Latest news with #ATIInc
Yahoo
4 days ago
- Business
- Yahoo
ATI's Q2 Earnings Beat Estimates on Aerospace & Defense Gains
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 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 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 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 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 # 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%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 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 Investment Research
Yahoo
01-08-2025
- Business
- Yahoo
ATI (ATI) Nosedives 18% on Missed Earnings Expectations
We recently published . ATI Inc. (NYSE:ATI) is one of the worst-performing stocks on Thursday. ATI Inc. dropped its share prices by 18.36 percent on Thursday to close at $76.94 apiece as investor sentiment was dampened by missed revenue forecasts in the second quarter of the year. In an updated report, ATI Inc. (NYSE:ATI) said attributable net income increased by 22.9 percent to $100.7 million from $81.9 million in the same period last year, as revenues grew by 4.1 percent to $1.140 billion from $1.095 billion year-on-year. Revenues, however, missed consensus forecasts by 1.72 percent, dragging down sentiment. In the first half, attributable net income grew by 33 percent to $197.7 million from $148 million, while sales rose by 6.5 percent to $2.28 billion from $2.14 billion. In other developments, ATI Inc. (NYSE:ATI) announced its expanded agreement with The Boeing Company for the supply of titanium materials to the latter and its subsidiaries. Photo by Jeremy Bezanger on Unsplash Under the terms of the agreement, ATI will supply a comprehensive portfolio of high-performance titanium materials, including long products—such as ingots, billets, rectangles, and bars—and flat-rolled products, including plate, sheet, and coil. While we acknowledge the potential of ATI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
Yahoo
28-04-2025
- Business
- Yahoo
Is ATI Inc. (ATI) Among the Best Nickel Stocks to Buy According to Hedge Funds?
We recently compiled a list of the 12 Best Nickel Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where ATI Inc. (NYSE:ATI) stands against the other nickel stocks. Nickel is a metal that is used extensively in manufacturing. It is a key component of stainless steel and is valued for its corrosion resistance. It is also among the most abundant resources. According to the International Nickel Study Group, primary nickel production will rise by 4.6% globally in 2024 and then by an additional 3.8% in 2025. About 150,000 tonnes of nickel will be in excess globally in 2025, according to Nornickel, mostly in high-grade nickel segments. The nickel industry is booming. As per Fortune Business Insights, the size of the global nickel market was estimated at $41.61 billion in 2023 and is projected to keep growing at a compound annual growth rate (CAGR) of 7.3%, from $44.59 billion in 2024 to $73.15 billion by 2032. In 2023, Asia Pacific held an 82.62% market share, dominating the nickel market. Furthermore, it is anticipated that the nickel market in the United States will expand to a size of $2.01 billion by 2032, led by the electric vehicle industry, continuous infrastructure projects, and strong demand from the production of stainless steel. However, nickel stock investing might be challenging. Mining businesses are cyclical, and stock prices fluctuate in line with the market price of nickel. Fears of a recession and a decline in industrial demand have caused nickel prices to fluctuate in early 2025, dropping from around $17,000 per metric ton to less than $16,000 in March, according to S&P Global Commodity Insights. Since nickel is necessary for NCM and NCA batteries in electric vehicles, the long-term demand picture is still favorable. Through 2030, the demand for nickel from EV batteries is anticipated to increase by 15% to 20% globally (IRENA). Long-term supply agreements have been negotiated by two major automakers to guarantee access to battery-grade nickel. That said, prices have been under pressure due to the expansion in supply, particularly from Indonesia, which produced over 1.6 million metric tons in 2024 and accounts for about 50% of the global supply. Despite high costs and environmental concerns, Indonesia's export prohibition and the growth of HPAL projects are changing the supply chain landscape. Although environmental and legal barriers exist, the Philippines is also increasing its output. The market is further complicated by geopolitical concerns. Western sanctions are forcing Russian supplies to reroute to China, while the EU looks for alternatives in countries like Canada and Australia. Trump's plans, which include possible tariffs on Chinese nickel, have placed an intense focus on essential resource extraction in the United States. LME 3M nickel prices are expected to average $16,026/t in 2025, according to S&P Global, with supply disruptions and changes in trade policy being the main concerns. According to the latest report by S&P Global, in light of growing uncertainty from tariff-led global trade tensions, the Asian nickel market may continue to face pressure in the months ahead. This will be due to a supply surplus fueled by higher Indonesian production levels and weak demand from key nickel-consuming industries, such as electric vehicles and stainless steel. Jason Sappor, metals and mining research senior analyst at S&P Global Commodity Insights, stated: 'Amid an unstable global macroeconomic backdrop, we expect the global primary nickel market to remain oversupplied in 2025, with production from Indonesia forecast to expand further this year, despite challenges like tight nickel ore availability and a potential royalty rate hike on nickel products by the government,' A worker in safety gear welding a complex titanium component in a factory setting. For this article, we sifted through the online rankings to form an initial list of the 20 Nickel Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 1,009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock's market cap as of April 25, 2025, as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here). Number of Hedge Fund Holders: 45 ATI Inc. (NYSE:ATI) manufactures and markets complex components and specialty materials. The HPMC business manufactures a range of materials, including superalloys, nickel- and cobalt-based alloys, titanium, and titanium-based alloys. The AA&S section manufactures zirconium and related alloys, such as hafnium and niobium, nickel-based alloys, titanium, and titanium-based alloys, among others. It is ranked second on our list of the Best Nickel Stocks. The firm reported $1.2 billion in revenue for the fourth quarter that concluded on December 29, 2024, which is a 10% year-over-year growth and a 12% sequential gain. Adjusted EBITDA hit $210 million, which was higher than expected. Rising to $4.4 billion, ATI Inc. (NYSE:ATI)'s full-year sales were the highest since 2012 and represented a 5% increase over 2023. Jet engine revenue jumped to 9%, airframe revenue increased by 4.5%, and aerospace and defense continued to be major growth drivers. However, the defense market, a major buyer of magnesium-based alloys from ATI Inc. (NYSE:ATI), saw a 38% sequential increase in Q4 2024 and is expected to grow by an additional 7% in 2025. A potential $200 billion increase in U.S. defense funding, of which 50% goes toward its programs, supports this expansion. Additionally, the firm secured $4 billion in new client commitments in 2024, strengthening its long-term revenue pipeline. Record levels of output and operational efficiency have resulted from the company's large investments in AI technology and equipment reliability. ATI Inc. (NYSE:ATI) announced $4 billion in new sales agreements, and higher defense spending is expected to benefit its products. Benchmark maintained its Buy rating on the company shares and increased its price objective from $80 to $81. The analyst informs investors that ATI Inc. (NYSE:ATI)'s FY25 projection 'looks beatable,' backed by record MRO backlogs, and that the company is well-positioned with rising titanium capacity to experience faster growth after FY25. Overall, ATI ranks 2nd on our list of the 12 Best Nickel Stocks to Buy According to Hedge Funds. While we acknowledge the potential of Nickel companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ATI but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
05-02-2025
- Business
- Yahoo
ATI Inc (ATI) Q4 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic Advancements
Revenue (Q4 2024): $1.2 billion, up 12% sequentially. Full Year Revenue (2024): Nearly $4.4 billion, up 5% year-over-year. Adjusted EBITDA (Q4 2024): $210 million, above the guided range of $181 million to $191 million. Adjusted EBITDA (Full Year 2024): $729 million. EBITDA Margins (2024): Almost 17%. Free Cash Flow (2024): $248 million, up more than 50% over last year. Defense Revenue (2024): Up 22% to $490 million. Aerospace and Defense Revenue (Q4 2024): Exceeded 65% of total revenue. Jet Engine Revenue (2024): Up 9% year-over-year. Capital Investment (2024): $239 million. Share Repurchases (2024): $260 million, representing 105% of 2024 free cash flow. Net Debt Ratio (Q4 2024): Improved from 2.2 to 1.6 times. 2025 Adjusted EBITDA Guidance: $800 million to $840 million. 2025 Free Cash Flow Guidance: $240 million to $360 million. Warning! GuruFocus has detected 3 Warning Sign with ATI. Release Date: February 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ATI Inc (NYSE:ATI) reported a 12% sequential increase in revenue for Q4 2024, reaching $1.2 billion. Adjusted EBITDA for Q4 was $210 million, surpassing the guided range of $181 million to $191 million. Free cash flow for 2024 was $248 million, marking a more than 50% increase over the previous year. The aerospace and defense segments contributed over 65% of Q4 revenue, indicating strong performance in these growing markets. ATI Inc (NYSE:ATI) announced $4 billion in new sales commitments, primarily tied to differentiated nickel products, indicating strong future demand. Q4 revenue mix was weaker than anticipated due to short-term shifts in customer requirements. HPMC segment margins declined by 230 basis points sequentially due to charges related to customer negotiations and adjustments to incentive compensation. The company faced operational challenges in Q3, including issues with nickel-zinc melt and hurricane impacts, affecting production and shipments. There is potential risk from tariffs on materials sourced from Canada and China, which could impact costs and supply chain dynamics. The guidance for 2025 assumes no work stoppages, but ongoing union contract negotiations could pose a risk if not resolved amicably. Q: Can you discuss the progression of EBITDA throughout 2025, given the guidance for Q1? A: Don Newman, Executive Vice President and CFO, explained that Q1 reflects seasonal factors and non-repeating items. He expects Q2 EBITDA to be in the low $200 million range, with Q3 and Q4 seeing recovery, reaching $210 million to $220 million-plus, driven by improvements in various areas. Q: How are potential tariffs with Canada affecting ATI, especially regarding nickel supply? A: Kimberly Fields, President and CEO, stated that ATI is well-positioned with diversified nickel sources, with less than 25% coming from Canada. They have mechanisms in place to pass through any cost increases due to tariffs. Q: What are the expectations for growth in the engine segment, particularly in HPMC, and how will it affect margins? A: Fields noted that engine growth is expected to continue, driven by materials and forgings, especially in MRO. Newman added that HPMC margins are expected to increase from 20%-21% in Q1 to over 23% by year-end, with a long-term target of over 25%. Q: Can you provide context around customer concessions and whether they indicate pricing pressure? A: Newman clarified that these are not concessions but part of ongoing contract negotiations. The adjustments are intended to improve ATI's long-term position, and such charges are not expected to recur. Q: How are union contract negotiations progressing, and is there a risk of work stoppage? A: Fields reported that negotiations are constructive and ongoing, with no anticipated work stoppage. The aim is to reach an agreement that rewards employees while maintaining competitiveness. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
