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ATI's Earnings Surpass Estimates in Q4, Sales Stable Y/Y

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Key Takeaways

  • ATI reported Q4 adjusted EPS of 93 cents, up 18% year over year, while net profit fell and sales were flat.
  • ATI's segments delivered double-digit EBITDA growth, even as both segments missed sales estimates.
  • ATI projects adjusted earnings per share in the band of 83-89 cents for the first quarter of 2026.

ATI Inc. (ATI - Free Report) recorded a profit of $96.6 million or 69 cents per share for the fourth quarter of 2025, down from the year-ago quarter's profit of $137.1 million or 94 cents.

ATI posted adjusted earnings of 93 cents, up 18% from the year-ago quarter’s figure of 79 cents. Adjusted earnings exceeded the Zacks Consensus Estimate of 89 cents.

The company’s net sales in the fourth quarter were $1,177.1 million, missing the Zacks Consensus Estimate of $1,197.7 million. Net sales were essentially flat year over year. 

ATI Inc. Price, Consensus and EPS Surprise

ATI’s Segment Highlights

High-Performance Materials & Components (HPMC) reported sales of $645.9 million in the fourth quarter, up 2% year over year. However, the figure fell short of the consensus estimate of $656 million. HPMC's segment EBITDA rose 22.23% year over year to $155 million. 

Advanced Alloys & Solutions (AA&S) recorded sales of $531.2 million, down approximately 1.4% from the prior-year figure of $538.5 million. The figure missed the consensus estimate of $543 million. The segment's EBITDA for the quarter was $98.5 million, up 12% year over year.

ATI’s Financials

In the fourth quarter of 2025, cash and cash equivalents totaled $416.7 million, down 42.2% year over year. The company's long-term debt was $1,718.3 million, up 0.2% from the prior-year level.

ATI’s Outlook

For the first quarter of 2026, adjusted EBITDA is expected to range between $216 million and $226 million, while full-year 2026 guidance is within $975 million-$1,025 million. Adjusted earnings per share are projected at 83-89 cents for the first quarter and $3.99 to $4.27 for the full year. Adjusted free cash flow for the full year is estimated between $430 million and $490 million. 

ATI’s Price Performance

Shares of ATI are up 101.5% in the past year compared with the industry’s 36.8% rise. 

Zacks Investment ResearchImage Source: Zacks Investment Research

ATI’s Zacks Rank & Other Key Picks

ATI currently carries a Zacks Rank #2 (Buy). 

Other top-ranked stocks worth a look in the aerospace sector include Astronics Corporation (ATRO - Free Report) , Innovative Solutions and Support, Inc. (ISSC - Free Report)  and AAR Corp. (AIR - Free Report) .

Astronics is expected to report fourth-quarter results on March 3. The Zacks Consensus Estimate for ATRO’s fourth-quarter earnings is pegged at 60 cents per share, indicating 25% year-over-year growth. ATRO’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 59.1%. Astronics currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Innovative Solutions is scheduled to report fiscal first-quarter results on Feb. 12. The Zacks Consensus Estimate for ISSC’s fiscal first-quarter earnings is pegged at 10 cents, indicating 150% year-over-year growth. ISSC currently carries a Zacks Rank #1.

AAR is expected to report fiscal third-quarter results on March 26. AIR carries a Zacks Rank #2 (Buy) at present. The Zacks Consensus Estimate for AIR’s fiscal third-quarter earnings is pegged at $1.21, indicating 22.2% year-over-year growth.

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