ATI raises 2026 EBITDA forecast as Q3 sales climb 26%

ATI Inc. (ATI) reported third-quarter 2026 results on Oct. 29, topping the consensus estimate compiled by Finnhub for adjusted earnings per share and raising its full-year adjusted EBITDA forecast. The results were announced in a press release furnished with an 8-K filing.

Sales were $1,423.7 million, and net income attributable to ATI was $189.8 million, or $1.37 per diluted share. A year earlier, net income attributable to ATI was $110.0 million, or $0.78 per diluted share.

Here's how the company did:

• Sales: $1,423.7 million vs. $1,125.5 million a year earlier, against a $1.34 billion estimate, according to Finnhub
• Adjusted EPS: $1.46 vs. $0.85 a year earlier, against a $1.38 estimate, according to Finnhub
• GAAP diluted EPS: $1.37 vs. $0.78 a year earlier
• Adjusted EBITDA: $327.9 million vs. $225.1 million a year earlier

Sales rose 26% from a year earlier and 13% from the second quarter. Adjusted EBITDA margin was 23.0%, compared with 20.0% in the third quarter of 2025.

2026 guidance

The company raised its full-year 2026 adjusted EBITDA forecast to $1.19 billion to $1.2 billion, from the $1.135 billion to $1.185 billion range it gave on Aug. 6. It raised its full-year adjusted EPS forecast to $5.17 to $5.23, from $4.90 to $5.18.

For the fourth quarter, the company expects adjusted EBITDA of $345 million to $355 million and adjusted EPS of $1.51 to $1.57. Its adjusted free cash flow forecast of $550 million to $600 million was unchanged.

The company said the increase follows a $125 million raise to its outlook last quarter.

Board Chair, President and CEO Kimberly A. Fields said, 'We had a strong third quarter, exceeding the high-end of our guidance.' She added, 'We're delivering on our commitments and positioning ATI for even stronger performance in 2027.'

Segment results

High Performance Materials & Components sales were $721.4 million, up from $602.9 million a year earlier. Segment EBITDA was $167.3 million, or 23.2% of sales, down from 24.2% a year earlier. The company attributed the lower margin to higher manufacturing and period costs, including costs tied to ramping commercial production of a new nickel-based superalloy.

Advanced Alloys & Solutions sales were $702.3 million, up from $522.6 million a year earlier. Segment EBITDA was $181.3 million, or 25.8% of sales, compared with $90.4 million, or 17.3% of sales, a year earlier.

The company said higher pricing and volumes, along with a favorable sales mix, drove the segment's margin gain.

Charges and costs

Adjusted results exclude pre-tax special items of $15.6 million. Restructuring and other charges were $14.4 million, including $8.4 million of transformation-related costs and $2.9 million of losses on the sale of customer accounts receivable.

The company also recorded a $1.2 million debt extinguishment charge, tied to the redemption of $350 million of 5.875% Senior Notes due 2027. The after-tax impact of the special items was a charge of $12.1 million, or $0.09 per share.

Corporate expenses were $18.8 million, compared with $15.6 million a year earlier. The company said the increase was primarily due to higher professional fees and insurance costs. The income tax provision was $51.5 million, an effective rate of 21.0%.

Cash and buybacks

Cash provided by operating activities was $154.6 million, and capital expenditures were $92.8 million.

The company repurchased $70.0 million of its common stock at an average price of $199.62 per share, retiring about 0.4 million shares. As of the end of the quarter, $425 million remained under its share repurchase authorization.

Managed working capital was 32.9% of annualized sales at the end of the quarter, a decrease of 140 basis points from the second quarter.