10-QPeriod: Q1 FY2026

ATI INC Quarterly Report for Q1 Ended Mar 29, 2026

Filed April 30, 2026For Securities:ATI

Summary

ATI Inc. reported a solid first quarter for fiscal year 2026, with total sales reaching $1.15 billion, 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 million ($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 million, a substantial turnaround from the $92.5 million used in the prior year's quarter.

Financial Highlights

47 data points
Beta

Revenue

$1.15B

22.8% Gross Margin

Net Income

$118.20M

10.3% Net Margin

EPS (Diluted)

$0.85

Total Assets

$5.23B

Cash & Equivalents

$401.70M

Free Cash Flow

$128.20M

Financial Statements
Beta
Revenue$1.15B
Cost of Revenue$888.60M
Gross Profit$262.90M
SG&A Expenses$92.10M
Operating Income$163.80M
Net Income$118.20M
EPS (Basic)$0.86
EPS (Diluted)$0.85
Shares Outstanding (Basic)136.70M
Shares Outstanding (Diluted)138.60M

Key Highlights

  • 1Total sales increased by 1% to $1.15 billion, driven by a 6% increase in Aerospace & Defense sales, which now represent 69% of total revenue.
  • 2Net 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.
  • 3Gross profit margin improved to 22.8% from 20.6% in the prior year, reflecting better pricing and volume.
  • 4Operating cash flow significantly improved to $128.2 million, a substantial increase from $92.5 million used in the prior year's quarter.
  • 5The company maintained a strong backlog of $4.1 billion, with approximately 70% expected to be fulfilled within the next 12 months.
  • 6ATI announced a new $500 million share repurchase program, demonstrating confidence and commitment to returning capital to shareholders.

Frequently Asked Questions

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.

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.

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.

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.