ATI Raises Full-Year Profit Outlook as Third-Quarter Sales Climb 26%

ATI raised its full-year profit outlook for the second straight quarter on Thursday after third-quarter results topped the high end of its own guidance, driven by surging demand and pricing for commercial jet engine materials, according to the earnings release it filed with an 8-K.

The specialty materials maker now expects 2026 adjusted EBITDA of $1.190 billion to $1.200 billion, up from a prior range of $1.135 billion to $1.185 billion. It lifted its adjusted EPS forecast to $5.17 to $5.23, from $4.90 to $5.18, and kept its adjusted free cash flow target at $550 million to $600 million.

"We had a strong third quarter, exceeding the high-end of our guidance," Board Chair, President and CEO Kimberly A. Fields said in the release. "We are raising our full-year outlook for adjusted EBITDA by $35 million. This follows the $125 million increase in our outlook just last quarter."

Growth across the board

Sales rose 26% to $1.42 billion from $1.13 billion a year earlier. Net income attributable to ATI climbed 73% to $189.8 million, and earnings per share rose to $1.37 from $0.78.

Adjusted EPS was $1.46, up 72% from $0.85, and adjusted EBITDA jumped 46% to $327.9 million. Adjusted EBITDA margin widened 300 basis points to 23.0% of sales. The company said adjusted EBITDA beat the high end of its third-quarter guidance by $13 million.

Fields tied the results to "strong demand backed by long-term agreements," differentiated capabilities and disciplined execution, and said ATI is "positioning ATI for even stronger performance in 2027."

Jet engines lead the way

In the High Performance Materials & Components segment, sales rose 20% to $721.4 million, driven by a 34% increase in commercial jet engine product sales. Aerospace and defense made up 94% of the segment's sales. Its EBITDA margin slipped to 23.2% from 24.2%, which ATI attributed to higher manufacturing and period costs, including the ramp-up of commercial production of a new nickel-based superalloy.

The Advanced Alloys & Solutions segment posted a 34% sales increase to $702.3 million. Commercial jet engine product sales in the segment almost doubled, and segment EBITDA margin expanded to 25.8% from 17.3% on higher pricing, volumes and a favorable mix.

Fourth-quarter guide and buybacks

For the fourth quarter, ATI guided to adjusted EBITDA of $345 million to $355 million and adjusted EPS of $1.51 to $1.57.

The company repurchased $70.0 million of common stock in the third quarter at an average price of $199.62 a share, retiring about 0.4 million shares, and had $425 million left under its repurchase authorization at quarter-end. Operating cash flow was $154.6 million, and capital expenditures were $92.8 million.

Adjusted results excluded $15.6 million of pre-tax special items, mostly restructuring and other charges including $8.4 million of transformation-related costs.

By the numbers

• $1.42 billion: third-quarter sales, up 26%
• $1.37: GAAP EPS, versus $0.78 a year ago
• 23.0%: adjusted EBITDA margin, up 300 basis points
• $1.195 billion: midpoint of the new full-year adjusted EBITDA outlook

Sources

1. ATI Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001018963-26-000004)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.