ATI (ATI) J.P. Morgan Industrials Conference 2025 summary

Labor contract update

• Recent ratification vote saw West Coast union team accept the contract, while the larger East Coast team did not; negotiations continue with an extension through April 30.

• Discussions with union representatives remain positive, with confidence in reaching a favorable agreement.

• Strike action would require an affirmative vote; contract ratification needs a simple majority.

Business positioning and growth drivers

• Supplies critical titanium and nickel materials for aerospace and defense, with nickel accounting for about half of sales and titanium 20%.

• Defense segment is growing rapidly, with 2024 sales reaching $500 million and high demand expected to continue.

• Expanding into refractory materials like hafnium and niobium for electronics, nuclear, and hypersonic weapon applications.

Production, supply chain, and capacity

• Focused on stable production and debottlenecking to meet strong demand, especially in jet engines.

• Jet engine backlog grew 19% in 2024, with robust demand expected beyond 2025.

• Opened a new additive manufacturing facility in Florida, primarily for defense, with initial modest contributions and growth expected over several years.