ATI · ATI Inc.

ATI delivered a robust first quarter 2026, marked by double-digit year-over-year growth in GAAP and Non-GAAP earnings, margin expansion across both operating segments, and a meaningful upward revision to full-year guidance. The $0.85 GAAP EPS and $118.2 million net income attributable to ATI reflect 27% and 22% increases over Q1 2025, respectively, driven primarily by a 6% year-over-year increase in aerospace & defense sales — which constituted 93% of High Performance Materials & Components (HPMC) revenue and 43% of Advanced Alloys & Solutions (AA&S) revenue. Segment EBITDA margins improved sequentially and year-over-year: HPMC rose to 24.9% (from 22.4% in Q1 2025), and AA&S reached 18.1% (from 14.9%), supported by favorable sales mix, pricing discipline, and volume gains in commercial jet engine products. Management attributed the performance to operational discipline, long-term contractual positions, and strong customer production ramping — citing the best quarterly operating cash flow in fifteen years ($128.2 million). The raised full-year guidance — particularly the $465M–$525M adjusted free cash flow range (up from $430M–$490M) and $4.20–$4.48 adjusted EPS (up from $3.99–$4.27) — underscores confidence in sustained execution. The $75 million in Q1 share repurchases, coupled with an additional $500 million authorization, further signals disciplined capital allocation focused on shareholder returns alongside strategic investment. While macro uncertainties persist, ATI’s critical role in aerospace & defense and its differentiated materials portfolio position it to navigate volatility while delivering consistent financial improvement.