| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 16 | 58.0x | 17.8x | Bottom tier | |
Growth | 57 | 4.6% | 7.1% | Around median | |
Quality | 71 | 15.8% | 4.5% | Top tier | |
Safety | 70 | 1.5x | 2.6x | Top tier | |
Capital Return | 29 | — | 2.12% | Bottom tier | |
Momentum | 89 | 184.7% | 2.9% | Top tier | |
Sentiment | 38 | 6 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
ATI produces specialty alloys and materials for applications requiring high performance, particularly aircraft engines and airframes, defense programs, nuclear energy, and industrial gas turbines. The company generates revenue through its HPMC and AA&S segments, with its pricing power relying on differentiated materials such as nickel, titanium, hafnium, and zirconium alloys, as well as long-term agreements and sole-source positions in certain next-generation engine alloys.
In fiscal Q2 2026, revenue reached $1.3 billion, up 11% year over year, while gross profit was $309.8 million, net income was $151.0 million, and earnings per share were $1.09. Adjusted earnings before interest, taxes, depreciation, and amortization were $284 million, up 37%, while the margin expanded 440 basis points to 22.6%. This figure included a $10 million gain from an asset sale; even excluding it, operating performance exceeded the high end of prior guidance by approximately $19 million.
HPMC sales were approximately $637 million in fiscal Q2 2026, up 5%, with a segment margin of 24.1%. AA&S sales were approximately $624 million, up 17%, while its margin jumped 930 basis points to a record 23.7%; aerospace and defense accounted for approximately 44% of the segment's revenue. By market, aircraft engine sales increased 13% and defense revenue rose 36%, versus a 6% decline in specialty energy revenue and a slight decrease in airframe revenue.
The analyst consensus rates ATI shares a “Buy,” with an average target of $248 and a wide range between $180 and $275. The average target is only approximately 1.8% above the 52-week range high of $243.57, while the large gap between the lowest and highest targets reveals meaningful divergence in estimates of the sustainability of earnings and margin growth. The context does not provide an earnings multiple that could be used as an additional valuation anchor, so analyst targets and the 52-week range, extending from $74.45 to $243.57, remain the most prominent fixed references available.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Revenue increased 11% to $1.3 billion, while net income reached $151.0 million and earnings per share reached $1.09. Adjusted earnings before interest, taxes, depreciation, and amortization were $284 million, up 37%, and the margin expanded to 22.6%. Performance was driven by pricing, mix, and demand for aircraft engines and defense, with defense revenue up 36% and aircraft engine sales up 13%. Even after excluding a $10 million gain from an asset sale, operating performance exceeded the high end of prior guidance by approximately $19 million.
ATI expects adjusted earnings before interest, taxes, depreciation, and amortization of between $1.135 billion and $1.185 billion, equivalent to $1.160 billion at the midpoint. It expects adjusted earnings per share of between $4.90 and $5.18 and adjusted free cash flow of between $550 million and $600 million. Management indicates a consolidated margin in the low-20% range, with the fourth quarter expected to be the strongest quarter of fiscal 2026 in terms of sales and earnings. The guidance is based on contracted pricing, committed customer orders, improvement in AA&S, and the conversion of deferred HPMC shipments in the second half.
Automated analysis for informational purposes only — not investment advice.
The backlog reached a record in fiscal Q2 2026 and increased 18% year over year and 7% sequentially. Management expects to convert approximately 70% of it into revenue during the twelve months following the end of the quarter. The backlog increasingly includes long-term agreements, sole-source positions, and strategic programs, enhancing shipment and earnings visibility. Airframe order books also extended into 2027, while lead times reached 12 months for nickel, 20 months for premium-grade titanium, and more than 24 months for isothermal forgings.
HPMC generated sales of $637 million in fiscal Q2 2026, up 5%, with a margin of 24.1%. AA&S generated sales of $624 million, up 17%, and its margin reached a record 23.7%. HPMC relies heavily on nickel and titanium alloys for aircraft engines, while AA&S has shifted toward higher-value aerospace, defense, and specialty energy applications. Aerospace and defense accounted for approximately 44% of AA&S revenue, more than twice their share five years ago, according to management.
Defense revenue increased 36% year over year to a record level in fiscal Q2 2026. The renewed naval nuclear contract extends through 2030 and represents approximately $1 billion in revenue over five years, with more than twice the annual revenue compared with the previous contract. Management attributes approximately two-thirds of the increase in the contract to price and mix and one-third to volume. ATI also began receiving orders for the Tomahawk program, and its products support the THAAD and PAC-3 programs, while missile revenue reached four times its previous level during the quarter.
The qualifications for the Mexico facility and the EB2 furnace shifted approximately $30 million to $40 million of revenue from the first half to the second half of fiscal 2026. Specialty energy also declined 6%, and airframes decreased slightly in the second quarter, making second-half acceleration important to annual guidance. Lead times extending beyond 24 months for some products show that demand exceeds available capacity, increasing the importance of executing expansions on schedule. On the cash side, managed working capital was 34% of sales, while accounts receivable and inventory preparation for 2027 may delay the conversion of part of fourth-quarter earnings into cash.
