#USA #Dallas #Aerospace #Defense #ATI

ATI Announces Second Quarter 2025 Results

ATI Inc. has released its financial results for the second quarter of 2025, showcasing impressive overall sales growth, primarily fueled by the aerospace and defense sectors. The company reported total sales of $1.14 billion, marking a 4% increase year-over-year. A significant portion of this revenue, $762 million, stemmed from aerospace and defense sales, accounting for an astonishing 67% of the quarterly totals.

Financial Highlights

Year-over-Year Performance

In comparison to the second quarter of 2024, ATI's net income attributable to the company surged by 23%, reaching $101 million. The earnings per share also rose to $0.70, compared to $0.58 in the previous year, reflecting a robust quarterly performance that exceeded expectations.

ATI’s adjusted net income increased by 24%, totaling $106 million. Adjusted earnings per share for the quarter reached $0.74, up from $0.60 a year prior. Furthermore, the company's adjusted EBITDA was recorded at $208 million, representing a 14% increase from the previous year.

Demand in Aerospace & Defense

The growth in ATI's sales can be attributed to a strong demand for commercial jet engine products, which saw a 27% increase in year-on-year sales. This reflects a broader recovery and increased activity in the aerospace sector as production ramp-ups continue to gain momentum.

Kimberly A. Fields, President and CEO of ATI, stated, “Our second quarter performance demonstrates strong, sustained demand in ATI's aerospace and defense end markets. Consistent operational performance drove double-digit growth in net income, EPS, and adjusted EBITDA on a year-over-year basis.” Fields also noted that recent long-term contract extensions with major airframe manufacturers underline ATI's strategic positioning within this crucial industry.

Forward Guidance

Looking ahead, ATI has raised the mid-point of its full-year adjusted earnings and cash flow guidance. For the third quarter of 2025, the company anticipates adjusted EBITDA in the range of $200 million to $210 million. The adjusted earnings per share is projected to be between $0.69 and $0.75, with expected adjusted free cash flow between $270 million and $350 million.

Investment and Capital Management

ATI's disciplined approach to capital allocation remains evident, as the company has committed to repurchasing $250 million worth of its shares during the second quarter. This initiative brings the total share repurchases for 2025 to $320 million, with an additional board authorization for $270 million remaining unsold, which will be utilized opportunistically.

In terms of segment performance, ATI's High Performance Materials & Components (HPMC) segment reported sales of $608.8 million in Q2 2025, while the Advanced Alloys Solutions (AAS) segment saw sales of $531.6 million. Both segments showed modest year-over-year growth, driven by increasing demand for jet engines amidst a recovering aerospace market.

Conclusion

The results from ATI's second quarter of 2025 underline the company's growing strength in the aerospace and defense sectors. With robust sales figures, a focus on shareholder returns, and strategic long-term contracts, ATI appears well-positioned for continued growth moving forward in a dynamic economic landscape.