ATI (NYSE:ATI) Announces Quarterly Earnings Results, Beats Estimates By $0.09 EPS

ATI (NYSE:ATI) released its quarterly earnings results on Thursday. The basic materials company reported $1.46 EPS for the quarter, topping the consensus estimate of $1.37 by $0.09, FiscalAI reports. ATI had a return on equity of 29.27% and a net margin of 10.09%. The firm had revenue of $1.42 billion for the quarter, compared to analyst estimates of $1.32 billion. During the same period in the previous year, the company posted $0.85 EPS. ATI’s revenue for the quarter was up 26.5% on a year-over-year basis.

Here are the key takeaways from ATI’s conference call:

• Positive Sentiment: ATI reported a strong third quarter, with revenue up 26% year over year to $1.4 billion, adjusted EBITDA up 46% to $328 million, and adjusted EPS up 72% to $1.46. The company raised full-year adjusted EBITDA guidance by $35 million to $1.19–$1.20 billion and expects its strongest quarter of 2026 in Q4.
• Positive Sentiment: Aerospace & Defense Materials & Services delivered record 25.8% EBITDA margins, supported by improved contracts, pricing, volume, and a richer Aerospace & Defense mix. Management described the segment’s transformation as durable and expects margins to remain in the mid-20% range for the foreseeable future.
• Positive Sentiment: Demand remains strong across jet engines, airframes, defense, and specialty energy, with backlog near a record at $4.3 billion. Jet-engine revenue rose 39% year over year, and ATI raised its full-year jet-engine growth outlook to the low-to-mid 20% range while reporting no evidence of customer destocking or fuel-price-related demand weakness.
• Negative Sentiment: HPMC margins were pressured by approximately 200 basis points from the production ramp of a newly qualified nickel-based superalloy, representing an estimated $15–$20 million of foregone third-quarter EBITDA. Management expects the impact to diminish substantially in Q4 and be fully behind the company by the end of 2026.
• Positive Sentiment: Cash generation improved, with year-to-date adjusted free cash flow up 49% to $223 million and full-year guidance maintained at $550–$600 million. ATI has repurchased $70 million of stock year to date, with $425 million remaining under its authorization, while customer-funded capital is helping offset planned growth investments.

ATI Stock Performance

Shares of ATI opened at $174.98 on Friday. The business’s 50 day moving average is $191.31 and its two-hundred day moving average is $172.78. ATI has a 52-week low of $93.11 and a 52-week high of $243.57. The firm has a market cap of $23.83 billion, a price-to-earnings ratio of 51.31, a PEG ratio of 0.98 and a beta of 0.99. The company has a quick ratio of 1.14, a current ratio of 2.33 and a debt-to-equity ratio of 0.91.

Trending Headlines about ATI

Here are the key news stories impacting ATI this week:

• Positive Sentiment: ATI reported third-quarter sales of $1.42 billion, up 26% year over year and ahead of the roughly $1.32 billion analyst estimate. GAAP diluted EPS rose to $1.37 from $0.78, while adjusted EPS of $1.46 exceeded consensus estimates of approximately $1.36-$1.37. ATI Announces Third Quarter 2026 Results
• Positive Sentiment: Profitability improved materially: adjusted EBITDA climbed 46% to $328 million, and the margin expanded to 23.0% from 20.0%. ATI also exceeded the high end of its quarterly adjusted EBITDA guidance by $13 million. ATI reports third-quarter sales and raises guidance
• Positive Sentiment: Management raised full-year 2026 adjusted EBITDA guidance to $1.19 billion-$1.20 billion from $1.135 billion-$1.185 billion and increased adjusted EPS guidance to $5.17-$5.23 from $4.90-$5.18. Fourth-quarter adjusted EBITDA is expected at $345 million-$355 million. ATI boosts fiscal-year outlook
• Positive Sentiment: Growth was supported by aerospace and defense demand, pricing and product mix. High Performance Materials & Components sales rose 20%, while AA&S sales increased 34%. ATI also repurchased $70 million of stock during the quarter. ATI third-quarter revenue and EPS report
• Neutral Sentiment: Institutional positioning was mixed in the latest reported quarter: BlackRock added shares, while Viking Global, Capital International and D.E. Shaw reduced holdings. A median analyst price target cited in recent coverage was $211.
• Negative Sentiment: Insider trading data showed 31 open-market sales and no purchases over the past six months, including sales by CEO Kimberly A. Fields. These transactions may weigh modestly on sentiment, although they do not offset the stronger earnings and guidance signals.

Insider Activity

In related news, Director David J. Morehouse sold 2,485 shares of ATI stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $201.61, for a total value of $501,000.85. Following the completion of the sale, the director owned 35,826 shares in the company, valued at approximately $7,222,879.86. The trade was a 6.49% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Timothy J. Harris sold 16,500 shares of the company’s stock in a transaction on Monday, August 31st. The shares were sold at an average price of $210.01, for a total transaction of $3,465,165.00. Following the completion of the sale, the vice president directly owned 130,187 shares in the company, valued at $27,340,571.87. This represents a 11.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 85,830 shares of company stock worth $18,046,361. 0.98% of the stock is currently owned by insiders.

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. KeyCorp reduced their target price on shares of ATI from $258.00 to $228.00 and set an “overweight” rating on the stock in a research report on Thursday, October 8th. Wall Street Zen raised shares of ATI from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Susquehanna lifted their price target on shares of ATI from $215.00 to $265.00 and gave the stock a “positive” rating in a research note on Friday, August 7th. TD Cowen boosted their price objective on shares of ATI from $170.00 to $210.00 and gave the stock a “buy” rating in a report on Monday, July 13th. Finally, BTIG Research cut their price objective on shares of ATI from $270.00 to $250.00 and set a “buy” rating on the stock in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus target price of $221.38.

ATI Company Profile

ATI Inc (NYSE: ATI) is a specialty materials and components manufacturer serving demanding applications in the aerospace and defense, medical, energy, and industrial markets. The company develops and produces materials designed to perform in high-temperature, high-strength, and corrosion-resistant environments.

Its products include nickel-based superalloys, titanium and titanium-based materials, specialty steels, precision-rolled materials, forgings, and other engineered components. These products are used in aircraft engines and airframes, defense systems, medical implants and devices, power-generation equipment, and other industrial applications.

ATI was formed in 1996 through the combination of Allegheny Ludlum Corporation and Teledyne, Inc The company serves customers in the United States and international markets through manufacturing and processing operations across North America and Europe.