ATI Inc. Reports 4% Sales Growth to $1.14 Billion in Q2 2025

ATI Inc. reported a solid financial performance for the second quarter of 2025, with sales reaching $1.14 billion, a 4% increase from $1.10 billion in the same quarter of 2024. The growth was primarily driven by a significant 11% rise in aerospace and defense sales, which accounted for 67% of total sales, reflecting increased demand for commercial jet engines. Year-to-date sales also saw a 7% increase, totaling $2.28 billion compared to $2.14 billion in the prior year, bolstered by a 17% rise in the aerospace and defense sector. However, this was partially offset by declines in sales to the medical and specialty energy markets.

The company's gross profit for the second quarter was $242.5 million, representing 21.3% of sales, up from $227.4 million or 20.8% of sales in the previous year. This increase included a $7 million benefit from previously deferred employee retention tax credits. Year-to-date gross profit also improved to $478.3 million, or 20.9% of sales, compared to $424.8 million, or 19.9% of sales, in the same period last year. Selling and administrative expenses decreased by 7% to $82.8 million in the second quarter, attributed to lower incentive compensation costs.

Operationally, ATI maintained a backlog of confirmed orders totaling $3.7 billion as of June 29, 2025, down from $4.1 billion a year earlier. Approximately 70% of this backlog is expected to be fulfilled within the next 12 months. The company’s workforce saw a reduction in severance-related reserves, resulting in restructuring credits of $1.3 million for both the quarter and year-to-date periods. Additionally, ATI's international sales represented 43% of total sales in the second quarter, reflecting a slight increase from 42% in the prior year.

In terms of liquidity, ATI ended the quarter with $319.6 million in cash and cash equivalents, a decrease from $721.2 million at the end of 2024. The company utilized $320 million for share repurchases during the year-to-date period, part of a broader $700 million repurchase program authorized by its Board of Directors. Looking ahead, ATI anticipates continued demand in the aerospace and defense markets, supported by its strong backlog and long-term agreements with original equipment manufacturers (OEMs). The company remains focused on managing its working capital effectively while navigating potential macroeconomic challenges.