ATI reported fourth-quarter adjusted net income of $130.0 million, or $0.93 per share, surpassing the consensus estimate of $0.89. On a GAAP basis, net income attributable to ATI was $96.6 million, or $0.69 per share, down 27% from $0.94 a year earlier. Adjusted EBITDA reached $231.9 million, representing 19.7% of sales, up 11% from the prior-year quarter’s $209.8 million (17.9% of sales). Special items in the quarter included $22.9 million of transformation and start-up costs and an $18.6 million pension remeasurement loss, which were excluded from adjusted results.

Total Q4 sales were $1.18 billion, essentially unchanged from $1.17 billion in Q4 2024, and up 5% versus the prior quarter’s $1.13 billion. Aerospace & defense orders accounted for 68% of consolidated revenue, up from 65% a year ago. In the High Performance Materials & Components segment, sales rose 7% sequentially to $645.9 million, driving segment EBITDA of $155.0 million (24.0% of sales). Advanced Alloys & Solutions posted sales of $531.2 million (up 2% sequentially) and segment EBITDA of $98.5 million (18.5% of sales).

Fiscal year 2025 operating cash flow was $614 million, a 51% increase over the prior year’s $407 million, while adjusted free cash flow grew 53% to $380 million. During Q4, ATI repurchased $470 million of shares and repaid $150 million of debt, cutting annual interest expense by approximately $10 million. The company ended the year with a strengthened balance sheet and maintained investment-grade leverage ratios.

For Q1 2026, ATI expects adjusted EBITDA between $216 million and $226 million and adjusted EPS of $0.83 to $0.89. Full-year 2026 targets include adjusted EBITDA of $975 million to $1,025 million, adjusted EPS of $3.99 to $4.27, and adjusted free cash flow in the range of $430 million to $490 million. The outlook assumes sustained strength in aerospace & defense production ramps and favorable pricing in specialty alloys.