01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
ATI Inc. reported a solid first quarter for fiscal year 2026, with total sales reaching $1.15 billiona, a slight increase of approximately 1% year-over-year.
This growth was primarily driven by strong performance in the Aerospace & Defense (A&D) sector, which now accounts for 69% of total sales, up from 66% in the prior year, bolstered by demand in commercial jet engines and defense products. Net income attributable to ATI rose to $118.2 millionb ($0.85 per diluted share) from $97.0 million ($0.67 per diluted share) in the comparable quarter of 2025. The company's operational efficiency improved, with Gross Profit increasing to 22.8% of sales from 20.6% in the prior year, reflecting higher volumes and improved pricing.
While overall sales saw a modest increase, the company managed its cost of sales effectively, leading to enhanced profitability. ATI continues to demonstrate robust cash flow generation, with operating cash flow significantly improving to $128.2 millionc, a substantial turnaround from the $92.5 million used in the prior year's quarter.
02—Key points
Key Highlights
- Total sales increased by 1% to $1.15 billion, driven by a 6% increase in Aerospace & Defense sales, which now represent 69% of total revenue.
- Net income attributable to ATI increased to $118.2 million, or $0.85 per diluted share, up from $97.0 million, or $0.67 per diluted share, in the prior year.
- Gross profit margin improved to 22.8% from 20.6% in the prior year, reflecting better pricing and volume.
- Operating cash flow significantly improved to $128.2 million, a substantial increase from $92.5 million used in the prior year's quarter.
- The company maintained a strong backlog of $4.1 billion, with approximately 70% expected to be fulfilled within the next 12 months.
- ATI announced a new $500 million share repurchase program, demonstrating confidence and commitment to returning capital to shareholders.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, ATI Inc kept $0.10.
- Revenue$1.15B100.0%
- Cost of revenue−$888.6M77.2%
- Gross profit$262.9M22.8%
- Operating costs−$99.1M8.6%
- Operating income$163.8M14.2%
- Interest, other & tax−$45.6M4.0%
- Net income$118.2M10.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 30, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.15B$1.14B | +0.6% |
| Cost of Revenue | $888.60M$908.60M | −2.2% |
| Gross Profit | $262.90M$235.80M | +11.5% |
| SG&A Expenses | $92.10M$85.00M | +8.4% |
| Operating Income | $163.80M$146.90M | +11.5% |
| Net Income | $118.20M$97.00M | +21.9% |
| EPS (Basic) | $0.86$0.68 | +26.5% |
| EPS (Diluted) | $0.85$0.67 | +26.9% |
| Shares Outstanding (Basic) | 136.70M141.70M | −3.5% |
| Shares Outstanding (Diluted) | 138.60M144.20M | −3.9% |
05—Questions
Frequently Asked Questions
What is the primary driver of ATI's revenue growth in this quarter?
The primary driver of ATI's revenue growth was the strong performance in the Aerospace & Defense (A&D) market, which saw a 6% increase in sales. This segment's growth was particularly fueled by demand for commercial jet engine products and defense applications, now constituting 69% of total sales.
How did ATI's profitability change compared to the previous year?
ATI demonstrated improved profitability in this quarter. The gross profit margin increased to 22.8% from 20.6% in the prior year, indicating better cost management and favorable pricing. Net income attributable to ATI also saw a substantial increase to $118.2 million from $97.0 million in the comparable prior-year period.
What is the company's liquidity position and outlook?
ATI maintains a healthy liquidity position. As of March 29, 2026, the company had $401.7 million in cash and cash equivalents. Additionally, it had approximately $495 million in available liquidity under its ABL facility and up to $100 million under the Delayed-Draw Term Loan. Management believes these resources, along with internally generated funds, will be adequate to meet its liquidity needs.
Are there any significant risks or headwinds mentioned in the report?
The report mentions potential risks including geopolitical instability in the Middle East potentially affecting global energy supplies and commodity prices, and inflationary pressures on input costs. While ATI does not have material operations in the Middle East, the company notes that further escalation of conflict could have broader economic impacts. Specific to its operations, the company is also navigating environmental remediation liabilities and ongoing litigation, though management does not believe these will materially impact financial condition or liquidity.
06—Continue