ATI (ATI) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales rose 11% year-over-year to $1.3B, driven by strong aerospace & defense demand, especially for commercial jet engines and naval nuclear defense products.

• Adjusted EBITDA reached a record $284M, up 37% year-over-year, with margin expanding 440 basis points to 22.6%, exceeding guidance.

• Net income attributable to shareholders increased to $151M, with adjusted net income at $170M and adjusted EPS at $1.23.

• Backlog hit a record $4.4B, up 18% year-over-year and 7% sequentially, with 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.

Financial highlights

• Q2 2026 revenue was $1.3B, up 11% year-over-year; adjusted EBITDA was $284M, up 37% year-over-year.

• Adjusted EBITDA margin reached 22.6%, up 440 bps year-over-year; adjusted free cash flow was $69M for Q2.

• Net income attributable to shareholders was $151M; adjusted net income was $170M; adjusted EPS was $1.23.

• Cash and cash equivalents at quarter-end were $783M; liquidity stood at ~$1.3B.

• Managed working capital as a percentage of annualized sales was 34.3%, down 50 bps sequentially.

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.

• Q3 2026 adjusted EBITDA expected at $305M–$315M; adjusted EPS $1.31–$1.37.

• Q4 expected to be the strongest quarter, with implied EBITDA of ~$335M and annualized exit rate of $1.35B.

• Management expects continued growth in aerospace & defense, supported by long-term agreements and robust backlog.