ATI's Earnings Surpass Estimates in Q4, Sales Stable Y/Y

Core Insights - ATI Inc. reported a profit of $96.6 million or 69 cents per share for Q4 2025, a decrease from $137.1 million or 94 cents in the same quarter last year. Adjusted earnings were 93 cents, an 18% increase from 79 cents year-over-year, surpassing the Zacks Consensus Estimate of 89 cents [1][8]. Financial Performance - The company's net sales for Q4 were $1,177.1 million, falling short of the Zacks Consensus Estimate of $1,197.7 million, and were essentially flat year-over-year [2]. - High-Performance Materials & Components (HPMC) segment reported sales of $645.9 million, up 2% year-over-year but below the consensus estimate of $656 million. HPMC's EBITDA increased by 22.23% year-over-year to $155 million [3]. - Advanced Alloys & Solutions (AA&S) segment recorded sales of $531.2 million, down approximately 1.4% from $538.5 million in the prior year, missing the consensus estimate of $543 million. The segment's EBITDA for the quarter was $98.5 million, up 12% year-over-year [4]. - Cash and cash equivalents totaled $416.7 million, a decrease of 42.2% year-over-year, while long-term debt rose to $1,718.3 million, up 0.2% from the previous year [5]. Future Outlook - For Q1 2026, adjusted EBITDA is expected to be between $216 million and $226 million, with full-year guidance set at $975 million to $1,025 million. Adjusted earnings per share are projected to be between 83-89 cents for Q1 and $3.99 to $4.27 for the full year. Adjusted free cash flow for the year is estimated to be between $430 million and $490 million [6]. Stock Performance - ATI's shares have increased by 101.5% over the past year, significantly outperforming the industry average increase of 36.8% [7].