ATI (ATI) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 30, 2026 astatine 12:46 PM CDT 43 min read

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Date

April 30, 2026 astatine 8:30 a.m. ET

Call participants

• President and Chief Executive Officer — Kimberly Fields

• Executive Vice President and Chief Financial Officer — James Foster

Full Conference Call Transcript

Kimberly Fields: Good morning, and convey you for joining us. We're disconnected to a large commencement successful 2026. We delivered beardown archetypal 4th show by driving higher prime revenue, expanded margins and improved currency flow. This 4th demonstrates that the ATI exemplary is working. We're prioritizing the close volume, expanding margins and converting request into net and currency flows. First 4th results exceeded the precocious extremity of our guidance, supported by disciplined operational execution and richer mix. Demand crossed our halfway markets remains robust, and we proceed to turn alongside our customers. I'll item the quarter's results. Revenue was $1.15 billion, successful enactment with expectations, with 69% attributed to aerospace and defense.

Adjusted EBITDA was $232 million, up 19% year-over-year and supra the precocious extremity of our guidance. Adjusted EBITDA borderline reached 20%, up much than 300 ground points year-over-year. Adjusted escaped currency travel was $75 million, a meaningful betterment from past twelvemonth and a wide indicator of beardown currency discipline. This show reflects much than favorable marketplace conditions. It signals a fundamentally stronger ATI. What sets america isolated contiguous is the improved prime and resilience of our earnings. We are strategically allocating capableness towards our highest worth opportunities successful aerospace, defence and specialty energy. That displacement is driving amended mix, stronger pricing and much accordant execution.

Order enactment continues to beryllium beardown with our bid backlog increasing by 10% sequentially to an all-time precocious of $4.1 billion. Additionally, pb times are extending for our astir differentiated products, ace alloy nickels, premium prime titanium, isothermal forgings and exotic alloys. This is simply a cardinal point. This is not short-cycle demand. It is tied to semipermanent contracts, accumulation schedules and well-funded programs, giving america beardown visibility into aboriginal performance. This momentum accelerates passim 2026. Operationally, our disciplined execution is delivering results. Across ATI, we are improving throughput, expanding yields and streamlining accumulation flow, peculiarly successful melting, forging and downstream processing.

That request spot is astir invaluable erstwhile we person it to deliveries, and that's wherever execution is making a difference. Across operations, we are unlocking capableness done productivity. Weekly output astatine our superior melt facilities accrued by much than 15% year-over-year. We achieved grounds shipment levels crossed aggregate merchandise lines successful some segments, and we proceed to amended travel done forging, investigating and finishing operations. These structural operational improvements are being driven by amended instrumentality reliability, tightened merchandise prime power and targeted investments successful the highest instrumentality areas of the business. Combining this execution with the beardown marketplace request provides the instauration to rise our afloat twelvemonth adjusted EBITDA guidance by $35 million, bringing the midpoint to $1.035 billion.