ATI (ATI) investor relations material

Executive summary

• Achieved record Q2 2026 results with adjusted EBITDA of $284M, up 37% year-over-year, revenue rising 11% to $1.3B, and margin expanding to 22.6%, exceeding guidance.

• Net income attributable to shareholders rose 50% year-over-year to $151M; adjusted net income was $170M and adjusted EPS $1.23.

• Backlog reached a record $4.4B, up 18% year-over-year and 7% sequentially, with over 68% from aerospace & defense and 70% expected to convert to revenue in the next 12 months.

• Both AA&S and HPMC segments contributed to growth, with AA&S transformation driving margin expansion and HPMC positioned for sequential improvement.

• Raising full-year 2026 outlook across all key metrics, reflecting strong first half and improved second half visibility.

Financial highlights

• Adjusted EBITDA of $284M exceeded guidance by $29M, including a $10M asset sale gain; margin expanded 440 bps year-over-year to 22.6%.

• Adjusted net income was $170M, up 60% year-over-year; adjusted EPS was $1.23, up from $0.74 in Q2 2025.

• Adjusted free cash flow was $69M for Q2 and $143M for the first half, a $193M improvement over the prior year.

• Capital expenditures totaled $69M in Q2, with $23M funded by customers.

• Operating income for Q2 2026 was $220M, up from $161M in Q2 2025.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance raised to $1.135B–$1.185B (prior: $1.010B–$1.060B).

• Adjusted EPS guidance increased to $4.90–$5.18 (prior: $4.20–$4.48); adjusted free cash flow guidance raised to $550M–$600M (prior: $465M–$525M).

• Q3 2026 adjusted EBITDA expected at $305M–$315M, with sequential profit improvement and Q4 projected as the strongest quarter; adjusted EPS $1.31–$1.37.