Specialty materials maker ATI tops Q3 profit estimates on higher aerospace demand

ATI

28/10/2025 11:52

Overview

ATI Q3 revenue up 7% yr/yr to $1.13 bln, missing analyst expectations

Adjusted EPS of $0.85 beats analyst expectations, reflecting strong operational performance

Company raises full-year guidance for adjusted earnings and cash flow

Outlook

ATI raises full-year adjusted EPS guidance to $3.15 - $3.21

Company forecasts Q4 2025 adjusted EBITDA between $221M and $231M

ATI projects full-year adjusted free cash flow of $330M - $370M

Result Drivers

AEROSPACE & DEFENSE GROWTH - Co reports 21% increase in aerospace & defense sales, driving overall revenue growth

MARGIN IMPROVEMENT - Improved sales mix and pricing in HPMC and AA&S segments boosted margins

STRONG DEMAND - Increased demand for commercial jet engines and defense products boosted sales

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$1.12 bln
$1.12 bln (7 Analysts)
Q3 Adjusted EPS
Beat
$0.85
$0.74 (9 Analysts)
Q3 EPS
$0.78
Q3 Adjusted Net Income
$119.40 mln
Q3 Net Income
$110 mln
Q3 Adjusted EBITDA
$225.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "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 $100.00, about 8.3% above its October 27 closing price of $91.71

The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nPn7L4m6za

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(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.)