ATI(US:ATI)2025-05-01 11:34Financial Performance - Q1 2025 sales reached $1.14 billion, a 10% increase year-over-year, driven by a 23% rise in aerospace & defense sales[6] - Net income attributable to ATI was $97 million, up 47% year-over-year, with earnings per share of $0.67 compared to $0.46 in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was $195 million, a 29% increase year-over-year, representing 17.0% of sales[6] - Total sales for the fiscal quarter ended March 30, 2025, were $1,144.4 million, a decrease of 2.8% from $1,172.7 million in the previous quarter and an increase of 9.7% from $1,042.9 million in the same quarter last year[20] - Gross profit for the quarter was $235.8 million, resulting in a gross margin of 20.6%, compared to $248.6 million and 21.2% in the previous quarter[20] - Net income attributable to ATI for the quarter was $97.0 million, down 29.3% from $137.1 million in the previous quarter, but up 46.9% from $66.1 million in the same quarter last year[20] - Adjusted net income attributable to ATI for the fiscal quarter ended March 30, 2025, was $104.4 million, with an Adjusted EPS of $0.72, compared to $114.6 million and $0.79 for the previous quarter[32] - Adjusted EBITDA for the fiscal quarter ended March 30, 2025, was $194.6 million, a decrease from $209.8 million in the previous quarter[33] Segment Performance - Aerospace and defense sales accounted for 66% of total Q1 2025 sales, amounting to $754 million[2] - HPMC segment sales were $584.1 million, with an EBITDA margin of 22.4%[13] - AA&S segment sales increased to $560.3 million, with an EBITDA margin of 14.9%[13] - High Performance Materials & Components segment sales were $584.1 million, down from $634.2 million in the previous quarter, while Advanced Alloys & Solutions segment sales increased to $560.3 million from $538.5 million[21] - Total segment EBITDA for the quarter was $214.4 million, slightly down from $214.8 million in the previous quarter, with High Performance Materials & Components contributing $131.0 million[21] Cash Flow and Working Capital - The company reported a cash used in operating activities of $92.5 million for the quarter, compared to $98.8 million in the same quarter last year[24] - Cash used in operating activities for the quarter ended March 30, 2025, was $(92.5) million, compared to $(98.8) million for the same quarter in the previous year[38] - Adjusted free cash flow for the quarter ended March 30, 2025, was $(143.1) million, an improvement from $(162.6) million in the same quarter last year[38] - Managed working capital as a percentage of annualized sales was 35.9% at the end of Q1 2025, up from 30.9% in Q4 2024[16] - Managed working capital as a percentage of annualized sales increased to 35.9% for the quarter ended March 30, 2025, up from 30.9% in the previous quarter[42] Equity and Liabilities - Total liabilities decreased to $3,201.7 million from $3,275.4 million in the previous quarter, while total equity increased to $1,982.3 million from $1,955.2 million[23] - The company repurchased $70 million of common stock in Q1 2025, retiring approximately 1.2 million shares[16] Guidance and Projections - Guidance for Q2 2025 includes adjusted EBITDA of $195M - $205M and adjusted earnings per share of $0.67 - $0.73[4] - Capital expenditures for the full year 2025 are projected to be between $260 million and $280 million[4] Other Financial Activities - The company reported a restructuring and other charges of $5.6 million for the quarter ended March 30, 2025[33] - The company experienced a loss of $3.7 million on the sale of certain non-core operations during the quarter ended March 30, 2025[34] - The company’s accounts receivable increased to $827.0 million as of March 30, 2025, from $709.2 million as of December 29, 2024[42] - The company’s inventory rose to $1,396.9 million as of March 30, 2025, compared to $1,353.0 million as of December 29, 2024[42]