ATI(US:ATI) Prnewswire·2026-02-03 12:30Core Insights - ATI Inc. reported strong financial results for Q4 2025, with sales of $1.18 billion and net income of $96.6 million, reflecting a 5% increase in sales compared to Q3 2025 and stable year-over-year performance [1][2] - The company achieved annual sales of $4.6 billion, the highest since 2012, with a 5% increase from the previous fiscal year [1][2] - Adjusted free cash flow for fiscal year 2025 was $380 million, up 53% from fiscal year 2024, indicating strong cash generation capabilities [1][2] Financial Performance - Q4 2025 adjusted EBITDA was $232 million, representing 19.7% of sales, while adjusted net income attributable to ATI was $130 million, or $0.93 per share [1][2] - For fiscal year 2025, net income attributable to ATI increased by 10% to $404.3 million, and earnings per share rose by 12% to $2.85 [2][5] - Adjusted net income for fiscal year 2025 was $460.1 million, a 30% increase compared to fiscal year 2024, with adjusted earnings per share rising by 32% to $3.24 [2][5] Segment Performance - High Performance Materials & Components (HPMC) segment sales for Q4 2025 were $645.9 million, with segment EBITDA of $155 million, or 24% of sales, reflecting strong demand in aerospace and defense markets [1][2] - Advanced Alloys & Solutions (AA&S) segment sales were $531.2 million, with segment EBITDA of $98.5 million, or 18.5% of sales, showing a sequential increase in margins due to favorable manufacturing costs [2][4] - Aerospace & defense sales represented 91% of total HPMC sales in Q4 2025, driven by strong demand for commercial jet engine and defense products [1][2] Cash Flow and Capital Management - Operating cash flow for fiscal year 2025 was $614 million, an increase of over 50% year-over-year, allowing the company to repurchase $470 million in shares and repay $150 million of outstanding debt [1][2] - The company’s strong balance sheet and cash flow generation provide flexibility to support growth and return capital to shareholders [1][2] Guidance - ATI provided guidance for Q1 2026, expecting adjusted EBITDA between $216 million and $226 million, and for fiscal year 2026, adjusted EBITDA is projected to be between $975 million and $1,025 million [1][2]