ATI (ATI) Q4 2025 earnings summary

Executive summary

• Achieved record annual sales of $4.6 billion in fiscal 2025, with Q4 sales of $1.2 billion, driven by strong aerospace and defense demand and margin expansion.

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

• Entering 2026 with momentum, supported by robust customer demand, proprietary products, and disciplined execution.

• Leadership transition with Rob Foster as CFO, following a successful transformation under Don Newman.

• Capital deployment focused on share repurchases, debt reduction, and strategic capex.

Financial highlights

• Q4 2025 revenue: $1.2 billion; adjusted EBITDA: $232 million (19.7% margin, up 11% YoY); adjusted EPS: $0.93 (up 18% YoY).

• Full year 2025 revenue: $4.6 billion (up 5% YoY); adjusted EBITDA: $859 million (up 18% YoY, 18.7% margin); adjusted EPS: $3.24 (up 32% YoY).

• Adjusted free cash flow: $380 million (up 53% YoY), exceeding guidance midpoint.

• Operating cash flow: $614 million (up 51% YoY); capital expenditures: $281 million.

• Repurchased $470 million in shares and repaid $150 million in debt in 2025.

Outlook and guidance

• 2026 adjusted EBITDA guidance: $975 million–$1.025 billion; adjusted EPS: $3.99–$4.27; adjusted free cash flow: $430–$490 million.

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

• Growth capex: $280–$300 million, with $60 million customer funding; net capex: $220–$240 million.

• 2026 consolidated EBITDA margin expected to reach 20%, with HPMC at 25% and AA&S in the upper teens.

• A&D sales mix to exceed 70% in 2026; specialty energy targeted for double-digit growth.