ATI Inc beats Q3 revenue estimates on aerospace & defense demand, raises FY outlook
Overview
US high-performance materials maker's Q3 revenue rose 26%, beating analyst expectations
Adjusted EPS for Q3 was $1.46, above analyst consensus
Company raised full-year 2026 adjusted EBITDA guidance by $35 mln
Outlook
ATI raises full-year 2026 adjusted EBITDA outlook to $1.190 bln-$1.200 bln from $1.135 bln-$1.185 bln
Company expects Q4 2026 adjusted EBITDA of $345 mln-$355 mln
ATI sees full-year 2026 adjusted EPS of $5.17-$5.23, up from prior $4.90-$5.18
Result Drivers
AEROSPACE & DEFENSE DEMAND - Co said sales growth was driven by strong demand and higher pricing for commercial jet engine and defense products, especially in the High Performance Materials & Components segment
HIGHER PRICING & VOLUMES - Advanced Alloys & Solutions segment saw increased sales and margins, mainly due to higher pricing, volumes, and favorable sales mix in aerospace & defense and energy markets
DISCIPLINED EXECUTION - Co attributed results to disciplined execution across operations and long-term agreements, according to CEO Kimberly Fields
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.42 bln | $1.32 bln (8 Analysts) |
Q3 Adjusted EPS | Beat | $1.46 | $1.37 (7 Analysts) |
Q3 EPS | $1.37 | ||
Q3 Adjusted Net Income | $201.90 mln | ||
Q3 Net Income | $189.80 mln | ||
Q3 Adjusted EBITDA | $327.90 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for ATI Inc. is $240.00, about 45.2% above its October 28 closing price of $165.30
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 40 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)