Industry Overview - The specialty metals industry is experiencing strong demand, particularly in aerospace and defense sectors, driven by robust government spending and a recovery in global travel [2][19] - Supply chain constraints and elevated costs are creating margin pressures, but strong order backlogs and improved pricing power are providing a favorable environment for producers [3] ATI Inc. Highlights - ATI is a leading supplier of titanium products and nickel-based superalloys, essential for next-generation aircraft and defense systems [4] - Increased production in the commercial aerospace segment is driving demand for ATI's proprietary alloys, with government spending in defense further boosting demand for specific alloys [5] - ATI has implemented cost reductions and efficiency improvements, resulting in a strong cash flow profile, with cash and cash equivalents totaling $416.7 million and adjusted free cash flow increasing by 53% year-over-year to approximately $379.8 million [6] - The company plans to invest $220-$240 million in capital expenditures for 2026, focusing on proprietary engine alloys and high-margin opportunities [7] Carpenter Technology Highlights - Carpenter Technology is also experiencing strong demand, with booking growth linked to increased aircraft production and defense sector investments [8] - The company is investing $400 million in a brownfield expansion project to add 9,000 tons of capacity, representing a 7% increase from 2019 shipments [11] - Carpenter Technology reported cash and cash equivalents of $232 million and a net debt/EBITDA ratio of 0.6X, indicating strong liquidity for future investments [12] - The company is seeing significant improvements in earnings through a transition to high-value materials and operational efficiencies [10] Financial Performance and Valuation - ATI stock has increased by 177% over the past year, while Carpenter Technology stock has gained 111.2% [13] - Carpenter Technology is trading at a premium with a forward price-to-sales ratio of 6.07, compared to ATI's 4.04 [14] - The Zacks Consensus Estimate for ATI's 2026 sales suggests an 8.2% year-over-year increase, while EPS is expected to rise by 29% [16] - For Carpenter Technology, the consensus estimates imply a 6.7% increase in sales and a 37.4% rise in EPS for fiscal 2026 [17] Comparative Analysis - Both companies are benefiting from strong demand in aerospace and defense, with improving prices for high-performance alloys [19] - ATI appears to have a slight edge over Carpenter Technology due to its more attractive valuation and broader exposure across products and end markets [19]

Group 1: Market Overview - Major U.S. equity indices delivered positive returns in Q4 2025, while the Russell Midcap® Index lagged with nominal positive gains [1] - Strong corporate earnings revisions and lower short-term interest rates supported U.S. market returns [1] - High sector return dispersion was observed in the Russell Midcap Index, with healthcare, materials, and IT leading, while communication services, real estate, and utilities lagged [1] Group 2: Midcap Equities Outlook - The fund expects Midcap equities to trade higher in 2026, supported by broader market involvement, aligning with consensus [1] - U.S. market index earnings are projected to grow significantly in 2026 despite higher price-to-earnings ratios compared to historical averages [1] Group 3: Company Spotlight - ATI Inc. - ATI Inc. is highlighted as a leading contributor, specializing in high-performance metals and alloys, with a market capitalization of $19.418 billion [2] - The company has shifted focus from commoditized metals to higher-margin nickel and titanium alloys, with aerospace sales now accounting for over two-thirds of total revenue [3] - An increasing aerospace production outlook and new business awards have boosted investor interest, with emerging opportunities in nuclear energy [3]

分组1 - TimesSquare Capital Management's "U.S. Focus Growth Strategy" reported a fourth-quarter 2025 return of -3.55% (gross) and -3.76% (net), underperforming the Russell Midcap Growth Index which returned -3.70% [1] - For the full year 2025, the strategy achieved a return of 14.84% (gross) and 13.88% (net), outperforming the index's return of 8.66% [1] - Global equity markets ended the quarter positively, with Europe leading and large caps outperforming small caps [1] 分组2 - Carpenter Technology Corporation (NYSE:CRS) was highlighted as a leading contributor in the fourth-quarter 2025 investor letter, with a stock price of $401.08 per share as of March 19, 2026 [2] - The one-month return for Carpenter Technology Corporation was -2.97%, but it gained 105.73% over the past 52 weeks, with a market capitalization of $19.981 billion [2] - The company manufactures specialty metals for various industries, including aerospace, defense, medical, transportation, energy, and industrial markets, and saw a stock increase of 29% due to strong fiscal results and positive forward guidance [3] 分组3 - Carpenter Technology Corporation is not among the 40 most popular stocks among hedge funds heading into 2026, with 71 hedge fund portfolios holding the stock at the end of the fourth quarter, an increase from 67 in the previous quarter [4] - While the potential of Carpenter Technology Corporation as an investment is acknowledged, certain AI stocks are considered to offer greater upside potential and less downside risk [4]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - The Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales to find attractive investment opportunities [3] Growth Score - The Growth Style Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth [4] Momentum Score - The Momentum Style Score is designed for traders looking to capitalize on price trends, utilizing factors like short-term price changes and earnings estimate shifts to identify high-momentum stocks [5] VGM Score - The VGM Score combines the three Style Scores to provide a comprehensive rating, helping investors find stocks with strong value, growth potential, and positive momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [8] Stock to Watch: ATI Inc. - ATI Inc., based in Pittsburgh, PA, is a diversified specialty materials producer with a Zacks Rank of 2 (Buy) and a VGM Score of A [11] - The company is projected to have a year-over-year earnings growth of 29% for the current fiscal year, with recent earnings estimates revised upward [12] - ATI has an average earnings surprise of +11.2%, making it a strong candidate for growth investors [12]

Core Viewpoint - ATI Inc. is recognized as one of the top 3D printing stocks to invest in, with a recent expansion of its share repurchase program indicating management's confidence in the company's long-term performance [1][2]. Group 1: Share Buyback Program - ATI Inc. announced an expansion of its share repurchase program, approving an additional $500 million buyback plan, which adds to the $120 million remaining from the previous authorization [1]. - The repurchase program has no timing restrictions, allowing purchases in the open market or through privately negotiated transactions [1]. - The company ended 2025 with $416.7 million in cash and cash equivalents, providing a strong financial position to support the buyback [1]. Group 2: Financial Performance - In Q4 2025, ATI Inc. reported revenue of $1.2 billion, which remained flat compared to the previous year but exceeded expectations [2]. - The earnings per share (EPS) for the same quarter was $0.93, an increase from $0.79 a year ago, surpassing projections of $0.87 [2]. Group 3: Company Overview - ATI Inc. is a global producer of specialty materials for the aerospace, defense, and energy markets, offering products such as titanium alloys, nickel-based alloys, specialty steels, and tungsten materials [3]. - The company also operates in the 3D printing sector, further diversifying its product offerings [3].

Group 1 - Carpenter Technology Corporation (NYSE:CRS) is recognized as one of the best 3D printing stocks to buy, with a Positive rating and a price target of $470 initiated by Susquehanna [1][3] - The company is well-positioned to meet the growing demand in the aerospace and defense industries, benefiting from increased commercial airplane build rates and high maintenance, repair, and operations activity [3][4] - Susquehanna projects Carpenter Technology to achieve an 18% CAGR in EBITDA and a 25% CAGR in free cash flow from 2025 to 2028, driven by strong execution, better pricing, and capacity expansion [4] Group 2 - Carpenter Technology exited the December quarter with total liquidity of $730.8 million, which includes $231.9 million in cash and $498.9 million in available credit facilities [5] - The company is undergoing executive changes, with CEO Tony Thene transitioning to executive chairman and COO Brian Malloy stepping up as CEO effective July 1 [6] - Carpenter Technology is a leading global provider of high-performance specialty alloy-based materials and process solutions, serving industries such as aerospace, defense, medical, and energy [7]

Group 1: Leadership Transition - Carpenter Technology Corporation announced that Brian Malloy will succeed Tony Thene as Chief Executive Officer, effective July 1 [1] - Tony Thene will transition to the role of Executive Chairman, focusing on corporate strategy and stakeholder relationships [1] - Malloy has over a decade of experience within the company and has held several senior leadership positions, including Chief Commercial Officer [2][4] Group 2: Strategic Direction - Malloy's tenure as COO has been characterized by deep involvement in the company's strategic direction and operational execution [4] - The leadership transition aims to ensure continuity as the company seeks to build upon a decade of significant growth [4] - The Board of Directors emphasized Malloy's extensive knowledge of the business and track record of performance as key factors in his selection [4] Group 3: Company Overview - Carpenter Technology Corporation manufactures, fabricates, and distributes specialty metals across various regions, including the US, Europe, and Asia Pacific [5] - The company operates in two segments: Specialty Alloys Operations and Performance Engineered Products [5]

Core Insights - The fourth quarter of 2025 saw mixed results for midcap stocks, with the Russell Midcap® Growth Index decreasing by 3.70% and the Russell Midcap® Value Index increasing by 1.41% [1] - The growth index's materials sector achieved the highest absolute return at 17.51%, but its contribution to overall returns was limited due to smaller weight in the index [1] - Midcap stocks generated positive returns in 2025, with the Russell Midcap Growth Index rising by 8.66%, trailing the Russell Midcap Value Index's 11.04% return [1] - The firm anticipates a favorable year ahead for equity markets, highlighting potential opportunities in Cyclicals, Healthcare, Information Technology, Financials, and Consumer Spending sectors through 2026 [1] Company Insights - Carpenter Technology Corporation (NYSE:CRS) was highlighted as a leading contributor in the fourth quarter 2025 investor letter, with a stock price of $401.08 per share as of March 03, 2026 [2] - Carpenter Technology Corporation's one-month return was 20.02%, and its shares gained 97.09% over the past 52 weeks, with a market capitalization of $19.981 billion [2] - The company produces specialty metals and alloys for various industries, notably aerospace and defense, and has shown strong performance due to growth in its aerospace engine maintenance, repair, and overhaul (MRO) end market [3] - Looking ahead, Carpenter Technology's exposure to airframe original equipment manufacturer (OEM) production is expected to accelerate as global jet manufacturers ramp up build rates in 2026, contributing to a tighter supply-demand balance for its specialty metals [3]

Core Insights - AMG Critical Materials N.V. has acquired AURA Technologie GmbH for €10 million, with 34% of the payment in cash and 66% in AMG shares, marking a strategic expansion into high-purity molybdenum [1][2] - The acquisition enhances AMG's capabilities in circular critical materials processing and supports the commercialization of its proprietary molybdenum refining technology [2][4] Acquisition Details - AURA specializes in processing spent hydrodesulfurization (HDS) catalysts, which are essential for producing high-purity molybdenum [2][5] - AMG plans to invest approximately $40 million to expand AURA's facility and integrate its technology for producing high-purity molybdenum suitable for refinery catalysts [3][4] Market Context - Molybdenum is crucial for HDS catalysts used in refineries to remove sulfur from fuels, contributing to clean fuel production [4] - There is a growing global demand for secure, Western sources of critical materials as supply chain resilience becomes a priority [4] Operational Synergies - The combination of AURA's operational platform and AMG's refining capabilities aims to create a vertically integrated circular value chain, transforming spent catalysts into high-value molybdenum products [5][6] - This acquisition expands AMG's portfolio of recycling-based critical materials businesses, reinforcing its strategy of utilizing proprietary technology with circular feedstocks [6] Governance and Compliance - The acquisition process involved comprehensive due diligence over six months, supported by independent third-party advisors, ensuring compliance and strategic rationale [7] - AMG's Supervisory Board approved the transaction, confirming the arms-length diligence and execution procedures [7] Leadership Commitment - AMG's CEO, Dr. Schimmelbusch, accepted shares as a majority part of the payment, indicating his confidence in the strategic logic of the acquisition [8]

Financial Data and Key Metrics Changes - For the full year 2025, adjusted EBITDA totaled $51.9 million, up 4%, and adjusted earnings per share was $1.11, up 12% year-over-year [4][10] - Adjusted sales for the fourth quarter were $90.7 million, down 5.5% year-over-year, while full-year adjusted sales were $371.2 million, an increase of 2.5% [9][10] - Cash from operations totaled $33.9 million, supporting a $9.9 million reduction in net debt to $31.1 million, ending 2025 at approximately 0.6x leverage [10] Business Line Data and Key Metrics Changes - The Elektron business reported fourth quarter sales of $46.9 million, down 1.3% year-over-year, but full-year sales were $196.4 million, up 11.6% [11][12] - Gas Cylinders segment sales for the fourth quarter were $43.8 million, down 9.7% year-over-year, and full-year sales were $174.8 million, down 6.2% [13] Market Data and Key Metrics Changes - Demand for magnesium aerospace alloys and certain specialty industrial applications gained strength throughout 2025, contributing to the overall performance [5] - Variability in end markets such as clean energy, healthcare, and automotive impacted the Gas Cylinders segment, reflecting lower volumes [13] Company Strategy and Development Direction - The company focuses on specialized materials engineering, value-added niche applications, and disciplined execution, supported by the Luxfer Business System [19] - Structural actions are being implemented to enhance efficiency and position the business to perform through changing macroeconomic conditions [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating 2026 while maintaining strong margins and a robust balance sheet, despite expected revenue pressure due to timing dynamics [16][18] - The company anticipates a favorable growth environment in 2027, driven by new product introductions and a potential SCBA replacement cycle [20] Other Important Information - The company generated strong free cash flow of $26.2 million and continued to distribute capital to shareholders [5] - Capital expenditures for 2026 are expected to be elevated, between $15 million and $20 million, primarily supporting optimization initiatives and growth opportunities [16][32] Q&A Session Summary Question: What is driving the continued strength in Elektron margins? - Management noted strong demand for differentiated products in aerospace and defense, particularly magnesium alloys, which supported high margins [24] Question: How should we think about Elektron margin trajectory in 2026? - Management indicated an aspirational EBITDA margin of around 20% for Elektron, with expectations to maintain that level [25] Question: Can you provide additional color on the impact of the North American Gas Cylinder plant consolidation? - Management mentioned expected savings of up to $4 million once the consolidation is fully executed, with initial production already underway [27] Question: Could you elaborate on new product developments? - Management highlighted new detection products for organophosphates and next-generation gas cylinder products for SCBA and space markets [30] Question: Can you discuss 2026 capital deployment priorities? - Management outlined elevated capital expenditures for 2026, with a focus on restructuring projects and growth programs, while maintaining a normal level of share buybacks [32]