ATI Inc. (ATI) Business Profile

What it does

ATI makes specialty metals and components for uses where ordinary materials may not withstand the heat, stress or corrosion involved. Its largest markets are aerospace and defense: its products go into jet engines, aircraft structures, military equipment and naval nuclear applications. Aerospace and defense represented approximately 68% of total sales in fiscal 2025.

The company works with nickel-based alloys, titanium and other specialty materials. It sells these as materials in forms such as sheet and plate, as well as finished or partly finished components such as forgings and machined parts. Forging shapes metal under pressure; ATI’s forgings are used in engine parts and aircraft structures. It also produces metallic powders and parts made using additive manufacturing, or 3D printing.

ATI serves energy customers, including nuclear power and gas turbine operators, as well as medical, electronics and industrial markets. Its materials are used in products ranging from nuclear reactor components to medical devices and electronics.

Founded in 1996, ATI is headquartered in Dallas. Kimberly A. Fields is its president and chief executive officer. ATI had approximately 7,600 employees at December 28, 2025.

How it makes money

Fiscal 2025 sales were $4.6 billion; third-quarter 2026 revenue was $1.4 billion.

ATI earns revenue by manufacturing and selling specialty materials and components through two segments. High Performance Materials & Components, or HPMC, develops alloys and powders and makes products including precision forgings, machined parts and 3D-printed aerospace products. Approximately 92% of its fiscal 2025 revenue came from aerospace and defense. Most HPMC products are sold directly to end customers, and a substantial portion are sold under multi-year agreements.

Advanced Alloys & Solutions, or AA&S, makes nickel, titanium and other specialty alloys, including sheet, strip and plate. Its customers use them in aerospace, defense, energy, medical, electronics and industrial applications. AA&S sells both directly and through independent service centers, which can cut or otherwise process materials for customers.

Some demand comes from replacement as well as initial production. ATI’s engine forgings go into both new engines and maintenance and replacement work. ATI says it generally does not know which use a particular forging will serve; the part, price and margin are the same for either destination.

Pricing and product mix also affect results. ATI says improved contracts, pricing and a greater aerospace and defense mix supported AA&S results in the third quarter of 2026. The company reported third-quarter AA&S sales of $702 million and HPMC sales of $721 million. ATI also says shared manufacturing assets allow it to move production between defense and specialty energy orders, which can make shipments vary from quarter to quarter.

Customers and how it sells

ATI sells to aircraft and engine manufacturers and their suppliers, defense customers, independent metal service centers and customers in energy, medical, electronics and other industrial markets. Aerospace and defense accounted for approximately 68% of total fiscal 2025 sales. Within HPMC, approximately 92% of fiscal 2025 revenues came from those markets.

Aircraft and jet engines are made by a small number of companies. ATI names Boeing, Airbus and Embraer among airframe manufacturers, and GE Aerospace, Rolls-Royce, Pratt & Whitney and Safran Aircraft Engines among engine manufacturers. Those companies and their suppliers form a substantial part of HPMC’s customer base. ATI has long-term agreements with most major aerospace original equipment manufacturers.

In AA&S, approximately 50% of stainless sheet products by volume and approximately 40% of plate products by volume were sold to independent service centers in fiscal 2025; the remainder went directly to end users. ATI also supplies materials used in nuclear power generation, medical devices and electronics.

International sales were $1.9 billion in fiscal 2025, representing 43% of total sales. ATI has precision forging and machining capabilities in Poland and an Asian joint venture in China that makes precision rolled strip for China and other Asian markets. The company also uses an international marketing team and independent representatives to support overseas sales.

Suppliers and costs

ATI uses scrap metal, nickel, titanium sponge, zirconium, cobalt and other alloying materials. Substantially all raw materials and supplies required for manufacturing are available from more than one supplier. The company sources them globally: for example, it identifies Japan, Kazakhstan, Saudi Arabia and China as primary source countries for titanium sponge, and Brazil for niobium.

ATI melts, forges, finishes, tests and machines materials. Its costs include raw materials and production supplies, manufacturing and labor costs, research and development, and spending on facilities and equipment. Some processing supplies, including graphite electrodes and industrial gases, can periodically be difficult to obtain or subject to price inflation. ATI enters long-term supply contracts where possible and sometimes uses futures contracts to hedge raw-material price exposure, although it cannot be certain the hedges will adequately reduce that exposure.

In the third quarter of 2026, ATI said the cost of ramping a new nickel-based superalloy reduced HPMC’s margin by approximately 200 basis points versus its plan. The company also says it has developed a way to recover and reuse a critical raw material and is recovering enough to support most of its ongoing operating needs.

Competitive position

ATI competes with different producers across its alloy and component businesses. In HPMC, Berkshire Hathaway’s Precision Castparts businesses compete in nickel-based alloys, titanium and precision forgings. Howmet Aerospace competes in titanium alloys, Carpenter Technology in certain nickel-based and specialty steel alloys, and Aubert & Duval in precision forgings. In AA&S, ATI names Haynes International and VDM Metals, a subsidiary of Acerinox, as competitors in nickel-based and specialty alloys.

ATI develops alloys and combines melting, forging, finishing, testing and machining. Customers must qualify materials and facilities for demanding uses. ATI says it is one of only two producers worldwide making a newly won advanced jet-engine alloy, and that it is the sole-source supplier for five advanced engine alloys. It also has long-term agreements with most major aerospace original equipment manufacturers.

Our reading: Customer qualification and specialized production capabilities provide a meaningful competitive barrier, although ATI still faces established producers in several of its principal materials. Our reading: Long-term agreements and sole-source positions can support customer relationships, but their protection varies by product and contract. Our reading: ATI’s research and manufacturing know-how also support its position, while the company does not depend materially on any single patent or related group of intellectual property.

Growth opportunities

ATI’s growth plans center on jet engines, defense and specialty energy. The company supplies materials for both new engines and replacement parts, and says its content on next-generation engines is more than double its content on legacy engines. It is increasing production capacity for advanced metallic powders used in next-generation aerospace products, including additive manufacturing.

In the third quarter of 2026, ATI reported that jet engine revenue grew 39% year over year, while specialty energy revenue increased 49% year over year. The company says commercial nuclear demand continues to outpace supply and that demand for industrial gas turbines remains strong. It has also received missile-related inquiries for titanium, nickel and niobium products.

ATI is investing in capacity and capabilities. Its Richland furnace is intended to produce standard-quality and premium-quality titanium for engine and defense products. ATI says not all qualifications were complete at the third-quarter call; it expects the more demanding engine alloys to continue through qualification into 2027.

The company reported backlog of $4.3 billion in the third quarter of 2026. It raised its full-year 2026 adjusted EBITDA outlook to $1,190,000,000 to $1,200,000,000, citing stronger volume and mix, particularly from jet engines. ATI also expects full-year jet engine revenue growth in the low to mid 20% range.

Structural risks

• Aerospace concentration and cycles: Aerospace and defense are ATI’s largest markets, and a small number of manufacturers and their suppliers form a substantial part of HPMC’s customer base. Losing one or more aerospace or defense customers could materially affect results. Demand for specialty materials is also cyclical over longer periods.
• Materials and supply: Prices and availability of critical raw materials can fluctuate. Some materials are mostly sourced abroad, where political or economic conditions can disrupt supply, and trade policy changes can raise import costs. Processing supplies can also face shortages or inflation.
• Manufacturing and qualification: Disruptions to manufacturing are a risk. ATI’s new superalloy ramp added costs in the third quarter of 2026, while qualifications for its Richland furnace were not all complete. ATI expects the engine-alloy qualifications to continue into 2027.
• Debt and funding: Indebtedness can require cash that might otherwise fund working capital, capital spending and growth initiatives. It can also limit flexibility and the ability to borrow additional funds.
• Environmental obligations: ATI is subject to environmental laws and is investigating or remediating current, former and third-party sites. Cleanup costs, fines or other liabilities could be substantial.

Bottom line

Our reading

ATI is a specialty materials manufacturer whose business rests heavily on aerospace demand, particularly jet engines, while defense and energy provide additional markets. [item1] Its qualified alloys, manufacturing processes and long-term customer agreements support its competitive position, but customer concentration, cyclical demand and the cost and timing of production ramps remain material exposures. [item1] [call_prepared] [call_qa]