ATI (NYSE:ATI) Releases Earnings Results, Beats Estimates By $0.20 EPS

ATI (NYSE:ATI) posted its quarterly earnings data on Thursday. The basic materials company reported $1.23 EPS for the quarter, beating analysts’ consensus estimates of $1.03 by $0.20, Briefing.com reports. The company had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.22 billion. ATI had a net margin of 9.26% and a return on equity of 26.44%. The company’s quarterly revenue was up 10.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.74 EPS. ATI updated its Q3 2026 guidance to 1.310-1.370 EPS and its FY 2026 guidance to 4.900-5.180 EPS.

Here are the key takeaways from ATI’s conference call:

• ATI raised its full-year outlook across key metrics, with adjusted EBITDA now projected at $1.135 billion–$1.185 billion, adjusted EPS at $4.90–$5.18, and free cash flow at $550 million–$600 million. The EBITDA midpoint implies 35% year-over-year growth, while free cash flow is expected to rise 51%.
• The AA&S segment delivered a substantial improvement, with sales up 17% and EBITDA margins reaching a record 23.7%, driven by stronger pricing, mix, defense demand, and high-purity hafnium and zirconium sales. Management believes the segment can sustain margins in the mid-20% range.
• Demand visibility remains strong, supported by a record $4.4 billion backlog, up 18% year over year, with about 70% expected to convert to revenue within 12 months. Jet engine revenue rose 13%, defense revenue increased 36%, and the company cited extended lead times and long-term agreements for differentiated aerospace and defense products.
• HPMC performance was within expectations but some shipments shifted from the second quarter because of qualification timing at the Mexico facility and the EB2 titanium furnace. Management expects the deferred demand, alongside contract pricing and productivity gains, to support sequential improvement in the second half.
• ATI generated $143 million of adjusted free cash flow in the first half versus a $50 million use a year earlier and expects positive free cash flow in every quarter of 2026. The company also repurchased $50 million of stock in the second quarter, with $495 million remaining under its authorization.

ATI Stock Up 8.5%

Shares of ATI traded up $17.46 during midday trading on Thursday, reaching $222.57. 3,104,201 shares of the company were exchanged, compared to its average volume of 1,471,142. ATI has a 1-year low of $70.42 and a 1-year high of $236.98. The stock has a 50-day moving average price of $191.35 and a 200-day moving average price of $164.02. The company has a current ratio of 2.67, a quick ratio of 1.17 and a debt-to-equity ratio of 0.95. The company has a market cap of $30.37 billion, a price-to-earnings ratio of 73.70, a P/E/G ratio of 1.63 and a beta of 0.98.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the stock. JPMorgan Chase & Co. boosted their target price on shares of ATI from $150.00 to $175.00 and gave the company an “overweight” rating in a report on Friday, May 1st. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $194.00 price target on shares of ATI in a research note on Friday, May 1st. Zacks Research upgraded shares of ATI from a “hold” rating to a “strong-buy” rating in a report on Thursday, June 25th. Weiss Ratings raised shares of ATI from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, July 9th. Finally, BTIG Research upped their price objective on ATI from $165.00 to $180.00 and gave the stock a “buy” rating in a report on Friday, May 1st. Two equities research analysts have rated the stock with a Strong Buy rating and eight have assigned a Buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $187.62.

Insider Activity

In related news, CEO Kimberly A. Fields sold 31,757 shares of the firm’s stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $190.99, for a total transaction of $6,065,269.43. Following the sale, the chief executive officer directly owned 125,564 shares in the company, valued at approximately $23,981,468.36. This trade represents a 20.19% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Insiders sold a total of 192,199 shares of company stock valued at $34,601,100 in the last ninety days. 0.98% of the stock is currently owned by company insiders.

Institutional Trading of ATI

Large investors have recently bought and sold shares of the company. Greenline Wealth Management LLC purchased a new stake in shares of ATI during the fourth quarter valued at approximately $80,000. NewEdge Advisors LLC purchased a new position in shares of ATI in the second quarter valued at $75,000. ARK Investment Management LLC boosted its stake in shares of ATI by 19.8% in the fourth quarter. ARK Investment Management LLC now owns 889 shares of the basic materials company’s stock valued at $102,000 after purchasing an additional 147 shares during the period. CIBC Private Wealth Group LLC grew its holdings in ATI by 23.4% during the 4th quarter. CIBC Private Wealth Group LLC now owns 950 shares of the basic materials company’s stock valued at $109,000 after purchasing an additional 180 shares in the last quarter. Finally, Smartleaf Asset Management LLC grew its holdings in ATI by 17.7% during the 4th quarter. Smartleaf Asset Management LLC now owns 1,283 shares of the basic materials company’s stock valued at $149,000 after purchasing an additional 193 shares in the last quarter.

Key ATI News

Here are the key news stories impacting ATI this week:

• Positive Sentiment: ATI reported second-quarter sales of $1.26 billion, up 11% year over year, while adjusted EPS of $1.23 exceeded the $1.03 consensus estimate. GAAP EPS rose to $1.09 from $0.70, and net income increased 50% to $151 million. ATI Announces Second Quarter 2026 Results
• Positive Sentiment: Profitability improved materially: adjusted EBITDA increased 37% to $284 million, with the margin expanding to 22.6% from 18.2%. Aerospace and defense sales rose 13%, and backlog reached approximately $4.4 billion, up 18%, reinforcing expectations for continued demand. ATI Q2 2026 Sales Rise 11% to $1.26 Billion
• Positive Sentiment: Management raised full-year 2026 adjusted EBITDA guidance to $1.135 billion-$1.185 billion from $1.010 billion-$1.060 billion and adjusted EPS guidance to $4.90-$5.18 from $4.20-$4.48. Third-quarter adjusted EPS guidance of $1.31-$1.37 also exceeded the $1.12 analyst consensus, while free-cash-flow expectations improved. ATI Targets Higher 2026 EBITDA and Free Cash Flow
• Neutral Sentiment: The stock reached a new 52-week high and trades at a relatively demanding valuation, with a reported P/E ratio above 70. The strong results may justify the premium, but the valuation raises expectations for continued earnings growth. ATI Hits a 52-Week High
• Negative Sentiment: Recent insider activity shows 26 reported open-market sales and no purchases during the past six months, including sales by senior executives. This may be a cautionary signal, although insider sales can also reflect compensation or portfolio diversification.

About ATI

Allegheny Technologies Incorporated (ATI) is a global manufacturer of specialty materials and complex components, serving aerospace, defense, oil and gas, chemical processing, medical and other industrial end markets. The company operates through two main segments: High Performance Materials & Components, which produces titanium and nickel-based alloys, stainless and specialty steels, and precision forgings; and Flat-Rolled Products, which supplies stainless steel, nickel and specialty alloy sheet, strip and precision-rolled plate.