ATI Shares Surge After Strong Q4 Earnings Beat

ATI Inc. (NYSE: ATI) shares surged on Tuesday after the company reported fourth-quarter earnings that surpassed analysts' expectations. The Dallas-based manufacturer of specialty metals and alloys saw its stock price climb more than 5% in after-hours trading following the release of its financial results.

ATI reported net income attributable to ATI of $137.1 million, or $0.94 per share, for the fourth quarter of 2024. This was a significant improvement over the same period in 2023, when the company reported net income of $145.7 million, or $0.99 per share. The company's adjusted earnings per share (EPS) for the quarter were $0.79, up from $0.64 in the fourth quarter of 2023.



ATI's strong performance in the fourth quarter was driven by increased sales to the aerospace and defense markets, which accounted for 65% of the company's total sales. This was up from 62% in the third quarter of 2024 and 63% in the fourth quarter of 2023. The company's adjusted EBITDA margin also improved, reaching 17.9% of sales in the fourth quarter of 2024, up from 16.0% in the fourth quarter of 2023.



ATI's CEO, Kimberly A. Fields, attributed the company's strong performance to its strategic focus on the aerospace and defense markets. "Our fourth quarter results demonstrated the strong fundamentals of our business as we delivered on increasing customer demand," she said. "We achieved double-digit sales and adjusted EBITDA growth compared to the prior year fourth quarter. Fourth quarter sales to the aerospace & defense markets exceeded 65% of ATI's total sales, bringing the full year aerospace & defense mix to over 62%."

ATI's full-year 2024 sales of $4.4 billion were the highest the company has achieved since 2012, up 5% over full year 2023. The company's operating cash flow for the full year 2024 was $407 million, up from $86 million for full year 2023.



ATI's strong fourth-quarter earnings and full-year performance reflect the company's strategic focus on the aerospace and defense markets, as well as its ability to improve operational efficiency and maintain a strong balance sheet. The company's capital deployment strategy, which includes investments in capital expenditures and share repurchases, has also supported its growth and value creation objectives.

As ATI looks ahead to 2025, investors can expect the company to continue its strong performance, driven by sustained demand in the aerospace and defense markets and its commitment to operational excellence. With a strong balance sheet and a well-defined capital deployment strategy, ATI is well-positioned to continue delivering value to shareholders.