Western Star Resources Inc. press release
ATI Announces Third Quarter 2025 Results
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PR Newswire
Continued year-over-year sales growth driven by aerospace & defense
_Record aerospace & defense sales of $793 million, representing 70% of Q__3 2025 sales_
Strong margin performance in HPMC and AA&S segments
Raising full year ranges for adjusted earnings and cash flow guidance
Third Quarter 2025 GAAP Financial Results
Sales of $1.13 billion, up 7% year-over-year, driven by a 21% aerospace & defense increase Net income attributable to ATI of $110 million, up 33% year-over-year Earnings per share of $0.78compared to $0.57per share in the third quarter 2024
Third Quarter 2025 Non-GAAP Financial Information*
Adjusted net income attributable to ATI* of $119 million, up 39% year-over-year Adjusted earnings per share* of $0.85, compared to $0.60per share in the third quarter 2024 Adjusted EBITDA* of $225 million, an increase of 21% year-over-year Adjusted EBITDA* as a percentage of sales of 20.0%, compared to 17.7% in the third quarter 2024
Guidance
The Company is providing fourth quarter and updated full year 2025 guidance in the table below.
| | Current Guidance | Prior Guidance | | | | Q4 2025 | Full Year 2025 | Full Year 2025 | | Adjusted EBITDA | $221M - $231M | $848M - $858M | $810M - $840M | | | | | | | Adjusted Earnings Per Share | $0.84 - $0.90 | $3.15 - $3.21 | $2.90 - $3.07 | | | | | | | Adjusted Free Cash Flow | | $330M - $370M | $270M - $350M | | | | | | | Capital expenditures | | $260M - $280M | $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, Oct. 28, 2025/PRNewswire/ -- ATI Inc. (NYSE: ATI) reported third quarter 2025 results, with sales of $1.13 billionand net income attributable to ATI of $110.0 million, or $0.78per share.
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| | | | | | Sequential | | | | Y-O-Y | | ($ in millions except per share amounts) | Q3 2025 | | Q2 2025 | | Change | | Q3 2024 | | Change | | | | | | | | | | | | | Sales | $1,125.5 | | $1,140.4 | | (1) % | | $1,051.2 | | 7 % | | Net income attributable to ATI | $110.0 | | $100.7 | | 9 % | | $82.7 | | 33 % | | Earnings per share | $0.78 | | $0.70 | | 11 % | | $0.57 | | 37 % | | Non-GAAP information* | | | | | | | | | | | Adjusted net income attributable to ATI* | $119.4 | | $106.4 | | 12 % | | $85.9 | | 39 % | | Adjusted earnings per share* | $0.85 | | $0.74 | | 15 % | | $0.60 | | 42 % | | ATI adjusted EBITDA* | $225.1 | | $207.7 | | 8 % | | $185.7 | | 21 % |
GAAP earnings per share for the third quarter 2025 were $0.78and adjusted earnings per share* were $0.85. Net income attributable to ATI was $110.0 millionand ATI adjusted EBITDA* was $225.1 million, or 20.0% of sales. Third quarter 2025 adjusted results exclude pre-tax charges of $12.9 millionfor special items and a $1.1 milliongain on the sale of a non-core business previously reported in the HPMC segment. The after-tax impact of these special items was a charge of $9.4 million, or $0.07per share.
Second quarter 2025 adjusted results exclude pre-tax charges of $7.4 millionfor special items. The after-tax impact of these special items was a charge of $5.7 million, or $0.04per share. Third quarter 2024 adjusted results exclude pre-tax charges of $4.3 millionfor special items. The after-tax impact of these special items was a charge of $3.2 million, or $0.03per 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 exceeded our guidance in the third quarter, delivering strong adjusted earnings and operating cash flow performance. We continue to see positive demand signals in our core markets, as our customers ramp to achieve their growth targets. We are well-positioned to grow our defense-related business through an expanding mix of highly differentiated products critical to the U.S. and our allies," said Kimberly A. Fields, President and CEO. "Our outstanding performance, contractual positions and steady demand give us the confidence to raise the full-year ranges of our adjusted earnings and cash flow guidance.
"We continue to drive efficiencies in working capital with the goal of maximizing free cash flow," said Fields. "Our year-to-date operating cash flow of $299 millionreflects an improvement of $273 millioncompared to last year. This performance enabled us to support our growth while continuing to return capital to shareholders. During the third quarter, we repurchased $150 millionof our stock, bringing our total 2025 share repurchases to $470 million." said Fields.
Operating Results by Segment
| High Performance Materials & Components (HPMC) | | | | | | | ($ millions) | Q3 2025 | | Q2 2025 | | Q3 2024 | | Sales | $602.9 | | $608.8 | | $552.4 | | | | | | | | | Segment EBITDA* | $145.8 | | $144.0 | | $123.2 | | % of Sales | 24.2 % | | 23.7 % | | 22.3 % |
HPMC's third quarter 2025 sales decreased $5.9 million, or 1%, compared to second quarter 2025, primarily due to a forging contract renewal that changed from a materials purchase structure to a conversion services structure, reducing third quarter revenue by $10 million. Aerospace & defense sales represented 92% of total HPMC sales in both the third and second quarters of 2025. Third quarter 2025 sales improved 9% compared to third quarter 2024, including a negative impact of $9 milliondue to the first quarter 2025 disposition of certain non-core operations in Europeand $10 milliondue to the forging contract renewal noted above. Aerospace & defense sales increased 17% on a year-over-year basis due to strong demand for commercial jet engine and defense products, which was partially offset by lower sales to the medical and specialty energy markets. HPMC third quarter 2025 segment EBITDA* was $145.8 million, or 24.2% of sales. The sequential increase in margins was primarily due to favorable sales mix and pricing of specialty alloys. Also, second quarter 2025 margin benefited from the recognition of $4.4 millionof previously deferred employee retention credits. HPMC third quarter 2024 segment EBITDA* was $123.2 million, or 22.3% of sales, which included a benefit of $2.9 millionfor the recognition of previously deferred employee retention credits.
| Advanced Alloys & Solutions (AA&S) | | | | | | | ($ millions) | Q3 2025 | | Q2 2025 | | Q3 2024 | | Sales | $522.6 | | $531.6 | | $498.8 | | | | | | | | | Segment EBITDA* | $90.4 | | $76.7 | | $73.6 | | % of Sales | 17.3 % | | 14.4 % | | 14.8 % |
AA&S third quarter 2025 sales decreased $9 million, or 2%, compared to the second quarter 2025, primarily due to lower sales of industrial and specialty energy products. These decreases were partially offset by higher sales in the aerospace & defense sale markets due to increased demand for both commercial aerospace and defense products. Aerospace & defense sales were 46% of total AA&S sales in the third quarter of 2025. Third quarter 2025 sales increased $23.8 million, or 5%, compared to the prior year quarter, primarily due to a 34% increase in aerospace & defense sales. This increase was partially offset by lower sales of industrial and specialty energy products. AA&S third quarter 2025 segment EBITDA* was $90.4 million, or 17.3% of sales. The sequential increase in margins was primarily due to improved sales mix and pricing of exotic alloys. Second quarter 2025 margin benefited from the recognition of $2.6 millionof previously deferred employee retention credits. AA&S third quarter 2024 segment EBITDA* was $73.6 million, or 14.8% of sales, which included a benefit of $1.9 millionfor the recognition of previously deferred employee retention credits.
Corporate Items and Cash
Restructuring and other charges: Third quarter 2025: $12.9 millionincludes pre-tax charges consisting of $7.2 millionof start-up and transaction-related costs, $3.6 millionof transformation-related costs, and $2.5 millionof losses on the sale of customer accounts receivable, partially offset by credits of $0.4 milliondue to a reduction in severance-related reserves for our previous European restructuring. Second quarter 2025: $7.4 millionincludes pre-tax charges consisting of $7.1 millionof start-up and transaction-related costs and $1.6 millionof losses on the sale of customer accounts receivable, partially offset by credits of $1.3 milliondue to a reduction in severance-related reserves for a previous restructuring in our AA&S segment. Third quarter 2024: $4.3 millionincludes pre-tax charges primarily for start-up and transaction-related costs.
Third quarter 2025 includes a $1.1 milliongain from the sale of a non-core business previously reported in the HPMC segment. Corporate expenses in the third quarter 2025 were $15.6 million, compared to $15.4 millionin the second quarter 2025, and $13.4 millionin the prior year quarter. The increase compared to third quarter 2024 was primarily due to higher incentive compensation costs. Closed operations and other income/expense was income of $4.5 millionin the third quarter 2025 compared to income of $2.4 millionin the second quarter 2025, and income of $2.3 millionin the prior year quarter. Third quarter 2025 included a $10.5 milliongain from the sale of oil & gas rights. Second quarter 2025 benefited from foreign exchange gains of $1.8 millionand a favorable bankruptcy settlement related to an insurance claim of $1.1 million. Third quarter 2024 included a $3.7 milliongain from the sale of oil & gas rights. Third quarter 2025 results included a $31.0 millionincome tax provision, or an effective rate of 21.4%, which was slightly lower than the second quarter 2025 effective tax rate of 22.0%. Third quarter 2024 results include a $28.3 millionincome tax provision, or an effective tax rate of 24.6%. Cash provided by operating activities was $230 millionand $299 millionfor the third quarter and year-to-date 2025 periods, respectively. Capital expenditures for the third quarter 2025 were $63 million. Managed working capital as a percent of annualized sales was 36.4% at the end of third quarter 2025, which decreased slightly from 36.5% at the end of second quarter 2025. In the third quarter 2025, the Company repurchased $150 millionof its common stock at an average price per share of $76.07, retiring approximately 2.0 million shares. As of the end of the third quarter 2025, total share repurchase authorization remaining was $120 million.
*
ATI will conduct a conference call with investors and analysts on Tuesday, October 28, 2025, at 8:30 a.m. ETto 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-Date Period Ended | | | | | | | | | September 28, | | June 29, | | September 29, | | September 28, | | September 29, | | | 2025 | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | | | | Sales | $ 1,125.5 | | $ 1,140.4 | | $ 1,051.2 | | $ 3,410.3 | | $ 3,189.4 | | | | | | | | | | | | | Cost of sales | 870.2 | | 897.9 | | 826.4 | | 2,676.7 | | 2,539.8 | | Gross profit | 255.3 | | 242.5 | | 224.8 | | 733.6 | | 649.6 | | | | | | | | | | | | | Selling and administrative expenses | 94.6 | | 82.8 | | 82.4 | | 262.4 | | 253.3 | | Restructuring (credits) charges | (0.4) | | (1.3) | | 0.5 | | (1.7) | | (1.2) | | (Gain) loss on asset sales and sales
of businesses, net | (1.3) | | — | | (0.3) | | 2.6 | | (2.5) | | Operating income | 162.4 | | 161.0 | | 142.2 | | 470.3 | | 400.0 | | Nonoperating retirement benefit
expense | (3.9) | | (4.1) | | (3.7) | | (11.9) | | (11.1) | | Interest expense, net | (26.1) | | (25.4) | | (28.0) | | (74.5) | | (83.0) | | Other income, net | 12.2 | | 1.8 | | 4.4 | | 15.5 | | 5.2 | | Income before income taxes | 144.6 | | 133.3 | | 114.9 | | 399.4 | | 311.1 | | Income tax provision | 31.0 | | 29.3 | | 28.3 | | 81.3 | | 70.5 | | Net income | $ 113.6 | | $ 104.0 | | $ 86.6 | | $ 318.1 | | $ 240.6 | | Less: Net income attributable to
noncontrolling interests | 3.6 | | 3.3 | | 3.9 | | 10.4 | | 9.9 | | Net income attributable to ATI | $ 110.0 | | $ 100.7 | | $ 82.7 | | $ 307.7 | | $ 230.7 | | | | | | | | | | | | | Basic net income attributable to
ATI per common share | $ 0.80 | | $ 0.72 | | $ 0.64 | | $ 2.21 | | $ 1.82 | | | | | | | | | | | | | Diluted net income attributable to
ATI per common share | $ 0.78 | | $ 0.70 | | $ 0.57 | | $ 2.16 | | $ 1.61 | | | | | | | | | | | |
| ATI Inc.
Selected Financial Data
(Unaudited, dollars in millions) | | | | | | | | | | | | | | | | | | | | | | | Fiscal Quarter Ended | | Fiscal Year-To-Date Period Ended | | | | | | | | | September 28, | | June 29, | | September 29, | | September 28, | | September 29, | | | 2025 | | 2025 | | 2024 | | 2025 | | 2024 | | Sales: | | | | | | | | | | | High Performance Materials &
Components | $ 602.9 | | $ 608.8 | | $ 552.4 | | $ 1,795.8 | | $ 1,644.3 | | Advanced Alloys & Solutions | 522.6 | | 531.6 | | 498.8 | | 1,614.5 | | 1,545.1 | | Total external sales | $ 1,125.5 | | $ 1,140.4 | | $ 1,051.2 | | $ 3,410.3 | | $ 3,189.4 | | | | | | | | | | | | | Segment EBITDA(a): | | | | | | | | | | | High Performance Materials &
Components | $ 145.8 | | $ 144.0 | | $ 123.2 | | $ 420.8 | | $ 334.6 | | % of Sales | 24.2 % | | 23.7 % | | 22.3 % | | 23.4 % | | 20.4 % | | Advanced Alloys & Solutions | 90.4 | | 76.7 | | 73.6 | | 250.5 | | 232.9 | | % of Sales | 17.3 % | | 14.4 % | | 14.8 % | | 15.5 % | | 15.1 % | | | | | | | | | | | | | Corporate, Closed Operations and Other (income) expense(b): | | | | | | | | | | | Corporate expense | $ 15.6 | | $ 15.4 | | $ 13.4 | | $ 48.4 | | $ 49.9 | | Closed operations and other
(income) expense | (4.5) | | (2.4) | | (2.3) | | (4.5) | | (1.7) | | Total Corporate, Closed
Operations and Other expense | $ 11.1 | | $ 13.0 | | $ 11.1 | | $ 43.9 | | $ 48.2 | | | | | | | | | | | | | Depreciation & Amortization: | | | | | | | | | | | High Performance Materials &
Components | $ 21.2 | | $ 20.9 | | $ 18.6 | | $ 61.8 | | $ 52.8 | | Advanced Alloys & Solutions | 19.7 | | 19.1 | | 18.2 | | 58.3 | | 54.5 | | Other | 1.7 | | 1.6 | | 1.7 | | 4.9 | | 5.1 | | Total depreciation &
amortization | $ 42.6 | | $ 41.6 | | $ 38.5 | | $ 125.0 | | $ 112.4 | | | | | | | | | | | | | Percentage of Total ATI Sales(c): | | | | | | | | | | | Nickel-based alloys and specialty
alloys | 44 % | | 48 % | | 46 % | | 47 % | | 45 % | | Precision forgings, castings and
components | 22 % | | 21 % | | 20 % | | 21 % | | 19 % | | Titanium and titanium-based
alloys | 19 % | | 17 % | | 17 % | | 18 % | | 18 % | | Zirconium and related alloys | 9 % | | 9 % | | 8 % | | 9 % | | 9 % | | Precision rolled strip products | 6 % | | 5 % | | 9 % | | 5 % | | 9 % | | Total | 100 % | | 100 % | | 100 % | | 100 % | | 100 % | | | | | | | | | | | | | (a) The Company's Chief Operating Decision Maker ("CODM") utilizes the 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) | | | | | | | | | | | September 28, | | December 29, | | | 2025 | | 2024 | | ASSETS | | | | | | | | | | Current Assets: | | | | | Cash and cash equivalents | $ 372.2 | | $ 721.2 | | Accounts receivable, net of allowances for doubtful accounts | 709.9 | | 709.2 | | Short-term contract assets | 94.3 | | 75.6 | | Inventories, net | 1,405.6 | | 1,353.0 | | Prepaid expenses and other current assets | 77.8 | | 86.0 | | Total Current Assets | 2,659.8 | | 2,945.0 | | | | | | | Property, plant and equipment, net | 1,853.2 | | 1,776.9 | | Goodwill | 225.2 | | 227.2 | | Other assets | 264.5 | | 281.5 | | | | | | | Total Assets | $ 5,002.7 | | $ 5,230.6 | | | | | | | LIABILITIES AND EQUITY | | | | | | | | | | Current Liabilities: | | | | | Accounts payable | $ 493.5 | | $ 609.1 | | Short-term contract liabilities | 159.2 | | 169.4 | | Short-term debt and current portion of long-term debt | 191.7 | | 180.4 | | Other current liabilities | 218.7 | | 249.6 | | Total Current Liabilities | 1,063.1 | | 1,208.5 | | | | | | | Long-term debt | 1,715.2 | | 1,714.9 | | Accrued postretirement benefits | 153.6 | | 164.3 | | Pension liabilities | 35.1 | | 37.2 | | Other long-term liabilities | 209.9 | | 150.5 | | Total Liabilities | 3,176.9 | | 3,275.4 | | | | | | | Total ATI stockholders' equity | 1,707.0 | | 1,850.4 | | Noncontrolling interests | 118.8 | | 104.8 | | Total Equity | 1,825.8 | | 1,955.2 | | | | | | | Total Liabilities and Equity | $ 5,002.7 | | $ 5,230.6 |