ATI, Inc. Has Sustained Aerospace & Defense Revenue But Will This Last?

Allegheny Technologies Incorporated (ATI) recently reported mixed results for its third quarter of 2024. The company’s performance recognized some bright spots but ultimately fell short of its financial guidance due to both external market dynamics and internal operational challenges. Starting with the positives, ATI’s segment-adjusted EBITDA margins met or exceeded expectations, with notable sequential improvement in its High-Performance Materials and Components (HPMC) segment margins, which edged closer to the mid-20s percent range. Additionally, the Flat-Rolled Products division posted consistent performance with a 15% margin, aligning with expectations. The company has continued to focus on improving price and product mix, along with reducing operating costs, which translated into a 100-basis-point increase in consolidated EBITDA margins sequentially. Moreover, ATI maintained a stable backlog, benefiting from ongoing business bookings across both segments.