ATI(US:ATI)2025-10-28 11:45Financial Performance - Third quarter 2025 sales reached $1.13 billion, a 7% increase year-over-year, driven by a 21% increase in aerospace & defense sales[6] - Net income attributable to ATI was $110 million, up 33% year-over-year, with earnings per share of $0.78 compared to $0.57 in Q3 2024[6] - Adjusted EBITDA for Q3 2025 was $225 million, representing a 21% increase year-over-year and 20.0% of sales[6] - Total sales for the fiscal quarter ended September 28, 2025, were $1,125.5 million, a 7.0% increase from $1,051.2 million in the same quarter of 2024[23] - Gross profit for the quarter was $255.3 million, up 13.6% from $224.8 million year-over-year[23] - Operating income increased to $162.4 million, compared to $142.2 million in the same quarter of the previous year, reflecting a growth of 14.4%[23] - Net income attributable to ATI for the quarter was $110.0 million, a 33.0% increase from $82.7 million in the prior year[23] - Adjusted net income attributable to ATI was $119.4 million, with an adjusted EPS of $0.85, up from $0.60 in the same quarter of 2024[33] - Adjusted EBITDA for the quarter was $225.1 million, an increase from $185.7 million in the same quarter of 2024[34] Segment Performance - Aerospace & defense sales accounted for 70% of total Q3 2025 sales, with record sales of $793 million in this segment[2] - High Performance Materials & Components (HPMC) segment sales were $602.9 million, with an EBITDA margin of 24.2%[13] - Advanced Alloys & Solutions (AA&S) segment sales were $522.6 million, with an EBITDA margin of 17.3%[15] - Segment EBITDA for High Performance Materials & Components was $145.8 million, representing 24.2% of sales, while Advanced Alloys & Solutions had an EBITDA of $90.4 million, or 17.3% of sales[24] - Aerospace & Defense segment generated $792.7 million, accounting for 70% of total revenue, up from 62% in the same quarter of 2024[28] Cash Flow and Capital Management - Operating cash flow for year-to-date 2025 was $299 million, reflecting an improvement of $273 million compared to the previous year[11] - The company reported a cash provided by operating activities of $230 million for Q3 2025[19] - Cash provided by operating activities for Q3 2025 was $229.5 million, a significant increase from $24.0 million in Q3 2024[39] - Adjusted Free Cash Flow for Q3 2025 was $199.7 million, compared to a negative $37.1 million in Q3 2024[39] - Cash used in operating activities was $298.5 million, significantly higher than $26.3 million in the same period last year[27] - Cash used in investing activities for Q3 2025 was $(29.8) million, compared to $(61.1) million in Q3 2024[39] Shareholder Returns - The company repurchased $150 million of its stock in Q3 2025, bringing total share repurchases for the year to $470 million[11] - The company raised its full-year guidance for adjusted earnings per share to a range of $3.15 to $3.21, up from the previous range of $2.90 to $3.07[4] Balance Sheet and Financial Stability - Total current assets decreased to $2,659.8 million from $2,945.0 million at the end of December 2024, primarily due to a reduction in cash and cash equivalents[26] - Total liabilities decreased to $3,176.9 million from $3,275.4 million, indicating improved financial stability[26] - The company reported a decrease in cash and cash equivalents to $372.2 million from $721.2 million at the beginning of the period[27] - The allowance for doubtful accounts was $4.7 million in Q3 2025, up from $3.4 million in Q2 2025[42] - Inventory for Q3 2025 was $1,405.6 million, slightly down from $1,412.6 million in Q2 2025[42] Market Contribution - The company reported a total of $2,720.7 million in core end markets revenue year-to-date, representing an 80% share of total revenue[28] - The Automotive market contributed $61.3 million, maintaining a 6% share of total revenue for the quarter[28] Other Financial Metrics - Managed working capital as a percentage of annualized sales was 36.4% for Q3 2025, slightly down from 36.5% in Q2 2025, but up from 30.9% in Q3 2024[42] - Total managed working capital for Q3 2025 was $1,639.3 million, compared to $1,666.6 million in Q2 2025 and $1,451.3 million in Q3 2024[42] - Annualized prior three months sales for Q3 2025 were $4,502.2 million, down from $4,561.4 million in Q2 2025[42] - The company did not make cash contributions to the U.S. qualified defined benefit pension plan in Q3 2025 or Q3 2024[39] - Restructuring and other charges for the quarter amounted to $12.9 million, impacting net income[34] - The company’s weighted average shares outstanding for the quarter were 137.0 million, compared to 128.7 million in the same quarter of 2024[29] - ATI's basic net income per common share for the quarter was $0.80, compared to $0.64 in the same quarter of the previous year, marking a 25.0% increase[23]