ATI Inc. Reports 7% Sales Growth to $1.13 Billion in Third Quarter

ATI Inc. reported a notable increase in financial performance for the third quarter and year-to-date period ending September 28, 2025, with total sales reaching $1.13 billion, a 7% increase from $1.05 billion in the same quarter of the previous year. Year-to-date sales also rose by 7% to $3.41 billion, compared to $3.19 billion in the prior year. The growth was primarily driven by a 21% increase in sales within the aerospace and defense sector, which accounted for 70% of total sales in the third quarter. However, this was partially offset by declines in other core and industrial markets.

The company's gross profit for the third quarter was $255.3 million, representing 22.7% of sales, up from $224.8 million or 21.4% of sales in the prior year. Year-to-date gross profit also improved to $733.6 million, or 21.5% of sales, compared to $649.6 million, or 20.4% of sales in the previous year. The increase in gross profit was attributed to higher sales volumes and favorable pricing, particularly in nickel-based and specialty alloys. Selling and administrative expenses rose by 15% to $94.6 million in the third quarter, driven by higher incentive compensation and research and development costs.

Operationally, ATI maintained a backlog of confirmed orders totaling $3.6 billion as of September 28, 2025, slightly down from $3.9 billion a year earlier. Approximately 70% of this backlog is expected to be fulfilled within the next 12 months. The company also reported a significant improvement in cash flow from operations, which totaled $298.5 million for the year-to-date period, compared to just $26.3 million in the same period last year. This improvement was largely due to higher net income and better working capital management.

In terms of strategic developments, ATI completed the sale of its East Hartford, CT operations for $20.5 million during the third quarter, recognizing a gain of $1.1 million from the transaction. The company also reported a loss of $3.7 million from the sale of non-core operations in Europe earlier in the year. As part of its ongoing efforts to enhance shareholder value, ATI repurchased $470 million worth of its common stock year-to-date under its $700 million share repurchase program.

Looking ahead, ATI's management expressed optimism about continued growth in the aerospace and defense markets, supported by a strong backlog and long-term agreements with original equipment manufacturers (OEMs). However, they acknowledged potential macroeconomic risks and uncertainties that could impact future performance. The company remains focused on leveraging its materials science capabilities and unique process technologies to drive profitable growth in the coming years.