ATI's Q2 Earnings Beat Estimates on Aerospace & Defense Gains

Core Insights - ATI Inc. reported a profit of $100.7 million or 70 cents per share for Q2 2025, an increase from $81.9 million or 58 cents in the same quarter last year, with adjusted earnings of 74 cents, up 23.3% year over year, surpassing the Zacks Consensus Estimate of 72 cents [1][10] Financial Performance - Net sales for Q2 2025 were $1,140.4 million, slightly below the Zacks Consensus Estimate of $1,144.3 million, but up approximately 4.1% year over year, driven by strong growth in aerospace and defense [2] - High-Performance Materials & Components (HPMC) segment reported sales of $608.8 million, an 8.3% increase year over year, although it missed the consensus estimate of $621.4 million; segment EBITDA rose 26.5% year over year to $144 million [3] - Advanced Alloys & Solutions (AA&S) recorded sales of $531.6 million, a slight decline of 0.3% from the previous year, but exceeded the consensus estimate of $525.2 million; segment EBITDA decreased by 12.3% year over year to $76.7 million [4] - Cash and cash equivalents stood at $319.6 million, down from $425.6 million the previous year, while long-term debt decreased by 7.7% to $1,710.7 million [5] Future Outlook - For Q3 2025, adjusted EBITDA is expected to be between $200 million and $210 million, with full-year guidance set between $810 million and $840 million; adjusted earnings per share are projected at 69-75 cents for Q3 and $2.90 to $3.07 for the full year [6][10] - Adjusted free cash flow for the full year is estimated to be between $270 million and $350 million, with anticipated capital expenditures between $260 million and $280 million [6]