ATI Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.30%.
Did ATI Beat Earnings? Q2 2025 Results
ATI posted a mixed second quarter in 2025, beating on earnings while falling just short on the top line, a combination that rattled investors and sent shares sharply lower after results were released. Adjusted EPS of $0.74 cleared the $0.71 consensus estimate by 3.76%, while revenue of $1.14 billion missed expectations by 1.37%, though it still represented 4.1% growth year-over-year. The clearest driver of profit strength was the commercial jet engine business, where sales surged 27% year-over-year to $447.80 million, anchoring the aerospace and defense segment's 67% share of total revenue and fueling a 14% climb in adjusted EBITDA to $207.70 million. Margins expanded to 18.2% from 16.7% a year ago, reflecting favorable pricing in nickel-based alloys and disciplined cost management. ATI also deployed $250 million in share repurchases during the quarter at an average price of $76.79. Looking ahead, management raised full-year guidance, now targeting adjusted EPS of $2.90 to $3.07 and adjusted EBITDA of $810 million to $840 million, citing long-term contract extensions with major airframe customers as demand is expected to build through 2026.
- Commercial jet engine sales surged 27% YoY, representing 39% of total sales
- Aerospace & defense sales of $762 million, up 11% YoY, representing 67% of total Q2 sales
- HPMC segment EBITDA margin expanded to 23.7% from 20.2% YoY driven by favorable nickel-based alloy pricing
- Recognition of $4.4 million in previously deferred employee retention credits in HPMC
- Corporate expenses declined to $15.4M from $19.4M YoY due to lower incentive compensation
- Lower interest expense of $25.4M vs $28.4M in Q2 2024
“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. We see demand increasing from our A&D customers as the industry looks toward ramping production and deliveries through the remainder of 2025 and continuing into 2026. Recent long-term contract extensions with both major airframe companies further underscore ATI's unique position in this industry.”
ATI CEO, on the earnings call
Forward Guidance & Outlook
ATI raised the midpoint of full-year 2025 guidance. Q3 2025 adjusted EBITDA is guided at $200M-$210M with adjusted EPS of $0.69-$0.75. Full year 2025 adjusted EBITDA is expected at $810M-$840M, adjusted EPS of $2.90-$3.07, adjusted free cash flow of $270M-$350M, and capital expenditures of $260M-$280M. Management sees increasing demand from A&D customers as the industry ramps production and deliveries through the remainder of 2025 and into 2026.
ATI YoY Financials
ATI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.