ATI Inc

Strong Q3 results; raises full-year outlook (multiple increases this year) - Revenue: $1.4B, +26% YoY and +13% sequentially - Adjusted EBITDA: $328M, +46% YoY; $18M above the guidance midpoint and $13M above the high end (and highest quarterly result since 2007) - Margin: 23% adjusted EBITDA margin, +300 bps YoY - EPS: $1.46, +72% YoY - Backlog: $4.3B, +20% YoY, “near all-time record,” providing visibility (and benefiting from extended lead times) - Guidance raise: Full-year adjusted EBITDA raised to $1.19B–$1.20B (midpoint +$35M vs prior outlook). This is the third raise in 2026. - Full-year adjusted EPS: raised to $5.17–$5.23

Cash flow and capital discipline remain a key positive - Adjusted free cash flow (Q3): $80M; YTD: $223M (up $73M / +49% YoY) - Targeting positive adjusted free cash flow in every quarter in 2026 (objective achieved in Q3, per management) - Working capital: managed working capital 32.9% of sales, improving +140 bps sequentially - CapEx: $93M in Q3; YTD total CapEx $217M; growth projects on schedule and on budget - Customer-funded CapEx: $48M YTD - Buybacks: repurchases prioritized—$70M spent in Q3; $425M remaining under authorization (no dividend mentioned)

Segment performance: AA&S transformation is durable; HPMC margin impact is temporary - AA&S (Aerospace & Defense + specialty energy mix shift): - Revenue: $702M, +34% YoY - EBITDA margin: 25.8%, +850 bps YoY (record); management attributes strength to pricing/contracts and mix shift - Structural change: exited lower-value commodity stainless; shifted to higher-value mix using 80-20 focus - A&D share of AA&S sales: ~45% vs 18% in 2021 - Sustainability view: management says AA&S is structurally transformed with full-year 2026 margins in the low-to-mid 20% range, Q4 mid-20% - HPMC (hot-section nickel-based superalloys / advanced alloys): - Revenue: $721M, +20% YoY - Margin: 23.2%, but ~200 bps below plan due to ramp inefficiencies for a newly qualified/produced advanced alloy (sixth alloy for jet hot section) - Surprising/negative-but-contained: margin pressure is acknowledged as temporary; management expects it to be largely behind them by year-end / Q4