference call with investors and analysts on Tuesday, February 3, 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 29, 2024, and in other reports filed with the Securities and Exchange Commission. We assume no duty to update our forward-looking statements.ATI: Proven to Perform.
ATI (NYSE: ATI) is a global producer of high performance materials and solutions for the global aerospace & defense markets, and critical applications in electronics, medical and specialty energy. We're solving the world's most difficult challenges through materials science. We partner with our customers to deliver extraordinary materials that enable their greatest achievements: their products fly higher and faster, burn hotter, dive deeper, stand stronger and last longer. Our proprietary process technologies, unique customer partnerships and commitment to innovation deliver materials and solutions for today and the evermore challenging environments of tomorrow. We are proven to perform anywhere. Learn more at ATImaterials.com.ATI Inc.Consolidated Statements of Operations(Unaudited, dollars in millions, except per share amounts)

Fiscal Quarter Ended
Fiscal Year Ended
December 28,
September 28,
December 29,
December 28,
December 29,
2025
2025
2024
2025
2024

Sales$           1,177.1
$           1,125.5
$           1,172.7
$           4,587.4
$           4,362.1

Cost of sales903.7
870.2
924.1
3,580.4
3,463.9Gross profit273.4
255.3
248.6
1,007.0
898.2

Selling and administrative expenses102.7
94.6
89.0
365.1
342.3Restructuring (credits) charges(0.2)
(0.4)
5.3
(1.9)
4.1Loss (gain) on asset sales and sales
of businesses, net0.3
(1.3)
(54.6)
2.9
(57.1)Operating income 170.6
162.4
208.9
640.9
608.9Nonoperating retirement benefit
expense(22.7)
(3.9)
(17.9)
(34.6)
(29.0)Interest expense, net(24.1)
(26.1)
(25.2)
(98.6)
(108.2)Other income (loss), net(0.9)
12.2
9.2
14.6
14.4Income before income taxes122.9
144.6
175.0
522.3
486.1Income tax provision22.4
31.0
32.9
103.7
103.4Net income$ 100.5
$ 113.6
$ 142.1
$ 418.6
$ 382.7Less: Net income attributable to
noncontrolling interests3.9
3.6
5.0
14.3
14.9Net income attributable to ATI$                 96.6
$ 110.0
$ 137.1
$ 404.3
$ 367.8

Basic net income attributable to
ATI per common share$                 0.71
$                 0.80
$                 0.97
$                 2.92
$                 2.82

Diluted net income attributable to
ATI per common share$                 0.69
$                 0.78
$                 0.94
$                 2.85
$                 2.55 ATI Inc.Selected Financial Data(Unaudited, dollars in millions)

Fiscal Quarter Ended
Fiscal Year Ended
December 28,
September 28,
December 29,
December 28,
December 29,
2025
2025
2024
2025
2024Sales:

High Performance Materials &
Components$          645.9
$          602.9
$          634.2
$       2,441.7
$       2,278.5Advanced Alloys & Solutions531.2
522.6
538.5
2,145.7
2,083.6Total external sales$       1,177.1
$       1,125.5
$       1,172.7
$       4,587.4
$       4,362.1

Segment EBITDA(a):

High Performance Materials &
Components$          155.0
$          145.8
$          126.8
$          575.8
$          461.4% of Sales24.0 %
24.2 %
20.0 %
23.6 %
20.3 %Advanced Alloys & Solutions98.5
90.4
88.0
349.0
320.9% of Sales18.5 %
17.3 %
16.3 %
16.3 %
15.4 %

Corporate, Closed Operations and Other (income) expense(b):

Corporate expense$            19.4
$            15.6
$            14.1
$            67.8
$            64.0Closed operations and other
(income) expense2.2
(4.5)
(9.1)
(2.3)
(10.8)Total Corporate, Closed
Operations and Other expense$            21.6
$            11.1
$              5.0
$            65.5
$            53.2

Depreciation & Amortization:

High Performance Materials &
Components$            22.4
$            21.2
$            18.8
$            84.2
$            71.6Advanced Alloys & Solutions19.1
19.7
18.7
77.4
73.2Other1.6
1.7
1.6
6.5
6.7Total depreciation &
amortization$            43.1
$            42.6
$            39.1
$          168.1
$          151.5

Percentage of Total ATI Sales(c):

Nickel-based alloys and specialty
alloys45 %
44 %
45 %
46 %
45 %Precision forgings, castings and
components22 %
22 %
20 %
22 %
19 %Titanium and titanium-based
alloys18 %
19 %
18 %
18 %
18 %Zirconium and related alloys9 %
9 %
9 %
9 %
9 %Precision rolled strip products6 %
6 %
8 %
5 %
9 %Total100 %
100 %
100 %
100 %
100 %
(a) The Company's Chief Operating Decision Maker ("CODM") utilizes the Segment EBITDA as a key metric to evaluate segment performance. Our measure of segment EBITDA, which we use to analyze the performance and results of our business segments, excludes net interest expense, income taxes, depreciation and amortization, special charges, unallocated corporate expenses, closed operations and other income (expense). See the company's Form 10-K 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)

December 28,
December 29,
2025
2024ASSETS

Current Assets:

Cash and cash equivalents$                             416.7
$                             721.2Accounts receivable, net of allowances for doubtful accounts686.1
709.2Short-term contract assets72.8
75.6Inventories, net1,403.2
1,353.0Prepaid expenses and other current assets101.2
86.0   Total Current Assets2,680.0
2,945.0

Property, plant and equipment, net1,940.6
1,776.9Goodwill225.2
227.2Other assets253.8
281.5

Total Assets$                          5,099.6
$                          5,230.6

LIABILITIES AND EQUITY

Current Liabilities:

Accounts payable$                             568.2
$                             609.1Short-term contract liabilities146.4
169.4Short-term debt and current portion of long-term debt31.1
180.4Other current liabilities260.6
249.6   Total Current Liabilities1,006.3
1,208.5

Long-term debt1,718.3
1,714.9Accrued postretirement benefits158.5
164.3Pension liabilities41.4
37.2Other long-term liabilities258.4
150.5Total Liabilities3,182.9
3,275.4

Total ATI stockholders' equity1,804.5
1,850.4Noncontrolling interests112.2
104.8Total Equity1,916.7
1,955.2

Total Liabilities and Equity$                          5,099.6
$                          5,230.6 ATI Inc.Condensed Consolidated Statements of Cash Flows(Unaudited, dollars in millions)

Fiscal Year Ended

December 28,
December 29,

2025
2024

Operating Activities:

Net income $                             418.6
$                             382.7

Depreciation and amortization168.1
151.5
Share-based compensation29.0
34.1
Deferred taxes59.1
86.4
Net gain from disposal of property, plant and equipment(10.7)
(15.7)
Net loss (gain) on sales of businesses2.9
(52.9)
Changes in operating assets and liabilities:

Inventories(52.8)
(118.5)
Accounts receivable27.1
(85.0)
Accounts payable(43.4)
87.6
Retirement benefits11.2
4.4
Accrued income taxes(26.4)
(0.3)
Accrued liabilities and other31.6
(67.1)Cash provided by operating activities614.3
407.2Investing Activities:

Purchases of property, plant and equipment(280.6)
(239.1)
Proceeds from disposal of property, plant and equipment11.1
27.6
Proceeds from sales of businesses, net of transaction costs26.8
48.0
Other8.2
3.9Cash used in investing activities(234.5)
(159.6)Financing Activities:

Payments on long-term debt and finance leases(182.6)
(29.6)
Net payments under credit facilities—
(4.9)
Receipt of convertible note capped call—
76.1
Purchase of treasury stock(470.0)
(260.0)
Dividends paid to noncontrolling interests(13.2)
(16.0)
Taxes on share-based compensation and other(34.1)
(26.0)Cash used in financing activities(699.9)
(260.4)Effect of exchange rate changes on cash and cash equivalents15.6
(7.6)Less: Cash held for sale—
(2.3)Decrease in cash and cash equivalents(304.5)
(22.7)Cash and cash equivalents at beginning of period721.2
743.9Cash and cash equivalents at end of period$                             416.7
$                             721.2 ATI Inc.Revenue by Market(Unaudited, dollars in millions)

Fiscal Quarter Ended
Fiscal Year Ended
December 28,
September 28,
December 29,
December 28,
December 29,
2025
2025
2024
2025
2024Aerospace & Defense:

Jet Engines-
Commercial$ 460.139 %
$ 433.638 %
$ 427.936 %
$ 1,762.939 %
$ 1,457.833 %Airframes-Commercial192.216 %
197.718 %
191.216 %
790.917 %
772.918 %Defense150.313 %
161.414 %
148.413 %
557.712 %
490.211 %Total Aerospace &
Defense802.668 %
792.770 %
767.565 %
3,111.568 %
2,720.962 %

Other Markets:

Specialty Energy89.48 %
53.95 %
82.07 %
257.36 %
284.67 %Electronics53.15 %
48.44 %
51.55 %
184.84 %
194.34 %Medical27.22 %
30.93 %
51.04 %
139.43 %
224.95 %Automotive57.95 %
61.36 %
68.86 %
244.65 %
259.46 %Conventional Energy56.95 %
56.85 %
60.85 %
328.47 %
302.07 %Construction/Mining42.43 %
36.83 %
45.34 %
145.43 %
158.54 %Other47.64 %
44.74 %
45.84 %
176.04 %
217.55 %Total Other Markets374.532 %
332.830 %
405.235 %
1,475.932 %
1,641.238 %

Total$ 1,177.1100 %
$ 1,125.5100 %
$ 1,172.7100 %
$ 4,587.4100 %
$ 4,362.1100 % 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 Ended

December 28,
September 28,
December 29,
December 28,
December 29,

2025
2025
2024
2025
2024Numerator for Basic net income per
common share -

Net income attributable to ATI$                 96.6
$ 110.0
$ 137.1
$ 404.3
$ 367.8Effect of dilutive securities:

3.5% Convertible Senior Notes
due 2025—
—
—
—
5.9Numerator for Diluted net income
per common share -

Net income attributable to ATI
after assumed conversions$                 96.6
$ 110.0
$ 137.1
$ 404.3
$ 373.7

Denominator for Basic net income
per common share -

Weighted average shares
outstanding135.9
137.0
142.0
138.6
130.4Effect of dilutive securities:

Share-based compensation3.5
3.5
3.6
3.2
3.2
3.5% Convertible Senior Notes
due 2025—
—
—
—
13.0Denominator for Diluted net income
per common share -

Adjusted weighted average
shares and assumed conversions139.4
140.5
145.6
141.8
146.6

Basic net income attributable to ATI
per common share$                 0.71
$                 0.80
$                 0.97
$                 2.92
$                 2.82

Diluted net income attributable to
ATI per common share$                 0.69
$                 0.78
$                 0.94
$                 2.85
$                 2.55ATI 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
December 28, 2025
September 28, 2025
December 29, 2024

EPS

EPS

EPS

Net income attributable to ATI$            96.6
$     0.69
$          110.0
$     0.78
$          137.1
$     0.94Adjustments for special items, pre-tax:

Restructuring and other charges (a)22.9

12.9

9.3

Pension remeasurement loss (b)18.6

—

14.1

Loss (gain) on sales of businesses (c)0.3

(1.1)

(52.9)

Total pre-tax adjustments for special items41.8
0.30
11.8
0.08
(29.5)
(0.20)

Income tax on adjustments for special items(8.6)
(0.06)
(2.4)
(0.01)
7.0
0.05

Adjusted Net income attributable to ATI $          129.8
$     0.93
$          119.4
$     0.85
$          114.6
$     0.79
Fiscal Year Ended
December 28, 2025
December 29, 2024

EPS

EPS

Net income attributable to ATI$              404.3
$             2.85
$              367.8
$             2.55Adjustments for special items, pre-tax:

Restructuring and other charges (a)48.8

22.1

Pension remeasurement loss (b)18.6

14.1

Loss (gain) on sales of businesses (c)2.9

(52.9)

Total pre-tax adjustments for special items70.3
0.50
(16.7)
(0.11)

Income tax on adjustments for special items(14.5)
(0.11)
3.9
0.02

Adjusted Net income attributable to ATI $              460.1
$             3.24
$              355.0
$             2.46 Earnings before interest, taxes, depreciation and
amortization (EBITDA)

Fiscal Quarter Ended
Fiscal Year Ended
December 28,
2025
September 28,
2025
December 29,
2024
December 28,
2025
December 29,
2024Net income attributable to ATI$                96.6
$               110.0
$              137.1
$              404.3
$              367.8Net income attributable to
noncontrolling interests3.9
3.6
5.0
14.3
14.9Net income 100.5
113.6
142.1
418.6
382.7(+) Depreciation and amortization43.1
42.6
39.1
168.1
151.5(+) Interest expense 24.1
26.1
25.2
98.6
108.2(+) Income tax provision22.4
31.0
32.9
103.7
103.4EBITDA190.1
213.3
239.3
789.0
745.8Adjustments for special items, pre-tax:

(+) Restructuring and other charges (a)22.9
12.9
9.3
48.8
22.1(+) Pension remeasurement loss (b)18.6
—
14.1
18.6
14.1(+/-) Loss (gain) on sales of businesses
(c)0.3
(1.1)
(52.9)
2.9
(52.9)Adjusted EBITDA$              231.9
$               225.1
$              209.8
$              859.3
$              729.1
(a) 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. Third quarter 2025 includes pre-tax charges of $12.9 million 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 credits of $0.4 million due to a reduction in severance-related reserves. Fourth quarter 2024 includes pre-tax charges of $9.3 million consisting of $5.3 million of severance-related restructuring costs, primarily for cost reduction actions in our domestic operations, and $4.0 million of other charges, primarily for start-up and transaction-related costs. Fiscal year 2025 includes pre-tax charges of $48.8 million consisting of $25.8 million of start-up and transaction-related costs, $17.1 million of transformation-related costs, and $7.8 million of losses on the sale of customer accounts receivable, partially offset by credits of $1.9 million due to a reduction in severance-related reserves. Fiscal year 2024 includes pre-tax charges of $22.1 million consisting of $13.4 million of start-up and transaction-related costs, $4.6 million of charges for our European transformation, and $4.1 million for severance-related restructuring charges.
(b) Fourth quarter and fiscal year 2025 and 2024 results include losses of $18.6 million and $14.1 million, respectively, for actuarial gains and losses arising from the remeasurement of the Company's pension assets and obligations.
(c) Fourth quarter 2025 includes a $0.3 million loss and third quarter 2025 includes a $1.1 million gain for the sale of a non-core business previously reported in the HPMC segment. Fiscal year 2025 also includes a $3.7 million loss on the sale of certain non-core European operations from the HPMC segment. Fourth quarter and fiscal year 2024 results include a $52.9 million gain on the sale of our precision rolled strip operations in New Bedford, MA and Remscheid, Germany. Adjusted Free Cash FlowManagement utilizes a non-GAAP measure, Adjusted free cash flow, to assess the cash flow generation of the Company's operations. Adjusted free cash flow is defined as the total cash provided by (used in) operating activities and investing activities as presented on the consolidated statements of cash flows, adjusted to exclude cash contributions to the Company's U.S. qualified defined benefit pension plan. Management utilizes this measure to assess the cash flow generation performance of its business as it excludes cash contributions to the Company's U.S. qualified benefit pension plan that are periodic rather than recurring. The impact of cash generated from the sale of assets and non-core businesses is included in the measure as the proceeds of such transactions are contemplated by Management in setting capital budgets to fund capital expenditures. Management believes this measure provides investors with additional meaningful insights as to the Company's ability to generate cash in excess of operational and investing needs. Adjusted free cash flow is not intended to be a measure of free cash flow for management's discretionary use, as it does not consider certain cash requirements such as interest, tax, or other contractually required payments. Further, adjusted free cash flow should be viewed in addition to, and not superior to or as an alternative for, the Company's reported results prepared in accordance with GAAP.
Fiscal Quarter Ended
Fiscal Year Ended
December 28,
2025
December 29,
2024
December 28,
2025
December 29,
2024Cash provided by operating activities$                315.8
$                380.9
$                614.3
$                407.2Add back: Cash contributions to U.S. qualified
defined benefit pension plan—
—
—
—Cash provided by operating activities excluding
pension contributions315.8
380.9
614.3
407.2Cash used in investing activities(85.5)
18.6
(234.5)
(159.6)Adjusted Free Cash Flow $                230.3
$                399.5
$                379.8
$                247.6Managed Working CapitalAs part of managing the performance of our business, we focus on Managed working capital, a non-GAAP financial measure that we define as gross accounts receivable, short-term contract assets and gross inventories, excluding the effects of reserves for uncollectible accounts receivable and inventory valuation reserves, less accounts payable and short-term contract liabilities. We assess Managed working capital performance as a percentage of the prior three months annualized sales. Managed working capital is not intended to replace working capital or other GAAP financial measures or to be used as a measure of liquidity.Management believes this non-GAAP financial measure focuses on the assets and liabilities most closely attributable to our core operations, allowing Management to quantify and evaluate the asset intensity of our business. Further, Management believes this non-GAAP financial measure provides investors with additional insights into the Company's effectiveness in balancing the need to maintain appropriate asset levels to support sales growth and operations while deploying our cash effectively. The December 29, 2024 amounts include management working capital balances that were classified as held for sale.
December 28,
September 28,
December 29,
2025
2025
2024

Accounts receivable$ 686.1
$                     709.9
$                     709.2Short-term contract assets72.8
94.3
75.6Inventory1,403.2
1,405.6
1,353.0Accounts payable(568.2)
(493.5)
(609.1)Short-term contract liabilities(146.4)
(159.2)
(169.4)Subtotal1,447.5
1,557.1
1,359.3

Allowance for doubtful accounts4.2
4.7
15.0Inventory reserves80.4
77.5
68.5Net managed working capital held for sale—
—
8.5Managed working capital$ 1,532.1
$                  1,639.3
$                  1,451.3

Annualized prior 3 months sales$ 4,708.2
$                  4,502.2
$                  4,690.5

Managed working capital as a

% of annualized sales32.5 %
36.4 %
30.9 %

Change in managed working capital:

Year-to-date 2025$                        80.8

Q4 2025$ (107.2)

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Original: ATI Announces Fourth Quarter and Fiscal Year 2025 Results