ATI Raises 2026 Adjusted EBITDA Outlook After Third-Quarter Sales Rise 26%

The Tip Desk · October 30, 2026 · 3 min read

The specialty-materials maker lifted full-year adjusted EBITDA guidance to $1.195 billion after third-quarter sales of $1.42 billion and adjusted EBITDA of $328 million.

ATI Inc. (ATI) reported third-quarter 2026 sales of $1.42 billion, up 26% from a year earlier, as year-over-year growth accelerated from 11% in the second quarter.

Net income attributable to ATI was $190 million, or $1.37 a share, compared with $110 million, or $0.78 a share, in the third quarter of 2025. Adjusted earnings were $1.46 a share.

Adjusted EBITDA rose 46% year-over-year to $328 million, faster than the 37% increase in the prior quarter. Adjusted EBITDA margin was 23.0% of sales. The company said it exceeded the high end of its third-quarter adjusted EBITDA guide by $13 million.

Board Chair, President and CEO Kimberly A. Fields said the results reflected strong demand backed by long-term agreements, differentiated capabilities, and disciplined execution. She said the company is raising its full-year outlook for adjusted EBITDA by $35 million, following a $125 million increase the prior quarter.

Full-year 2026 adjusted EBITDA guidance is now $1.195 billion, up from a prior range of $1.135 billion to $1.185 billion. Fourth-quarter adjusted EBITDA is guided at $345 million to $355 million. Full-year adjusted earnings are guided at $5.17 to $5.23 a share, and adjusted free cash flow at $550 million to $600 million.

High Performance Materials & Components, which supplies jet-engine and defense products, posted sales of $721.4 million, up 20% from a year earlier. The company said commercial jet engine products rose 34% on demand and pricing. Aerospace and defense accounted for 94% of HPMC sales. Segment EBITDA was $167.3 million, or 23.2% of sales, down from 24.2% a year earlier. ATI attributed the margin decline to higher manufacturing and period costs, including ramping commercial production of a new nickel-based superalloy.

Advanced Alloys & Solutions sales were $702.3 million, up 34% year-over-year. Aerospace and defense sales in the segment grew 34%, with commercial jet engine products almost doubling on higher demand and pricing. Segment EBITDA was $181.3 million, or 25.8% of sales, versus 17.3% a year earlier. The company said the sequential and year-over-year margin increase was driven by higher pricing, volumes, and a favorable mix. Second-quarter segment EBITDA margin had included a $9.9 million gain from the sale of a previously closed manufacturing facility.

Jet engines-commercial revenue was $603.2 million, or 42% of total sales, versus 38% a year earlier. Total aerospace and defense sales were $994.5 million, or 69% of the total.

GAAP results included pre-tax special items of $15.6 million, consisting of $14.4 million of restructuring and other charges and a $1.2 million debt extinguishment charge. The after-tax impact was $12.1 million, or $0.09 a share. Restructuring and other charges included $8.4 million of transformation-related costs, $2.9 million of losses on the sale of customer accounts receivable, $2.2 million of start-up and transaction-related costs, and $0.9 million of restructuring-related costs.

Cash provided by operating activities was $154.6 million in the quarter, with capital expenditures of $92.8 million. Managed working capital as a percent of annualized sales was 32.9% at quarter-end, down 140 basis points from the end of the second quarter. ATI repurchased $70.0 million of common stock at an average price of $199.62 a share, retiring about 0.4 million shares, leaving $425 million of remaining authorization.

The company said it is positioning ATI for stronger performance in 2027.