EarningsQ3 2026 Earnings Report
MX:ATI Q3 2026 EPS Results
Actual EPS$27.43
Consensus EPS$25.68
Beat/MissBeat by +$1.75
One Year Ago EPS$15.97
MX:ATI Q3 2026 Revenue Results
Actual Revenue$26.75B
Expected Revenue$24.82B
Beat/MissBeat by +$1.93B
YoY Revenue Growth+26.49%
Earnings Announcement Details
QuarterQ3 2026
Date10/29/2026
TimeBefore Open
Conference CallThursday, October 29, 2026
MX:ATI Upcoming Earnings
ATI's next earnings date is estimated for February 4, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:ATI Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. ATI reported substantial year-over-year growth, record or near-record results in several areas, strong demand across all key end markets, improved margins and cash flow, a record backlog, and a third increase to full-year guidance. The primary challenges were the temporary 200-basis-point HPMC margin impact from a new-alloy ramp, elevated inventories during capacity expansion, some shipment variability, and qualifications extending into 2027, but management stated that these issues are progressing as planned or expected to be temporary.Company Guidance
Strong Third-Quarter Results and Guidance Raise
ATI exceeded the high end of adjusted EBITDA guidance by $13 million. Third-quarter revenue increased 26% year-over-year to $1.4 billion and 13% sequentially, adjusted EBITDA rose 46% year-over-year to $328 million, adjusted EBITDA margin expanded 300 basis points to 23%, and adjusted EPS increased 72% to $1.46. The company raised full-year adjusted EBITDA guidance by $35 million, marking the third increase this year.
Raised Full-Year EBITDA and EPS Outlook
Full-year adjusted EBITDA guidance was raised to $1,190 million-$1,200 million, with a midpoint of $1,195 million, representing 39% growth from 2025. Full-year adjusted EPS guidance is $5.17-$5.23. The company continues to expect consolidated adjusted EBITDA margins in the low 20% range and consolidated incremental margins of approximately 50%.
Strong Fourth-Quarter Expectations
ATI expects the fourth quarter to be its strongest quarter of 2026 for sales and profit. Fourth-quarter adjusted EBITDA is expected to be $345 million-$355 million, with adjusted EPS of $1.51-$1.57. At the midpoint, adjusted EBITDA is expected to increase 51% compared with the fourth quarter of 2025 and 7% sequentially.
Record Backlog and Improved Visibility
Backlog was near an all-time record at $4.3 billion, up 20% from a year ago. Management said extended lead times for differentiated products, committed customer schedules, contracted pricing, and planned shipment timing provide visibility and confidence in the outlook.
Improved Free Cash Flow Generation
Third-quarter adjusted free cash flow was $80 million, bringing year-to-date adjusted free cash flow to $223 million, up $73 million or 49% from the same period last year. ATI said it is achieving its objective of generating positive adjusted free cash flow in every quarter of 2026. Full-year adjusted free cash flow guidance remains $550 million-$600 million, with a midpoint of $575 million, 51% above 2025.
Record AA&S Performance
AA&S sales increased 34% year-over-year to $702 million. Segment EBITDA margin reached a record 25.8%, expanding 850 basis points from a year ago. Performance was supported by stronger pricing and volumes, a richer Aerospace & Defense mix, the first full quarter of the new Naval Nuclear contract, commercial nuclear demand, and favorable pricing for hafnium and zirconium products.
AA&S Transformation and Durable Earnings Profile
AA&S has shifted away from lower-value commodity stainless steel products and increased Aerospace & Defense to approximately 45% of sales from 18% in 2021. Management cited long-term agreements, improved pricing, productivity initiatives, and a favorable mix as supporting a more durable earnings profile and profitable growth. Full-year AA&S EBITDA margin is now expected in the low to mid-20% range, with fourth-quarter margins in the mid-20% range.
Jet Engine Growth and Higher Revenue Outlook
Jet engine revenue increased 39% year-over-year and 19% sequentially, driven by higher production of next-generation engines and continued demand for differentiated products. ATI raised its full-year jet engine revenue growth expectation to the low to mid 20% range from the prior expectation of high teens growth. Management said demand is strong in both new engine production and MRO, which together represent approximately 50% each of the company’s jet engine activity.
Next-Generation Engine Content Opportunity
Next-generation engines use ATI’s differentiated materials to operate at higher temperatures and pressures, and ATI’s content on these platforms is more than double its content on legacy engines. Management said the fleet transition from legacy engines to next-generation engines creates a significant growth opportunity and that demand for jet engine products continues to strengthen.
Airframe Growth and Improving Momentum
Airframe revenue increased 11% year-over-year and 14% sequentially. Management said the expected second-half acceleration is occurring, with a clear uptick in third-quarter demand, momentum building into the fourth quarter, and committed backlog and strong fourth-quarter orders supporting confidence in continued growth. ATI continues to expect mid to high single-digit full-year airframe revenue growth.
Record Defense Revenue and Strong Demand
Defense revenue increased 6% year-over-year and 6% sequentially, following 36% year-over-year growth in the second quarter. The quarter represented ATI’s highest-ever defense revenue. Missile demand is strengthening, with multiple inquiries for titanium, nickel, and niobium products supporting strategic platforms including Tomahawk, THAAD, and PAC-3. ATI continues to expect high teens defense revenue growth for the full year.
Specialty Energy Growth
Specialty energy revenue increased 49% year-over-year and 36% sequentially as production shifted to meet customer needs. Growth was supported primarily by commercial nuclear demand, as well as industrial gas turbine demand. ATI continues to expect mid-teen specialty energy revenue growth for the full year.
HPMC Revenue Growth and Pricing Benefits
HPMC sales increased approximately 20% year-over-year to $721 million, supported by strong demand for differentiated nickel and titanium materials. Management said the third-quarter uplift was approximately two-thirds price and mix and one-third volume, with benefits from contract resets and ongoing new-business wins expected to continue.
Successful New Alloy Qualification
ATI qualified a new alloy and moved it into production in nine months following a contract win. The alloy is the sixth of seven advanced alloys used in the hot section of a jet engine, and ATI is now one of only two producers worldwide making it. Management said the alloy expands ATI’s content on next-generation engines and supports a growth opportunity expected to span decades.
elevATIon Operating Model and Raw-Material Recovery
ATI’s elevATIon operating model is being used to increase output from existing assets and combine melting, manufacturing, metallurgical, and processing capabilities. A project to recover and reuse a critical raw material is now recovering enough material to support most ongoing operating needs, lowering costs and helping secure customer supply. ATI expects several million dollars in annual savings beginning in 2027.
Growth Projects on Schedule and on Budget
Management said all key growth projects remain on schedule and on budget. Mexico shipped about 25% of previously deferred revenue in the third quarter and expects to ship the balance in the fourth quarter. Output at the Mexico facility tripled in the quarter, and ATI expects to exit 2026 at a run rate that matches or slightly exceeds its original footprint entering 2027.
Richland Furnace Progress
The new Richland furnace is making progress. Qualifications for standard or most standard-quality products are expected to be completed by year-end, with production beginning next year. The furnace is intended to provide flexibility for premium-quality titanium, engine products, and defense products.
Capital Investment and Customer Funding
Gross capital expenditure guidance remains $280 million-$300 million, with customer-funded CapEx of $55 million-$65 million expected to be a partial offset. Year-to-date CapEx was $217 million, including $48 million of customer-funded capital. Management said future organic investments will focus on differentiated capabilities such as nickel superalloys, premium-quality titanium, hafnium and zirconium, and isothermal forging, with discipline and customer alignment.
Share Repurchases Remain a Priority
ATI deployed $70 million for share repurchases through the end of the third quarter, with $425 million remaining under its current authorization. Management said share repurchases remain a priority for deploying incremental free cash flow and are viewed as the most efficient way to return capital to shareholders.
MX:ATI Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed