ATI (NYSE:ATI) Issues Quarterly Earnings Results

ATI (NYSE:ATI) issued its earnings results on Thursday. The basic materials company reported $1.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.03 by $0.20, Briefing.com reports. ATI had a return on equity of 29.27% and a net margin of 10.09%.The business had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same period last year, the company earned $0.74 EPS. The company’s revenue for the quarter was up 10.6% on a year-over-year basis. ATI updated its Q3 2026 guidance to 1.310-1.370 EPS and its FY 2026 guidance to 4.900-5.180 EPS.

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

• ATI raised its full-year outlook across key metrics, with adjusted EBITDA now projected at $1.135 billion–$1.185 billion, adjusted EPS at $4.90–$5.18, and free cash flow at $550 million–$600 million. The EBITDA midpoint implies 35% year-over-year growth, while free cash flow is expected to rise 51%.
• The AA&S segment delivered a substantial improvement, with sales up 17% and EBITDA margins reaching a record 23.7%, driven by stronger pricing, mix, defense demand, and high-purity hafnium and zirconium sales. Management believes the segment can sustain margins in the mid-20% range.
• Demand visibility remains strong, supported by a record $4.4 billion backlog, up 18% year over year, with about 70% expected to convert to revenue within 12 months. Jet engine revenue rose 13%, defense revenue increased 36%, and the company cited extended lead times and long-term agreements for differentiated aerospace and defense products.
• HPMC performance was within expectations but some shipments shifted from the second quarter because of qualification timing at the Mexico facility and the EB2 titanium furnace. Management expects the deferred demand, alongside contract pricing and productivity gains, to support sequential improvement in the second half.
• ATI generated $143 million of adjusted free cash flow in the first half versus a $50 million use a year earlier and expects positive free cash flow in every quarter of 2026. The company also repurchased $50 million of stock in the second quarter, with $495 million remaining under its authorization.

ATI Stock Up 2.1%

Shares of NYSE:ATI opened at $228.15 on Friday. The company has a market capitalization of $31.14 billion, a price-to-earnings ratio of 66.91, a PEG ratio of 1.58 and a beta of 0.98. ATI has a 12-month low of $70.42 and a 12-month high of $236.98. The business has a 50-day moving average price of $192.40 and a 200 day moving average price of $164.47. The company has a current ratio of 2.33, a quick ratio of 1.17 and a debt-to-equity ratio of 0.91.

Insider Buying and Selling

In other ATI news, CEO Kimberly A. Fields sold 59,749 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $179.07, for a total transaction of $10,699,253.43. Following the completion of the transaction, the chief executive officer owned 218,014 shares of the company’s stock, valued at $39,039,766.98. This trade represents a 21.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Insiders have sold a total of 192,199 shares of company stock valued at $34,601,100 over the last 90 days. Corporate insiders own 0.98% of the company’s stock.

Hedge Funds Weigh In On ATI

Several large investors have recently made changes to their positions in ATI. NewEdge Advisors LLC acquired a new stake in ATI in the 2nd quarter valued at approximately $75,000. Greenline Wealth Management LLC acquired a new position in ATI during the fourth quarter worth $80,000. ARK Investment Management LLC boosted its position in shares of ATI by 19.8% during the fourth quarter. ARK Investment Management LLC now owns 889 shares of the basic materials company’s stock worth $102,000 after buying an additional 147 shares during the period. CIBC Private Wealth Group LLC grew its stake in shares of ATI by 23.4% in the fourth quarter. CIBC Private Wealth Group LLC now owns 950 shares of the basic materials company’s stock valued at $109,000 after buying an additional 180 shares in the last quarter. Finally, Danske Bank A S purchased a new stake in ATI during the third quarter worth about $122,000.

ATI News Summary

Here are the key news stories impacting ATI this week:

• Positive Sentiment: Quarterly results exceeded expectations: ATI reported adjusted EPS of $1.23 versus the $1.03 consensus estimate, while revenue rose 11% year over year to $1.26 billion. GAAP EPS increased 56% to $1.09, and net income rose 50% to $151 million. ATI Announces Second Quarter 2026 Results
• Positive Sentiment: Profitability is expanding: Adjusted EBITDA climbed 37% to $284 million, with the margin expanding to 22.6% from 18.2% a year earlier. Aerospace and defense sales increased 13%, supporting demand for ATI’s advanced materials. ATI Q2 Earnings Call Highlights
• Positive Sentiment: Raised outlook and strong backlog: ATI increased its full-year 2026 adjusted EPS guidance to $4.90-$5.18 from $4.20-$4.48 and forecast third-quarter EPS of $1.31-$1.37, above the $1.12 consensus. Management also cited a record $4.4 billion backlog and stronger second-half growth as its HPMC business ramps. ATI Raises 2026 Outlook
• Positive Sentiment: Analysts raised price targets: Susquehanna lifted its target to $265 and assigned a positive rating, while BTIG raised its target to $270 and upgraded ATI to Buy. The revisions reinforce optimism about sustained aerospace, defense and margin growth.
• Neutral Sentiment: ATI is trading near its 52-week high and at a comparatively elevated valuation, with a reported P/E ratio above 75, which may increase sensitivity to any earnings or guidance disappointment.
• Negative Sentiment: Insider-trading data shows 26 open-market sales and no purchases during the past six months, including sales by senior executives. This may temper sentiment, although the transactions have not offset the positive earnings reaction.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on ATI shares. JPMorgan Chase & Co. upped their price objective on shares of ATI from $150.00 to $175.00 and gave the company an “overweight” rating in a report on Friday, May 1st. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $194.00 target price on shares of ATI in a report on Friday, May 1st. BTIG Research increased their price target on shares of ATI from $180.00 to $270.00 and gave the company a “buy” rating in a research note on Friday. Zacks Research upgraded shares of ATI from a “hold” rating to a “strong-buy” rating in a report on Thursday, June 25th. Finally, Weiss Ratings raised shares of ATI from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, July 9th. Two analysts have rated the stock with a Strong Buy rating and eight have assigned a Buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Buy” and a consensus target price of $205.12.

ATI Company Profile

Allegheny Technologies Incorporated (ATI) is a global manufacturer of specialty materials and complex components, serving aerospace, defense, oil and gas, chemical processing, medical and other industrial end markets. The company operates through two main segments: High Performance Materials & Components, which produces titanium and nickel-based alloys, stainless and specialty steels, and precision forgings; and Flat-Rolled Products, which supplies stainless steel, nickel and specialty alloy sheet, strip and precision-rolled plate.