ATI (ATI) Q3 2026 earnings summary

Executive summary

• Q3 sales rose 26% YoY to $1,423.7M; adjusted EBITDA increased 46% to $327.9M, exceeding the high end of guidance by $13M.

• FY26 adjusted EBITDA guidance increased $35M to $1.190B–$1.200B; Q4 adjusted EBITDA is expected to reach $345M–$355M.

• Strong aerospace and defense demand, pricing and mix supported results; backlog was $4.3B, up 20% YoY and near a record.

Financial highlights

• Revenue was $1,423.7M, up 13% QoQ and 26% YoY; operating income was $271.9M versus $162.4M a year earlier.

• Adjusted EBITDA was $327.9M, or 23.0% of sales, versus $225.1M and 20.0% a year earlier; adjusted EPS was $1.46 versus $0.85.

• Net income attributable was $189.8M and GAAP diluted EPS was $1.37; adjusted net income was $201.9M.

• Adjusted free cash flow was $79.6M in Q3 and $223M YTD, up 49% YoY.

Outlook and guidance

• FY26 adjusted EBITDA guidance is $1.190B–$1.200B, adjusted EPS is $5.17–$5.23, and adjusted free cash flow is $550M–$600M.

• Q4 adjusted EBITDA guidance is $345M–$355M and adjusted EPS guidance is $1.51–$1.57; midpoint EBITDA implies 7% sequential and 51% YoY growth.

• FY26 jet-engine revenue growth outlook increased to low-to-mid-20%; airframe growth remains mid-to-high single digits, defense high teens and specialty energy mid-teens.

• Consolidated adjusted EBITDA margin is expected in the low-20% range; FY26 adjusted FCF midpoint remains $575M.

• FY26 HPMC margin is guided to the mid-20% range and AA&S to the low-to-mid-20% range.