ATI Announces First Quarter 2025 Results

Core Insights - ATI Inc. reported first quarter 2025 sales of $1.14 billion, a 10% increase year-over-year, driven by a 23% increase in aerospace and defense sales [5][19] - Net income attributable to ATI for Q1 2025 was $97 million, up 47% from the previous year, with earnings per share of $0.67 compared to $0.46 in Q1 2024 [5][19] - Aerospace and defense sales accounted for 66% of total sales in Q1 2025, reflecting strong demand in these sectors [1][25] Financial Performance - Adjusted EBITDA for Q1 2025 was $194.6 million, representing a 29% increase year-over-year, with adjusted EBITDA as a percentage of sales at 17.0% compared to 14.5% in Q1 2024 [5][19] - The company provided guidance for Q2 2025, expecting adjusted EBITDA between $195 million and $205 million, and full-year adjusted EBITDA between $800 million and $840 million [2][3] - Adjusted earnings per share for Q1 2025 were $0.72, up from $0.48 in Q1 2024 [5][19] Segment Performance - High Performance Materials & Components (HPMC) segment sales were $584.1 million, down 8% sequentially but up 10% year-over-year, with segment EBITDA of $131 million, or 22.4% of sales [9][12] - Advanced Alloys & Solutions (AA&S) segment sales increased to $560.3 million, a 4% increase from Q4 2024 and a 9% increase year-over-year, with segment EBITDA of $83.4 million, or 14.9% of sales [10][13] Market Dynamics - The aerospace and defense market showed robust growth, with jet engine sales at $421.4 million and airframe sales at $205.8 million for Q1 2025 [25] - The company is focusing on strengthening its supply chain to manage market volatility and is committed to sustainable growth in high-performance markets [8][7] Shareholder Returns - The company repurchased $70 million of common stock in Q1 2025, with a remaining authorization of $520 million under its share repurchase program [19][22] - ATI's effective tax rate for Q1 2025 was 17.3%, reflecting discrete tax benefits related to equity compensation [19][23]