ATI(ATI) - 2024 Q4 - Annual Results

Financial Performance - Full year 2024 sales reached $4.4 billion, the highest since 2012, representing a 5% increase over 2023[6] - Q4 2024 sales were $1.17 billion, up 10% year-over-year from Q4 2023, with net income attributable to ATI of $137.1 million, or $0.94 per share[3] - Full year 2024 operating cash flow was $407 million, significantly up from $86 million in 2023[3] - Adjusted EBITDA for Q4 2024 was $209.8 million, or 17.9% of sales, reflecting a 31% increase compared to Q4 2023[3] - Free cash flow for full year 2024 was $248 million, a 50% increase compared to the prior year[6] - Net income for the fiscal year ended December 29, 2024, was $382.7 million, a decrease of 9.6% compared to $423.4 million in the previous year[27] - Total revenue for the fiscal year ended December 29, 2024, reached $4,362.1 million, a 4.5% increase from $4,173.7 million in 2023[28] - Basic net income attributable to ATI per common share for the fiscal year 2024 was $2.82, down from $3.21 in 2023[32] Segment Performance - Aerospace and defense accounted for 65% of Q4 2024 sales, up from 62% in Q3 2024 and 63% in Q4 2023[5] - The High Performance Materials & Components segment reported sales of $634.2 million for the quarter ended December 29, 2024, compared to $582.5 million in the same quarter of 2023, marking an increase of approximately 8.9%[23] - The Advanced Alloys & Solutions segment achieved sales of $538.5 million for the quarter ended December 29, 2024, up from $481.5 million in the same quarter of 2023, reflecting an increase of about 11.8%[23] - Aerospace & Defense revenue accounted for 65% of total revenue in Q4 2024, with a total of $767.5 million, up from 62% in Q3 2024[28] Cash Flow and Capital Management - The company repurchased $260 million of its stock in 2024, ending the year with $721 million in cash[7] - Cash provided by operating activities significantly increased to $407.2 million in 2024, compared to $85.9 million in 2023[27] - Free cash flow for 2025 is expected to be between $240 million and $360 million, with capital expenditures projected between $260 million and $280 million[16] - Managed Working Capital for December 29, 2024, is $1,451.3 million, a decrease from $1,681.8 million on September 29, 2024[45] Guidance and Future Outlook - The company provided guidance for Q1 2025 adjusted EBITDA between $170 million and $180 million, and full year 2025 adjusted EBITDA between $800 million and $840 million[16] - Adjusted earnings per share guidance for 2025 is projected to be between $2.80 and $3.00[16] - The company anticipates growth and margin expansion in 2025 and beyond, driven by strong demand in end markets and a focus on agility amid evolving geopolitical uncertainties[16] Balance Sheet and Assets - Total assets increased to $5,230.6 million in December 2024, up from $4,985.1 million in December 2023, representing a growth of 4.9%[25] - Long-term debt decreased to $1,714.9 million in December 2024, down from $2,147.7 million in December 2023, a reduction of 20.1%[25] - The company reported a cash and cash equivalents balance of $721.2 million at the end of December 2024, down from $743.9 million at the end of December 2023[27] Inventory and Working Capital Management - Inventory levels increased to $1,353.0 million in December 2024, compared to $1,247.5 million in December 2023, reflecting a rise of 8.5%[25] - Accounts receivable decreased to $709.2 million on December 29, 2024, from $730.2 million on September 29, 2024[45] - Inventory decreased to $1,353.0 million on December 29, 2024, compared to $1,414.5 million on September 29, 2024[45] - Year-to-date change in managed working capital for 2024 is $129.4 million[45] Special Items and Adjustments - Total pre-tax adjustments for special items in the fiscal year 2024 amounted to $88.3 million, compared to $104.3 million in the previous year[34] - The company reported a $52.9 million gain on the sale of its precision rolled strip operations in the fiscal year 2024[40] - The company incurred a pension remeasurement loss of $14.1 million in the fiscal quarter ended December 29, 2024[38]