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Dec 31, 2020

ATI Q4 2020 Earnings Report

ATI's Q4 2020 results exceeded expectations through strong cost control, with signs of commercial aero stabilization and actions to exit standard stainless sheet products and enhance high-return capabilities on track.

Key Takeaways

ATI reported Q4 2020 results with sales of $658 million and a net loss of $1,121.0 million, or $(8.85) per share, including $1,079.1 million of restructuring and other charges. On an adjusted basis, the net loss was $41.9 million, or ($0.33) per share, with adjusted EBITDA of $23.0 million.

Sales of $658 million, up 10% over Q3 2020.

Net loss attributable to ATI of $1,121.0 million, or $(8.85) per share; adjusted net loss of $41.9 million, or $(0.33) per share.

Restructuring and other charges, including previously announced non-cash asset impairments and related tax impacts, of $1,079.1 million, or $(8.52) per share.

Adjusted EBITDA of $23.0 million, up 39% over Q3 2020.

Total Revenue
$658M
Previous year: $1.02B
-35.4%
EPS
-$0.33
Previous year: $0.36
-191.7%
Adjusted EBITDA
$23M
Gross Profit
$45.2M
Previous year: $169M
-73.3%
Cash and Equivalents
$646M
Previous year: $491M
+31.6%
Total Assets
$4.03B
Previous year: $5.63B
-28.4%

ATI

ATI

ATI Revenue by Segment

Forward Guidance

ATI anticipates a continued difficult market environment in Q1 2021 due to the Covid-19 resurgence and low global air passenger travel rates, but is optimistic about a demand rebound in the second half of the year driven by increasing narrow-body engine production volumes and new business in airframes.

Positive Outlook

  • Demand is expected to improve in the second half of the year.
  • Increase in narrow-body engine production volumes.
  • ATI's jet engine-related share gains.
  • New business in airframes.
  • Focused on delivering operational excellence for customers.

Challenges Ahead

  • Continued difficult market environment driven by the Covid-19 resurgence.
  • Relatively low rates of global air passenger travel.
  • First quarter 2021 compares to a robust pre-pandemic quarter.
  • Market conditions remain challenging.
  • Ongoing transformation of specialty rolled business.