ATI Inc. reported its third‑quarter 2025 results, with sales of $1.13 billion, up 7% year‑over‑year. The increase was driven by a 21% year‑over‑year rise in aerospace & defense revenue, which reached $793 million and accounted for 70% of total sales.
Net income attributable to ATI was $110 million, or $0.78 per share on a GAAP basis. Adjusted net income was $119 million, and adjusted earnings per share were $0.85. Adjusted EBITDA reached $225.1 million, representing a 20.0% margin.
ATI raised its full‑year guidance. Adjusted EBITDA for 2025 is now projected at $848 million to $858 million, up from the prior $810 million to $840 million range. Adjusted earnings per share are now expected to be $3.15 to $3.21, versus the previous $2.90 to $3.07. Adjusted free cash flow guidance was increased to $330 million to $370 million, up from the prior $270 million to $350 million. Capital expenditures for the year are guided at $260 million to $280 million.
Segment performance highlighted continued strength in high‑performance materials and components. HPMC sales reached $602.9 million with an EBITDA margin of 24.2%, while AA&S sales were $522.6 million with a 17.3% margin. Aerospace & defense growth was led by defense revenue up 51% year‑over‑year and jet engine revenue up 19% year‑over‑year. The company’s order book for jet engines extends into mid‑2027.
Operating cash flow for the quarter was $230 million, and year‑to‑date operating cash flow was $299 million. Capital expenditures for the quarter were $63 million. Share repurchases totaled $150 million in the quarter, bringing 2025 repurchases to $470 million. ATI also reported a $10.5 million gain from the sale of oil and gas rights and a $1.1 million gain from the sale of a non‑core business.
Strategic initiatives such as long‑term agreements, operational excellence programs, and a focused pricing strategy have supported margin expansion. ATI was named Supplier of the Year by General Dynamics U.K., underscoring its strong performance in the defense sector.
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