A month has gone by since the last earnings report for ATI (ATI Quick QuoteATI - Free Report) . Shares have lost about 2.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is ATI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

ATI's Q3 Earnings Beat Estimates, Full-Year EBITDA Raised 

ATI recorded a profit of $110 million or 78 cents per share for the third quarter of 2025, up from the year-ago quarter's profit of $82.7 million or 57 cents.  

ATI posted adjusted earnings of 85 cents, up 42% from the year-ago quarter’s figure of 60 cents. Adjusted earnings exceeded the Zacks Consensus Estimate of 75 cents.  

The company’s net sales in the third quarter were $1,125.5 million, missing the Zacks Consensus Estimate of $1,139.8 million. Net sales increased by approximately 7% year over year. ATI experienced strong year-over-year sales growth in the aerospace and defence sector.  

Segment Highlights 

HPMC reported sales of $602.9 million in the third quarter, up 9% year over year. However, the figure fell short of the consensus estimate of $623 million. HPMC's segment EBITDA rose 18.3% year over year to $145.8 million. 

Advanced Alloys & Solutions (AA&S) recorded sales of $522.6 million, up approximately 4.8% from the prior-year figure of $498.8 million. The figure surpassed the consensus estimate of $507 million. The segment's EBITDA for the quarter was $90.4 million, down 23% year over year.  

Financials 

In third-quarter 2025, cash and cash equivalents amounted to $372.2 million, down 8.6% year over year. The company's long-term debt was $1,715.2 million, down 7.6% from the prior-year level.  

Outlook 

For the fourth quarter of 2025, adjusted EBITDA is expected to range between $221 million and $231 million, while full-year 2025 guidance is within $848 million-$858 million, up from the prior range of $810 million to $840 million. Adjusted earnings per share are projected at 84-90 cents for the fourth quarter and $3.15 to $3.21 for the full year, up from $2.90-$3.07 expected earlier. Adjusted free cash flow for the full year is estimated between $330 million and $370 million. Capital expenditures are anticipated to be in the range of $260 million to $280 million.  

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates review.

VGM Scores

Currently, ATI has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise ATI has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

ATI is part of the Zacks Aerospace - Defense Equipment industry. Over the past month, Hexcel (HXL Quick QuoteHXL - Free Report) , a stock from the same industry, has gained 3.7%. The company reported its results for the quarter ended September 2025 more than a month ago.

Hexcel reported revenues of $456.2 million in the last reported quarter, representing a year-over-year change of -0.1%. EPS of $0.37 for the same period compares with $0.47 a year ago.

Hexcel is expected to post earnings of $0.52 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed -8.9%.

Hexcel has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.