ATI (NYSE:ATI) Announces Quarterly Earnings Results

ATI (NYSE:ATI) released its quarterly earnings data on Thursday. The basic materials company reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.03 by $0.20, Briefing.com reports. The firm had revenue of $1.26 billion for the quarter, compared to analysts’ expectations of $1.22 billion. ATI had a net margin of 9.26% and a return on equity of 26.44%. The company’s revenue for the quarter was up 10.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.74 earnings per share. ATI updated its Q3 2026 guidance to 1.310-1.370 EPS and its FY 2026 guidance to 4.900-5.180 EPS.

Here are the key takeaways from ATI’s conference call:

• ATI raised its full-year outlook across key metrics, with adjusted EBITDA now projected at $1.135 billion–$1.185 billion, adjusted EPS at $4.90–$5.18, and free cash flow at $550 million–$600 million. The EBITDA midpoint implies 35% year-over-year growth, while free cash flow is expected to rise 51%.
• The AA&S segment delivered a substantial improvement, with sales up 17% and EBITDA margins reaching a record 23.7%, driven by stronger pricing, mix, defense demand, and high-purity hafnium and zirconium sales. Management believes the segment can sustain margins in the mid-20% range.
• Demand visibility remains strong, supported by a record $4.4 billion backlog, up 18% year over year, with about 70% expected to convert to revenue within 12 months. Jet engine revenue rose 13%, defense revenue increased 36%, and the company cited extended lead times and long-term agreements for differentiated aerospace and defense products.
• HPMC performance was within expectations but some shipments shifted from the second quarter because of qualification timing at the Mexico facility and the EB2 titanium furnace. Management expects the deferred demand, alongside contract pricing and productivity gains, to support sequential improvement in the second half.
• ATI generated $143 million of adjusted free cash flow in the first half versus a $50 million use a year earlier and expects positive free cash flow in every quarter of 2026. The company also repurchased $50 million of stock in the second quarter, with $495 million remaining under its authorization.

ATI Trading Up 0.7%

Shares of NYSE:ATI traded up $1.58 during mid-day trading on Friday, reaching $225.01. 417,057 shares of the company were exchanged, compared to its average volume of 1,877,761. The company has a debt-to-equity ratio of 0.95, a current ratio of 2.67 and a quick ratio of 1.17. The firm’s 50-day simple moving average is $191.35 and its 200 day simple moving average is $164.02. ATI has a 1 year low of $70.42 and a 1 year high of $236.98. The firm has a market cap of $30.71 billion, a price-to-earnings ratio of 74.47, a P/E/G ratio of 1.63 and a beta of 0.98.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the company. Zacks Research upgraded ATI from a “hold” rating to a “strong-buy” rating in a research report on Thursday, June 25th. KeyCorp increased their price target on shares of ATI from $175.00 to $211.00 and gave the stock an “overweight” rating in a report on Tuesday, June 30th. JPMorgan Chase & Co. upped their price objective on shares of ATI from $150.00 to $175.00 and gave the stock an “overweight” rating in a research report on Friday, May 1st. Wall Street Zen lowered shares of ATI from a “buy” rating to a “hold” rating in a research note on Tuesday, July 28th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $194.00 price target on shares of ATI in a research note on Friday, May 1st. Two investment analysts have rated the stock with a Strong Buy rating and eight have given a Buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus target price of $205.12.

Insider Buying and Selling at ATI

In related news, CEO Kimberly A. Fields sold 31,757 shares of the business’s stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $190.99, for a total value of $6,065,269.43. Following the sale, the chief executive officer owned 125,564 shares in the company, valued at approximately $23,981,468.36. The trade was a 20.19% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders sold 192,199 shares of company stock valued at $34,601,100 over the last ninety days. Insiders own 0.98% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Royal Bank of Canada increased its stake in ATI by 8.1% during the 1st quarter. Royal Bank of Canada now owns 60,369 shares of the basic materials company’s stock worth $3,140,000 after buying an additional 4,542 shares during the period. Goldman Sachs Group Inc. increased its position in shares of ATI by 49.4% during the first quarter. Goldman Sachs Group Inc. now owns 633,948 shares of the basic materials company’s stock worth $32,984,000 after acquiring an additional 209,480 shares during the period. Cetera Investment Advisers acquired a new stake in shares of ATI in the second quarter valued at $324,000. M&T Bank Corp purchased a new position in ATI in the second quarter valued at $317,000. Finally, First Trust Advisors LP grew its stake in ATI by 4.9% during the 2nd quarter. First Trust Advisors LP now owns 197,214 shares of the basic materials company’s stock worth $17,028,000 after purchasing an additional 9,234 shares in the last quarter.

ATI News Roundup

Here are the key news stories impacting ATI this week:

• Positive Sentiment: Strong Q2 results: ATI reported adjusted EPS of $1.23, ahead of the $1.03 consensus estimate, while revenue increased 11% year over year to $1.26 billion. GAAP net income rose 50% to $151 million, and adjusted EBITDA climbed 37% to $284 million. ATI Announces Second Quarter 2026 Results
• Positive Sentiment: Higher guidance: Management forecast third-quarter adjusted EPS of $1.31–$1.37, above the $1.12 consensus, and raised full-year adjusted EPS guidance to $4.90–$5.18 from $4.20–$4.48. Full-year adjusted EBITDA guidance increased to $1.135–$1.185 billion, with adjusted free cash flow targeted near $575 million.
• Positive Sentiment: Improving margins and demand: Adjusted EBITDA margin expanded to 22.6% from 18.2% a year earlier. Aerospace and defense sales rose 13%, while backlog reached $4.4 billion, up 18%, reinforcing expectations for sustained demand in ATI’s advanced materials businesses. ATI 2026 Outlook
• Positive Sentiment: Analyst upgrades: Susquehanna raised its price target from $215 to $265 and assigned a positive rating. BTIG increased its target from $180 to $270 and upgraded ATI to Buy, implying further upside based on the latest outlook.
• Neutral Sentiment: Valuation has become demanding: After its recent rally, ATI trades at approximately 74 times earnings and near its 52-week high. The stronger outlook supports the premium, but future gains may depend on continued earnings beats and margin expansion.
• Negative Sentiment: Insider selling is a risk signal: Company insiders reported 26 open-market sales and no purchases during the past six months, including sales by the CEO and executive chairman. These transactions may reflect compensation or diversification rather than a change in business outlook, but they could temper investor enthusiasm.

ATI Company Profile

Allegheny Technologies Incorporated (ATI) is a global manufacturer of specialty materials and complex components, serving aerospace, defense, oil and gas, chemical processing, medical and other industrial end markets. The company operates through two main segments: High Performance Materials & Components, which produces titanium and nickel-based alloys, stainless and specialty steels, and precision forgings; and Flat-Rolled Products, which supplies stainless steel, nickel and specialty alloy sheet, strip and precision-rolled plate.