ATI (ATI) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 results with $4.6 billion in sales, driven by aerospace & defense, which accounted for 68% of Q4 sales and saw jet engine sales up 21% year-over-year.

• Adjusted EBITDA for 2025 was $859 million (18.7% margin), with Q4 adjusted EBITDA at $232 million (19.7% margin), both up double digits year-over-year.

• Returned $470 million to shareholders in 2025 through share repurchases, representing 124% of free cash flow.

• Operating cash flow reached $614 million, up over 50% year-over-year, enabling significant capital deployment and debt repayment.

• Specialty energy emerged as a growth driver, up 9% in Q4, supported by multi-year contracts and expansion in nuclear and gas turbine markets.

Financial highlights

• Q4 2025 revenue: $1.2 billion; adjusted EBITDA: $232 million (19.7% margin); adjusted EPS: $0.93, up 18% year-over-year.

• Full-year 2025 revenue: $4.6 billion, up 5%; adjusted EBITDA: $859 million, up 18%; adjusted EPS: $3.24, up 32%.

• Adjusted free cash flow: $380 million, up 53% year-over-year, exceeding guidance midpoint.

• Operating cash flow: $614 million; capital expenditures: $281 million.

• Managed working capital improved to 32.5% of sales in Q4.

Outlook and guidance

• 2026 adjusted EBITDA guidance: $975 million–$1.025 billion; adjusted EPS: $3.99–$4.27; adjusted free cash flow: $430–$490 million.

• Q1 2026 adjusted EBITDA: $216–$226 million; EPS: $0.83–$0.89.

• Growth capex: $280–$300 million, with $60 million customer funding; net capex: $220–$240 million.

• 2026 A&D sales mix expected to exceed 70% of total sales, with double-digit growth in jet engine and defense and airframe recovery in H2 2026.

• Incremental margins for 2026 expected to average 40%, above 40% in the second half.