ATI (ATI) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 results with $4.6 billion in revenue, driven by aerospace & defense growth and margin expansion; Q4 revenue was $1.2 billion.

• Jet engine and defense sales saw double-digit growth, supported by long-term contracts and unique alloy capabilities.

• Returned $470 million to shareholders in 2025, representing 124% of free cash flow; $120 million remains authorized for 2026.

• Operating cash flow for 2025 was $614 million, up over 50% year-over-year.

• Entering 2026 with momentum in core aerospace and defense markets and expanding specialty energy segment.

Financial highlights

• Q4 2025 adjusted EBITDA was $232 million (19.7% margin), up 11% year-over-year; full-year adjusted EBITDA was $859 million (18.7% margin), up 18% year-over-year.

• Adjusted EPS for 2025 was $3.24, up 32% from 2024.

• Adjusted free cash flow totaled $380 million, up 53% from 2024 and exceeding guidance.

• Q4 2025 adjusted net income was $129.8 million ($0.93 per share), up 18% year-over-year.

• Full-year operating cash flow increased to $614 million.

Outlook and guidance

• 2026 adjusted EBITDA guidance: $975 million–$1.025 billion; midpoint $1 billion (+16% YoY).

• 2026 adjusted EPS guidance: $3.99–$4.27; adjusted free cash flow: $430 million–$490 million.

• Q1 2026 guidance: adjusted EBITDA $216–$226 million; adjusted EPS $0.83–$0.89.

• CapEx net of customer funding for 2026 expected at $220 million–$240 million.

• A&D sales mix projected to exceed 70% of total sales in 2026.