ATI Q3 2024 – Sales Down 4%, Net Income Up 1%

By Tamara Parker • Tuesday, October 29 15:27 • Permanent Link

ATI Inc. has reported its third quarter 2024 results, with sales amounting to $1.05 billion and net income attributable to ATI reaching $82.7 million, or $0.57 per share. This represents a 4% decrease in sales compared to the second quarter of 2024, although net income increased by 1%. When compared to the third quarter of 2023, sales increased by 2%, but net income decreased by 8%.

The company's aerospace & defense segment represented 62% of its Q3 2024 sales, with HPMC (High Performance Materials & Components) contributing $552.4 million in sales and AA&S (Advanced Alloys & Solutions) contributing $498.8 million. HPMC's segment EBITDA was $123.2 million, or 22.3% of sales, while AA&S's segment EBITDA was $73.6 million, or 14.8% of sales.

ATI's adjusted EBITDA for Q3 2024 was $185.7 million, representing 17.7% of sales, which is a 100 basis point increase sequentially. The company also updated its full year 2024 guidance, with adjusted EBITDA expected to range between $700 million to $710 million, adjusted earnings per share between $2.24 to $2.30, and free cash flow between $220 million to $300 million.

The company reported a $407 million cash on hand at the end of the third quarter and had approximately $551 million available in additional liquidity under its asset-based lending (ABL) credit facility, with no outstanding borrowings. Additionally, ATI's board of directors authorized the repurchase of $700 million of ATI common stock, with $660 million remaining as of September 29, 2024.

The company's President and CEO, Kimberly A. Fields, noted that while the third quarter presented challenges, ATI expects to continue to see uncertainty with its most critical customers through the remainder of 2024 and the first part of 2025. However, she expressed confidence in the demand in their end markets and reiterated the company's commitment to creating lasting shareholder value.

ATI Inc. will conduct a conference call with investors and analysts on October 29, 2024, at 8:30 a.m. ET to discuss the financial results. Today the company's shares have moved -9.9% to a price of $56.96. If you want to know more, read the company's complete 8-K report here.

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