ATI Inc. Delivers Q3 Beat and Raises Full-Year 2026 Guidance

Financial Results & Operational Overview

ATI Inc. (NYSE: ATI) reported third-quarter 2026 financial results under Item 2.02, demonstrating double-digit revenue growth and margin expansion driven by sustained demand in aerospace and defense.

Key Consolidated Metrics

• Revenue: $1,423.7 million, up 26% year-over-year (vs. $1,125.5 million in Q3 2025) and up 13% sequentially.
• GAAP Net Income: $189.8 million ($1.37 per diluted share), an increase of 73% compared to $110.0 million ($0.78 per diluted share) in Q3 2025.
• Adjusted Net Income (Non-GAAP): $201.9 million ($1.46 per diluted share), up 69% from $119.4 million ($0.85 per diluted share) in the prior-year period.
• Adjusted EBITDA (Non-GAAP): $327.9 million (23.0% margin), increasing 46% year-over-year from $225.1 million (20.0% margin) and beating the top end of Q3 guidance by $13 million.

Segment Breakdown

• High Performance Materials & Components (HPMC):
  • Sales: $721.4 million (+20% YoY, +13% QoQ), propelled by a 34% YoY increase in commercial jet engine product revenue.
  • Segment EBITDA: $167.3 million (23.2% margin vs. 24.2% in Q3 2025), with margins slightly pressured by higher manufacturing costs and ramp-up expenses for a new nickel-based superalloy.
  • A&D Exposure: Aerospace & defense comprised 94% of segment revenue.
• Advanced Alloys & Solutions (AA&S):
  • Sales: $702.3 million (+34% YoY, +13% QoQ), aided by robust demand across aerospace & defense, specialty energy, and conventional energy.
  • Segment EBITDA: $181.3 million (25.8% margin vs. 17.3% in Q3 2025), reflecting favorable mix and higher pricing.

Guidance Update

• Q4 2026 Outlook:
  • Adjusted EBITDA: $345 million to $355 million
  • Adjusted EPS: $1.51 to $1.57
• Full Year 2026 Outlook:
  • Adjusted EBITDA: Raised to $1,190 million–$1,200 million (midpoint $1.195B), up $35 million from prior guidance ($1,135 million–$1,185 million).
  • Adjusted EPS: Raised to $5.17–$5.23 from $4.90–$5.18.
  • Adjusted Free Cash Flow: Maintained at $550 million–$600 million.