10-QPeriod: Q2 FY2026

ATI INC Quarterly Report for Q2 Ended Jun 28, 2026

Filed August 6, 2026For Securities:ATI

Summary

ATI Inc. reported strong financial results for the period ending June 28, 2026, with significant year-over-year growth in sales and net income. Sales increased by 11% to $1.26 billion in the second quarter and 6% to $2.41 billion year-to-date, driven primarily by robust demand and favorable pricing in the aerospace and defense markets. Net income attributable to ATI grew substantially, reaching $151.0 million ($1.09 per diluted share) for the quarter and $269.2 million ($1.94 per diluted share) year-to-date. The company successfully managed its operating costs, leading to improved gross profit margins and a notable increase in Segment EBITDA for both its High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S) segments. ATI also strengthened its balance sheet by issuing new senior notes and utilizing existing credit facilities, while continuing to invest in capital expenditures. The company's strategic focus on high-demand markets, particularly aerospace and defense, appears to be paying off. The HPMC segment saw increased sales driven by commercial jet engine products, while the AA&S segment benefited from strong performance in aerospace and defense, including significant growth in defense sales. Despite some increases in selling and administrative expenses related to transformation costs, overall profitability improved, demonstrating effective cost management and operational efficiency. The company maintains a strong liquidity position and expects continued financial performance to be supported by its core markets and strategic initiatives.

Key Highlights

  • 1Total sales increased by 11% to $1.26 billion for the quarter and 6% to $2.41 billion year-to-date, driven by strong demand in aerospace and defense.
  • 2Net income attributable to ATI rose significantly to $151.0 million ($1.09 per diluted share) for the quarter and $269.2 million ($1.94 per diluted share) year-to-date.
  • 3Gross profit margin improved to 24.6% in the second quarter and 23.7% year-to-date, compared to 21.3% and 20.9% respectively in the prior year periods.
  • 4Segment EBITDA for HPMC increased to $153.5 million (24.1% of sales) and for AA&S to $147.6 million (23.7% of sales) in the second quarter.
  • 5The company issued $450 million in 5.875% Senior Notes due 2033 and used proceeds to redeem $350 million of 2027 Notes, optimizing its debt structure.
  • 6Cash provided by operating activities significantly improved to $260.0 million year-to-date, up from $69.0 million in the prior year period.
  • 7Total assets grew to $5.74 billion as of June 28, 2026, up from $5.10 billion at December 28, 2025, with a substantial increase in cash and cash equivalents to $783.0 million.

Frequently Asked Questions

Sales increased primarily due to higher pricing and strong demand in the aerospace & defense markets, particularly for commercial jet engine and naval nuclear defense products. Year-to-date, commercial jet engine and defense sales increased 13% and 22% respectively. Sales to other markets also saw a modest increase.

ATI issued $450 million in 5.875% Senior Notes due 2033 and used approximately $350 million of the proceeds to redeem its outstanding 5.875% Senior Notes due 2027. This proactive move optimizes the company's debt maturity profile and interest expense.

Both segments showed strong performance. The HPMC segment benefited from increased sales in aerospace & defense, driven by commercial jet engine products, and maintained strong EBITDA margins. The AA&S segment saw significant sales growth, particularly in aerospace & defense (including defense applications), with improved pricing and mix contributing to higher EBITDA margins. The company expects continued growth in these core markets.

ATI maintains a strong liquidity position, with cash and cash equivalents totaling $783.0 million as of June 28, 2026. Additionally, the company has approximately $570 million in available liquidity under its Asset Based Lending (ABL) Credit Facility, providing ample resources for operations and strategic initiatives.