ATI Inc. Reports 5% Sales Increase to $4.4 Billion for Fiscal Year 2024

ATI Inc. reported a 5% increase in sales for the fiscal year ending December 29, 2024, reaching $4.4 billion, compared to $4.2 billion in the previous year. The company's gross profit also rose by 12% to $898 million, reflecting strong demand in the aerospace and defense sectors, which accounted for approximately 62% of total sales. Net income for the year was $367.8 million, or $2.55 per share, down from $410.8 million, or $2.81 per share, in fiscal year 2023. The decline in net income was attributed to a combination of factors, including increased interest expenses and restructuring charges.

The company experienced notable growth in its High Performance Materials & Components (HPMC) segment, which saw an 8% increase in sales to $2.3 billion, driven primarily by a 10% rise in aerospace and defense sales. The Advanced Alloys & Solutions (AA&S) segment reported a modest 2% increase in sales to $2.1 billion, with significant growth in medical and electronics markets, offset by softness in conventional energy markets. The overall adjusted EBITDA improved to $729.1 million, representing 16.7% of sales, up from 15.2% in the previous year.

Strategically, ATI completed the sale of its precision rolled strip operations in New Bedford, MA, and Remscheid, Germany, generating approximately $65 million in proceeds. This divestiture is part of the company's ongoing efforts to streamline operations and focus on core markets. Additionally, ATI has been investing in expanding its titanium melt capacity, with a new furnace coming online in Albany, Oregon, and further investments planned in Richland, Washington, expected to increase total titanium melt capacity by 80% compared to fiscal year 2022.

Operationally, ATI's workforce stood at approximately 7,700 employees, with 15% located outside the U.S. The company reported a backlog of confirmed orders totaling $3.9 billion as of December 29, 2024, indicating strong future demand, particularly in the aerospace and defense sectors. The company also highlighted its commitment to research and development, with expenditures of $22.1 million in fiscal year 2024, aimed at enhancing its product offerings and manufacturing processes.

Looking ahead, ATI anticipates continued growth driven by robust demand in its core markets, particularly aerospace and defense. The company expects to leverage its enhanced production capabilities and strategic investments to capitalize on emerging opportunities. However, it remains cautious about potential market fluctuations and geopolitical factors that could impact its operations and financial performance.