ATI Inc. Reports Q1 2024 Sales of $1.04B

ATI Inc. reported its first quarter 2024 results, with sales reaching $1.04 billion, up modestly from the first quarter of 2023. The net income attributable to ATI was $66.1 million, or $0.46 per share, reflecting a decrease from the previous quarter and the same period last year. However, the company's aerospace and defense sales saw a significant increase, reaching $616 million in the first quarter of 2024, up from $576 million in the first quarter of 2023.

The non-GAAP information* for the first quarter of 2024 showed adjusted net income attributable to ATI of $68.4 million, or $0.48 per share, and ATI adjusted EBITDA of $151 million, or 14.5% of sales. These figures represent a decline from the fourth quarter of 2023, with adjusted net income down 26% and adjusted EBITDA down 6% compared to the previous quarter.

The company's High Performance Materials & Components (HPMC) segment saw sales of $529.9 million in the first quarter of 2024, a decrease of 9% from the previous quarter. However, the segment's EBITDA was $97.6 million, or 18.4% of sales. The Advanced Alloys & Solutions (AA&S) segment reported sales of $513.0 million, a 7% increase from the fourth quarter of 2023, with segment EBITDA reaching $71.8 million, or 14.0% of sales.

In terms of corporate items and cash, the first quarter of 2024 saw restructuring and other charges of $3.1 million, lower than the $16.8 million reported in the fourth quarter of 2023. The company's cash on hand at the end of March 2024 was $394 million, with available additional liquidity under the asset-based lending (ABL) credit facility at approximately $557 million.

Looking ahead, ATI's CEO, Robert S. Wetherbee, expressed confidence in the company's outlook, citing a robust backlog of commercial aircraft orders and the potential for achieving financial targets. The company aims to surpass $5 billion in revenue and $1 billion in adjusted EBITDA by 2027.

Today the company's shares have moved 16.3% to a price of $60.34. For the full picture, make sure to review ATI's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.