Shares of ATI Inc. (NYSE:ATI) soared 10.17% in premarket trading Tuesday after the specialty materials manufacturer posted third-quarter 2025 results that topped Wall Street estimates, powered by booming aerospace and defense sales.
The company reported adjusted earnings of $0.85 per share, beating the consensus forecast of $0.73 by 16.4%. Revenue climbed 7% year over year to $1.13 billion, slightly above expectations of $1.12 billion. Aerospace and defense sales hit a record $793 million — accounting for 70% of total revenue — and were up 21% compared to the same quarter a year earlier.
ATI saw margin improvements across both core business segments. The High Performance Materials & Components division recorded a 24.2% EBITDA margin, while the Advanced Alloys & Solutions segment achieved a 17.3% margin, up from 14.4% in Q2.
“We exceeded our guidance in the third quarter, delivering strong adjusted earnings and operating cash flow performance,” said Kimberly A. Fields, President and CEO. “We continue to see positive demand signals in our core markets, as our customers ramp to achieve their growth targets.”
Operating cash flow for the quarter reached $230 million, bringing the year-to-date total to $299 million — a $273 million improvement from last year.
Following the earnings beat, ATI raised its full-year 2025 guidance, now projecting adjusted EPS of $3.15 to $3.21, up from $2.90 to $3.07 previously. The company also expects adjusted EBITDA of $848–$858 million, compared to the prior forecast of $810–$840 million.
For the fourth quarter, ATI anticipates adjusted EPS of $0.84–$0.90, ahead of the $0.83 analyst consensus. The company also repurchased $150 million of its stock at an average price of $76.07 during the quarter, bringing total buybacks in 2025 to $470 million.