ATI Inc. Reports Third Quarter Earnings

NEW YORK – ATI Inc. (NYSE:ATI) reported third quarter earnings that missed analyst estimates and lowered its full-year outlook, resulting in a 5% drop in shares in early trading on Tuesday.

The specialty materials manufacturer posted adjusted earnings per share of $0.60 for the third quarter, falling short of the $0.66 expected by analysts. Revenue was $1.05 billion, below the consensus estimate of $1.12 billion.

ATI cut its full-year 2024 earnings guidance to $2.24-$2.30 per share, down from the previous outlook of $2.40-$2.60, and below Wall Street's expectation of $2.45.

The company cited uncertainty across its aerospace customer base due to slowing aircraft production ramps and a work stoppage in the supply chain. Unplanned outages and transportation issues related to Hurricane Helene also delayed certain shipments during the quarter.

Kimberly A. Fields, President and CEO of ATI, stated, "Our third quarter results reflected year-over-year growth in sales and EBITDA, yet this rate of growth fell short of our expectations. We remain confident in both long-term demand and our ability to deliver for our customers and shareholders."

Despite the challenges, ATI reported that aerospace and defense markets represented 62% of Q3 sales. The company's adjusted EBITDA margin improved by 100 basis points sequentially to 17.7% of sales.

For the quarter, ATI reported revenue of $1.05 billion, up 2% year-over-year. Net income attributable to ATI was $82.7 million, or $0.57 per share, compared to $90.2 million, or $0.62 per share, in the prior year period.

The company ended the quarter with $406.6 million in cash and cash equivalents. ATI also announced a new $700 million share repurchase authorization during Q3.

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