-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
ATI delivered Q1 adj. EPS of $1.00, beating consensus by $0.12 and growing 39% Y/Y. Revenue of $1.15B rose 0.6% Y/Y but missed consensus by 3% due to planned maintenance. Adj. EBITDA margins expanded 310 bps Y/Y to 20.1%, driven by pricing discipline and favorable aerospace mix. The aerospace transformation continues, with A&D reaching 69% of sales. Jet engine sales grew 12% Y/Y to $472M. Management raised full-year adj. EBITDA guidance to $1.035B (+16% Y/Y) and adj. EPS to $4.34 (+27% Y/Y), citing accelerating aerospace demand. Operating cash flow of $128M marked a $221M Y/Y improvement. This supported $75M in share repurchases and a new $500M buyback authorization. We believe margin expansion reflects operational leverage from long-term contracted aerospace relationships, where 60%-65% of revenue carries inflation protection. Jet engine order books extend into mid-2027, and 80% of new capacity is contracted. We therefore expect continued outperformance, with H2 2026 margins approaching 21%.