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ATI's Q2 Earnings Beat Estimates on Aerospace & Defense Gains

ATI's Q2 Earnings Beat Estimates on Aerospace & Defense Gains

Yahoo07-08-2025
ATI Inc. ATI recorded a profit of $100.7 million or 70 cents per share for the second quarter of 2025, up from the year-ago quarter's profit of $81.9 million or 58 cents.ATI posted adjusted earnings of 74 cents, up 23.3% from the year-ago quarter's figure of 60 cents. Adjusted earnings exceeded the Zacks Consensus Estimate of 72 cents.The company's net sales in the second quarter were $1,140.4 million, missing the Zacks Consensus Estimate of $1,144.3 million. Net sales were up around 4.1% year over year. ATI saw strong year-over-year sales growth in aerospace and defense.
ATI Inc. Price, Consensus and EPS Surprise
ATI Inc. price-consensus-eps-surprise-chart | ATI Inc. Quote
ATI's Segment Highlights
High-Performance Materials & Components (HPMC) reported sales of $608.8 million in the second quarter, up 8.3% year over year. However, the figure fell short of the consensus estimate of $621.4 million. HPMC's segment EBITDA rose 26.5% year over year to $144 million. Advanced Alloys & Solutions (AA&S) recorded sales of $531.6 million, down approximately 0.3% from the prior year's figure of $518.9 million. The figure surpassed the consensus estimate of $525.2 million. The segment's EBITDA for the quarter was $76.7 million, down 12.3% year over year.
ATI's Financials
In second-quarter 2025, cash and cash equivalents amounted to $319.6 million compared with the previous year's figure of $425.6 million. The company's long-term debt was $1,710.7 million, down 7.7% from prior-year level.
ATI's Outlook
For the third quarter of 2025, adjusted EBITDA is expected to range between $200 million and $210 million, while full-year 2025 guidance is between $810 million and $840 million. Adjusted earnings per share are projected at 69-75 cents for the third quarter and $2.90 to $3.07 for the full year. Adjusted free cash flow for the full year is estimated between $270 million and $350 million. Capital expenditures are anticipated to be between $260 million and $280 million.
ATI's Zacks Rank & Key Picks
ATI currently carries a Zacks Rank #3 (Hold).Better-ranked stocks worth a look in the basic materials space include Sylvamo Corporation SLVM, Avino Silver & Gold Mines Ltd. ASM and Barrick Mining Corporation B.Sylvamo is slated to report second-quarter results on Aug 8. The Zacks Consensus Estimate for earnings is pegged at 47 cents. SLVM beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 6.5%. SLVM carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.Avino Silver is scheduled to report second-quarter results on Aug 13. The Zacks Consensus Estimate for ASM's second-quarter earnings is pegged at 3 cents. ASM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 104.2%. ASM currently carries a Zacks Rank #1.Barrick Mining is slated to report second-quarter results on Aug 11. The consensus estimate for Barrick's earnings is pegged at 47 cents. Barrick, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters, with the average earnings surprise being 12.5%.
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ATI Inc. (ATI) : Free Stock Analysis Report
Barrick Mining Corporation (B) : Free Stock Analysis Report
Avino Silver (ASM) : Free Stock Analysis Report
Sylvamo Corporation (SLVM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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