ATI Reports Record Annual Sales and Strong Q4 Earnings
Annual sales of $4.6 billion represent highest total since 2012
- Q4 2025 sales of $1.2 billion and fiscal year 2025 sales of $4.6 billion
- Q4 2025 net income attributable to ATI of $97 million, or $0.69 per share; fiscal year 2025 net income attributable to ATI of $404 million, or $2.85 per share
- Sales to the aerospace & defense market represent 68% of Q4 2025 sales, up from 65% of Q4 2024 sales
- Fiscal year 2025 operating cash flow of $614 million, up from $407 million for fiscal year 2024
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Non-GAAP Information
- Q4 2025 adjusted net income attributable to ATI of $130 million, or $0.93 per share
- Q4 2025 adjusted EBITDA of $232 million, or 19.7% of sales
- Fiscal year 2025 adjusted free cash flow of $380 million, up 53% over fiscal year 2024
Guidance The Company is providing first quarter and fiscal year 2026 guidance in the table below.
Current Guidance Overview
- Adjusted EBITDA for Q1 2026 is expected to be between $216M - $226M
- Fiscal Year 2026 adjusted EBITDA is projected to be between $975M - $1,025M
- Adjusted Earnings Per Share for Q1 2026 will be in the range of $0.83 - $0.89
- For Fiscal Year 2026, adjusted Earnings Per Share is anticipated to be between $3.99 - $4.27
- Adjusted Free Cash Flow for Fiscal Year 2026 is projected to be between $430M - $490M
In Q4 2025, ATI Inc. (NYSE: ATI) reported impressive financial results, with sales reaching $1.18 billion and a net income of $96.6 million. This performance marks ATI's ongoing strength in a competitive market. The aerospace and defense sector significantly contributed to the quarterly results, representing a notable 68% of overall sales. This shows a clear upward trajectory from 65% in the previous year, demonstrating increased demand for ATI's high-performance materials.
Operating results highlighted the company’s ability to drive cash flow, with the operating cash flow for the year totaling $614 million—an impressive increase of more than 50% compared to 2024. This robust cash generation enabled share repurchases totaling $470 million and supported the repayment of $150 million in debt, effectively reducing annual interest expenses by about $10 million.
At the helm, Kimberly A. Fields, President and CEO of ATI, expressed confidence in the company's prospects: "As we projected, we finished 2025 with strong momentum, exceeding the upper range of our fourth quarter and full-year earnings and cash flow guidance. Demand for ATI's differentiated products and solutions continues to be robust as we support our customers' production ramps and critical missions. I am more confident than ever in ATI's position as an integral part of our customers' supply chains." Fields emphasized that the expectations for 2026 are geared toward sustaining demand across core markets while ensuring operational excellence.
Segment Performance
Operating Results by Segment
- High Performance Materials & Components (HPMC)
HPMC achieved Q4 2025 sales of $645.9 million, reflecting a 7% increase from Q3 2025, buoyed by strong demand in commercial jet engines and airchain components. HPMC's EBITDA for the quarter accounted for 24% of sales. - Advanced Alloys & Solutions (AA&S)
AA&S achieved sales of $531.2 million in Q4 2025, an increase from Q3, driven by specialty energy market growth. EBITDA for the segment also displayed a positive trend. - Strong Cash Management Reinforces Financial Stability
Alongside operational successes, ATI reported disciplined cash management practices that continued to mitigate liabilities and enhance overall liquidity. This focus was evidenced by sustained capital discipline and effective management of working capital ratios.
Outlook for 2026 and Future Growth
As ATI looks ahead, the company endeavors to not just maintain but augment its growth trajectory. Fields indicated that 2026 guidance reflects anticipated robust demand, operational efficiencies, and a commitment to innovation. With these factors in play, ATI expects to generate higher earnings and improved margins while returning significant capital to shareholders. This strategic focus will facilitate sustained production capabilities and ensure ATI’s resilience within the evolving market landscape.
Frequently Asked Questions
What were ATI's total sales in Q4 2025?
ATI reported total sales of $1.18 billion in Q4 2025.
What percentage of Q4 2025 sales were from aerospace and defense?
Sales to the aerospace and defense market accounted for 68% of Q4 2025 sales.
How much was ATI's operating cash flow for fiscal year 2025?
Operating cash flow for fiscal year 2025 was $614 million.
What is the adjusted net income attributable to ATI for Q4 2025?
The adjusted net income attributable to ATI for Q4 2025 was $130 million.
What is the outlook for ATI's revenue in fiscal year 2026?
ATI projects fiscal year 2026 revenue to range between $975 million and $1,025 million.
