ATI 2024 results beat low expectations

By Karl Sinclair

Feb. 4, 2025, © Leeham News: “Expectations were low for ATI after a mix of operational and timing issues weighed on results in 3Q2024,” wrote the aerospace analyst for JP Morgan. “So a solid beat in the quarter and a better than feared guide was enough to drive significant out-performance on the day. While this quarter’s results represent a step in the right direction, we think solid execution on an ascending earnings profile for this year can do more the stock from a valuation perspective and would provide a strong jumping off point for out-year earnings, where our estimates are little changed.”

ATI’s fourth quarter ended on Dec. 31.

ATI (formerly Allegheny Technologies Incorporated) is an aerospace manufacturer headquartered in Dallas (TX) which produces specialty materials for the aerospace industry.

ATI is part of the aerospace supply chain, which has recently been under pressure and has not escaped the ravages of the Boeing troubles or the effects of the pandemic.

In 2020, ATI’s Albany (NY) operations temporarily closed down and was permanently shuttered in 2022. The plant produced high-quality titanium, with the bulk of production being purchased by Boeing.

The corporation is organized into two divisions: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S).

Aerospace and Defense dominates company revenues (62% in 2024, up from 59% in 2023), with products for commercial jet engines accounting for 33% of total company sales (up from 32%).  Components for commercial airframes are the next largest market for the company, with 18% of revenues.

On July 1, in a planned succession, former COO Kimberly A. Fields took over the reins as CEO from Robert S. Wetherbee, who became Executive Chairman.

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