ATI's Q4 and Full Year 2024 Results: A Deep Dive into the Aerospace and Defense Giant

ATI Inc. (NYSE: ATI), a global leader in high-performance materials and solutions, has announced its upcoming fourth quarter and full year 2024 earnings conference call. The event is scheduled for Tuesday, February 4, 2025, at 7:30 a.m. CT (8:30 a.m. ET), with results to be published one hour earlier at 6:30 a.m. CT. The conference call will be accessible via webcast on ATImaterials.com, where accompanying presentation slides will also be available. Interested parties can access the broadcast through the 'Conference Call' section of the website. A replay of the conference call will be made available on the company's website afterward.

ATI's strategic shift towards the aerospace and defense sector has significantly influenced its overall revenue mix and growth in 2024. As of the third quarter of 2024, aerospace and defense represented 62% of ATI's total sales, up from 57% in the first quarter of 2024. This shift is evident in the company's segment performance:

1. High Performance Materials & Components (HPMC) Segment:
- In Q1 2024, aerospace and defense sales represented 84% of total HPMC sales, increasing to 86% in Q3 2024.
- HPMC's sales grew by 2% year-over-year in Q3 2024, driven by increased demand for next-generation commercial jet engine products, which offset a decline in sales of commercial airframe products.

2. Advanced Alloys & Solutions (AA&S) Segment:
- In Q1 2024, aerospace and defense sales represented 34% of total AA&S sales.
- AA&S' sales decreased by 10% year-over-year in Q1 2024, primarily due to the prolonged recovery in general industrial end markets. However, the segment's sales increased by 7% quarter-over-quarter in Q1 2024, driven by increased conventional energy and commercial aerospace sales.

ATI's focus on the aerospace and defense sector has contributed to its overall revenue growth in 2024. The company reported year-over-year growth in sales and EBITDA in the first quarter of 2024, with aerospace and defense sales up 7% compared to the prior year. This strategic shift has allowed ATI to leverage its advanced materials and solutions to support the growth and demand in the aerospace and defense industry.



However, the impacts of industry-wide slowing of the aircraft production ramp and work stoppages have affected ATI's aerospace and defense segment in 2024. In the third quarter of 2024, ATI reported a decrease in sales to the medical and general industrial markets, as well as lower sales for commercial airframe products. The company attributed these challenges to the industry-wide slowing of the aircraft production ramp and work stoppages, as well as unplanned outages and transportation issues related to Hurricane Helene.

Despite these challenges, ATI remains confident in both long-term demand and its ability to deliver for its customers and shareholders. The company is actively addressing these challenges in demand and production, focusing on areas within its control to target improved performance for the remainder of 2024 and beyond. ATI's cost-cutting measures and restructuring efforts have had a positive impact on its earnings per share (EPS) and earnings before interest, taxes, depreciation, and amortization (EBITDA) margins in Q4 and full-year 2024.

In conclusion, ATI's Q4 and full year 2024 results will provide valuable insights into the company's performance and strategic direction. Investors and stakeholders should closely monitor the earnings call and the company's future plans to stay informed about ATI's growth prospects and potential opportunities in the aerospace and defense sector.