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Mar 31, 2022

ATI Q1 2022 Earnings Report

ATI's Q1 2022 results were driven by aerospace-driven growth, with a focus on ramp readiness.

Key Takeaways

Allegheny Technologies Incorporated reported strong first quarter 2022 results, driven by expansion in the commercial aerospace market and growth in other key end markets. Sales reached $834.1 million, a 9% increase from the previous quarter and a 20% increase compared to the prior year. Net income attributable to ATI was $30.9 million, or $0.23 per share. The company benefited from its commitment to remain ramp-ready and manage costs effectively.

Sales of $834.1 million, 9% above fourth quarter 2021 and 20% higher than prior year

Net income attributable to ATI of $30.9 million, or $0.23 per share

Repurchased 3.5 million shares of ATI stock for $90 million, averaging $25.57/share

Adjusted EBITDA was $125 million, or 15% of sales

Total Revenue
$834M
Previous year: $693M
+20.4%
EPS
$0.4
Previous year: -$0.06
-766.7%
Cash and Equivalents
$317M
Previous year: $542M
-41.5%

ATI

ATI

ATI Revenue by Segment

Forward Guidance

Looking ahead to the second quarter, ATI expects continued growth in its most significant end markets, with lean cost structures giving the company an advantage to improve earnings and margins versus the prior year. The company will continue to improve inventory efficiency while ensuring an adequate supply of input materials to achieve growth. The company is closely monitoring the geopolitical volatility in Europe and Asia, working closely with customers and suppliers to ensure they are in the best position to effectively accelerate business velocity and reward stakeholders.

Positive Outlook

  • Continued growth in significant end markets
  • Lean cost structures will improve earnings
  • Improved margins versus the prior year
  • Improving inventory efficiency
  • Ensuring adequate supply of input materials

Challenges Ahead

  • Geopolitical volatility in Europe
  • Geopolitical volatility in Asia
  • Challenges created by geopolitical volatility
  • Long-term opportunities impacted by geopolitical volatility
  • Need to work closely with customers and suppliers