ATI Inc. (ATI) Bundle
A Brief History of ATI Inc.
Company Overview
ATI Inc., a leading provider of advanced materials and components, focuses on the aerospace, defense, energy, and medical markets. The company has developed a reputation for innovation, particularly in high-performance materials.
Financial Performance in 2024
For the third quarter of 2024, ATI reported net income of $82.7 million, or $0.57 per share, compared to $90.2 million, or $0.62 per share, in the same quarter of the previous year. Year-to-date net income reached $230.7 million, down from $265.1 million in the prior year.
Sales and Revenue Growth
ATI's total sales for the year-to-date period ending September 29, 2024, were $3.19 billion, reflecting a 2.6% increase from $3.11 billion during the same period in 2023. Notably, sales to the aerospace and defense sectors rose by 7%.
| Segment | Q3 2024 Sales (in millions) | Q3 2023 Sales (in millions) | Year-to-Date 2024 Sales (in millions) | Year-to-Date 2023 Sales (in millions) |
|---|---|---|---|---|
| High Performance Materials & Components | $552.4 | $539.5 | $1,644.3 | $1,537.7 |
| Advanced Alloys & Solutions | $498.8 | $486.1 | $1,545.1 | $1,572.0 |
| Total | $1,051.2 | $1,025.6 | $3,189.4 | $3,109.7 |
Market Segmentation
ATI's sales are predominantly driven by the aerospace and defense markets, which accounted for 85% of total sales in 2024. Key market segments include:
- Commercial Jet Engines: $970.6 million (59% of Aerospace & Defense)
- Airframes: $263.5 million (16% of Aerospace & Defense)
- Defense: $160.9 million (10% of Aerospace & Defense)
Cost Structure and Profitability
ATI reported a gross profit of $649.6 million for the year-to-date period, representing a gross margin of 20.4%. This is an improvement from 19.2% in the previous year.
| Financial Metric | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Gross Profit (in millions) | $649.6 | $596.9 |
| Gross Margin | 20.4% | 19.2% |
| EBITDA (in millions) | $519.3 | $473.9 |
Debt and Capital Structure
As of September 29, 2024, ATI had total cash and cash equivalents of $406.6 million. The company also reported total debt of $1.6 billion following the issuance of $425 million in 7.25% Senior Notes due 2030 in August 2023.
Stock Repurchase Program
In September 2024, ATI announced a $700 million share repurchase program. During the year-to-date period, the company repurchased 4.1 million shares for a total of $190 million.
Outlook
Looking forward, ATI maintains a backlog of confirmed orders totaling $3.9 billion as of September 29, 2024. The company anticipates continued growth driven by strong demand in the aerospace and defense sectors.
A Who Owns ATI Inc. (ATI)
Ownership Structure
As of 2024, ATI Inc. (ATI) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The largest shareholders include:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 72.3% | approximately 93 million shares |
| Insider Ownership | 4.5% | approximately 5.8 million shares |
| Retail Investors | 23.2% | approximately 30 million shares |
Top Institutional Investors
The following table lists the top institutional investors in ATI as of 2024:
| Investor Name | Percentage Ownership | Number of Shares |
|---|---|---|
| BlackRock, Inc. | 15.6% | approximately 20.3 million shares |
| The Vanguard Group | 11.2% | approximately 14.5 million shares |
| State Street Corporation | 8.7% | approximately 11.2 million shares |
| Wellington Management Group | 6.9% | approximately 8.9 million shares |
| Invesco Ltd. | 5.5% | approximately 7.1 million shares |
Recent Shareholder Activities
In 2024, ATI has undertaken significant share repurchase programs, utilizing $190 million to repurchase approximately 4.1 million shares, reflecting a proactive approach to enhance shareholder value.
Insider Transactions
Insider ownership has seen fluctuations, with the company’s executives and board members holding approximately 5.8 million shares. Recent transactions include:
| Insider Name | Position | Shares Sold | Shares Bought |
|---|---|---|---|
| Robert S. Wetherbee | CEO | 200,000 | 50,000 |
| David L. Wotherspoon | CFO | 100,000 | 30,000 |
| Mark A. Doran | Director | 50,000 | 25,000 |
Stock Performance and Market Trends
As of September 2024, ATI's stock price has shown resilience, with a year-to-date increase of 15%, reflecting positive market sentiment driven by growth in the aerospace and defense sectors. The market capitalization stands at approximately $1.2 billion.
For the year-to-date period ended September 29, 2024, ATI reported sales of $3.19 billion, an increase of 7% compared to the previous year. The net income attributable to ATI for the same period was $230.7 million, or $1.61 per share.
ATI Inc. (ATI) Mission Statement
Overview of Mission Statement
As of 2024, ATI Inc. (ATI) focuses on delivering innovative materials and solutions that enhance the performance and sustainability of its customers' products, particularly in the aerospace, defense, and medical industries. The company's mission statement emphasizes a commitment to excellence, integrity, and long-term partnerships with stakeholders.
Key Components of the Mission Statement
- Innovation: ATI aims to lead in the development of advanced materials that meet the evolving needs of its customers.
- Sustainability: The company is dedicated to sustainable practices across its operations and product offerings.
- Customer Focus: ATI prioritizes understanding customer needs and delivering tailored solutions that drive their success.
- Integrity: The company operates with high ethical standards and accountability in all business dealings.
- Partnership: ATI seeks to build long-lasting relationships with customers, suppliers, and communities.
Financial Performance and Metrics
In 2024, ATI reported strong financial performance that underscores its mission-driven approach. Key financial metrics for the third quarter ended September 29, 2024, include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $82.7 million | $90.2 million |
| Net Income per Share (Diluted) | $0.57 | $0.62 |
| Adjusted EBITDA | $185.7 million | $162.6 million |
| Total Sales | $1,051.2 million | $1,025.6 million |
| Effective Tax Rate | 24.6% | 4.9% |
Market Segments and Revenue Drivers
ATI's mission is reflected in its diverse market segments, with significant contributions from aerospace and defense sectors. The following table provides insights into sales distribution by market segment for Q3 2024:
| Market Segment | Sales (in millions) | Percentage of Total Sales |
|---|---|---|
| Aerospace & Defense | $653.8 | 62% |
| Energy | $142.5 | 14% |
| Automotive | $63.8 | 6% |
| Medical | $53.1 | 5% |
| Electronics | $49.1 | 5% |
| Other | $34.2 | 3% |
Strategic Initiatives Supporting the Mission
ATI continues to invest in growth and innovation, aligning with its mission through various strategic initiatives:
- Capital Expenditures: In 2024, ATI allocated $191.8 million towards capital projects aimed at enhancing production capabilities and expanding its technological edge.
- Share Repurchase Program: ATI announced a $700 million share repurchase program in September 2024, demonstrating confidence in its financial stability and commitment to shareholder value.
- Pension Funding Strategy: ATI made substantial cash contributions to its U.S. defined benefit pension plans, totaling $222 million in 2023, to enhance financial resilience and employee trust.
Conclusion on ATI's Mission Alignment
As ATI progresses through 2024, the alignment of its mission statement with financial performance and strategic initiatives underscores its commitment to innovation, sustainability, and customer-centric solutions.
How ATI Inc. (ATI) Works
Company Overview
ATI Inc. operates in the specialty materials sector, focusing on the production of high-performance materials and components, primarily for the aerospace and defense markets. As of 2024, ATI's operations are segmented into two main categories: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S).
Financial Performance
For the third quarter of 2024, ATI reported total external sales of $1.051 billion, representing a year-over-year increase compared to $1.026 billion in the same quarter of 2023. The year-to-date sales reached $3.189 billion, up from $3.110 billion in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Total External Sales | $1,051.2 million | $1,025.6 million | $3,189.4 million | $3,109.7 million |
| Net Income | $82.7 million | $90.2 million | $230.7 million | $265.1 million |
| Adjusted EBITDA | $185.7 million | $162.6 million | $519.3 million | $473.9 million |
| EBITDA Margin | 17.7% | 15.9% | 17.8% | 17.0% |
| Effective Tax Rate | 24.6% | 4.9% | 22.7% | 4.5% |
Segment Performance
In the third quarter of 2024, ATI's HPMC segment reported sales of $552.4 million, while the AA&S segment generated $498.8 million. Both segments showed growth, driven by increased demand in the aerospace and defense markets.
| Segment Sales | HPMC Q3 2024 | HPMC Q3 2023 | AA&S Q3 2024 | AA&S Q3 2023 |
|---|---|---|---|---|
| Sales | $552.4 million | $539.5 million | $498.8 million | $486.1 million |
| Segment EBITDA | $123.2 million | $117.2 million | $73.6 million | $61.5 million |
| EBITDA Margin | 22.3% | 21.7% | 14.8% | 12.7% |
Cash Flow and Capital Structure
For the year-to-date period ended September 29, 2024, ATI's operating cash flow was $26.3 million, a significant improvement from cash used in operations of $331.3 million in the same period of 2023.
| Cash Flow Metrics | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|
| Cash Provided by Operating Activities | $26.3 million | $(331.3 million) |
| Cash Used in Investing Activities | $(178.2 million) | $(143.2 million) |
| Cash Used in Financing Activities | $(166.2 million) | $323.4 million |
Debt and Equity Management
As of September 29, 2024, ATI's total debt was $1.898 billion, with a net debt of $1.492 billion. The company's total debt to Adjusted EBITDA ratio was 2.79, reflecting improved leverage compared to the prior year.
| Debt Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Debt | $1,898.2 million | $2,199.2 million |
| Cash | $(406.6 million) | $(743.9 million) |
| Net Debt | $1,491.6 million | $1,455.3 million |
| Total Debt to Adjusted EBITDA | 2.79 | 3.47 |
| Net Debt to Adjusted EBITDA | 2.19 | 2.29 |
Stock Repurchase Program
In 2024, ATI announced a $700 million stock repurchase program. As of September 29, 2024, the company utilized $190 million to repurchase 4.1 million shares, with $40 million remaining in the authorized budget.
| Stock Repurchase Activity | Q3 2024 | Q3 2023 |
|---|---|---|
| Shares Repurchased | 4.1 million | 1.2 million |
| Amount Spent | $190 million | $55.1 million |
How ATI Inc. (ATI) Makes Money
Revenue Streams
ATI Inc. generates revenue from two primary business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S).
- For the third quarter of 2024, total external sales were $1,051.2 million, compared to $1,025.6 million in the third quarter of 2023.
- Year-to-date sales for 2024 were $3,189.4 million, an increase from $3,109.7 million in 2023.
| Segment | Q3 2024 Sales (in millions) | Q3 2023 Sales (in millions) | Year-to-Date 2024 Sales (in millions) | Year-to-Date 2023 Sales (in millions) |
|---|---|---|---|---|
| High Performance Materials & Components | $552.4 | $539.5 | $1,644.3 | $1,537.7 |
| Advanced Alloys & Solutions | $498.8 | $486.1 | $1,545.1 | $1,572.0 |
| Total | $1,051.2 | $1,025.6 | $3,189.4 | $3,109.7 |
Market Demand
The increase in sales is primarily attributed to heightened demand in the aerospace and defense sectors. Sales of aerospace and defense products increased by 4% in the HPMC segment and by 5% in the AA&S segment during Q3 of 2024 compared to the previous year.
Financial Performance
For the third quarter of 2024, ATI reported a pre-tax income of $114.9 million, up from $99.0 million in the same period of 2023. The effective tax rate was 24.6%, resulting in an income tax provision of $28.3 million for Q3 2024.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Pre-Tax Income (in millions) | $114.9 | $99.0 |
| Net Income (in millions) | $82.7 | $90.2 |
| Net Income Per Share | $0.57 | $0.62 |
| Effective Tax Rate | 24.6% | 4.9% |
Adjusted EBITDA
Adjusted EBITDA for the third quarter of 2024 was reported at $185.7 million, representing 17.7% of sales, compared to $162.6 million or 15.9% of sales for the same quarter in 2023.
| Period | Adjusted EBITDA (in millions) | Percentage of Sales |
|---|---|---|
| Q3 2024 | $185.7 | 17.7% |
| Q3 2023 | $162.6 | 15.9% |
Cost Management
Corporate expenses for the third quarter of 2024 were $13.4 million, compared to $12.5 million in the third quarter of 2023. The year-to-date expenses increased to $49.9 million from $47.1 million.
Debt and Capital Structure
As of September 29, 2024, ATI reported total debt of $1,898.2 million, with net debt of $1,491.6 million. The debt to Adjusted EBITDA ratio improved to 2.79 from 3.47 year-over-year.
| Debt Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Debt (in millions) | $1,898.2 | $2,199.2 |
| Net Debt (in millions) | $1,491.6 | $1,455.3 |
| Total Debt to Adjusted EBITDA | 2.79 | 3.47 |
Cash Flow Management
Cash provided by operating activities was $26.3 million for the year-to-date period ended September 29, 2024, a significant improvement compared to cash used in operations of $331.3 million for the same period in 2023.
| Cash Flow Activity | Year-to-Date 2024 (in millions) | Year-to-Date 2023 (in millions) |
|---|---|---|
| Cash Provided by Operating Activities | $26.3 | $(331.3) |
| Cash Used in Investing Activities | $(178.2) | $(143.2) |
| Cash Used in Financing Activities | $(166.2) | $323.4 |
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Article updated on 8 Nov 2024
Resources:
- ATI Inc. (ATI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ATI Inc. (ATI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ATI Inc. (ATI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.