Shares of Allegheny Technologies Inc. (NYSE:ATI) fell 5.98% in pre-market trading Thursday after the company’s second-quarter earnings and revenue came in below Wall Street expectations, even as it posted year-over-year improvements.
For Q2, the specialty materials manufacturer reported adjusted earnings of $0.74 per share, narrowly missing the analyst consensus of $0.76. Revenue totaled $1.14 billion, falling short of projections of $1.16 billion. However, sales rose 4% year over year, supported by an 11% increase in aerospace and defense revenue, which made up 67% of total quarterly sales.
“Our second quarter performance demonstrates strong, sustained demand in ATI’s aerospace and defense end markets,” said Kimberly A. Fields, President and CEO. “Consistent operational performance drove double-digit growth in net income, EPS and adjusted EBITDA on a year-over-year basis.”
Within the aerospace sector, commercial jet engine sales surged 27% from the prior year, while commercial airframe revenue declined 18%, a drop the company attributed to customer inventory reductions. Adjusted EBITDA rose 14% year over year to $207.7 million, representing 18.2% of sales, up from 16.7% in the same period of 2024.
Looking ahead, ATI expects third-quarter adjusted EPS in the range of $0.69 to $0.75, slightly below the current analyst consensus of $0.76. Still, it raised the midpoint of its full-year earnings forecast to between $2.90 and $3.07 per share, with the midpoint of $2.99 just under analysts’ target of $3.02.
ATI was also active on the capital return front, repurchasing $250 million of its stock during the quarter at an average price of $76.79 per share. That brings total share buybacks in 2025 to $320 million, with $270 million still authorized for future repurchases.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.