ATI's Earnings and Revenues Beat Estimates in Q4, Sales Up Y/Y

Core Insights - ATI Inc. reported a fourth-quarter profit of $137.1 million or 94 cents per share, a decrease from $145.7 million or 99 cents in the same quarter last year, but adjusted earnings increased by 23% to 79 cents, surpassing the Zacks Consensus Estimate of 60 cents [1][2] Financial Performance - Fourth-quarter net sales reached $1,172.7 million, exceeding the Zacks Consensus Estimate of $1,083.5 million, and reflecting a year-over-year increase of approximately 10% [2] - The High-Performance Materials & Components segment generated sales of $634.2 million, an 8.9% increase year-over-year, beating the consensus estimate of $598 million, driven by demand for next-generation commercial jet engines [3] - Advanced Alloys & Solutions reported sales of $538.5 million, up 11.8% from the previous year's $481.5 million, also surpassing the consensus estimate of $472 million, attributed to higher sales in defense applications [4] - For the full year 2024, ATI's sales totaled $4,362.1 million, an increase from $4,173.7 million in 2023, while earnings per share dropped 9% to $2.55 from $2.81 [5] Financial Position - At the end of the fourth quarter, ATI had a cash balance of $721 million and additional liquidity of approximately $525 million from an asset-based lending credit facility, with cash flows from operating activities amounting to $381 million [6] - Capital expenditures for the quarter were $47 million, and the company utilized $70 million for share repurchases [6] Future Outlook - ATI anticipates adjusted earnings per share for 2025 to be between $2.80 and $3, with the first quarter forecasted at 55-61 cents, and adjusted EBITDA projected to be between $170 million and $180 million for the first quarter and $800 million to $840 million for the full year [7] - The company aims to remain agile in response to the normalization of the aerospace and defense supply chain and changes in global trade policies, expressing confidence in its growth and margin expansion prospects for 2025 and beyond [8]