ATI (NYSE:ATI) Announces Earnings Results, Beats Estimates By $0.20 EPS

ATI (NYSE:ATI) released its quarterly earnings data on Thursday. The basic materials company reported $1.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.03 by $0.20, Briefing.com reports. The firm had revenue of $1.26 billion during the quarter, compared to analysts’ expectations of $1.22 billion. ATI had a return on equity of 26.44% and a net margin of 9.26%.ATI’s revenue was up 10.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.74 earnings per share. 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 Price Performance

ATI stock traded up $17.46 during midday trading on Thursday, reaching $222.57. 3,104,201 shares of the company were exchanged, compared to its average volume of 1,471,142. The firm’s 50-day simple moving average is $191.35 and its 200-day simple moving average is $164.02. ATI has a 1 year low of $70.42 and a 1 year high of $236.98. The company has a market capitalization of $30.37 billion, a price-to-earnings ratio of 73.70, a P/E/G ratio of 1.63 and a beta of 0.98. The company has a debt-to-equity ratio of 0.95, a quick ratio of 1.17 and a current ratio of 2.67.

ATI News Summary

Here are the key news stories impacting ATI this week:

• Positive Sentiment: ATI reported second-quarter sales of $1.26 billion, up 11% year over year, while adjusted EPS of $1.23 exceeded the $1.03 consensus estimate. GAAP EPS rose to $1.09 from $0.70, and net income increased 50% to $151 million. ATI Announces Second Quarter 2026 Results
• Positive Sentiment: Profitability improved materially: adjusted EBITDA increased 37% to $284 million, with the margin expanding to 22.6% from 18.2%. Aerospace and defense sales rose 13%, and backlog reached approximately $4.4 billion, up 18%, reinforcing expectations for continued demand. ATI Q2 2026 Sales Rise 11% to $1.26 Billion
• Positive Sentiment: Management raised full-year 2026 adjusted EBITDA guidance to $1.135 billion-$1.185 billion from $1.010 billion-$1.060 billion and adjusted EPS guidance to $4.90-$5.18 from $4.20-$4.48. Third-quarter adjusted EPS guidance of $1.31-$1.37 also exceeded the $1.12 analyst consensus, while free-cash-flow expectations improved. ATI Targets Higher 2026 EBITDA and Free Cash Flow
• Neutral Sentiment: The stock reached a new 52-week high and trades at a relatively demanding valuation, with a reported P/E ratio above 70. The strong results may justify the premium, but the valuation raises expectations for continued earnings growth. ATI Hits a 52-Week High
• Negative Sentiment: Recent insider activity shows 26 reported open-market sales and no purchases during the past six months, including sales by senior executives. This may be a cautionary signal, although insider sales can also reflect compensation or portfolio diversification.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Wall Street Zen lowered shares of ATI from a “buy” rating to a “hold” rating in a research report on Tuesday, July 28th. JPMorgan Chase & Co. upped their price target on ATI from $150.00 to $175.00 and gave the stock an “overweight” rating in a report on Friday, May 1st. TD Cowen raised their price objective on ATI from $170.00 to $210.00 and gave the company a “buy” rating in a research note on Monday, July 13th. KeyCorp lifted their price objective on ATI from $175.00 to $211.00 and gave the stock an “overweight” rating in a report on Tuesday, June 30th. Finally, BTIG Research lifted their price objective on ATI from $165.00 to $180.00 and gave the stock a “buy” rating in a report on Friday, May 1st. Two analysts have rated the stock with a Strong Buy rating and eight have assigned a Buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $187.62.

Insider Transactions at ATI

In other ATI news, CEO Kimberly A. Fields sold 59,749 shares of the firm’s 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 sale, the chief executive officer directly owned 218,014 shares of the company’s stock, valued at $39,039,766.98. This trade represents a 21.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In the last 90 days, insiders have sold 192,199 shares of company stock valued at $34,601,100. 0.98% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On ATI

Several institutional investors and hedge funds have recently modified their holdings of the company. State Street Corp grew its stake in ATI by 7.4% in the 3rd quarter. State Street Corp now owns 6,042,244 shares of the basic materials company’s stock worth $491,476,000 after acquiring an additional 415,479 shares during the period. Invesco Ltd. lifted its stake in shares of ATI by 7.4% during the 4th quarter. Invesco Ltd. now owns 3,384,924 shares of the basic materials company’s stock worth $388,454,000 after purchasing an additional 233,010 shares during the period. AQR Capital Management LLC boosted its holdings in shares of ATI by 684.9% during the fourth quarter. AQR Capital Management LLC now owns 1,019,840 shares of the basic materials company’s stock worth $117,037,000 after purchasing an additional 889,912 shares during the last quarter. Raymond James Financial Inc. boosted its holdings in shares of ATI by 11.7% during the second quarter. Raymond James Financial Inc. now owns 943,789 shares of the basic materials company’s stock worth $81,487,000 after purchasing an additional 98,537 shares during the last quarter. Finally, Bank of America Corp DE grew its position in shares of ATI by 17.8% in the third quarter. Bank of America Corp DE now owns 733,608 shares of the basic materials company’s stock valued at $59,672,000 after purchasing an additional 111,112 shares during the period.

About ATI

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.