ATI (ATI) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales reached $1.2 billion, up 1% year-over-year, driven by a 6% increase in aerospace & defense and favorable pricing, with net income attributable to shareholders rising 22% to $118 million and adjusted EPS up 39% to $1.00.

• Adjusted EBITDA was $232 million, up 19% year-over-year, with margin expanding to 20.1%, and operating cash flow improved by $221 million year-over-year.

• Order backlog reached an all-time high of $4.1 billion, up 10% sequentially, providing strong visibility into future performance.

• Strategic focus on aerospace, defense, and specialty energy markets is driving growth and margin expansion.

• Returned $75 million to shareholders via share repurchases, representing 100% of adjusted free cash flow, and increased repurchase authorization by $500 million.

Financial highlights

• Adjusted EBITDA for Q1 2026 was $232 million (20.1% of sales), up from $194.6 million (17.0% of sales) in Q1 2025.

• Adjusted free cash flow was $75 million, a $218 million improvement from Q1 2025.

• Managed working capital as a percentage of sales improved to 34.8%.

• Liquidity stood at $1 billion, including $401.7 million in cash; net debt to adjusted EBITDA was 1.6x.

• Capital expenditures were $55 million, with $21 million funded by customers.

Outlook and guidance

• Raised full-year adjusted EBITDA guidance to $1.01–$1.06 billion, a 20% increase over 2025.

• Full-year adjusted EPS guidance is $4.20–$4.48, up from $3.99–$4.27.

• Adjusted free cash flow guidance raised to $465–$525 million.

• Q2 adjusted EBITDA guidance is $245–$255 million, with EPS of $0.98–$1.04.

• Double-digit growth expected in Jet Engine and Defense Airframe, with Specialty Energy as an emerging driver.