ATI

ATI is executing well on the commercial aerospace and defense upcycle. FY2025 revenue rose 5.2% to $4.59B — its highest since 2012 — with aerospace & defense now ~68% of sales and growing 14% YoY, defense alone +24% in HPMC. The quality of earnings improved across the board: gross margin expanded 140bps to 22.0%, operating income reached $641M, net income grew 9.9% to $404M, diluted EPS rose 11.8% to $2.85, and ROE is a healthy 22.4%. Critically, operating cash flow jumped ~51% to $614M as management attacked working-capital intensity, funding both $281M of capex and $470M of buybacks (6.4M shares, ~3.7% of the count retired) while still repaying $150M of debt. Retained earnings turned firmly positive and the balance sheet is sound (liabilities/equity 1.76x, current debt cut 82.8%).

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