Western Star Resources Inc. press release
ATI Announces First Quarter 2025 Results
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PR Newswire
Strong year-over-year sales growth driven by aerospace & defense
Aerospace and defense sales of $754 million , representing 66% of Q1 2025 sales
Agreement with USW for Specialty Rolled Products employees ratified
First Quarter 2025 GAAP Financial Results
Sales of $1.14 billion , up 10% year-over-year, driven by a 23% aerospace & defense increase Net income attributable to ATI of $97 million , up 47% year-over-year Earnings per share of $0.67 compared to $0.46 per share in the first quarter 2024
First Quarter 2025 Non-GAAP Financial Information*
Adjusted net income attributable to ATI* of $104 million , up 53% year-over-year Adjusted earnings per share* of $0.72 , compared to $0.48 per share in the first quarter 2024 Adjusted EBITDA* of $195 million , an increase of 29% year-over-year Adjusted EBITDA* as a percentage of sales of 17.0%, compared to 14.5% in the first quarter 2024
Guidance
The Company is providing second quarter and updated full year 2025 guidance in the table below, which assumes share repurchases of approximately $250 million in the second quarter.
| | Guidance | | | | Q2 2025 | Full Year 2025 | | Adjusted EBITDA | $195M - $205M | $800M - $840M | | | | | | Adjusted Earnings Per Share | $0.67 - $0.73 | $2.87 - $3.09 | | | | | | Adjusted Free Cash Flow | | $240M - $360M | | | | | | 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 , May 1, 2025 /PRNewswire/ -- ATI Inc. (NYSE: ATI) reported first quarter 2025 results, with sales of $1.14 billion and net income attributable to ATI of $97.0 million , or $0.67 per share.
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| | | | | | Sequential | | | | Y-O-Y | | ($ in millions except per share amounts) | Q1 2025 | | Q4 2024 | | Change | | Q1 2024 | | Change | | | | | | | | | | | | | Sales | $1,144.4 | | $1,172.7 | | (2) % | | $1,042.9 | | 10 % | | Net income attributable to ATI | $97.0 | | $137.1 | | (29) % | | $66.1 | | 47 % | | Earnings per share | $0.67 | | $0.94 | | (29) % | | $0.46 | | 46 % | | Non-GAAP information* | | | | | | | | | | | Adjusted net income attributable to ATI* | $104.4 | | $114.6 | | (9) % | | $68.4 | | 53 % | | Adjusted earnings per share* | $0.72 | | $0.79 | | (9) % | | $0.48 | | 50 % | | ATI adjusted EBITDA* | $194.6 | | $209.8 | | (7) % | | $151.0 | | 29 % |
GAAP earnings per share for the first quarter 2025 were $0.67 and adjusted earnings per share* were $0.72 . Net income attributable to ATI was $97.0 million and ATI adjusted EBITDA* was $194.6 million , or 17.0% of sales. First quarter 2025 adjusted results exclude pre-tax charges of $9.3 million for special items. The after-tax impact of these special items was a charge of $7.4 million , or $0.05 per share.
Fourth quarter 2024 adjusted results exclude pre-tax benefits of $29.5 million for special items. The after-tax impact of these special items is a benefit of $22.5 million , or $0.15 per share. First quarter 2024 adjusted results exclude pre-tax charges of $3.1 million or $2.3 million on an after-tax basis. The Non-GAAP tables included within this release provide the reconciliations of the GAAP to Non-GAAP financial measures and additional details on the special items noted above.
"ATI's strong start to 2025 builds on the momentum we established in the fourth quarter of last year and reflects the value of our strategic investments in capacity, capabilities and reliability," said Kimberly A. Fields , President and CEO. "Our differentiated solutions continue to resonate with aerospace and defense customers, reflected in robust demand and growing contractual support. Thanks to the hard work and dedication of our talented team, we delivered double-digit sales and adjusted EBITDA* growth year-over-year, with aerospace and defense accounting for two-thirds of our revenue this quarter and poised to continue to play a major role in our success.
"Looking ahead, as macro dynamics continue to evolve, ATI remains prepared to meet demand and deliver the necessary products on which our customers rely. By taking proactive steps to strengthen our supply chain and focusing on what we can control, ATI is well positioned to act nimbly and decisively to manage the volatility of the current environment. We are as focused as ever on driving sustainable growth in our high-performance markets and delivering enhanced value for our shareholders," said Fields.
Operating Results by Segment
| High Performance Materials & Components (HPMC) | | | | | | | ($ millions) | Q1 2025 | | Q4 2024 | | Q1 2024 | | Sales | $584.1 | | $634.2 | | $529.9 | | | | | | | | | Segment EBITDA* | $131.0 | | $126.8 | | $97.6 | | % of Sales | 22.4 % | | 20.0 % | | 18.4 % |
HPMC's first quarter 2025 sales decreased $50.1 million , or 8%, compared to the fourth quarter 2024, primarily due to lower aerospace & defense sales of commercial airframe products and reduced sales of specialty energy products. Overall aerospace & defense sales represented 92% of total HPMC sales in the first quarter 2025, an increase from 89% in the fourth quarter of 2024. First quarter 2025 sales improved 10% compared to first quarter 2024, with total aerospace & defense related sales increasing 21%, primarily due to next generation commercial jet engine demand, which was partially offset by lower sales to medical and industrial markets. HPMC first quarter 2025 segment EBITDA* was $131.0 million , or 22.4% of sales. The sequential increase in margins was primarily due to favorable pricing and sales mix changes as well as lower incentive compensation costs. Also, fourth quarter 2024 margin was negatively impacted by a charge of approximately $6.3 million due to a commercial negotiation with a customer, which was partially offset by $2.6 million of benefits from the recognition of previously deferred employee retention credits.
| Advanced Alloys & Solutions (AA&S) | | | | | | | ($ millions) | Q1 2025 | | Q4 2024 | | Q1 2024 | | Sales | $560.3 | | $538.5 | | $513.0 | | | | | | | | | Segment EBITDA* | $83.4 | | $88.0 | | $71.8 | | % of Sales | 14.9 % | | 16.3 % | | 14.0 % |
AA&S first quarter 2025 sales increased $21.8 million , or 4%, compared to the fourth quarter 2024, primarily due to higher sales of conventional energy products and increased demand for commercial airframe products. These increases were partially offset by lower sales of commercial jet engine and defense products as well as lower demand in the specialty energy and electronics markets. Overall aerospace & defense sales were 39% of total AA&S sales in the first quarter of 2025. First quarter 2025 sales increased $47.3 million , or 9%, compared to the prior year quarter. The higher year-over-year sales were primarily driven by increased demand for aerospace & defense and conventional energy, partially offset by lower sales to the electronics market. AA&S first quarter 2025 segment EBITDA* was $83.4 million , or 14.9% of sales. The sequential decrease in margins was primarily due to an unfavorable sales mix in the first quarter of 2025, partially offset by a benefit of $2.6 million due to a recovery for previously reserved accounts receivables. Also, the fourth quarter of 2024 benefited from a $10.4 million credit for the Advanced Manufacturing Production Credit that was partially offset by a $5.5 million charge, mostly due to a commercial negotiation with a customer.
Corporate Items and Cash
Restructuring and other charges: 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 receivables. Fourth quarter 2024: $9.3 million includes pre-tax charges consisting of $5.3 million of severance-related restructuring costs, primarily for cost reduction actions in our domestic operations, and $4.0 million of other charges, primarily for start-up and transaction related costs. First quarter 2024: $3.1 million of pre-tax charges for start-up and restructuring costs.
First quarter 2025 includes a $3.7 million loss from the sale of non-core European businesses. Fourth quarter 2024 includes a $52.9 million gain on the sale of our precision rolled strip operations in New Bedford, MA and Remscheid, Germany . Fourth quarter 2024 includes a charge of $14.1 million for the remeasurement of pension plan assets and obligations, which was completed as of the Company's fiscal year-ended December 29, 2024 . Corporate expenses in the first quarter 2025 were $17.4 million , compared to $14.1 million in the fourth quarter 2024, and $17.1 million in the prior year quarter. Fourth quarter 2024 included a benefit of $2.7 million from insurance claims. Closed operations and other income/expense was an expense of $2.4 million in the first quarter 2025 compared to income of $9.1 million in the fourth quarter 2024, and expense of $1.3 million in the prior year quarter. The fourth quarter of 2024 included a gain of $7.9 million from the sale of oil & gas rights. First quarter 2025 results include a $21.0 million income tax provision, or an effective tax rate of 17.3%, which includes $5.1 million of discrete tax benefits primarily related to equity compensation and the reserve release for uncertain tax positions, resulting in an operating tax rate of 21.5%. Fourth quarter 2024 results include a $32.9 million income tax provision, or an effective tax rate of 18.8%, which was lower than the Q1 2025 operating rate due to the timing of the utilization of permanent tax benefits. Cash used in operating activities was $93 million in the first quarter of 2025, primarily due to higher accounts receivable and inventory balances, and capital expenditures were $53 million . Managed working capital as a percent of annualized sales was 35.9% at the end of first quarter 2025, which increased from 30.9% in the fourth quarter 2024 primarily due to seasonal inventory builds and the timing of shipments and vendor payments in the quarter. In the first quarter 2025, the Company repurchased $70 million of common stock at an average price of $59.25 , retiring approximately 1.2 million shares. As of March 30, 2025 , total share repurchase authorization remaining under the $700 million authorized share repurchase program was $520 million .
*
ATI will conduct a conference call with investors and analysts on Thursday, May 1, 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 | | | | | | | March 30, | | December 29, | | March 31, | | | 2025 | | 2024 | | 2024 | | | | | | | | | Sales | $ 1,144.4 | | $ 1,172.7 | | $ 1,042.9 | | | | | | | | | Cost of sales | 908.6 | | 924.1 | | 845.5 | | Gross profit | 235.8 | | 248.6 | | 197.4 | | | | | | | | | Selling and administrative expenses | 85.0 | | 89.0 | | 82.0 | | Restructuring charges | — | | 5.3 | | 0.2 | | Loss (gain) on asset sales and sales of businesses, net | 3.9 | | (54.6) | | — | | Operating income | 146.9 | | 208.9 | | 115.2 | | Nonoperating retirement benefit expense | (3.9) | | (17.9) | | (3.7) | | Interest expense, net | (23.0) | | (25.2) | | (26.6) | | Other income, net | 1.5 | | 9.2 | | 0.4 | | Income before income taxes | 121.5 | | 175.0 | | 85.3 | | Income tax provision | 21.0 | | 32.9 | | 16.9 | | Net income | $ 100.5 | | $ 142.1 | | $ 68.4 | | Less: Net income attributable to noncontrolling interests | 3.5 | | 5.0 | | 2.3 | | Net income attributable to ATI | $ 97.0 | | $ 137.1 | | $ 66.1 | | | | | | | | | Basic net income attributable to ATI per common share | $ 0.68 | | $ 0.97 | | $ 0.52 | | | | | | | | | Diluted net income attributable to ATI per common share | $ 0.67 | | $ 0.94 | | $ 0.46 | | | | | | | |
| ATI Inc.
Segment Results
(Unaudited, dollars in millions) | | | | | | | | | | | | | | | Fiscal Quarter Ended | | | | | | | March 30, | | December 29, | | March 31, | | | 2025 | | 2024 | | 2024 | | Sales: | | | | | | | High Performance Materials & Components | $ 584.1 | | $ 634.2 | | $ 529.9 | | Advanced Alloys & Solutions | 560.3 | | 538.5 | | 513.0 | | Total external sales | $ 1,144.4 | | $ 1,172.7 | | $ 1,042.9 | | | | | | | | | Segment EBITDA*: | | | | | | | High Performance Materials & Components | $ 131.0 | | $ 126.8 | | $ 97.6 | | % of Sales | 22.4 % | | 20.0 % | | 18.4 % | | Advanced Alloys & Solutions | 83.4 | | 88.0 | | 71.8 | | % of Sales | 14.9 % | | 16.3 % | | 14.0 % | | Total segment EBITDA* | $ 214.4 | | $ 214.8 | | $ 169.4 | | | | | | | | | Depreciation & Amortization: | | | | | | | High Performance Materials & Components | $ 19.7 | | $ 18.8 | | $ 16.3 | | Advanced Alloys & Solutions | 19.5 | | 18.7 | | 18.0 | | Other | 1.6 | | 1.6 | | 1.7 | | Total depreciation & amortization | $ 40.8 | | $ 39.1 | | $ 36.0 |
| | | _* Detailed reconciliations of the reported information under accounting principles generally accepted in the United States (GAAP) to adjusted non-GAAP figures are included in accompanying financial tables. _ |
| ATI Inc.
Condensed Consolidated Balance Sheets
(Unaudited, dollars in millions) | | | | | | | | | | | March 30, | | December 29, | | | 2025 | | 2024 | | ASSETS | | | | | | | | | | Current Assets: | | | | | Cash and cash equivalents | $ 475.8 | | $ 721.2 | | Accounts receivable, net of allowances for doubtful accounts | 827.0 | | 709.2 | | Short-term contract assets | 85.9 | | 75.6 | | Inventories, net | 1,396.9 | | 1,353.0 | | Prepaid expenses and other current assets | 94.4 | | 86.0 | | Total Current Assets | 2,880.0 | | 2,945.0 | | | | | | | Property, plant and equipment, net | 1,788.1 | | 1,776.9 | | Goodwill | 227.2 | | 227.2 | | Other assets | 288.7 | | 281.5 | | | | | | | Total Assets | $ 5,184.0 | | $ 5,230.6 | | | | | | | LIABILITIES AND EQUITY | | | | | | | | | | Current Liabilities: | | | | | Accounts payable | $ 563.2 | | $ 609.1 | | Short-term contract liabilities | 187.1 | | 169.4 | | Short-term debt and current portion of long-term debt | 179.9 | | 180.4 | | Other current liabilities | 207.0 | | 249.6 | | Total Current Liabilities | 1,137.2 | | 1,208.5 | | | | | | | Long-term debt | 1,713.3 | | 1,714.9 | | Accrued postretirement benefits | 160.1 | | 164.3 | | Pension liabilities | 36.9 | | 37.2 | | Other long-term liabilities | 154.2 | | 150.5 | | Total Liabilities | 3,201.7 | | 3,275.4 | | | | | | | Total ATI stockholders' equity | 1,872.8 | | 1,850.4 | | Noncontrolling interests | 109.5 | | 104.8 | | Total Equity | 1,982.3 | | 1,955.2 | | | | | | | Total Liabilities and Equity | $ 5,184.0 | | $ 5,230.6 |
| ATI Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, dollars in millions) | | | | | | | | | | | | | | Fiscal Year Ended | | | | | | March 30, | | March 31, | | | | 2025 | | 2024 | | | | | | | | Operating Activities: | | | | | | | Net income | $ 100.5 | | $ 68.4 | | | | | | | | | Depreciation and amortization | 40.8 | | 36.0 | | | Share-based compensation | 7.2 | | 6.2 | | | Deferred taxes | 9.0 | | 12.0 | | | Net gain from disposal of property, plant and equipment | 0.3 | | — | | | Loss on sales of businesses | 3.7 | | — | | | Changes in operating assets and liabilities: | | | | | | Inventories | (40.8) | | (37.4) | | | Accounts receivable | (115.0) | | (95.6) | | | Accounts payable | (34.6) | | (33.5) | | | Retirement benefits | (2.3) | | (3.4) | | | Accrued liabilities and other | (61.3) | | (51.5) | | Cash used in operating activities | (92.5) | | (98.8) | | | Investing Activities: | | | | | | | Purchases of property, plant and equipment | (53.3) | | (65.8) | | | Proceeds from disposal of property, plant and equipment | — | | 1.0 | | | Other | 2.7 | | 1.0 | | Cash used in investing activities | (50.6) | | (63.8) | | | Financing Activities: | | | | | | | Payments on long-term debt and finance leases | (8.0) | | (7.1) | | | Net payments under credit facilities | — | | (4.9) | | | Purchase of treasury stock | (70.0) | | (150.0) | | | Taxes on share-based compensation and other | (29.5) | | (24.9) | | Cash used in financing activities | (107.5) | | (186.9) | | | Effect of exchange rate changes on cash and cash equivalents | 5.2 | | — | | | Decrease in cash and cash equivalents | (245.4) | | (349.5) | | | Cash and cash equivalents at beginning of period | 721.2 | | 743.9 | | | Cash and cash equivalents at end of period | $ 475.8 | | $ 394.4 | |