Thu, May 1, 6:37 PM (16 days ago)
### ATI Inc. (Ticker: ATI) Q1 2025 Financial Summary **Revenue and Profit Margins:** - **Revenue:** $1,144.4 million, up 9.7% from $1,042.9 million in Q1 2024. - **Gross Profit:** $235.8 million, or 20.6% of sales, compared to $197.4 million, or 18.9% of sales in Q1 2024. - **Operating Income:** $146.9 million, up from $115.2 million in Q1 2024. - **Net Income:** $100.5 million, up from $68.4 million in Q1 2024. - **Net Income Attributable to ATI:** $97.0 million, or $0.67 per share, compared to $66.1 million, or $0.46 per share in Q1 2024. **Cash Flow:** - **Cash Used in Operations:** $92.5 million, compared to $98.8 million in Q1 2024. - **Capital Expenditures:** $53.3 million, down from $65.8 million in Q1 2024. - **Cash Used in Financing Activities:** $107.5 million, including $70.0 million for share repurchases. **Segment Performance:** - **High Performance Materials & Components (HPMC):** Sales increased 10% to $584.1 million, with segment EBITDA at $131.0 million, or 22.4% of sales. - **Advanced Alloys & Solutions (AA&S):** Sales increased 9% to $560.3 million, with segment EBITDA at $83.4 million, or 14.9% of sales. **Market Trends and Uncertainties:** - **Aerospace & Defense:** Strong performance, with sales up 23% to $754.4 million, or 66% of total sales. - **Specialty Energy, Medical, and Electronics:** Softness observed, with declines in medical (-28%), electronics (-25%), and specialty energy (-10%). - **International Sales:** Increased to $501 million, or 44% of total sales. **Future Operations Impact:** - **Backlog:** $4.0 billion, with 70% expected to be satisfied within the next 12 months. - **Liquidity:** $476 million in cash and cash equivalents, with additional liquidity under the ABL facility. - **Debt:** Next significant maturity is the 6.95% Debentures due in Q4 2025. **Risk Factors:** - **Economic and Industry Conditions:** Global supply and demand, international trade duties. - **Market Risks:** Volatility in raw material prices, energy costs, and foreign currencies. - **Legal and Regulatory:** Ongoing litigation and regulatory compliance. **Management's Outlook:** - **Growth Expectations:** Strong backlog and long-term agreements support continued growth in the aerospace & defense market. - **Cost Management:** Focus on cost savings, productivity improvements, and strategic investments. - **Share Repurchase:** $700 million authorized, with $180 million utilized by Q1 2025. **Conclusion:** ATI Inc. demonstrated robust financial health in Q1 2025, with significant revenue growth and improved profit margins. The company's strong performance in the aerospace & defense sector, coupled with strategic cost management and liquidity, positions it well for future growth. However, ongoing market uncertainties and regulatory challenges require careful navigation.