Western Star Resources Inc. press release

ATI Announces Second Quarter 2026 Results

2026-08-06

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PR Newswire

_ATI Exceeds the High End of Q2 Guidance and Raises Full-Year Outlook __GAAP diluted EPS up 56% year-over-year __Net income attributable to ATI increased 50%, adjusted EBITDA rose 37% year-over-year __Adjusted EBITDA margin expanded 440 basis points to 22.6% year-over-year _

Second Quarter 2026 GAAP Financial Results

Sales of $1.26 billion, up 11% year-over-year, driven by a 13% aerospace & defense increase Net income attributable to ATI of $151 million, up 50% year-over-year Earnings per share of $1.09 compared to $0.70 per share in second quarter 2025

Second Quarter 2026 Non-GAAP Financial Information(a)

Adjusted net income attributable to ATI(a)of $170 million, up 60% year-over-year Adjusted earnings per share(a)of $1.23, compared to $0.74 per share in second quarter 2025 Adjusted EBITDA(a)of $284 million, an increase of 37% year-over-year Adjusted EBITDA(a)as a percentage of sales of 22.6%, compared to 18.2% in second quarter 2025

Guidance The Company is providing third quarter and updated full-year 2026 guidance in the table below.

| | Current Guidance | Prior Guidance | | | | Q3 2026 | Full Year 2026 | Full Year 2026 | | Adjusted EBITDA(b) | $305M - $315M | $1,135M - $1,185M | $1,010M - $1,060M | | | | | | | Adjusted Earnings Per Share(b) | $1.31 - $1.37 | $4.90 - $5.18 | $4.20 - $4.48 | | | | | | | Adjusted Free Cash Flow(b) | | $550M - $600M | $465M - $525M |

| (a) 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. | | | | (b) 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, Aug. 6, 2026/PRNewswire/ -- ATI Inc. (NYSE: ATI) reported second quarter 2026 results, with sales of $1.26 billion and net income attributable to ATI of $151 million, or $1.09 per share.

| | | | | | Sequential | | | | Y-O-Y | | ($ in millions except per share amounts) | Q2 2026 | | Q1 2026 | | Change | | Q2 2025 | | Change | | Sales | $1,261.1 | | $1,151.5 | | 10 % | | $1,140.4 | | 11 % | | Net income attributable to ATI | $151.0 | | $118.2 | | 28 % | | $100.7 | | 50 % | | Earnings per share | $1.09 | | $0.85 | | 28 % | | $0.70 | | 56 % | | Non-GAAP information(a) | | | | | | | | | | | Adjusted net income attributable to ATI(a) | $169.7 | | $139.2 | | 22 % | | $106.4 | | 59 % | | Adjusted earnings per share(a) | $1.23 | | $1.00 | | 23 % | | $0.74 | | 66 % | | ATI adjusted EBITDA(a) | $284.4 | | $231.7 | | 23 % | | $207.7 | | 37 % |

Second quarter 2026 GAAP earnings per share were $1.09 and adjusted earnings per share(a)were $1.23. Net income attributable to ATI was $151.0 million and ATI adjusted EBITDA(a)was $284.4 million, or 22.6% of sales. Second quarter 2026 GAAP and non-GAAP results include a gain of $9.9 million, or $0.06 per share, from the sale of a previously closed manufacturing facility in the AA&S segment.

Second quarter 2026 adjusted results exclude pre-tax charges of $23.6 million for special items consisting of $10.1 million of start-up and transaction-related costs, $7.0 million of transformation-related costs, $3.9 million of restructuring-related costs, and $2.6 million of losses on the sale of customer accounts receivable. The after-tax impact of these special items was a charge of $18.7 million, or $0.14 per share.

First quarter 2026 adjusted results exclude pre-tax charges of $26.4 million for special items consisting of $11.1 million of start-up and transaction costs, $8.1 million of restructuring-related costs, $4.8 million of transformation costs, and $2.4 million of losses on the sale of customer accounts receivable. The after-tax impact of these special items was a charge of $21.0 million, or $0.15 per share. 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. 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.

"We delivered another solid quarter, with results above the high end of our guidance and adjusted EBITDA up 37% year-over-year on 11% sales growth. This is a clear example of the earnings potential we've been building across both of our segments. Adjusted EBITDA margin expanded 440 basis points to 22.6%, and our backlog reached another record at $4.4 billion, up 18% year-over-year, as demand for our unique aerospace and defense materials continues to outpace available supply," said Kimberly A. Fields, Board Chair, President and CEO. "This quarter reflects the continued evolution of ATI's portfolio toward a more differentiated, higher-margin business, anchored by long-term customer agreements and concentrated exposure in aerospace, defense and specialty energy.

"Momentum is carrying into the second half, and we are again raising our full-year guidance for adjusted earnings, EBITDA and free cash flow," Fields added. "Our outlook is supported by contracted pricing improvements, a richer product mix and increasing production volumes as targeted investments and operational execution expand our available capacity."

Operating Results by Segment

| High Performance Materials & Components (HPMC) | | | | | | | ($ millions) | Q2 2026 | | Q1 2026 | | Q2 2025 | | Sales | $637.1 | | $614.3 | | $608.8 | | | | | | | | | Segment EBITDA(a) | $153.5 | | $152.9 | | $144.0 | | % of Sales | 24.1 % | | 24.9 % | | 23.7 % |

HPMC's second quarter 2026 sales increased $22.8 million, or 4%, compared to first quarter 2026, primarily due to strong demand and pricing for commercial jet engine products. Aerospace & defense sales represented 93% of total HPMC sales in second quarter 2026, unchanged from first quarter 2026. Second quarter 2026 sales increased 5% compared to second quarter 2025, primarily driven by a 10% increase in commercial jet engine sales due to strong demand and pricing. HPMC second quarter 2026 segment EBITDA(a)was $153.5 million, or 24.1% of sales. The sequential decline in segment EBITDA margin was primarily due to higher manufacturing and period costs, including costs associated with revised qualification requirements for our new facility in Mexico and titanium electron-beam furnace. The higher costs were partially offset by increased volume and favorable pricing of jet engine nickel products. The year-over-year increase in the segment EBITDA margin rate was primarily due to higher volume and favorable pricing, partially offset by higher manufacturing and period costs.

| Advanced Alloys & Solutions (AA&S) | | | | | | | ($ millions) | Q2 2026 | | Q1 2026 | | Q2 2025 | | Sales | $624.0 | | $537.2 | | $531.6 | | | | | | | | | Segment EBITDA(a) | $147.6 | | $97.0 | | $76.7 | | % of Sales | 23.7 % | | 18.1 % | | 14.4 % |

AA&S second quarter 2026 sales increased $86.8 million, or 16%, compared to first quarter 2026, primarily due to higher sales in the aerospace & defense and conventional energy markets. Aerospace & defense sales increased 19%, driven by higher demand and pricing and represented 44% of total AA&S sales in the second quarter of 2026. The increase in conventional energy sales was mostly due to demand timing. Second quarter 2026 sales increased $92.4 million, or 17%, compared to the prior year quarter, primarily due to higher sales to the aerospace & defense and conventional energy markets. On a year-over-year basis, aerospace & defense sales grew by 34%, including a 90% increase in defense sales, reflecting both higher demand and pricing. AA&S second quarter 2026 segment EBITDA(a)was $147.6 million, or 23.7% of sales, inclusive of a $9.9 million gain from the sale of a previously closed manufacturing facility. Excluding the impact of the gain, the sequential and year-over-year increase in segment EBITDA margin was primarily driven by higher pricing and favorable mix.

Corporate Items and Cash

Restructuring and other charges: Second quarter 2026: $23.6 million includes pre-tax charges consisting of $10.1 million of start-up and transaction-related costs, $7.0 million of transformation-related costs, $3.9 million of restructuring-related costs for severance and facility rationalization activities, and $2.6 million of losses on the sale of customer accounts receivable. First quarter 2026: $26.4 million includes pre-tax charges consisting of $11.1 million of start-up and transaction-related costs, $8.1 million of restructuring-related severance and impairment costs due to facility rationalization activities, $4.8 million of transformation-related costs, and $2.4 million of losses on the sale of customer accounts receivable. Second quarter 2025: $8.7 million includes pre-tax charges consisting of $7.1 million for 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.

Corporate expenses in the second quarter 2026 were $14.9 million, compared to $17.0 million in the first quarter 2026, and $15.4 million in the prior year quarter. The decrease compared to first quarter 2026 was primarily due to a benefit from an insurance claim, partially offset by higher incentive compensation expense. Corporate expenses were relatively flat on a year-over-year basis. Closed operations and other income/expense was an expense of $1.8 million in the second quarter 2026 compared to expense of $1.2 million in the first quarter 2026, and income of $2.4 million in the prior year quarter. The increase in expense compared to first quarter 2026 was primarily due to changes in environmental reserves. 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. The second quarter 2026 effective tax rate was 20.0%, compared to an effective tax rate of 11.8% in first quarter 2026 and 22% in second quarter 2025. The higher effective tax rate on a sequential basis was primarily due to the timing and amount of discrete tax benefits, mostly for share-based compensation. The year-over-year comparison was also affected by tax law changes from the One Big Beautiful Bill Act. Cash provided by operating activities was $131.8 million for second quarter 2026, while capital expenditures were $68.6 million. Managed working capital as a percent of annualized sales was 34.3% at the end of second quarter 2026, a decrease of 50 basis points compared to the end of first quarter 2026. In the second quarter 2026, the Company repurchased $50 million of its common stock at an average price per share of $159.53, retiring approximately 0.3 million shares. As of the end of second quarter 2026, total share repurchase authorization remaining was $495 million.

ATI will conduct a conference call with investors and analysts on Thursday, August 6, 2026, 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." A 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 28, 2025, 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-Date Period Ended | | | | | | | | | June 28, | | March 29, | | June 29, | | June 28, | | June 29, | | | 2026 | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | | | | | Sales | $ 1,261.1 | | $ 1,151.5 | | $ 1,140.4 | | $ 2,412.6 | | $ 2,284.8 | | | | | | | | | | | | | Cost of sales | 951.3 | | 888.6 | | 897.9 | | 1,839.9 | | 1,806.5 | | Gross profit | 309.8 | | 262.9 | | 242.5 | | 572.7 | | 478.3 | | | | | | | | | | | | | Selling and administrative expenses | 95.7 | | 92.1 | | 82.8 | | 187.8 | | 167.8 | | Restructuring (credits) charges | 3.9 | | 7.0 | | (1.3) | | 10.9 | | (1.3) | | (Gain) loss on asset sales and sales of businesses, net | (9.8) | | — | | — | | (9.8) | | 3.9 | | Operating income | 220.0 | | 163.8 | | 161.0 | | 383.8 | | 307.9 | | Nonoperating retirement benefit expense | (4.3) | | (4.3) | | (4.1) | | (8.6) | | (8.0) | | Interest expense, net | (23.9) | | (23.7) | | (25.4) | | (47.6) | | (48.4) | | Other income, net | 1.1 | | 0.8 | | 1.8 | | 1.9 | | 3.3 | | Income before income taxes | 192.9 | | 136.6 | | 133.3 | | 329.5 | | 254.8 | | Income tax provision | 38.6 | | 16.1 | | 29.3 | | 54.7 | | 50.3 | | Net income | $ 154.3 | | $ 120.5 | | $ 104.0 | | $ 274.8 | | $ 204.5 | | Less: Net income attributable to noncontrolling interests | 3.3 | | 2.3 | | 3.3 | | 5.6 | | 6.8 | | Net income attributable to ATI | $ 151.0 | | $ 118.2 | | $ 100.7 | | $ 269.2 | | $ 197.7 | | | | | | | | | | | | | Basic net income attributable to ATI per common share | $ 1.11 | | $ 0.86 | | $ 0.72 | | $ 1.97 | | $ 1.40 | | | | | | | | | | | | | Diluted net income attributable to ATI per common share | $ 1.09 | | $ 0.85 | | $ 0.70 | | $ 1.94 | | $ 1.38 |

| ATI Inc.

Selected Financial Data

(Unaudited, dollars in millions) | | | | | | | | | | | | | | | | | | | | | | | Fiscal Quarter Ended | | Fiscal Year-To-Date Period Ended | | | | | | | | | June 28, | | March 29, | | June 29, | | June 28, | | June 29, | | | 2026 | | 2026 | | 2025 | | 2026 | | 2025 | | Sales: | | | | | | | | | | | High Performance Materials & Components | $ 637.1 | | $ 614.3 | | $ 608.8 | | $ 1,251.4 | | $ 1,192.9 | | Advanced Alloys & Solutions | 624.0 | | 537.2 | | 531.6 | | 1,161.2 | | 1,091.9 | | Total external sales | $ 1,261.1 | | $ 1,151.5 | | $ 1,140.4 | | $ 2,412.6 | | $ 2,284.8 | | | | | | | | | | | | | Segment EBITDA(a): | | | | | | | | | | | High Performance Materials & Components | $ 153.5 | | $ 152.9 | | $ 144.0 | | $ 306.4 | | $ 275.0 | | % of Sales | 24.1 % | | 24.9 % | | 23.7 % | | 24.5 % | | 23.1 % | | Advanced Alloys & Solutions | 147.6 | | 97.0 | | 76.7 | | 244.6 | | 160.1 | | % of Sales | 23.7 % | | 18.1 % | | 14.4 % | | 21.1 % | | 14.7 % | | | | | | | | | | | | | Corporate, Closed Operations and Other (Income) Expense(b): | | | | | | | | | | | Corporate expense | $ 14.9 | | $ 17.0 | | $ 15.4 | | $ 31.9 | | $ 32.8 | | Closed operations and other (income) expense | 1.8 | | 1.2 | | (2.4) | | 3.0 | | — | | Total Corporate, Closed Operations and Other expense | $ 16.7 | | $ 18.2 | | $ 13.0 | | $ 34.9 | | $ 32.8 | | | | | | | | | | | | | Depreciation & Amortization: | | | | | | | | | | | High Performance Materials & Components | $ 20.6 | | $ 19.6 | | $ 20.9 | | $ 40.2 | | $ 40.6 | | Advanced Alloys & Solutions | 21.8 | | 23.7 | | 19.1 | | 45.5 | | 38.6 | | Other | 1.6 | | 1.7 | | 1.6 | | 3.3 | | 3.2 | | Total depreciation & amortization | $ 44.0 | | $ 45.0 | | $ 41.6 | | $ 89.0 | | $ 82.4 | | | | | | | | | | | | | Percentage of Total ATI Sales(c): | | | | | | | | | | | Nickel-based alloys and specialty alloys | 51 % | | 49 % | | 48 % | | 50 % | | 48 % | | Precision forgings, castings and components | 18 % | | 20 % | | 21 % | | 19 % | | 21 % | | Titanium and titanium-based alloys | 15 % | | 17 % | | 17 % | | 16 % | | 18 % | | Zirconium and related alloys | 11 % | | 9 % | | 9 % | | 10 % | | 8 % | | Precision rolled strip products | 5 % | | 5 % | | 5 % | | 5 % | | 5 % | | Total | 100 % | | 100 % | | 100 % | | 100 % | | 100 % |

| (a) The Company's Chief Operating Decision Maker ("CODM") utilizes Segment EBITDA as a key metric to evaluate segment performance. Our measure of segment EBITDA, which we use to analyze the performance and results of our business segments, excludes net interest expense, income taxes, depreciation and amortization, special charges, unallocated corporate expenses, closed operations and other income (expense). See the Company's Form 10-Q for the reconciliation of Segment EBITDA to Income before taxes. | | | | (b) Amounts exclude depreciation & amortization expense. | | | | (c) Hot-Rolling and Processing Facility conversion service sales in the AA&S segment are excluded from this presentation. |

| ATI Inc.

Condensed Consolidated Balance Sheets

(Unaudited, dollars in millions) | | | | | | | | | | | June 28, | | December 28, | | | 2026 | | 2025 | | ASSETS | | | | | | | | | | Current Assets: | | | | | Cash and cash equivalents | $ 783.0 | | $ 416.7 | | Accounts receivable, net of allowances for doubtful accounts | 646.6 | | 686.1 | | Short-term contract assets | 95.9 | | 72.8 | | Inventories, net | 1,667.5 | | 1,403.2 | | Prepaid expenses and other current assets | 87.4 | | 101.2 | | Total Current Assets | 3,280.4 | | 2,680.0 | | | | | | | Property, plant and equipment, net | 1,980.7 | | 1,940.6 | | Goodwill | 225.2 | | 225.2 | | Other assets | 252.6 | | 253.8 | | | | | | | Total Assets | $ 5,738.9 | | $ 5,099.6 | | | | | | | LIABILITIES AND EQUITY | | | | | | | | | | Current Liabilities: | | | | | Accounts payable | $ 656.6 | | $ 568.2 | | Accrued liabilities | 208.9 | | 240.5 | | Short-term contract liabilities | 143.5 | | 146.4 | | Short-term debt and current portion of long-term debt | 383.6 | | 31.1 | | Other current liabilities | 17.1 | | 20.1 | | Total Current Liabilities | 1,409.7 | | 1,006.3 | | | | | | | Long-term debt | 1,808.4 | | 1,718.3 | | Accrued postretirement benefits | 150.8 | | 158.5 | | Pension liabilities | 43.2 | | 41.4 | | Other long-term liabilities | 328.6 | | 258.4 | | Total Liabilities | 3,740.7 | | 3,182.9 | | | | | | | Total ATI stockholders' equity | 1,876.7 | | 1,804.5 | | Noncontrolling interests | 121.5 | | 112.2 | | Total Equity | 1,998.2 | | 1,916.7 | | | | | | | Total Liabilities and Equity | $ 5,738.9 | | $ 5,099.6 |