ATI Inc. (NYSE:ATI) reported a strong set of third-quarter results on Tuesday, handily beating analyst expectations, fueled by record sales in its aerospace and defense segments. The company’s stock surged 10.17% in pre-market trading following the announcement.
Adjusted earnings came in at $0.85 per share, exceeding the consensus estimate of $0.73, marking a 16.4% beat. Revenue rose 7% year-on-year to $1.13 billion, slightly ahead of the $1.12 billion forecast.
Aerospace and defense sales hit a record $793 million, accounting for 70% of total revenue, and climbing 21% from the prior year. Improved profitability across both business segments also contributed to the robust performance.
The High Performance Materials & Components division delivered an EBITDA margin of 24.2%, while the Advanced Alloys & Solutions segment achieved 17.3%, up from 14.4% last quarter.
“We exceeded our guidance in the third quarter, delivering strong adjusted earnings and operating cash flow,” said Kimberly A. Fields, President and CEO. “Our customers’ growth momentum continues to strengthen demand in our core markets.”
ATI reported operating cash flow of $230 million, taking its year-to-date total to $299 million, a sharp improvement of $273 million year-over-year.
In light of the strong performance, ATI raised its full-year guidance — it now expects EPS of $3.15–$3.21 (up from $2.90–$3.07 previously) and adjusted EBITDA between $848 million and $858 million, compared to the earlier projection of $810–$840 million.
