ATI Announces Second Quarter 2025 Results
Continued year-over-year sales growth driven by aerospace & defense
Aerospace and defense sales of $762 million, representing 67% of Q2 2025 sales
Strong demand for commercial jet engines - YoY sales growth of 27%
Raising mid-point of full year adjusted earnings and cash flow guidance
Second Quarter 2025 GAAP Financial Results
Sales of $1.14 billion, up 4% year-over-year, driven by an 11% aerospace & defense increase
Net income attributable to ATI of $101 million, up 23% year-over-year
Earnings per share of $0.70 compared to $0.58 per share in the second quarter 2024
Second Quarter 2025 Non-GAAP Financial Information*
Adjusted net income attributable to ATI* of $106 million, up 24% year-over-year
Adjusted earnings per share* of $0.74, compared to $0.60 per share in the second quarter 2024
Adjusted EBITDA* of $208 million, an increase of 14% year-over-year
Adjusted EBITDA* as a percentage of sales of 18.2%, compared to 16.7% in the second quarter 2024
GuidanceThe Company is providing third quarter and updated full year 2025 guidance in the table below.
Guidance
Q3 2025
Full Year 2025
Adjusted EBITDA**
$200M - $210M
$810M - $840M
Adjusted Earnings Per Share**
$0.69 - $0.75
$2.90 - $3.07
Adjusted Free Cash Flow**
$270M - $350M
Capital expenditures
$260M - $280M
* 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.
** 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, July 31, 2025 /PRNewswire/ -- ATI Inc. (NYSE:ATI) reported second quarter 2025 results, with sales of $1.14 billion and net income attributable to ATI of $100.7 million, or $0.70 per share.
Sequential
Y-O-Y
($ in millions except per share amounts)
Q2 2025
Q1 2025
Change
Q2 2024
Change
Sales
$1,140.4
$1,144.4
— %
$1,095.3
4 %
Net income attributable to ATI
$100.7
$97.0
4 %
$81.9
23 %
Earnings per share
$0.70
$0.67
4 %
$0.58
21 %
Non-GAAP information*
Adjusted net income attributable to ATI*
$106.4
$104.4
2 %
$86.0
24 %
Adjusted earnings per share*
$0.74
$0.72
3 %
$0.60
23 %
ATI adjusted EBITDA*
$207.7
$194.6
7 %
$182.6
14 %
GAAP earnings per share for the second quarter 2025 were $0.70 and adjusted earnings per share* were $0.74. Net income attributable to ATI was $100.7 million and ATI adjusted EBITDA* was $207.7 million, or 18.2% of sales. Second quarter 2025 adjusted results exclude pre-tax charges of $7.4 million for special items. The after-tax impact of these special items was a charge of $5.7 million, or $0.04 per share.
First quarter 2025 adjusted results excluded pre-tax charges of $5.6 million or $4.5 million on an after-tax basis. First quarter 2025 also excluded a loss on the sale of certain non-core European businesses. Second quarter 2024 adjusted results exclude pre-tax charges of $5.4 million or $4.1 million on an after-tax basis. 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.
"Our second quarter performance demonstrates strong, sustained demand in ATI's aerospace and defense end markets. Consistent operational performance drove double-digit growth in net income, EPS and adjusted EBITDA* on a year-over-year basis," said Kimberly A. Fields, President and CEO. "We see demand increasing from our A&D customers as the industry looks toward ramping production and deliveries through the remainder of 2025 and continuing into 2026. Recent long-term contract extensions with both major airframe companies further underscore ATI's unique position in this industry.
"ATI continues to take a disciplined approach to capital allocation, balancing investments to support growth and reliability with returning capital to shareholders. During the second quarter, we delivered on our commitment to repurchase $250 million shares of our stock, bringing our total 2025 share repurchases to $320 million. Our remaining board authorization for buybacks is now $270 million, which we will deploy opportunistically," said Fields.
Operating Results by Segment
High Performance Materials & Components (HPMC)
($ millions)
Q2 2025
Q1 2025
Q2 2024
Sales
$608.8
$584.1
$562.0
Segment EBITDA*
$144.0
$131.0
$113.8
% of Sales
23.7 %
22.4 %
20.2 %
HPMC's second quarter 2025 sales increased $24.7 million, or 4%, compared to first quarter 2025, primarily due to increased demand for commercial jet engine products. Overall aerospace & defense sales represented 92% of total HPMC sales in both second quarter 2025 and first quarter 2025. Second quarter 2025 sales improved 8% compared to second quarter 2024. The year-over-year sales growth includes a negative impact of $30.0 million due to the first quarter 2025 disposition of certain non-core operations in Europe. Overall, the increase in sales was primarily due to a 26% increase in commercial jet engine sales, partially offset by an 18% decrease in sales of commercial airframes, which included the impact of inventory destocking by current customers. Sales were also lower to the medical and specialty energy markets.
HPMC second quarter 2025 segment EBITDA* was $144.0 million, or 23.7% of sales. The sequential increase in margins was primarily due to higher sales volume as well as favorable pricing of nickel based alloys and specialty alloys. Also, second quarter 2025 margin benefited from the recognition of $4.4 million of previously deferred employee retention credits.
HPMC second quarter 2024 segment EBITDA* was $113.8 million, or 20.2% of sales, which included a benefit of $3.5 million for the recognition of previously deferred employee retention credits.
Advanced Alloys & Solutions (AA&S)
($ millions)
Q2 2025
Q1 2025
Q2 2024
Sales
$531.6
$560.3
$533.3
Segment EBITDA*
$76.7
$83.4
$87.5
% of Sales
14.4 %
14.9 %
16.4 %
AA&S second quarter 2025 sales decreased $28.7 million, or 5%, compared to the first quarter 2025, primarily due to lower sales of conventional energy and defense products. These decreases were partially offset by higher sales in the specialty energy market as well as higher demand for commercial jet engine and electronics products. Overall aerospace & defense sales were 38% of total AA&S sales in the second quarter of 2025. Compared to the prior year quarter, second quarter 2025 sales were relatively flat, decreasing $1.7 million, or less than 1%.
AA&S second quarter 2025 segment EBITDA* was $76.7 million, or 14.4% of sales. The sequential decrease in margins was primarily due to lower sales volume. Second quarter 2025 margin benefited from the recognition of $2.6 million of previously deferred employee retention credits while first quarter 2025 margin benefited $2.6 million due to a recovery for previously reserved accounts receivables.
AA&S second quarter 2024 segment EBITDA* was $87.5 million, or 16.4% of sales, which included a benefit of $5.1 million for the recognition of previously deferred employee retention credits.
Corporate Items and Cash
Restructuring and other charges:
Second quarter 2025: $8.7 million includes pre-tax charges consisting of $7.1 million of start-up and transaction related costs and $1.6 million of losses on the sale of customer accounts receivable. These pre-tax charges were partially offset by credits of $1.3 million due to a reduction in severance-related reserves for a previous restructuring in our AA&S segment.
First quarter 2025: $5.6 million includes pre-tax charges consisting of $4.0 million of start-up and transaction related costs and $1.6 million of losses on the sale of customer accounts receivable.
Second quarter 2024: $5.4 million includes pre-tax charges of $5.5 million of inventory write-downs related to our ongoing European restructuring and $1.8 million of start-up related costs. These pre-tax charges were partially offset by credits of $1.9 million due to a reduction in severance-related reserves primarily for our ongoing European restructuring.
Corporate expenses in the second quarter 2025 were $15.4 million, compared to $17.4 million in the first quarter 2025, and $19.4 million in the prior year quarter. The decrease in second quarter 2025 compared to first quarter 2025 was primarily due to a benefit from insurance claims. The decrease compared to second quarter 2024 was primarily due to lower incentive compensation costs.
Closed operations and other income/expense was income of $2.4 million in the second quarter 2025 compared to an expense of $2.4 million in the first quarter 2025, and income of $0.7 million in the prior year quarter. Second quarter 2025 benefited from foreign exchange gains of $1.8 million and a favorable bankruptcy settlement related to an insurance claim of $1.1 million. Second quarter 2024 included a $2.3 million gain from the sale of a previously idled facility.
Second quarter 2025 results include a $29.3 million income tax provision, or an effective tax rate of 22.0%, which was higher than the first quarter 2025 effective tax rate of 17.3%. The first quarter 2025 income tax provision included $5.1 million of discrete tax benefits primarily related to equity compensation and the reserve release for uncertain tax positions. Second quarter 2024 results include a $25.3 million income tax provision, or an effective tax rate of 22.8%.
Cash provided by operating activities was $162 million and $69 million for the second quarter and year-to-date 2025 periods, respectively. Capital expenditures for the second quarter 2025 were $72 million.
Managed working capital as a percent of annualized sales was 36.5% at the end of second quarter 2025, which increased slightly from 35.9% at the end of first quarter 2025.
In the second quarter 2025, the Company repurchased $250 million of its common stock at an average price per share of $76.79, retiring approximately 3.2 million shares. As of June 29, 2025, total share repurchase authorization remaining was $270 million.
***********
ATI will conduct a conference call with investors and analysts on Thursday, July 31, 2025, 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-To-DatePeriod Ended
June 29,
March 30,
June 30,
June 29,
June 30,
2025
2025
2024
2025
2024
Sales
$ 1,140.4
$ 1,144.4
$ 1,095.3
$ 2,284.8
$ 2,138.2
Cost of sales
897.9
908.6
867.9
1,806.5
1,713.4
Gross profit
242.5
235.8
227.4
478.3
424.8
Selling and administrative expenses
82.8
85.0
88.9
167.8
170.9
Restructuring charges
(1.3)
—
(1.9)
(1.3)
(1.7)
Loss (gain) on asset sales and sales of businesses, net
—
3.9
(2.2)
3.9
(2.2)
Operating income
161.0
146.9
142.6
307.9
257.8
Nonoperating retirement benefit expense
(4.1)
(3.9)
(3.7)
(8.0)
(7.4)
Interest expense, net
(25.4)
(23.0)
(28.4)
(48.4)
(55.0)
Other income, net
1.8
1.5
0.4
3.3
0.8
Income before income taxes
133.3
121.5
110.9
254.8
196.2
Income tax provision
29.3
21.0
25.3
50.3
42.2
Net income
$ 104.0
$ 100.5
$ 85.6
$ 204.5
$ 154.0
Less: Net income attributable to noncontrolling interests
3.3
3.5
3.7
6.8
6.0
Net income attributable to ATI
$ 100.7
$ 97.0
$ 81.9
$ 197.7
$ 148.0
Basic net income attributable to ATI per common share
$ 0.72
$ 0.68
$ 0.66
$ 1.40
$ 1.18
Diluted net income attributable to ATI per common share
$ 0.70
$ 0.67
$ 0.58
$ 1.38
$ 1.04
ATI Inc.
Selected Financial Data
(Unaudited, dollars in millions)
Fiscal Quarter Ended
Fiscal Year-To-DatePeriod Ended
June 29,
March 30,
June 30,
June 29,
June 30,
2025
2025
2024
2025
2024
