ATI Q4 profit beats; forecasts FY 2026 adjusted profit $3.99-$4.27

Overview

• High-performance materials producer's Q4 revenue slightly missed analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company repaid $150 mln in debt, reducing interest expenses

Outlook

• Company projects Q1 2026 adjusted EBITDA between $216 mln and $226 mln

• ATI expects fiscal year 2026 adjusted EPS between $3.99 and $4.27

• Company anticipates fiscal year 2026 adjusted free cash flow of $430 mln to $490 mln

Result Drivers

• AEROSPACE & DEFENSE SALES - Sales to aerospace and defense markets increased to 68% of total Q4 sales, up from 65% in Q4 2024

• HPMC SEGMENT GROWTH - HPMC sales rose 7% from Q3 2025, driven by demand for commercial jet engine and airframe products

• CASH FLOW MANAGEMENT - Strong cash flow driven by disciplined working capital management, enabling debt repayment and share repurchases

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for ATI Inc is $135.00, about 10.9% above its February 2 closing price of $121.77

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nPn167pNWa

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