Financial Performance - Q2 2025 sales reached $1.14 billion, a 4% year-over-year increase[4] - Adjusted EBITDA for Q2 2025 was $208 million, up 14% year-over-year, with a margin of 18.2%, a 150 bps increase[4] - Adjusted EPS for Q2 2025 was $0.74, compared to $0.60 in Q2 2024[4, 5] - Adjusted Free Cash Flow was $93 million, a 94% year-over-year increase[6] Segment Performance (Aerospace & Defense) - Aerospace & Defense (A&D) accounted for 67% of total sales, with $762 million in Q2[10, 11] - Commercial Jet Engines saw a 27% year-over-year growth in Q2 and 31% year-to-date, with expected growth exceeding 20% for 2025[10, 13] - HPMC (High Performance Materials & Components) segment margin was 23.7% in Q2, up 350 bps year-over-year[10] - AA&S (Advanced Alloys & Solutions) segment margin was 14.4%, a sequential dip due to defense, airframe, and energy timing[10] Outlook and Capital Allocation - The company expects an Adjusted EBITDA between $810 million and $840 million for the full year 2025[20] - The company expects an Adjusted EPS between $2.90 and $3.07 for the full year 2025[20] - The company expects a Free Cash Flow between $270 million and $350 million for the full year 2025[20] - $250 million in share repurchases were made in Q2, with over $800 million repurchased since 2022 at an average price of ~$48 per share[10]

[Executive Summary & Guidance](index=1&type=section&id=Executive%20Summary%20%26%20Guidance) ATI Inc. reported strong Q2 2025 results driven by aerospace & defense, and raised its full-year 2025 adjusted earnings and cash flow guidance [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) ATI Inc. reported strong second quarter 2025 results, driven by continued year-over-year sales growth in aerospace & defense. Key financial metrics like net income, EPS, and Adjusted EBITDA showed double-digit increases compared to the prior year Second Quarter 2025 Key Financial Highlights (YoY Growth) | Metric | Q2 2025 Value | YoY Change | Source | | :-------------------------------- | :------------ | :--------- | :----- | | Sales | $1.14 billion | +4% | chunk_num: [6] | | Net income attributable to ATI | $101 million | +23% | chunk_num: [6] | | Earnings per share | $0.70 | +21% (from $0.58) | chunk_num: [6] | | Adjusted net income attributable to ATI | $106 million | +24% | chunk_num: [6] | | Adjusted earnings per share | $0.74 | +23% (from $0.60) | chunk_num: [6] | | Adjusted EBITDA | $208 million | +14% | chunk_num: [6] | | Adjusted EBITDA as % of sales | 18.2% | +1.5 pts (from 16.7%) | chunk_num: [6] | | Aerospace and defense sales | $762 million | 67% of Q2 2025 sales | chunk_num: [2] | [Full Year 2025 Guidance](index=1&type=section&id=Full%20Year%202025%20Guidance) ATI Inc. provided guidance for the third quarter and updated its full-year 2025 outlook, raising the mid-point for adjusted earnings and cash flow Q3 and Full Year 2025 Guidance (millions) | Metric | Q3 2025 Guidance | Full Year 2025 Guidance | | :------------------------ | :----------------- | :---------------------- | | Adjusted EBITDA | $200M - $210M | $810M - $840M | | Adjusted Earnings Per Share | $0.69 - $0.75 | $2.90 - $3.07 | | Adjusted Free Cash Flow | | $270M - $350M | | Capital expenditures | | $260M - $280M | [Detailed Second Quarter 2025 Financial Results](index=2&type=section&id=Detailed%20Second%20Quarter%202025%20Financial%20Results) ATI Inc. reported strong Q2 2025 financial performance with double-digit growth, driven by robust aerospace and defense demand and disciplined capital allocation [GAAP and Non-GAAP Financial Performance](index=2&type=section&id=GAAP%20and%20Non-GAAP%20Financial%20Performance) ATI Inc. reported second quarter 2025 sales of $1.14 billion and net income attributable to ATI of $100.7 million, or $0.70 per share. Adjusted results exclude pre-tax charges of $7.4 million for special items Q2 2025 Financial Performance (Sequential & YoY Comparison) | ($ in millions except per share amounts) | Q2 2025 | Q1 2025 | Sequential Change | Q2 2024 | Y-O-Y Change | | :--------------------------------------- | :------ | :------ | :---------------- | :------ | :----------- | | Sales | $1,140.4 | $1,144.4 | — % | $1,095.3 | 4 % | | Net income attributable to ATI | $100.7 | $97.0 | 4 % | $81.9 | 23 % | | Earnings per share | $0.70 | $0.67 | 4 % | $0.58 | 21 % | | Adjusted net income attributable to ATI* | $106.4 | $104.4 | 2 % | $86.0 | 24 % | | Adjusted earnings per share* | $0.74 | $0.72 | 3 % | $0.60 | 23 % | | ATI adjusted EBITDA* | $207.7 | $194.6 | 7 % | $182.6 | 14 % | - Second quarter 2025 adjusted results exclude pre-tax charges of **$7.4 million** for special items, with an after-tax impact of **$5.7 million**, or **$0.04 per share**[8](index=8&type=chunk) [CEO Commentary](index=2&type=section&id=CEO%20Commentary) Kimberly A. Fields, President and CEO, highlighted strong and sustained demand in aerospace and defense markets, driving double-digit growth. She also emphasized disciplined capital allocation, including significant share repurchases - Strong, sustained demand in ATI's aerospace and defense end markets drove **double-digit growth in net income, EPS, and adjusted EBITDA** year-over-year[10](index=10&type=chunk) - Demand from A&D customers is increasing, with expectations for ramping production and deliveries through 2025 and into 2026, supported by recent long-term contract extensions[10](index=10&type=chunk) - ATI repurchased **$250 million of its stock in Q2 2025**, bringing total 2025 repurchases to **$320 million**, with **$270 million** remaining in board authorization for opportunistic deployment[11](index=11&type=chunk) [Operating Results by Segment](index=3&type=section&id=Operating%20Results%20by%20Segment) HPMC segment sales grew significantly due to commercial jet engines, while AA&S sales saw a sequential decline but remained flat year-over-year [High Performance Materials & Components (HPMC)](index=3&type=section&id=High%20Performance%20Materials%20%26%20Components%20(HPMC)) HPMC segment sales increased 4% sequentially and 8% year-over-year, primarily driven by a 26% increase in commercial jet engine sales. Segment EBITDA and margins also improved due to higher sales volume and favorable pricing HPMC Segment Performance | ($ millions) | Q2 2025 | Q1 2025 | Q2 2024 | | :----------- | :------ | :------ | :------ | | Sales | $608.8 | $584.1 | $562.0 | | Segment EBITDA* | $144.0 | $131.0 | $113.8 | | % of Sales | 23.7 % | 22.4 % | 20.2 % | - HPMC's Q2 2025 sales increased by **$24.7 million (4%) sequentially** and **8% year-over-year**, primarily due to a **26% increase in commercial jet engine sales**[14](index=14&type=chunk) - Aerospace & defense sales represented **92% of total HPMC sales** in Q2 2025. The year-over-year sales growth was negatively impacted by a **$30.0 million disposition** of non-core European operations[14](index=14&type=chunk) - Sequential increase in HPMC segment EBITDA margins was primarily due to **higher sales volume and favorable pricing** of nickel-based and specialty alloys, benefiting from **$4.4 million in employee retention credits**[14](index=14&type=chunk) [Advanced Alloys & Solutions (AA&S)](index=3&type=section&id=Advanced%20Alloys%20%26%20Solutions%20(AA%26S)) AA&S segment sales decreased 5% sequentially but were relatively flat year-over-year. The sequential decline was mainly due to lower sales in conventional energy and defense, partially offset by growth in specialty energy and electronics. Segment EBITDA and margins decreased sequentially due to lower sales volume AA&S Segment Performance | ($ millions) | Q2 2025 | Q1 2025 | Q2 2024 | | :----------- | :------ | :------ | :------ | | Sales | $531.6 | $560.3 | $533.3 | | Segment EBITDA* | $76.7 | $83.4 | $87.5 | | % of Sales | 14.4 % | 14.9 % | 16.4 % | - AA&S's Q2 2025 sales decreased by **$28.7 million (5%) sequentially**, primarily due to lower sales of conventional energy and defense products, partially offset by higher sales in specialty energy and electronics[15](index=15&type=chunk) - Aerospace & defense sales constituted **38% of total AA&S sales** in Q2 2025. Sales were relatively flat year-over-year, decreasing less than **1%**[15](index=15&type=chunk) - The sequential decrease in AA&S segment EBITDA margins was primarily due to **lower sales volume**. Q2 2025 margin benefited from **$2.6 million in employee retention credits**[15](index=15&type=chunk) [Corporate Items and Cash](index=4&type=section&id=Corporate%20Items%20and%20Cash) The company incurred restructuring charges, managed corporate expenses, reported a 22.0% effective tax rate, and executed significant share repurchases [Restructuring and Other Charges](index=4&type=section&id=Restructuring%20and%20Other%20Charges) The company incurred various pre-tax restructuring and other charges across Q2 2025, Q1 2025, and Q2 2024, primarily related to start-up costs, transaction costs, and losses on asset sales, partially offset by reductions in severance reserves - Q2 2025: **$8.7 million in pre-tax charges**, including **$7.1 million for start-up/transaction costs** and **$1.6 million for losses on customer accounts receivable sales**, offset by **$1.3 million in severance reserve reductions**[19](index=19&type=chunk) - Q1 2025: **$5.6 million in pre-tax charges**, including **$4.0 million for start-up/transaction costs** and **$1.6 million for losses on customer accounts receivable sales**[19](index=19&type=chunk) - Q2 2024: **$5.4 million in pre-tax charges**, including **$5.5 million for inventory write-downs** related to European restructuring and **$1.8 million for start-up costs**, offset by **$1.9 million in severance reserve reductions**[19](index=19&type=chunk) [Corporate Expenses and Other Income/Expense](index=4&type=section&id=Corporate%20Expenses%20and%20Other%20Income%2FExpense) Corporate expenses decreased sequentially and year-over-year due to insurance claims and lower incentive compensation. Closed operations and other income/expense shifted from an expense in Q1 2025 to income in Q2 2025, benefiting from foreign exchange gains and a bankruptcy settlement - Corporate expenses in Q2 2025 were **$15.4 million**, down from **$17.4 million in Q1 2025** (due to insurance claims benefit) and **$19.4 million in Q2 2024** (due to lower incentive compensation costs)[19](index=19&type=chunk) - Closed operations and other income/expense was an income of **$2.4 million in Q2 2025**, compared to an expense of **$2.4 million in Q1 2025**. Q2 2025 benefited from **$1.8 million in foreign exchange gains** and a **$1.1 million favorable bankruptcy settlement**[19](index=19&type=chunk) [Income Tax Provision](index=4&type=section&id=Income%20Tax%20Provision) The income tax provision for Q2 2025 was $29.3 million, resulting in an effective tax rate of 22.0%, which was higher than Q1 2025 due to discrete tax benefits in the prior quarter - Q2 2025 income tax provision: **$29.3 million**, effective tax rate of **22.0%**[19](index=19&type=chunk) - Q1 2025 income tax provision included **$5.1 million of discrete tax benefits** primarily related to equity compensation and uncertain tax positions[19](index=19&type=chunk) [Cash Flow and Capital Allocation](index=4&type=section&id=Cash%20Flow%20and%20Capital%20Allocation) Cash provided by operating activities was $162 million in Q2 2025. The company continued its capital allocation strategy with $72 million in capital expenditures and significant share repurchases - Cash provided by operating activities: **$162 million for Q2 2025** and **$69 million year-to-date 2025**[19](index=19&type=chunk) - Capital expenditures for Q2 2025: **$72 million**[19](index=19&type=chunk) - Managed working capital as a percent of annualized sales: **36.5% at the end of Q2 2025**, a slight increase from **35.9% at the end of Q1 2025**[19](index=19&type=chunk) - Share repurchases in Q2 2025: **$250 million** (approximately **3.2 million shares** at an average price of **$76.79**). Remaining authorization: **$270 million**[19](index=19&type=chunk) [Company Information & Forward-Looking Statements](index=4&type=section&id=Company%20Information%20%26%20Forward-Looking%20Statements) ATI Inc. announced its Q2 2025 conference call, provided a forward-looking statements disclaimer, and reiterated its role as a global high-performance materials producer [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) ATI Inc. will host a conference call on July 31, 2025, to discuss the financial results, with broadcast and presentation slides available on its website - A conference call with investors and analysts will be held on **Thursday, July 31, 2025, at 8:30 a.m. ET**, accessible via ATImaterials.com[17](index=17&type=chunk) [Forward-Looking Statements Disclaimer](index=4&type=section&id=Forward-Looking%20Statements%20Disclaimer) The news release contains forward-looking statements subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from expectations. The company assumes no duty to update these statements - Forward-looking statements are based on management's current expectations and involve known and unknown risks, uncertainties, and other factors that could cause actual performance to differ materially[18](index=18&type=chunk)[20](index=20&type=chunk) - Risk factors include material adverse changes in economic/industry conditions, market changes, inability to achieve anticipated benefits from strategic investments, raw material price/availability volatility, pension plan asset declines, labor disputes, equipment outages, and business disruptions from extraordinary events[20](index=20&type=chunk) [Company Overview](index=5&type=section&id=Company%20Overview) ATI Inc. is a global producer of high-performance materials and solutions, primarily serving aerospace & defense, electronics, medical, and specialty energy markets, leveraging materials science and innovation to solve complex challenges - ATI (NYSE: ATI) is a global producer of high-performance materials and solutions for **aerospace & defense, electronics, medical, and specialty energy markets**[21](index=21&type=chunk) - The company focuses on solving difficult challenges through materials science, partnering with customers to deliver materials that enable high-performance products[21](index=21&type=chunk) [GAAP Financial Statements](index=6&type=section&id=GAAP%20Financial%20Statements) This section presents ATI's unaudited GAAP financial statements, including statements of operations, balance sheets, cash flows, and detailed revenue by market [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) The unaudited consolidated statements of operations show ATI's financial performance for the fiscal quarters and year-to-date periods, detailing revenue, costs, and net income Consolidated Statements of Operations (Selected Data) ($ in millions) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------------------- | :------ | :------ | :------ | :------- | :------- | | Sales | $1,140.4 | $1,144.4 | $1,095.3 | $2,284.8 | $2,138.2 | | Gross profit | $242.5 | $235.8 | $227.4 | $478.3 | $424.8 | | Operating income | $161.0 | $146.9 | $142.6 | $307.9 | $257.8 | | Net income attributable to ATI | $100.7 | $97.0 | $81.9 | $197.7 | $148.0 | | Diluted net income attributable to ATI per common share | $0.70 | $0.67 | $0.58 | $1.38 | $1.04 | [Selected Financial Data](index=7&type=section&id=Selected%20Financial%20Data) This section provides a breakdown of sales and EBITDA by segment, along with the percentage of total ATI sales by product type, offering insights into business segment performance and product mix Segment Sales and EBITDA ($ in millions) | Segment | Q2 2025 Sales | Q2 2025 EBITDA | Q2 2025 EBITDA % of Sales | | :-------------------------------- | :------------ | :------------- | :------------------------ | | High Performance Materials & Components | $608.8 | $144.0 | 23.7 % | | Advanced Alloys & Solutions | $531.6 | $76.7 | 14.4 % | | Total external sales | $1,140.4 | | | Percentage of Total ATI Sales by Product Type (Q2 2025) | Product Type | Q2 2025 % of Sales | | :-------------------------------- | :----------------- | | Nickel-based alloys and specialty alloys | 48 % | | Precision forgings, castings and components | 21 % | | Titanium and titanium-based alloys | 17 % | | Zirconium and related alloys | 9 % | | Precision rolled strip products | 5 % | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The unaudited condensed consolidated balance sheets present the company's financial position at the end of Q2 2025 and fiscal year 2024, showing changes in assets, liabilities, and equity Condensed Consolidated Balance Sheets (Selected Data) ($ in millions) | Metric | June 29, 2025 | December 29, 2024 | | :--------------------------------------- | :------------ | :---------------- | | Total Current Assets | $2,702.5 | $2,945.0 | | Total Assets | $5,021.0 | $5,230.6 | | Total Current Liabilities | $1,072.6 | $1,208.5 | | Total Liabilities | $3,163.0 | $3,275.4 | | Total ATI stockholders' equity | $1,743.4 | $1,850.4 | | Cash and cash equivalents | $319.6 | $721.2 | | Accounts receivable, net | $787.9 | $709.2 | | Inventories, net | $1,412.6 | $1,353.0 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The unaudited condensed consolidated statements of cash flows detail the sources and uses of cash from operating, investing, and financing activities for the year-to-date periods Condensed Consolidated Statements of Cash Flows (YTD) ($ in millions) | Activity | YTD June 29, 2025 | YTD June 30, 2024 | | :-------------------------------- | :---------------- | :---------------- | | Net income | $204.5 | $154.0 | | Cash used in operating activities | $69.0 | $2.3 | | Cash used in investing activities | $(119.2) | $(117.1) | | Cash used in financing activities | $(365.8) | $(193.9) | | Decrease in cash and cash equivalents | $(401.6) | $(318.3) | | Cash and cash equivalents at end of period | $319.6 | $425.6 | [Revenue by Market](index=10&type=section&id=Revenue%20by%20Market) This table provides a detailed breakdown of ATI's revenue across various end markets, highlighting the significant contribution of Aerospace & Defense and changes in other core and industrial markets Revenue by Market (Q2 2025 vs. Q2 2024) ($ in millions) | Market | Q2 2025 Revenue | Q2 2025 % of Total | Q2 2024 Revenue | Q2 2024 % of Total | | :-------------------- | :-------------- | :----------------- | :-------------- | :----------------- | | Commercial Jet Engines | $447.8 | 39 % | $352.8 | 32 % | | Commercial Airframes | $195.2 | 17 % | $210.8 | 19 % | | Defense | $118.8 | 11 % | $120.3 | 11 % | | Total Aerospace & Defense | $761.8 | 67 % | $683.9 | 62 % | | Specialty Energy | $63.5 | 6 % | $76.6 | 7 % | | Electronics | $43.7 | 4 % | $40.8 | 4 % | | Medical | $38.9 | 3 % | $61.7 | 6 % | | Other Core Markets | $146.1 | 13 % | $179.1 | 17 % | | Conventional Energy | $92.9 | 8 % | $66.1 | 6 % | | Automotive | $64.8 | 6 % | $70.8 | 7 % | | Construction/Mining | $33.3 | 3 % | $44.2 | 4 % | | Other Industrial | $41.5 | 3 % | $51.2 | 4 % | | Total | $1,140.4 | 100 % | $1,095.3 | 100 % | [Computation of Basic and Diluted Earnings Per Share](index=11&type=section&id=Computation%20of%20Basic%20and%20Diluted%20Earnings%20Per%20Share) This section details the calculation of basic and diluted earnings per share attributable to ATI, including the net income numerator and weighted average shares outstanding denominator, adjusted for dilutive securities Basic and Diluted EPS Computation (Q2 2025) ($ in millions except per share amounts) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------------------------------- | :------ | :------ | :------ | | Numerator for Basic net income per common share - Net income attributable to ATI | $100.7 | $97.0 | $81.9 | | Numerator for Diluted net income per common share - Net income attributable to ATI after assumed conversions | $100.7 | $97.0 | $84.1 | | Denominator for Basic net income per common share - Weighted average shares outstanding | 139.8 | 141.7 | 124.4 | | Denominator for Diluted net income per common share - Adjusted weighted average shares and assumed conversions | 143.1 | 144.2 | 146.3 | | Basic net income attributable to ATI per common share | $0.72 | $0.68 | $0.66 | | Diluted net income attributable to ATI per common share | $0.70 | $0.67 | $0.58 | [Non-GAAP Financial Measures & Reconciliations](index=12&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section defines and reconciles ATI's non-GAAP financial measures, including Adjusted Net Income, Adjusted EBITDA, Adjusted Free Cash Flow, and Managed Working Capital [Non-GAAP Definitions and Rationale](index=12&type=section&id=Non-GAAP%20Definitions%20and%20Rationale) ATI Inc. utilizes several non-GAAP financial measures, such as Adjusted net income, Adjusted EPS, Adjusted EBITDA, Segment EBITDA, Adjusted free cash flow, and Managed working capital, to provide investors with supplemental information on core operating performance by excluding special, non-recurring items - Non-GAAP measures are used to assess operating performance consistently by removing the impact of special items not directly reflective of core operations[29](index=29&type=chunk) - Special items are defined as significant non-recurring or non-operational charges/credits, restructuring charges, gains/losses from asset/business sales, strike costs, impairments, debt extinguishment, and pension adjustments[29](index=29&type=chunk) - Management believes these measures provide meaningful supplemental information, allow investors to view performance using management's metrics, and offer additional period-to-period consistent information[31](index=31&type=chunk) [Adjusted Net Income Attributable to ATI](index=12&type=section&id=Adjusted%20Net%20Income%20Attributable%20to%20ATI) This section reconciles GAAP Net income attributable to ATI to Adjusted Net income attributable to ATI by adjusting for the tax-effected impact of special items, providing a clearer view of core profitability Reconciliation of Net Income to Adjusted Net Income Attributable to ATI ($ in millions except per share amounts) | Metric | Q2 2025 | Q2 2025 EPS | Q1 2025 | Q1 2025 EPS | Q2 2024 | Q2 2024 EPS | | :------------------------------------ | :------ | :---------- | :------ | :---------- | :------ | :---------- | | Net income attributable to ATI | $100.7 | $0.70 | $97.0 | $0.67 | $81.9 | $0.58 | | Adjustments for special items, pre-tax | $7.4 | $0.05 | $9.3 | $0.06 | $5.4 | $0.03 | | Income tax on adjustments for special items | $(1.7) | $(0.01) | $(1.9) | $(0.01) | $(1.3) | $(0.01) | | Adjusted Net income attributable to ATI | $106.4 | $0.74 | $104.4 | $0.72 | $86.0 | $0.60 | [Adjusted EBITDA](index=13&type=section&id=Adjusted%20EBITDA) This section provides a reconciliation of Net income to EBITDA and Adjusted EBITDA, excluding interest, taxes, depreciation, amortization, and special items to reflect operational profitability Reconciliation of Net Income to Adjusted EBITDA ($ in millions) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :------------------------------------ | :------ | :------ | :------ | | Net income attributable to ATI | $100.7 | $97.0 | $81.9 | | Net income attributable to noncontrolling interests | $3.3 | $3.5 | $3.7 | | Net income | $104.0 | $100.5 | $85.6 | | (+) Depreciation and amortization | $41.6 | $40.8 | $37.9 | | (+) Interest expense | $25.4 | $23.0 | $28.4 | | (+) Income tax provision | $29.3 | $21.0 | $25.3 | | EBITDA | $200.3 | $185.3 | $177.2 | | Adjustments for special items, pre-tax | $7.4 | $9.3 | $5.4 | | Adjusted EBITDA | $207.7 | $194.6 | $182.6 | - Q2 2025 special items include **$7.1 million for start-up/transaction costs** and **$1.6 million for losses on customer accounts receivable sales**, partially offset by **$1.3 million in severance reserve reductions**[33](index=33&type=chunk) - Q1 2025 special items include **$4.0 million for start-up/transaction costs**, **$1.6 million for losses on accounts receivable sales**, and a **$3.7 million loss on the sale of non-core European operations**[33](index=33&type=chunk)[34](index=34&type=chunk) [Adjusted Free Cash Flow](index=14&type=section&id=Adjusted%20Free%20Cash%20Flow) Adjusted free cash flow is a non-GAAP measure used to assess the cash flow generation of operations, defined as cash from operating and investing activities, excluding cash contributions to the U.S. qualified defined benefit pension plan - Adjusted free cash flow is defined as total cash provided by (used in) operating and investing activities, adjusted to exclude cash contributions to the U.S. qualified defined benefit pension plan[36](index=36&type=chunk) Reconciliation of Cash Provided by Operating Activities to Adjusted Free Cash Flow ($ in millions) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------------------------------------------------- | :------ | :------ | :------- | :------- | | Cash provided by operating activities | $161.5 | $101.1 | $69.0 | $2.3 | | Add back: Cash contributions to U.S. qualified defined benefit pension plan | — | — | — | — | | Cash provided by operating activities excluding pension contributions | $161.5 | $101.1 | $69.0 | $2.3 | | Cash used in investing activities | $(68.6) | $(53.3) | $(119.2) | $(117.1) | | Adjusted Free Cash Flow | $92.9 | $47.8 | $(50.2) | $(114.8) | [Managed Working Capital](index=15&type=section&id=Managed%20Working%20Capital) Managed working capital is a non-GAAP measure focusing on assets and liabilities attributable to core operations, used to evaluate asset intensity and effectiveness in deploying cash. It is presented as a percentage of annualized sales - Managed working capital is defined as gross accounts receivable, short-term contract assets, and gross inventories (excluding reserves), less accounts payable and short-term contract liabilities[39](index=39&type=chunk) Managed Working Capital Calculation ($ in millions) | Metric | June 29, 2025 | March 30, 2025 | December 29, 2024 | | :-------------------------------- | :-------------- | :------------- | :---------------- | | Accounts receivable | $787.9 | $827.0 | $709.2 | | Short-term contract assets | $86.4 | $85.9 | $75.6 | | Inventory | $1,412.6 | $1,396.9 | $1,353.0 | | Accounts payable | $(532.3) | $(563.2) | $(609.1) | | Short-term contract liabilities | $(171.7) | $(187.1) | $(169.4) | | Subtotal | $1,582.9 | $1,559.5 | $1,359.3 | | Allowance for doubtful accounts | $3.4 | $11.6 | $15.0 | | Inventory reserves | $80.3 | $74.2 | $68.5 | | Managed working capital | $1,666.6 | $1,645.3 | $1,451.3 | | Annualized prior 3 months sales | $4,561.4 | $4,577.7 | $4,690.5 | | Managed working capital as a % of annualized sales | 36.5 % | 35.9 % | 30.9 % |

Core Viewpoint - The extension and expansion of the long-term titanium products agreement between ATI Inc. and Boeing strengthens ATI's position as a leading supplier of high-performance titanium materials for the aerospace industry [1][2]. Group 1: Agreement Details - The agreement supports Boeing's entire range of commercial airplane programs, including both narrowbody and widebody aircraft, with potential for growth [2]. - Under the agreement, ATI will supply a comprehensive portfolio of high-performance titanium materials, including long products (ingots, billets, rectangles, and bars) and flat-rolled products (plate, sheet, and coil) [3]. Group 2: Strategic Importance - The agreement reaffirms ATI's leadership in titanium at a time of increasing aerospace production and demand for differentiated materials, particularly in high-strength titanium alloys and sheet products [3]. - The agreement highlights ATI's critical role in the titanium supply chain and validates its strategic investments in expanding capacity and advancing titanium alloy sheet capabilities [4]. Group 3: Production Capabilities - The agreement includes titanium alloy sheet from ATI's new facility in Pageland, South Carolina, and leverages the strengths of both its Specialty Materials and Specialty Rolled Products businesses [4]. - ATI's materials and components are utilized in virtually every commercial aircraft platform currently in operation [4].

Core Insights - The company reported second quarter 2025 sales of $1.14 billion, a 4% increase year-over-year, driven by strong demand in the aerospace and defense sectors [3][6][26] - Aerospace and defense sales accounted for $762 million, representing 67% of total sales for the quarter, with a notable 27% year-over-year growth in commercial jet engine sales [1][26] - The company raised its full-year adjusted earnings and cash flow guidance, reflecting positive operational performance and market demand [1][2] Financial Performance - Net income attributable to the company was $100.7 million, or $0.70 per share, marking a 23% increase year-over-year [3][19] - Adjusted net income attributable to the company was $106.4 million, up 24% year-over-year, with adjusted earnings per share of $0.74 compared to $0.60 in the same quarter last year [4][6][33] - Adjusted EBITDA for the quarter was $207.7 million, a 14% increase year-over-year, representing 18.2% of sales [4][6][30] Segment Performance - High Performance Materials & Components (HPMC) segment sales were $608.8 million, up 4% sequentially and 8% year-over-year, with segment EBITDA of $144 million, or 23.7% of sales [9][12][20] - Advanced Alloys & Solutions (AA&S) segment sales decreased to $531.6 million, down 5% sequentially, with segment EBITDA of $76.7 million, or 14.4% of sales [10][12][20] Capital Allocation and Share Repurchase - The company repurchased $250 million of its common stock during the second quarter, bringing total share repurchases for 2025 to $320 million, with remaining authorization of $270 million [8][18] - Capital expenditures for the second quarter were $72 million, reflecting the company's disciplined approach to capital allocation [18][24] Market Outlook - The company anticipates continued demand growth in aerospace and defense markets, supported by recent long-term contract extensions with major airframe manufacturers [6][7] - The overall aerospace and defense sales represented 92% of total HPMC sales, indicating a strong market position [12][26]

Group 1 - ATI Inc. is experiencing significant benefits from rising geopolitical tensions and increased global military spending [1] - The company operates in the defense and aerospace sector, which is currently seeing strong demand [1] Group 2 - The article highlights the importance of identifying undervalued stocks in various sectors and geographies [1]

Core Insights - The article highlights Steven Cress's role as VP of Quantitative Strategy and Market Data at Seeking Alpha, emphasizing his contributions to the platform's quantitative stock rating system and analytical tools [1][2] - Cress is dedicated to removing emotional biases from investment decisions through a data-driven approach, utilizing sophisticated algorithms to simplify investment research [2][4] - His background includes founding CressCap Investment Research, which was acquired by Seeking Alpha in 2018, and previously running a proprietary trading desk at Morgan Stanley [3][4] Company Contributions - Seeking Alpha's Quant Rating system, created by Cress, is designed to interpret data for investors and provide insights on investment directions, saving time for users [1][2] - The Alpha Picks tool, co-managed by Cress, aims to assist long-term investors in building a high-quality portfolio [1] Professional Background - Cress has over 30 years of experience in equity research, quantitative strategies, and portfolio management, positioning him as an expert in various investment topics [4] - His previous roles include founding a quant hedge fund and leading international business development at Northern Trust, showcasing a strong background in finance and investment [3][4]

Market Overview - The three major U.S. stock indexes closed lower last week, with the Dow Jones Industrial Average down 1%, the S&P 500 down 0.3%, and the Nasdaq Composite down 0.1% [1] - The market pullback was influenced by renewed U.S. tariff threats, particularly higher levies on Canada and the European Union, raising concerns about economic growth and inflation [2] Earnings Performance - Despite tariff concerns, many investors focused on strong earnings reports from airlines and consumer stocks, indicating a resilient economy [2] - The second-quarter earnings season is critical for assessing the impact of tariffs on corporate profits [3] Zacks Research Performance - Mogo Inc. shares surged 81.8% since being upgraded to Zacks Rank 2 (Buy) on May 8, significantly outperforming the S&P 500's 11.1% increase [4] - ATI Inc. also saw a 32.6% return since its upgrade to Zacks Rank 2 on May 6, compared to the S&P 500's 10.7% increase [5] - A hypothetical portfolio of Zacks Rank 1 (Strong Buy) stocks returned +6.51% in May 2025, outperforming the S&P 500's +4.47% [5] Zacks Recommendations - Amarin Corporation and European Wax Center shares increased by 62.6% and 49.9%, respectively, after being upgraded to Outperform on May 12, against the S&P 500's 10.5% rise [8] - The Zacks Focus List portfolio returned 8.84% in 2025 (through June 30) compared to the S&P 500's +6.21% [12] Portfolio Performance - The Zacks Earnings Certain Admiral Portfolio (ECAP) returned +3.20% in Q1 2025, outperforming the S&P 500's -4.30% decline [16] - The Zacks Earnings Certain Dividend Portfolio (ECDP) returned +5.74% in Q1 2025, compared to the S&P 500's -2.41% [20] - The Zacks Top 10 Stocks portfolio delivered +11.8% year-to-date through June 2025, outperforming the S&P 500's +6.2% [22] Long-term Performance - Since 2004, the Zacks Focus List portfolio has produced an annualized return of +11.60%, compared to +10.22% for the S&P 500 [15] - The Top 10 portfolio has generated a cumulative return of +2,246.8% since 2012, significantly outperforming the S&P 500's +502.3% [24]

Company Performance - Allegheny Technologies (ATI) closed at $89.31, with a daily increase of +1.43%, outperforming the S&P 500, which fell by 0.33% [1] - Over the last month, ATI shares increased by 4.66%, surpassing the Basic Materials sector's gain of 1.87% and the S&P 500's gain of 4.07% [1] Upcoming Earnings - The upcoming earnings report for Allegheny Technologies is scheduled for July 31, 2025, with an expected EPS of $0.71, reflecting an 18.33% increase from the prior-year quarter [2] - Revenue is projected to be $1.14 billion, up 3.68% from the prior-year quarter [2] Full Year Estimates - For the full year, earnings are projected at $3.02 per share and revenue at $4.63 billion, indicating increases of +22.76% and +6.08% respectively from the previous year [3] - Recent revisions to analyst forecasts are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [3] Zacks Rank and Valuation - Allegheny Technologies currently holds a Zacks Rank of 2 (Buy), with the Zacks Consensus EPS estimate having increased by 0.35% over the last 30 days [5] - The company is trading at a Forward P/E ratio of 29.19, which is a premium compared to the industry average Forward P/E of 20.17 [6] - The PEG ratio for ATI is currently 1.18, aligning with the average PEG ratio for the Steel - Specialty industry [6] Industry Overview - The Steel - Specialty industry is part of the Basic Materials sector and holds a Zacks Industry Rank of 28, placing it in the top 12% of over 250 industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating a strong industry performance [7]

Core Insights - Allegheny Technologies (ATI) has consistently beaten earnings estimates, particularly in the last two quarters with an average surprise of 27.90% [1] - The company reported earnings of $0.72 per share against a consensus estimate of $0.58, resulting in a surprise of 24.14% for the last quarter [2] - For the previous quarter, ATI's earnings were $0.79 per share compared to an expected $0.60, delivering a surprise of 31.67% [2] Earnings Estimates and Predictions - Recent estimates for Allegheny Technologies have been increasing, indicating positive sentiment among analysts [5] - The Zacks Earnings ESP for the company is currently positive at +3.38%, suggesting a strong potential for an earnings beat [8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] Zacks Rank and Earnings Release - Allegheny Technologies holds a Zacks Rank of 2 (Buy), which, combined with its positive Earnings ESP, indicates a high likelihood of another earnings beat [8] - The next earnings report for the company is anticipated to be released on July 31, 2025 [8]

Industry Overview - 3D Printing, or additive manufacturing, is a transformative technology that creates physical objects from digital designs by layering materials with high precision, significantly impacting manufacturing processes since the 1980s [2] - The technology offers advantages over traditional manufacturing, including cost efficiency, customization, precision, and sustainability [2][4] Market Growth - The global 3D Printing market is projected to grow from $24.61 billion in 2024 to $29.29 billion in 2025, and is expected to reach $134.6 billion by 2034, with a CAGR of 18.52% [7] - The healthcare 3D Printing market is anticipated to grow from $1.66 billion in 2024 to $1.96 billion in 2025, potentially exceeding $8.71 billion by 2034, reflecting a CAGR of 18% [6] Regional Insights - North America currently leads the 3D Printing market with over 35% share, followed closely by Asia Pacific at 30% [8] - The U.S. 3D printing market is expected to grow at a CAGR of 19.18% from 2025 to 2034 [8] Key Players - Leading companies in the 3D Printing space include Xometry, Proto Labs Inc., and Stratasys, which are embracing the technology for rapid prototyping and on-demand production [3] - Carpenter Technology, ATI Inc., GE Aerospace, and L3Harris Technologies are highlighted as promising stocks in the 3D Printing sector, each with unique capabilities and market positions [9][11][14][17][20] Sector Applications - 3D Printing is gaining traction in various sectors, including healthcare, aerospace, automotive, and consumer goods, enabling the production of lightweight components, personalized medical tools, and complex designs [5][4] - In aerospace, 3D Printing is used for manufacturing durable aircraft components, while in automotive, it aids in producing prototypes and customized parts [5] Technological Advancements - The technology allows for the use of lighter and stronger materials, minimizes waste, and enables faster production cycles, which traditional methods cannot achieve [4] - Companies like GE Aerospace have integrated 3D Printing into their production processes, resulting in significant improvements in fuel efficiency for jet engines [18][19]