ATI's Q1 adjusted EPS beats, helped by aerospace and defense demand

ATI

30/04/2026 12:46

Overview

US high performance materials maker's Q1 revenue up 1% yr/yr, missing analyst expectations

Adjusted EPS for Q1 rose 39% and beat analyst expectations

Company raised full-year adjusted earnings and free cash flow guidance

Outlook

ATI raises full-year 2026 adjusted EBITDA guidance to $1.01 bln-$1.06 bln from $975 mln-$1.025 bln

Company now sees full-year 2026 adjusted EPS of $4.20-$4.48, up from $3.99-$4.27

ATI expects full-year 2026 adjusted free cash flow of $465 mln-$525 mln, up from $430 mln-$490 mln

Result Drivers

AEROSPACE & DEFENSE DEMAND - Higher sales to aerospace and defense, especially commercial jet engine products, drove results

MARGIN EXPANSION - Improved segment margins due to favorable sales mix and pricing, and higher volumes in aerospace and defense

OPERATIONAL DISCIPLINE - Company attributed strong cash flow and earnings growth to operational discipline and execution

Company press release: ID:nPn7VFDwma

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$1.15 bln
$1.19 bln (8 Analysts)
Q1 Adjusted EPS
Beat
$1
$0.88 (8 Analysts)
Q1 EPS
$0.85
Q1 Adjusted Net Income
$139.20 mln
Q1 Net Income
$118.20 mln
Q1 Adjusted EBITDA
$231.70 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "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 $170.00, about 16.3% above its April 29 closing price of $146.23

The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 29 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)