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Sep 30, 2021
ATI Q3 2021 Earnings Report
ATI returned to profitability driven by aerospace market recovery and business transformation.
Key Takeaways
Allegheny Technologies Incorporated reported Q3 2021 results with sales of $726 million and net income attributable to ATI of $48.7 million, or $0.35 per share. Adjusted EPS was $0.05 excluding special items. Adjusted EBITDA increased 49% sequentially to $79.9 million. The company extended its debt maturity profile and reduced annual interest expense by ~$6 million.
Sales of $726 million increased 18% over second quarter 2021
Net income attributable to ATI of $48.7 million, or $0.35 per share
Adjusted EBITDA of $79.9 million increased 49% sequentially
Extended debt maturity profile and reduced annual interest expense by ~$6 million
ATI
ATI
ATI Revenue by Segment
Revenue by Segment
High Performance Materials & Components Revenue
CapyFin.com Forward Guidance
Looking ahead to the fourth quarter, ATI anticipates sequential revenue and earnings growth primarily driven by the ongoing commercial aerospace recovery in its HPMC segment. Significant managed working capital reductions will fuel fourth quarter cash generation. As business transformation actions near completion in the AA&S segment, ATI will temporarily curtail some early stage manufacturing activities to better align inventory levels with market demand and have planned extended equipment outages to complete transformational upgrades which will likely result in unfavorable cost absorption impacts in the quarter.
Positive Outlook
- Sequential revenue growth anticipated
- Sequential earnings growth anticipated
- Commercial aerospace recovery in HPMC segment expected to drive growth
- Significant managed working capital reductions will fuel fourth quarter cash generation
Challenges Ahead
- Temporary curtailment of some early stage manufacturing activities in AA&S segment
- Planned extended equipment outages to complete transformational upgrades
- Unfavorable cost absorption impacts likely in Q4
- Actions taken to align inventory levels with market demand
- Business transformation actions nearing completion may cause disruptions