ATI Announces Second Quarter 2024 Results

Core Viewpoint - ATI Inc. reported strong performance in Q2 2024, driven by growth in the Aerospace & Defense sector, with sales reaching $1.1 billion, a 5% increase from Q1 2024, and net income attributable to ATI of $81.9 million, up 26% from the previous quarter [1][2][4]. Financial Performance - Q2 2024 sales were $1,095.3 million, up 5% sequentially from $1,042.9 million in Q1 2024 and also up 5% year-over-year from $1,046.0 million in Q2 2023 [2]. - Net income attributable to ATI for Q2 2024 was $81.9 million, or $0.58 per share, representing a 24% increase from $66.1 million in Q1 2024 but a 9% decrease from $90.4 million in Q2 2023 [2][3]. - Adjusted net income attributable to ATI was $86.0 million, or $0.60 per share, up 26% from $68.4 million in Q1 2024 and down 15% from $100.6 million in Q2 2023 [2][3][25]. - Adjusted EBITDA for Q2 2024 was $182.6 million, or 16.7% of sales, reflecting a 21% increase from $151.0 million in Q1 2024 and an 11% increase from $164.2 million in Q2 2023 [2][3]. Segment Performance - Aerospace & Defense accounted for 62% of Q2 2024 sales, up from 59% in Q1 2024, with sales increasing sequentially by 11% [1][4][19]. - High Performance Materials & Components (HPMC) segment sales were $562.0 million, a 6% increase from Q1 2024, primarily due to an 8% increase in aerospace & defense sales [5]. - Advanced Alloys & Solutions (AA&S) segment sales were $533.3 million, a 4% increase from Q1 2024, driven by increased aerospace & defense and specialty energy sales [6]. Corporate and Cash Management - Corporate expenses in Q2 2024 were $19.4 million, up from $17.1 million in Q1 2024, attributed to higher incentive compensation costs [8]. - Cash provided by operating activities was $101 million in Q2 2024, with cash on hand at June 30, 2024, totaling $426 million [8][18]. Outlook - The company remains confident in its ability to meet its 2024 guidance, with new sales commitments of $4 billion announced at the Farnborough International Airshow, predominantly for nickel alloys [9].