$ATI · ATI INC
ATI Inc. filed its 10-Q for Q3 FY2026 (ended September 27, 2026), reporting sales of $1.424B (+26.5% YoY), net income attributable to ATI of $189.8M, and diluted EPS of $1.37 — nearly double the $0.78 from Q3 FY2025. Adjusted EBITDA rose to $327.9M (23.0% margin) from $225.1M (20.0%). Aerospace & defense revenue reached $994.5M, with commercial jet engines alone contributing $603.2M.
- Q3 sales hit $1.424B, up 26.5% YoY from $1.126B, driven by aerospace & defense demand.
- Diluted EPS of $1.37 nearly doubled from $0.78 a year ago; net income attributable to ATI was $189.8M.
- Adjusted EBITDA reached $327.9M (23.0% margin) vs. $225.1M (20.0%) in the prior-year quarter.
- Year-to-date operating cash flow surged to $414.6M from $298.5M, a 39% increase.
- Retained earnings nearly doubled to $928.3M from $468.7M at fiscal year-end 2025.
Stock up 8.40% today at $179.19, though down 0.64% from the filing-time price of $180.34. The strong earnings beat and margin expansion are being rewarded, with some modest giveback from the initial print.
ATI delivered a near-doubling of EPS with 300 bps of margin expansion on 26.5% revenue growth — a clean beat across every major line, powered by the commercial aerospace upcycle.
ATI's commercial jet engine revenue of $603.2M in Q3 (+39% YoY) reflects the broader aerospace super-cycle benefiting specialty metals suppliers. The 23% adjusted EBITDA margin outpaces many peers in the sector.
Inventory build of $255.1M year-to-date (vs. $57.5M last year) could signal overstocking if demand softens. Restructuring and other charges surged to $64.4M YTD from $25.9M, including $23.4M in start-up and transaction-related costs.