ATI Raises Full-Year Outlook After Beating Guidance

The Tip Desk · August 7, 2026 · 3 min read

Second-quarter sales were $1.26 billion as adjusted EBITDA reached $284.4 million and the company lifted full-year adjusted EBITDA to $1,135 million–$1,185 million.

ATI Inc. (ATI) reported second-quarter 2026 sales of $1.26 billion, up 11% from a year earlier, after a 1% year-over-year increase in the first quarter. Adjusted EBITDA rose 37% to $284.4 million, and the adjusted EBITDA margin expanded 440 basis points to 22.6%.

The specialty-materials producer said results exceeded the high end of its second-quarter guidance. It raised full-year 2026 adjusted EBITDA to $1,135 million–$1,185 million from $1,010 million–$1,060 million, and lifted adjusted earnings guidance to $4.90–$5.18 a share from $4.20–$4.48. Third-quarter adjusted EBITDA is now expected at $305 million–$315 million and adjusted earnings at $1.31–$1.37 a share.

GAAP net income attributable to ATI was $151.0 million, or $1.09 a share, up 50% and 56% year over year, respectively. Adjusted earnings were $1.23 a share. Results included a $9.9 million gain, or $0.06 a share, from the sale of a previously closed manufacturing facility in Advanced Alloys & Solutions. Adjusted results excluded $23.6 million of pretax special items.

Board Chair, President and CEO Kimberly A. Fields said demand for aerospace and defense materials continued to outpace available supply and that backlog reached a record $4.4 billion, up 18% year over year. She said the outlook is supported by contracted pricing, a richer product mix and increasing production volumes.

Advanced Alloys & Solutions was the inflection point. Segment sales were $624.0 million, up 17% from a year earlier. Aerospace and defense sales in the segment grew 34%, including a 90% increase in defense sales, attributed to higher demand and pricing. Aerospace and defense represented 44% of AA&S sales. Conventional energy sales also rose, mostly due to demand timing. Segment EBITDA was $147.6 million, or 23.7% of sales, including the facility-sale gain. Excluding the gain, the margin increase was driven by higher pricing and favorable mix.

High Performance Materials & Components sales were $637.1 million, up 5% from a year earlier, with commercial jet engine sales up 10% on demand and pricing. Aerospace and defense accounted for 93% of HPMC sales. Segment EBITDA was $153.5 million, or 24.1% of sales. The sequential decline in that margin from 24.9% was primarily due to higher manufacturing and period costs, including costs associated with revised qualification requirements for a new facility in Mexico and a titanium electron-beam furnace, partially offset by increased volume and favorable pricing of jet engine nickel products.

Aerospace and defense sales across the company were $862.0 million, or 68% of total sales. Commercial jet engines contributed $508.3 million, airframes $191.7 million and defense $162.0 million.

Cash provided by operating activities was $131.8 million in the quarter, while capital expenditures were $68.6 million. The company repurchased $50 million of common stock at an average $159.53 a share, leaving $495 million of authorization remaining. Cash and cash equivalents were $783.0 million at June 28, 2026.

Fields said momentum is carrying into the second half and that the company is again raising full-year guidance for adjusted earnings, EBITDA and free cash flow. Full-year adjusted free cash flow guidance is $550 million–$600 million.