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Mar 30

ATI Q1 2025 Earnings Report

Reported strong year-over-year sales growth driven by aerospace & defense in the first quarter of 2025.

Key Takeaways

ATI Inc. reported first quarter 2025 results with sales of $1.14 billion and net income attributable to ATI of $97.0 million, or $0.67 per share. Adjusted net income was $104.4 million, or $0.72 per share, and adjusted EBITDA was $194.6 million, or 17.0% of sales. Aerospace and defense sales represented 66% of total sales.

Sales for Q1 2025 were $1.14 billion, a 10% increase year-over-year.

Net income attributable to ATI for Q1 2025 was $97.0 million, a 47% increase year-over-year.

Diluted EPS for Q1 2025 was $0.67, a 46% increase year-over-year.

Adjusted EBITDA for Q1 2025 was $194.6 million, a 29% increase year-over-year.

Total Revenue
$1.14B
Previous year: $1.04B
+9.7%
EPS
$0.72
Previous year: $0.48
+50.0%
Adjusted EBITDA
$195M
Previous year: $151M
+28.9%
Managed Working Capital
$1.65B
Previous year: $1.45B
+13.4%
Managed Working Capital % Sales
35.9%
Gross Profit
$236M
Previous year: $197M
+19.5%
Cash and Equivalents
$476M
Previous year: $394M
+20.6%
Free Cash Flow
-$143M
Previous year: -$165M
-13.1%
Total Assets
$5.18B
Previous year: $4.78B
+8.4%

ATI

ATI

ATI Revenue by Segment

Forward Guidance

The company is providing second quarter and updated full year 2025 guidance, assuming share repurchases of approximately $250 million in the second quarter.

Positive Outlook

  • Q2 2025 Adjusted EBITDA guidance is between $195 million and $205 million.
  • Full Year 2025 Adjusted EBITDA guidance is between $800 million and $840 million.
  • Q2 2025 Adjusted Earnings Per Share guidance is between $0.67 and $0.73.
  • Full Year 2025 Adjusted Earnings Per Share guidance is between $2.87 and $3.09.
  • Full Year 2025 Adjusted Free Cash Flow guidance is between $240 million and $360 million.

Challenges Ahead

  • Detailed reconciliations of forward-looking non-GAAP financial measures to GAAP are not available without unreasonable effort.
  • Guidance assumes share repurchases of approximately $250 million in Q2, which could impact share count and EPS.
  • Macro dynamics continue to evolve, potentially introducing volatility.
  • Reliance on the ability to act nimbly and decisively to manage the current environment's volatility.
  • Future performance may differ materially due to various risk factors.

Revenue & Expenses

Visualization of income flow from segment revenue to net income