10-QPeriod: Q3 FY2025

ATI INC Quarterly Report for Q3 Ended Sep 28, 2025

Filed October 28, 2025For Securities:ATI

Summary

ATI Inc. (ATI) reported solid financial results for the nine-month period ended September 28, 2025, demonstrating robust revenue growth and improved profitability. Total sales increased by 7% year-over-year to $3.41 billion, driven primarily by a strong performance in the Aerospace & Defense sector, which now represents 68% of total sales. The company also saw an increase in gross profit and operating income, with Segment EBITDA rising to $671.3 million from $567.5 million in the prior year period. This improved financial performance is attributed to higher sales volumes, favorable pricing, and effective cost management within its High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S) segments. ATI continues to focus on strategic growth areas, particularly in aerospace, while managing its cost structure and optimizing its balance sheet, as evidenced by ongoing share repurchase programs and amendments to its credit facilities.

Financial Highlights

46 data points
Beta

Revenue

$1.13B

22.7% Gross Margin

Net Income

$110.00M

9.8% Net Margin

EPS (Diluted)

$0.78

Total Assets

$5.00B

Cash & Equivalents

$372.20M

Free Cash Flow

$229.50M

Financial Statements
Beta
Revenue$1.13B
Cost of Revenue$870.20M
Gross Profit$255.30M
SG&A Expenses$94.60M
Operating Income$162.40M
Net Income$110.00M
EPS (Basic)$0.80
EPS (Diluted)$0.78
Shares Outstanding (Basic)137.00M
Shares Outstanding (Diluted)140.50M

Key Highlights

  • 1Total sales increased 7% year-over-year to $3.41 billion for the nine months ended September 28, 2025.
  • 2Aerospace & Defense market sales saw an 18% increase, becoming a dominant revenue driver (68% of total sales).
  • 3Segment EBITDA grew to $671.3 million, reflecting improved operational performance and profitability.
  • 4Gross profit margin increased to 21.5% from 20.4% year-over-year, indicating better pricing and cost control.
  • 5The company repurchased $470 million of its common stock year-to-date, demonstrating a commitment to returning value to shareholders.
  • 6ATI amended its ABL Credit Facility, extending its maturity to June 2030 and providing significant liquidity.
  • 7Cash provided by operating activities significantly improved to $298.5 million from $26.3 million in the prior year period.

Frequently Asked Questions

The primary driver of ATI's revenue growth is the strong performance in the Aerospace & Defense market, which has seen an 18% increase in sales year-to-date and now constitutes 68% of total sales. This is further supported by demand for commercial jet engines and defense products.

ATI's profitability has improved significantly. Gross profit margin increased to 21.5% from 20.4% year-over-year, and Segment EBITDA grew to $671.3 million from $567.5 million. This improvement is attributed to higher sales, favorable pricing, and effective cost management across its business segments.

ATI is actively managing its cash and capital structure. They have a significant share repurchase program, repurchasing $470 million of stock year-to-date. They also amended their ABL Credit Facility to ensure strong liquidity, with $372.2 million in cash and cash equivalents and significant availability under the credit facility. The company also focuses on managing working capital and evaluating its capital structure for potential refinancing or issuance of new debt or equity.

ATI acknowledges ongoing legal proceedings and environmental liabilities. While management does not believe these matters will materially affect the company's financial condition or liquidity, the resolution of certain matters could have a material impact on results of operations for specific periods. A notable update involves pension annuitization litigation, where a magistrate judge recommended dismissal of plaintiffs' claims.