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ATI (ATI)
NYSE:ATI
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ATI (ATI) AI Stock Analysis

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ATI

ATI

(NYSE:ATI)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
$94.00
▲(13.91% Upside)
ATI's overall stock score is driven by strong financial performance and positive earnings call highlights, particularly in the aerospace sector. While technical indicators support a bullish trend, the high valuation and absence of a dividend yield are notable considerations.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for ATI's products, particularly in aerospace, supporting long-term business expansion.
Long-Term Agreements
These agreements enhance ATI's market position and secure future revenue streams, leveraging its competitive advantage in aerospace materials.
Cash Flow Generation
Strong cash flow supports ATI's ability to invest in growth opportunities and manage debt, ensuring financial stability.
Negative Factors
Industrial Market Challenges
Flat performance in industrial markets due to tariffs and macroeconomic conditions may limit growth in this segment.
Medical Market Weakness
Weakness in the medical segment, due to inventory and pricing pressures, could hinder revenue diversification efforts.
Leverage Concerns
While improved, leverage remains a concern, potentially limiting financial flexibility and increasing risk during downturns.

ATI (ATI) vs. SPDR S&P 500 ETF (SPY)

ATI Business Overview & Revenue Model

Company DescriptionATI Inc. manufactures and sells specialty materials and components worldwide. The company operates in two segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). The HPMC segment produces various materials, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, advanced powder alloys and other specialty materials, in long product forms, such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, as well as precision forgings, components, and machined parts. The segment serves aerospace and defense, medical, and energy markets. The AA&S segment produces zirconium and related alloys, including hafnium and niobium, nickel-based alloys, titanium and titanium-based alloys, and specialty alloys in a variety of forms, such as plate, sheet, and precision rolled strip products. It also provides hot-rolling conversion services, including carbon steel products, and titanium products. This segment offers its solutions to the energy, aerospace and defense, automotive, and electronics markets. The company was formerly known as Allegheny Technologies Incorporated. ATI Inc. was founded in 1960 and is headquartered in Dallas, Texas.
How the Company Makes MoneyATI generates revenue through the sale of its high-performance materials, primarily focusing on aerospace and defense sectors, which represent a significant portion of its business. The company earns money by supplying these specialized materials to major OEMs (Original Equipment Manufacturers) and other manufacturers who require high-quality materials for their products. Key revenue streams include contracts for aerospace components, sales of titanium and alloy products, and services related to material processing. Additionally, ATI has established strategic partnerships with leading companies in the aerospace and energy sectors, enhancing its market position and enabling it to capitalize on growing demand for advanced materials. The company's focus on innovation, including research and development of new materials and processes, also contributes to its ability to maintain competitive pricing and secure long-term contracts.

ATI Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
ATI's second quarter results showed strong performance in revenue growth, particularly in the aerospace and defense sectors, with significant long-term agreements with Boeing and Airbus contributing to future growth prospects. However, challenges in the industrial and medical markets due to external factors like tariffs and pricing pressures were noted. The overall sentiment is positive due to the outweighing highlights.
Q2-2025 Updates
Positive Updates
Revenue Growth
Revenue grew 4% year-over-year, surpassing $1.1 billion. Adjusted EBITDA reached $208 million, a 14% increase year-over-year.
High Performance Materials & Components Segment
Margins in the High Performance Materials & Components segment reached 23.7%, a 350 basis point improvement from Q2 2024.
Commercial Jet Engine Sales
Commercial jet engine sales grew 27% in Q2 and are up 31% year-over-year for the first half of 2025.
Long-Term Agreements with Boeing and Airbus
Signed new long-term agreements with Boeing and Airbus, expanding partnerships and increasing product scope and volume, including titanium alloy sheet production.
Share Repurchase Program
Executed $250 million in share repurchases during the quarter, bringing total buybacks since 2022 to over $800 million.
Negative Updates
Industrial Market Challenges
The industrial segment remained flat, impacted by tariff issues and soft macroeconomic conditions.
Medical Market Weakness
Medical segment revenue was flat sequentially and down year-over-year, facing elevated inventories and pricing pressures.
Company Guidance
During ATI's Second Quarter 2025 Earnings Call, the company reported a 4% year-over-year revenue growth, reaching approximately $1.14 billion, and an adjusted EBITDA of $208 million, surpassing guidance expectations. Adjusted earnings per share were reported at $0.74, while the adjusted EBITDA margin hit a notable 18.2%, with the High Performance Materials & Components (HPMC) segment achieving margins of 23.7%. The company's adjusted free cash flow saw a significant 94% increase year-over-year, totaling $93 million. ATI also executed $250 million in share repurchases, bringing the total buyback since 2022 to over $800 million. The company raised the midpoint of its full-year guidance for adjusted EBITDA, EPS, and adjusted free cash flow, projecting a full-year adjusted EBITDA between $810 million and $840 million, and adjusted EPS between $2.90 and $3.07. Additionally, ATI signed new long-term agreements with Boeing and Airbus, expanding its share and product offerings in the aerospace sector.

ATI Financial Statement Overview

Summary
ATI's financial performance is strong with robust revenue growth, healthy profit margins, and improved leverage management. The company shows solid cash flow generation, although there are some leverage concerns.
Income Statement
85
Very Positive
ATI has demonstrated strong revenue growth with a TTM growth rate of 1.01%, indicating robust demand in the metal fabrication industry. The gross profit margin of 21.11% and net profit margin of 9.26% reflect efficient cost management and profitability. The EBIT and EBITDA margins are healthy at 14.33% and 17.03%, respectively, showcasing operational efficiency. Overall, the income statement shows a positive trajectory with consistent improvement in profitability metrics.
Balance Sheet
70
Positive
ATI's balance sheet shows a moderate debt-to-equity ratio of 1.08, which is an improvement from previous years, indicating better leverage management. The return on equity is strong at 23.01%, reflecting effective use of equity to generate profits. However, the equity ratio of 34.72% suggests a moderate reliance on debt financing. While the company has improved its financial stability, the balance sheet still reflects some leverage risk.
Cash Flow
78
Positive
ATI's cash flow statement reveals a significant free cash flow growth of 64.53%, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.44 and free cash flow to net income ratio of 0.65 suggest that the company is effectively converting its earnings into cash. The cash flow metrics highlight a strong cash position, supporting future investments and debt servicing.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.51B4.36B4.17B3.84B2.80B2.98B
Gross Profit951.70M898.20M802.60M714.20M333.20M292.80M
EBITDA767.90M608.90M547.10M599.30M260.80M-1.30B
Net Income417.50M367.80M410.80M130.90M-16.20M-1.56B
Balance Sheet
Total Assets5.02B5.23B4.99B4.45B4.29B4.03B
Cash, Cash Equivalents and Short-Term Investments319.60M721.20M743.90M584.00M687.70M645.90M
Total Debt1.89B1.90B2.18B1.75B1.84B1.57B
Total Liabilities3.16B3.28B3.50B3.29B3.45B3.39B
Stockholders Equity1.74B1.85B1.37B1.05B685.60M521.10M
Cash Flow
Free Cash Flow235.40M168.10M-114.80M94.00M-136.50M30.40M
Operating Cash Flow473.90M407.20M85.90M224.90M16.10M166.90M
Investing Cash Flow-161.70M-159.60M-193.20M-126.70M-77.30M-128.70M
Financing Cash Flow-432.30M-260.40M267.20M-201.90M103.00M116.90M

ATI Technical Analysis

Technical Analysis Sentiment
Positive
Last Price82.52
Price Trends
50DMA
78.15
Positive
100DMA
81.08
Positive
200DMA
68.45
Positive
Market Momentum
MACD
1.10
Negative
RSI
55.09
Neutral
STOCH
75.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATI, the sentiment is Positive. The current price of 82.52 is above the 20-day moving average (MA) of 79.00, above the 50-day MA of 78.15, and above the 200-day MA of 68.45, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 55.09 is Neutral, neither overbought nor oversold. The STOCH value of 75.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATI.

ATI Risk Analysis

ATI disclosed 29 risk factors in its most recent earnings report. ATI reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

ATI Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$11.13B15.960.95%19.42%30.15%
80
Outperform
$3.27B12.6621.42%0.66%1.70%684.20%
78
Outperform
$11.44B28.5326.95%6.64%3.23%
75
Outperform
$12.31B33.3219.93%0.32%4.25%100.21%
70
Neutral
$6.83B26.9012.38%0.30%-1.06%1.56%
64
Neutral
$2.78B26.1911.11%1.26%-39.38%175.22%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ATI
ATI
81.28
16.19
24.87%
AZZ
AZZ
109.10
27.27
33.33%
CRS
Carpenter Technology
247.52
88.32
55.48%
MLI
Mueller Industries
100.55
28.75
40.04%
WOR
Worthington Industries
55.63
14.38
34.86%
ESAB
ESAB Corporation
112.52
9.60
9.33%

ATI Corporate Events

Business Operations and StrategyExecutive/Board Changes
ATI Announces CFO Retirement and Board Expansion
Neutral
Sep 10, 2025

On September 9, 2025, ATI Inc. announced the upcoming retirement of Donald P. Newman, its Executive Vice President, Finance and Chief Financial Officer, effective March 1, 2026. To ensure a smooth transition, Newman will provide consulting services for ten months post-retirement. Concurrently, ATI’s Board of Directors expanded from ten to twelve members, appointing Elizabeth Lund and Jean Lydon-Rodgers as independent directors, effective November 1, 2025. Both bring extensive experience in aerospace and defense, enhancing the board’s expertise. These changes reflect ATI’s strategic focus on leadership continuity and strengthening its market position.

The most recent analyst rating on (ATI) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on ATI stock, see the ATI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 27, 2025