Exceeded high-end of Q3 Adjusted EBITDA guide by $13 million

Sales increased 26% with growth in all key markets; GAAP-diluted EPS up 76% year-over-year

Adjusted EBITDA increased 46% year-over-year, with margin expanding 300 bps to 23.0%

Raising full-year 2026 guide by $35 million to $1.195 billion; follows raise of $125 million last quarter

Third Quarter 2026 GAAP Financial Results

- Sales of $1.42 billion, up 26% year-over-year

- Net income attributable to ATI of $190 million, up 73% year-over-year

- Earnings per share of $1.37 compared to $0.78 per share in third quarter 2025

Third Quarter 2026 Non-GAAP Financial Information(a)

- Adjusted net income attributable to ATI(a) of $202 million, up 69% year-over-year

- Adjusted earnings per share(a) of $1.46, compared to $0.85 per share in third quarter 2025

- Adjusted EBITDA(a) of $328 million, an increase of 46% year-over-year

- Adjusted EBITDA(a) as a percentage of sales of 23.0%, compared to 20.0% in third quarter 2025

Guidance

The Company is providing fourth quarter and updated full year 2026 guidance in the table below.

DALLAS, Oct. 29, 2026 /PRNewswire/ -- ATI Inc. (NYSE: ATI) reported third quarter 2026 results, with sales of $1.42 billion and net income attributable to ATI of $190 million, or $1.37 per share.

"We had a strong third quarter, exceeding the high-end of our guidance. We are raising our full-year outlook for adjusted EBITDA by $35 million. This follows the $125 million increase in our outlook just last quarter," said Kimberly A. Fields, Board Chair, President and CEO. "Sales in the quarter grew 26% year-over-year, while adjusted EBITDA increased by 46% year-over-year. Our results reflect three main drivers: strong demand backed by long-term agreements, differentiated capabilities that make us the partner of choice, and disciplined execution across our operations.

"These results show the strength and balance of ATI's portfolio and reinforce our growth outlook," Fields continued. "We're delivering on our commitments and positioning ATI for even stronger performance in 2027."

Third quarter 2026 GAAP earnings per share were $1.37 and adjusted earnings per share(a) were $1.46. Net income attributable to ATI was $189.8 million and ATI adjusted EBITDA(a) was $327.9 million, or 23.0% of sales. Third quarter 2026 adjusted results exclude pre-tax charges of $15.6 million for special items consisting of $14.4 million for restructuring and other charges and a $1.2 million debt extinguishment charge. The after-tax impact of these special items was a charge of $12.1 million, or $0.09 per share.

The third quarter 2026 restructuring and other charges include $8.4 million of transformation-related costs, $2.9 million of losses on the sale of customer accounts receivable, $2.2 million of start-up and transaction-related costs, and $0.9 million of restructuring-related costs.

Second quarter 2026 adjusted results exclude pre-tax charges of $23.6 million for special items for restructuring and other charges. These charges consist of $10.1 million of start-up and transaction-related costs, $7.0 million of transformation-related costs, $3.9 million of restructuring-related costs, and $2.6 million of losses on the sale of customer accounts receivable. The after-tax impact of these special items was a charge of $18.7 million, or $0.14 per share.

Third quarter 2025 adjusted results exclude pre-tax charges of $11.8 million for special items consisting of $12.9 million for restructuring and other charges and a $1.1 million gain on the sale of a non-core business. The after-tax impact of these special items was a charge of $9.4 million, or $0.07 per share. The Non-GAAP tables included within this release provide the reconciliations of the GAAP to Non-GAAP financial measures and additional details on the special items noted above.

Operating Results by Segment

- HPMC's third quarter 2026 sales increased $84.3 million, or 13%, compared to second quarter 2026, primarily due to strong demand and pricing for commercial jet engine products as well as demand for defense products. Aerospace & defense sales represented 94% of total HPMC sales in third quarter 2026, which was up slightly compared to second quarter 2026.

- Third quarter 2026 sales increased 20% compared to third quarter 2025, primarily driven by a 34% increase in sales of commercial jet engine products due to strong demand and pricing.

- HPMC third quarter 2026 segment EBITDA(a) was $167.3 million, or 23.2% of sales. The sequential and year-over-year decline in segment EBITDA margin was primarily due to higher manufacturing and period costs, including costs associated with ramping commercial production of a new nickel-based superalloy.

- AA&S third quarter 2026 sales increased $78.3 million, or 13%, compared to the second quarter 2026, primarily due to higher sales in the aerospace & defense and specialty energy markets. Aerospace & defense sales increased 17%, driven by higher demand and pricing for both commercial jet engine and airframe products. Aerospace & defense represented 45% of total AA&S sales in the third quarter of 2026.

- Third quarter 2026 sales increased $179.7 million, or 34%, compared to third quarter 2025, primarily due to higher sales to the aerospace & defense, specialty energy, and conventional energy markets. On a year-over-year basis, aerospace & defense sales grew by 34%, as sales of commercial jet engine products almost doubled, reflecting both higher demand and pricing.

- AA&S third quarter 2026 segment EBITDA(a) was $181.3 million, or 25.8% of sales. The sequential and year-over-year increase in segment EBITDA margin was primarily driven by higher pricing and volumes as well as a favorable sales mix. Also, second quarter 2026 segment EBITDA margin included a $9.9 million gain from the sale of a previously closed manufacturing facility.

Corporate Items and Cash

- Restructuring and other charges:

- Third quarter 2026: $14.4 million includes pre-tax charges consisting of $8.4 million of transformation-related costs, $2.9 million of losses on the sale of customer accounts receivable, $2.2 million of start-up and transaction-related costs, and $0.9 million of restructuring-related costs for severance and facility rationalization activities.

- Second quarter 2026: $23.6 million includes pre-tax charges consisting of $10.1 million of start-up and transaction-related costs, $7.0 million of transformation-related costs, $3.9 million of restructuring-related costs for severance and facility rationalization activities, and $2.6 million of losses on the sale of customer accounts receivable.

- Third quarter 2025: $12.9 million includes pre-tax charges consisting of $7.2 million of start-up and transaction-related costs, $3.6 million of transformation-related costs, and $2.5 million of losses on the sale of customer accounts receivable, partially offset by restructuring-related credits of $0.4 million.

- Third quarter 2026 includes a $1.2 million debt extinguishment charge and third quarter 2025 includes a $1.1 million gain on the sale of a non-core business previously reported in the HPMC segment.

- Corporate expenses in the third quarter 2026 were $18.8 million, compared to $14.9 million in the second quarter 2026, and $15.6 million in the prior year quarter. The increase compared to second quarter 2026 was primarily due to a benefit from an insurance claim in that quarter. The increase compared to third quarter 2025 was primarily due to higher professional fees and insurance costs.

- Closed operations and other income/expense was expense of $1.9 million in the third quarter 2026 compared to expense of $1.8 million in the second quarter 2026, and income of $4.5 million in the prior year quarter. Third quarter 2025 benefited from a $10.5 million gain from the sale of oil and gas rights.

- Third quarter 2026 results included a $51.5 million income tax provision, or an effective rate of 21.0%, which was slightly higher than the second quarter 2026 effective tax rate of 20.0%. Third quarter 2025 results included a $31.0 million income tax provision, or an effective tax rate of 21.4%.

- Cash provided by operating activities was $154.6 million for the third quarter 2026, while capital expenditures were $92.8 million.

- Managed working capital as a percent of annualized sales was 32.9% at the end of third quarter 2026, a decrease of 140 basis points compared to the end of second quarter 2026.

- In the third quarter 2026, the Company repurchased $70.0 million of its common stock at an average price per share of $199.62, retiring approximately 0.4 million shares. As of the end of third quarter 2026, total share repurchase authorization remaining was $425 million.

ATI will conduct a conference call with investors and analysts on Thursday, October 29, 2026, at 8:30 a.m. ET to discuss the financial results. The conference call will be broadcast, and accompanying presentation slides will be available, at ATImaterials.com. To access the broadcast, click on "Conference Call." Replay of the conference call will be available on the ATI website.

This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Certain statements in this news release relate to future events and expectations and, as such, constitute forward-looking statements. Forward-looking statements, which may contain such words as "anticipates," "believes," "estimates," "expects," "would," "should," "will," "will likely result," "forecast," "outlook," "projects," and similar expressions, are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which we are unable to predict or control.