Core Insights - Mesirow acted as the exclusive financial advisor to ATI on the sale of its East Hartford Operations to Barnes Aerospace, highlighting Mesirow's expertise in the aerospace and defense sector [1][8] - The East Hartford Operations specializes in machining flight-safety critical rotating hardware, serving both commercial and defense aerospace sectors [1][6] Company Overview - ATI is a global producer of high-performance materials and solutions for aerospace, defense, electronics, medical, and specialty energy markets [1] - The East Hartford Operations has over 75 years of operational history and is recognized for its quality products and customer service [2][6] Transaction Details - The transaction is part of Mesirow's successful track record in aerospace and defense corporate carve-out transactions, with over 350 transactions completed across various verticals [3] - Mesirow's deep industry expertise and long-standing client relationships contributed to the successful outcome of this transaction [3]

Core Insights - ATI Inc. reported a profit of $100.7 million or 70 cents per share for Q2 2025, an increase from $81.9 million or 58 cents in the same quarter last year, with adjusted earnings of 74 cents, up 23.3% year over year, surpassing the Zacks Consensus Estimate of 72 cents [1][10] Financial Performance - Net sales for Q2 2025 were $1,140.4 million, slightly below the Zacks Consensus Estimate of $1,144.3 million, but up approximately 4.1% year over year, driven by strong growth in aerospace and defense [2] - High-Performance Materials & Components (HPMC) segment reported sales of $608.8 million, an 8.3% increase year over year, although it missed the consensus estimate of $621.4 million; segment EBITDA rose 26.5% year over year to $144 million [3] - Advanced Alloys & Solutions (AA&S) recorded sales of $531.6 million, a slight decline of 0.3% from the previous year, but exceeded the consensus estimate of $525.2 million; segment EBITDA decreased by 12.3% year over year to $76.7 million [4] - Cash and cash equivalents stood at $319.6 million, down from $425.6 million the previous year, while long-term debt decreased by 7.7% to $1,710.7 million [5] Future Outlook - For Q3 2025, adjusted EBITDA is expected to be between $200 million and $210 million, with full-year guidance set between $810 million and $840 million; adjusted earnings per share are projected at 69-75 cents for Q3 and $2.90 to $3.07 for the full year [6][10] - Adjusted free cash flow for the full year is estimated to be between $270 million and $350 million, with anticipated capital expenditures between $260 million and $280 million [6]

Core Viewpoint - Appili Therapeutics has announced a peer-reviewed publication supporting the efficacy of its vaccine candidate ATI-1701 against tularemia, highlighting its robust protection in multiple animal models [1][2][3]. Company Overview - Appili Therapeutics is a biopharmaceutical company focused on drug development for infectious diseases and medical countermeasures, with a mission to address life-threatening infections [7]. - The company is advancing a diverse range of anti-infectives, including ATI-1701, which is aimed at preventing tularemia, a highly contagious bacterial disease [7]. Vaccine Candidate Details - ATI-1701 is a live attenuated strain of Francisella tularensis, being developed as a first-in-class vaccine for tularemia, which currently has no approved vaccine in major markets [2][5][6]. - The vaccine is considered a top biodefense priority due to the severe illness it can cause and its high infectiousness, being over 1,000 times more infectious than anthrax [6]. Study Findings - The publication details studies showing that ATI-1701 provided 100% survival in rats challenged with aerosolized SCHU S4 up to one year post-vaccination, even at doses exceeding 10,000 times the median lethal dose [8]. - In cynomolgus macaques, the vaccine demonstrated up to 100% protection, reduced disease severity, and improved histopathological outcomes, with robust antibody responses correlating with survival [8]. Development and Partnerships - The study reinforces ATI-1701's potential as a leading candidate for tularemia prevention and supports continued development in partnership with the U.S. Department of Defense [4].

Core Insights - Ati reported non-GAAP earnings per share of $0.74 for fiscal Q2 2025, exceeding the consensus estimate of $0.71, while revenue was $1,140.4 million, below the expected $1,157.3 million but up 4% year-over-year [1][2] - Net income under GAAP increased by 23% year-over-year, driven by margin expansion and strong performance in core aerospace markets [1][2] - The company is focusing on expanding its titanium production capacity and investing in advanced manufacturing technology to meet future demand [4][7] Financial Performance - Non-GAAP EPS for Q2 2025 was $0.74, a 23% increase from $0.60 in Q2 2024 [2] - Revenue for Q2 2025 was $1,140.4 million, a 4% increase from $1,095.3 million in Q2 2024 [2] - Net income attributable to ATI was $100.7 million, up from $81.9 million in the previous year [2] - Adjusted EBITDA for the quarter was $207.7 million, a 14% increase from $182.6 million in Q2 2024 [2] - Adjusted free cash flow nearly doubled to $92.9 million compared to $47.8 million in the same period last year [2][10] Business Focus and Strategy - Ati specializes in advanced specialty materials, including nickel-based alloys and titanium products, primarily serving aerospace, defense, energy, electronics, and medical device markets [3] - The company has secured long-term contracts with major aircraft manufacturers, providing stability and supporting its growth strategy [4] - Aerospace and defense sales rose to $761.8 million, accounting for 67% of total revenue, with a significant increase in sales to commercial jet engine makers [5][6] Segment Performance - The High Performance Materials & Components segment saw sales increase by 8% to $608.8 million, with an EBITDA margin of 23.7% [6] - The Advanced Alloys & Solutions segment maintained steady sales but experienced a decline in EBITDA margins due to weaker industrial markets [6] Future Outlook - Management expects adjusted EBITDA for Q3 2025 to be between $200 million and $210 million, with adjusted EPS projected between $0.69 and $0.75 [11] - Full-year guidance for adjusted EBITDA has been raised to $810–$840 million, with adjusted EPS forecasted at $2.90–$3.07 [11] - Adjusted free cash flow for the full year is guided in the range of $270 million to $350 million [11]

Core Insights - ATI Physical Therapy has transitioned from public to private ownership through a merger led by Knighthead Capital Management and Marathon Asset Management, with over 90% of voting shares involved [1][2] - The acquisition price for shares not held by the consortium is set at $2.85 per share in cash [1] - The move to private ownership is expected to enhance ATI's operational flexibility and long-term growth while maintaining a focus on patient care [2][4] Company Strategy - The merger will enable ATI to operate with greater agility and a long-term focus, allowing for continued delivery of high-quality, patient-centered care across its clinic network [2] - The management team, recognized for its excellence, will continue to receive support from the investment firms to grow the business organically and through new clinic openings [3] - The CEO of ATI emphasized that returning to private ownership will allow the company to focus on patients and partners without the constraints of quarterly reporting cycles, ultimately strengthening its service to communities [4] Company Background - ATI Physical Therapy is a leading provider of outpatient physical therapy and rehabilitation services, with hundreds of clinics across the United States [5] - The company is committed to clinical excellence and innovative care delivery, helping patients through evidence-based treatment and personalized plans [5]

Core Viewpoint - Altai Resources Inc. is seeking shareholder approval for a special resolution to reduce the stated capital account of its common shares by up to $4,000,000 for the purpose of distributing this amount as a return of capital through special cash distributions [1]. Group 1: Company Announcement - The company has filed a management information circular and related meeting materials for a special meeting of shareholders scheduled for September 3, 2025 [1]. - The proposed capital reduction will allow for cash distributions to holders of common shares [1]. Group 2: Shareholder Information - Shareholders are encouraged to review the Meeting Materials, which are available on SEDAR+ and will be mailed to eligible shareholders [2]. Group 3: Company Overview - Altai Resources Inc. is based in Toronto, Ontario, and has a producing oil property in Alberta, an exploration gold property in Quebec, and a Canadian investment portfolio consisting of cash and cash equivalents [3].

Core Insights - Allegheny Technologies (ATI) reported revenue of $1.14 billion for the quarter ended June 2025, reflecting a 4.1% increase year-over-year, with EPS at $0.74 compared to $0.60 in the same quarter last year [1] - The reported revenue matched the Zacks Consensus Estimate, but the EPS exceeded expectations by 2.78% [1] Financial Performance - High Performance Materials & Components sales were $608.8 million, which was below the estimated $621.48 million, but showed an 8.3% increase from the previous year [4] - Advanced Alloys & Solutions sales reached $531.6 million, slightly above the estimated $525.28 million, but represented a year-over-year decline of 0.3% [4] - EBITDA for Advanced Alloys & Solutions was $76.7 million, below the average estimate of $78.22 million, while EBITDA for High Performance Materials & Components was $144 million, exceeding the estimate of $140.02 million [4] Stock Performance - Shares of Allegheny Technologies have increased by 10.1% over the past month, outperforming the Zacks S&P 500 composite, which rose by 2.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Allegheny Technologies (ATI) reported quarterly earnings of $0.74 per share, exceeding the Zacks Consensus Estimate of $0.72 per share, and showing an increase from $0.60 per share a year ago, resulting in an earnings surprise of +2.78% [1] - The company posted revenues of $1.14 billion for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.34%, but up from $1.1 billion year-over-year [2] - Allegheny Technologies shares have increased approximately 71.2% year-to-date, significantly outperforming the S&P 500's gain of 8.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.76 on revenues of $1.15 billion, and for the current fiscal year, it is $3.04 on revenues of $4.66 billion [7] - The estimate revisions trend for Allegheny Technologies was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Steel - Specialty industry, to which Allegheny Technologies belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Revenue grew 4% year over year, exceeding $1,140,000,000 [6][18] - Adjusted EBITDA reached approximately $208,000,000, a 14% increase year over year [6][18] - Adjusted earnings per share came in at $0.74, above projected range [6] - Adjusted EBITDA margin reached 18.2%, with High Performance Materials and Components segment delivering margins of 23.7%, a 350 basis point improvement from Q2 2024 [6][21] - Adjusted free cash flow was $93,000,000, a 94% increase year over year [7][18] Business Line Data and Key Metrics Changes - High Performance Materials and Components (HPMC) segment showed margin improvement, with expectations for continued strength [6][21] - Aerospace and Defense (A&D) remains a reliable growth driver, with double-digit growth expected for the third consecutive year [14][26] - Commercial jet engine sales grew 27% in Q2 and are expected to exceed 20% growth for the full year [12][26] - Aerospace and Non-Defense (AANS) performance was above expectations despite a sequential decline [22] Market Data and Key Metrics Changes - The aerospace recovery is accelerating, positioning the company to grow alongside customers [5][12] - Demand for commercial jet engines is expected to continue rising, with customers reporting expanding backlogs [12][26] - Defense market growth is driven by international programs and increased commitments for high-value materials [14][16] Company Strategy and Development Direction - The company is focused on achieving consistent profitable growth through innovation, performance, and partnerships [17][32] - Long-term agreements with Boeing and Airbus are expected to enhance revenue and margin expansion [10][75] - Investments in capacity and technology are aimed at meeting the growing needs of the aerospace industry [11][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver with reliability and scale as demand ramps up [11][32] - Near-term volatility is anticipated as airframers balance inventory with supply chain realities [11] - The company remains disciplined in capital deployment and focused on working capital efficiency [7][18] Other Important Information - The company executed $250,000,000 in share repurchases during the quarter, bringing total buybacks since 2022 to over $800,000,000 [7][8] - The full-year guidance for adjusted EBITDA, EPS, and free cash flow has been raised based on strong performance [8][26] Q&A Session Summary Question: Airframe outlook and inventory levels - Management noted that customer destocking is impacting revenues, but expects demand to return as Boeing ramps up production [35][36] Question: Jet engine capacity utilization and growth - Management confirmed that capacity is in good shape to meet 2027 targets, with investments expected to increase output by 8% to 10% [42][43] Question: Industrial end markets performance - Management indicated mixed results in industrial markets, with some growth in conventional oil and gas but declines in construction and mining [54][56] Question: HPMC margins and future targets - Management expects HPMC margins to remain above 24%, with incremental margins projected in the 40% range [65][66] Question: Aftermarket trends - Management anticipates sustained high MRO and spares demand, driven by increasing shop visits and upgrade packages [70][72] Question: Contract terms and share gains - Management confirmed that new contracts include volume-based minimums and pricing terms that allow for inflation and cost pass-through [74][75] Question: Nickel melt capacity increase - Management clarified that new melting equipment will be added to increase nickel capacity by 8% to 10% [87][88] Question: Titanium revenue contribution - Management expects the new titanium facility to contribute significantly to revenue as it ramps up production [90][97] Question: Jet engine revenue growth expectations - Management indicated that jet engine revenue growth could be in the range of 20% to 25% for the year [103] Question: COVID-era employee retention credits - Management confirmed that $5,000,000 in credits remain on the books, with no further recognition expected in the second half [106] Question: Isothermal forging business and share gains - Management reported strong demand in the forging business, with expectations for continued growth and share gains [109][110]

Financial Data and Key Metrics Changes - Revenue grew 4% year over year, exceeding $1,140,000,000 [5][17] - Adjusted EBITDA reached approximately $208,000,000, a 14% increase year over year [17] - Adjusted earnings per share came in at $0.74, above projected range [5] - Adjusted EBITDA margin reached 18.2%, a long-standing performance target [5] - Adjusted free cash flow was $93,000,000, a 94% increase year over year [6] Business Line Data and Key Metrics Changes - High Performance Materials and Components (HPMC) segment delivered margins of 23.7%, a 350 basis point improvement from Q2 2024 [5] - Commercial jet engine sales grew 27% in Q2 and 31% year to date [10] - Defense remains a reliable growth driver with expectations of double-digit growth [12] - Aerospace and Defense (A&D) continues to drive margin expansion due to contractually secured customer base [20] Market Data and Key Metrics Changes - Jet engine market expected to grow more than 20% for the full year [25] - Airframe estimates held flat from 2024 levels due to customer inventory destocking [26] - Non-A&D markets expected to decline by 5% to 7% from 2024 levels [26] Company Strategy and Development Direction - Company signed long-term agreements with Boeing and Airbus, expanding product offerings and securing customer share [7][8] - Focus on achieving consistent profitable growth through innovation, performance, and partnerships [15] - Investments in capacity and technology to support future growth and reliability [6][15] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver with reliability and scale as the aerospace recovery accelerates [4] - Anticipated near-term volatility in airframe markets but confident in long-term growth [9] - Management remains mindful of near-term uncertainties but believes long-term fundamentals are compelling [31] Other Important Information - Company executed $250,000,000 in share repurchases during the quarter, totaling over $800,000,000 since 2022 [6] - Cash generation improvements in the first half strengthen the balance sheet and increase optionality looking forward [22] Q&A Session Summary Question: Airframe outlook and inventory levels - Management noted that customer destocking is impacting revenues but anticipates demand returning in the back half of the year as Boeing ramps up production [34][35] Question: Capacity utilization and volume increase for 2026 - Company is in good shape to meet 2027 targets with discrete investments in melting, forging, and finishing [41][42] Question: Industrial end markets and guidance for the second half - Industrial markets showed flat overall performance with some positive growth in conventional oil and gas, but declines in construction and mining [51][53] Question: HPMC margins and future targets - HPMC margins expected to remain above 24% with incremental margins projected in the 40% range [63] Question: Aftermarket trends and production ramp - MRO demand remains strong, with expectations for sustained high demand through the rest of the decade [68][70] Question: Contract extensions and terms - New contracts include share gains, beneficial changes to mix pricing, and terms that allow for inflation and cost pass-through [72][75] Question: Nickel melt capacity increase - Investments in new melting equipment will increase nickel capacity by 8% to 10% [84][85] Question: Titanium revenue contribution from new furnaces - Titanium melt capacity expected to increase by 80%, with significant revenue contributions anticipated [92][95] Question: Direct tariff impacts on cost structure - Company is well-positioned to recover costs incurred due to tariffs through structured contracts [117][121] Question: Exotics business and nuclear demand - Demand for nuclear products is up 24% year over year, with strong growth anticipated in the back half of the year [124][126]