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ATI Q2 revenue rises 11%, beats estimates

ATI Q2 revenue rises 11%, beats estimates


Overview

  • U.S. high performance materials producer's Q2 revenue grew 11%, beating analyst expectations

  • Q2 adjusted EPS rose 66% yr/yr and beat analyst expectations

  • Company repurchased $50 mln of shares and raised full-year guidance


Outlook

  • ATI raises full-year 2026 adjusted EBITDA guidance to $1.135 bln-$1.185 bln from $1.01 bln-$1.06 bln

  • ATI expects Q3 2026 adjusted EBITDA of $305 mln-$315 mln

  • Company sees full-year 2026 adjusted EPS of $4.90-$5.18, up from prior $4.20-$4.48


Result Drivers

  • AEROSPACE & DEFENSE DEMAND - Higher sales to aerospace and defense markets, including a 13% increase overall and a 34% rise in AA&S segment, driven by strong demand and pricing

  • JET ENGINE PRODUCTS - Growth in commercial jet engine sales, supported by strong demand and favorable pricing, boosted HPMC segment

  • PRICING & PRODUCT MIX - Margin expansion supported by contracted pricing improvements and a richer product mix, per CEO Kimberly Fields


Company press release: ID:nPn42vcb4a


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$1.26 bln

$1.22 bln (9 Analysts)

Q2 Adjusted EPS

Beat

$1.23

$1.04 (8 Analysts)

Q2 EPS

$1.09

Q2 Adjusted Net Income

$169.70 mln

Q2 Net Income

$151 mln

Q2 Adjusted EBITDA

$284.40 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 $191.00, about 6.9% below its August 5 closing price of $205.11

  • The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 34 three months ago


Reuters Recommended Reads

  • Aug 6 - Howmet Aerospace boosts 2026 forecasts on strong demand for aircraft parts

  • Aug 5 - UK's Bodycote gets $2 billion rival approaches from CVC, Veritas Capital

  • Aug 5 - Specialty materials maker Materion's Q2 sales, adj EBITDA beat estimates


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.)

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