NYSE$ATI
ATI Inc · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
ATI reported Q3 2023 results driven by increasing Aerospace & Defense content, resulting in year-over-year earnings growth.
ATI Inc. reported third quarter 2023 sales of $1.03 billion and net income attributable to ATI of $75.7 million, or $0.52 per share. Aerospace and defense represented 61% of Q3 2023 sales, up from 51% in Q3 2022. Adjusted EPS was $0.55 and adjusted EBITDA was $148.1 million, or 14.4% of sales.
- Aerospace and defense reached 61% of revenue, up 10 percentage points over last year.
- Commercial airframe product sales in HPMC segment more than doubled compared to the prior year.
- HPMC segment EBITDA was $115.7 million, or 21.5% of sales, driven by increased volumes on higher-margin next-generation commercial aerospace platforms.
- Company repurchased $45 million of common stock at an average price of $43.93, retiring approximately 1.0 million shares.
Headline financials
Revenue & EPS history
ATI · Revenue · Quarterly
$1.03B
Revenue by segment
ATI · $540M total across 1 segment · Q3 2023
- HPMC$540M+17.9%100.0%
Forward guidance
ATI expects sequential and year-over-year earnings growth in the fourth quarter, led by the HPMC segment. HPMC EBITDA margins are expected to continue to improve year-over-year. AA&S segment expects stable performance. Company expects to generate significant cash from operations due to improvements in managed working capital.
Tailwinds
- Expect sequential and year-over-year ATI earnings growth in the fourth quarter, led by our HPMC segment.
- HPMC EBITDA margins in the fourth quarter are expected to continue to improve year-over-year, in line with our prior guidance.
- Backlogs remain strong across aerospace and defense.
- Continued process optimization will favorably impact future growth and performance.
- In the AA&S segment, the Company assumes stable performance in the fourth quarter 2023, due to sustained growth in the aerospace and defense related markets.
Headwinds
- We continue to optimize operations and resolve bottlenecks that come with growing demand.
- Certain recessionary forces impacting AA&S segment.
- Cash used in operating activities includes voluntary pension contributions of $222 million in the third quarter.
- Reduced accounts receivable and inventory levels were partially offset by lower accounts payable in the third quarter.
- Managed working capital as a percent of sales was 39.9%.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q3 2023
+2.5%
Avg return
Earnings day
+5.3%
Avg return
5 days after
+9.2%
Avg return
30 days after
60%
43 / 72 earnings
Positive
+28.8%
Q4 2016
Best reaction
-19.8%
Q3 2015
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +6.7% | +6.2% | +19.8% | |
| Q4 2025 | +4.3% | +9.7% | +26.6% | |
| Q3 2025 | +7.1% | +7.9% | +9.4% | |
| Q1 2025 | +14.5% | +26.5% | +46.5% | |
| Q4 2024 | +9.9% | +8.3% | -1.2% | |
| Q3 2024 | -14.3% | -15.5% | -4.9% | |
| Q2 2024 | -2.6% | +2.2% | -1.7% | |
| Q1 2024 | +13.4% | +12.1% | +17.9% | |
| Q4 2023 | -4.2% | -4.5% | +20.5% | |
| Q3 2023 | +11.7% | +13.9% | +15.3% | |
| Q2 2023 | -5.9% | -5.1% | -1.7% | |
| Q1 2023 | -3.1% | -0.7% | +2.1% | |
| Q4 2022 | +9.1% | +8.4% | +16.4% | |
| Q3 2022 | -12.1% | -6.5% | +0.1% | |
| Q2 2022 | +14.5% | +17.3% | +17.3% | |
| Q1 2022 | -4.7% | -8.3% | -2.1% | |
| Q4 2021 | +19.4% | +22.0% | +38.5% | |
| Q3 2021 | +7.8% | +8.6% | +1.5% | |
| Q2 2021 | -6.3% | -1.3% | -8.7% | |
| Q1 2021 | -3.2% | -2.0% | +1.9% | |
| Q4 2020 | -6.5% | +0.1% | +8.0% | |
| Q3 2020 | +11.4% | +21.2% | +72.8% | |
| Q2 2020 | +3.6% | +2.9% | -1.0% | |
| Q1 2020 | +3.9% | +15.1% | +54.0% | |
| Q4 2019 | +13.5% | +14.1% | -4.8% | |
| Q3 2019 | +16.0% | +18.9% | +20.2% | |
| Q2 2019 | -6.7% | -9.0% | -26.9% | |
| Q1 2019 | -4.9% | -2.3% | -14.5% | |
| Q4 2018 | +3.8% | +4.6% | +12.6% | |
| Q3 2018 | -6.7% | -5.8% | -2.8% | |
| Q2 2018 | +6.6% | +5.1% | -4.0% | |
| Q1 2018 | +4.5% | +4.2% | +8.6% | |
| Q4 2017 | +2.0% | +1.1% | -5.5% | |
| Q3 2017 | +2.8% | +3.8% | -6.1% | |
| Q2 2017 | +9.3% | +10.4% | +21.2% | |
| Q1 2017 | +4.7% | +1.4% | -11.2% | |
| Q4 2016 | +28.8% | +28.5% | +13.5% | |
| Q3 2016 | -19.8% | -23.5% | +1.1% | |
| Q2 2016 | +18.7% | +17.7% | +11.1% | |
| Q1 2016 | -0.5% | — | — | |
| Q4 2015 | +9.1% | — | — | |
| Q3 2015 | -19.8% | — | — | |
| Q2 2015 | -18.0% | — | — | |
| Q1 2015 | +13.2% | — | — | |
| Q4 2014 | +1.7% | — | — | |
| Q3 2014 | -2.5% | — | — | |
| Q2 2014 | -7.8% | — | — | |
| Q1 2014 | -0.1% | — | — | |
| Q4 2013 | -3.4% | — | — | |
| Q3 2013 | +2.4% | — | — | |
| Q2 2013 | -1.1% | — | — | |
| Q1 2013 | -1.3% | — | — | |
| Q4 2012 | -1.2% | — | — | |
| Q3 2012 | -13.5% | — | — | |
| Q2 2012 | +0.7% | — | — | |
| Q1 2012 | +7.6% | — | — | |
| Q4 2011 | -0.9% | — | — | |
| Q3 2011 | +3.8% | — | — | |
| Q2 2011 | -9.3% | — | — | |
| Q1 2011 | -0.6% | — | — | |
| Q4 2010 | -3.2% | — | — | |
| Q3 2010 | +5.2% | — | — | |
| Q2 2010 | +1.2% | — | — | |
| Q1 2009 | +10.3% | — | — | |
| Q1 2010 | +0.6% | — | — | |
| Q4 2009 | +1.6% | — | — | |
| Q3 2009 | +3.7% | — | — | |
| Q3 2008 | +3.7% | — | — | |
| Q4 2008 | +12.4% | — | — | |
| Q2 2009 | +12.4% | — | — | |
| Q2 2008 | +12.4% | — | — | |
| Q4 2007 | +12.4% | — | — |
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