ATI Inc. Reports Revenue Increase to $1.15 Billion in Q1 2026

ATI Inc. reported a slight increase in revenue for the first quarter of 2026, achieving sales of $1.15 billion, up from $1.14 billion in the same period last year. The growth was primarily driven by a 6% increase in sales within the aerospace and defense sectors, which accounted for 69% of total sales, reaching $797.6 million. This increase was partially offset by a decline in sales to other markets, particularly in conventional energy. Gross profit also improved, rising to $262.9 million, or 22.8% of sales, compared to $235.8 million, or 20.6% of sales, in the prior year.

The company's net income attributable to ATI increased to $118.2 million, or $0.85 per share, compared to $97.0 million, or $0.68 per share, in the first quarter of 2025. This growth in profitability was supported by a reduction in selling and administrative expenses, which rose to $92.1 million from $85.0 million, primarily due to transformation and transaction-related costs. Additionally, restructuring charges of $7.0 million were recognized in the current quarter, reflecting the rationalization of certain domestic facilities.

Operationally, ATI's High Performance Materials & Components (HPMC) segment saw sales increase to $614.3 million, a 5% rise from the previous year, largely due to strong demand for commercial jet engine products. Conversely, the Advanced Alloys & Solutions (AA&S) segment experienced a 4% decline in sales to $537.2 million, primarily due to reduced sales in the conventional energy market. The company maintained a backlog of confirmed orders totaling $4.1 billion, with approximately 70% expected to be fulfilled within the next 12 months.

In terms of financial position, total assets increased to $5.23 billion as of March 29, 2026, compared to $5.10 billion at the end of 2025. Current liabilities also rose to $1.05 billion, up from $1.01 billion, driven by higher accounts payable and accrued liabilities. The company reported cash and cash equivalents of $401.7 million, a decrease from $416.7 million at the end of the previous fiscal year. ATI's liquidity position remains strong, with available additional liquidity under its Asset Based Lending (ABL) facility amounting to approximately $495 million.

Looking ahead, ATI anticipates continued growth in its aerospace and defense markets, supported by long-term agreements with original equipment manufacturers (OEMs) and a strong backlog of orders. The company is focused on managing its working capital effectively while investing in capacity and operational improvements to meet increasing demand. However, it remains cautious about potential market volatility and its impact on raw material prices and overall profitability.