ATI Inc reaches 52-week high amid leadership transition
ATI Inc's stock rose by 3.02%, reaching a 52-week high. This increase comes amid a broader market decline, with the Nasdaq-100 down 0.69% and the S&P 500 down 0.19%.
The surge is attributed to the appointment of Rob Foster as CFO, effective January 1, 2026. Foster's extensive experience in operational and financial roles is expected to drive sustained growth for ATI, particularly as the company raised its 2025 guidance, projecting adjusted EBITDA to reach up to $858 million, driven by strong momentum in the aerospace and defense sectors.
This leadership change reflects ATI's commitment to continuity and strategic investment, positioning the company well for future growth. Investors are optimistic about the potential for enhanced operational efficiency and shareholder value under Foster's leadership.
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- Strong Financial Performance: ATI reported Q4 2025 revenue of $1.2 billion and adjusted EBITDA of $232 million, with margins expanding to 19.7%, reflecting a 180 basis point increase from the previous year, showcasing robust performance in aerospace and defense markets.
- Optimistic Future Outlook: The company anticipates a midpoint adjusted EBITDA of $1 billion for 2026, representing a 16% year-over-year increase, and plans to achieve mid-teens growth in aerospace and defense, indicating sustained strong market demand.
- Capital Investment Plans: ATI plans to invest between $220 million and $240 million in 2026, focusing on projects like a new VIM furnace and remelt equipment, which are expected to generate $350 million in nickel revenue by mid-2028, further enhancing market competitiveness.
- Increased Shareholder Returns: In 2025, ATI repurchased $470 million in shares and repaid $150 million in debt in Q4, demonstrating a commitment to enhancing financial stability while creating value for shareholders.
- Earnings Beat: ATI's Q4 2025 non-GAAP EPS of $0.93 exceeded expectations by $0.06, indicating robust profitability despite revenue falling short of projections.
- Revenue Growth Stalls: The company reported Q4 revenue of $1.18 billion, a 0.9% year-over-year increase, yet it missed expectations by $10 million, reflecting a softening market demand.
- Aerospace & Defense Market Share Growth: Sales to the aerospace and defense sector accounted for 68% of Q4 sales, up from 65% in Q4 2024, suggesting an expanding market share that enhances future growth prospects.
- Significant Cash Flow Improvement: Adjusted free cash flow for fiscal year 2025 reached $380 million, a 53% increase over fiscal year 2024, providing stronger financial support for future investments and operations.
- Annual Sales Growth: ATI achieved $4.6 billion in sales for 2025, marking the highest total since 2012, indicating strong demand in aerospace and defense markets, which is expected to drive future revenue growth.
- Adjusted EBITDA Performance: The adjusted EBITDA for Q4 2025 was $231.9 million, representing 19.7% of sales; although it showed a year-over-year decline, it still reflects the company's ongoing efforts in cost control and operational efficiency.
- Cash Flow and Shareholder Returns: Operating cash flow for 2025 reached $614 million, increasing over 50% year-over-year, enabling the company to repurchase $470 million in shares while repaying $150 million in debt, thereby enhancing financial flexibility.
- Future Outlook: The company's guidance for fiscal year 2026 is optimistic, projecting adjusted earnings per share between $0.83 and $0.89, reflecting confidence in sustained demand in core markets, which may further boost investor sentiment.
- Record Sales Achievement: ATI's fiscal year 2025 sales reached $4.6 billion, marking the highest total since Q4 2012, indicating robust demand in the aerospace and defense markets, which is expected to further drive revenue growth in the future.
- Significant Net Income Growth: The net income for fiscal year 2025 was $404 million, with earnings per share at $2.85, reflecting a 10% and 12% increase from 2024, respectively, showcasing the company's improving profitability and competitive strength in the market.
- Strong Cash Flow Performance: Operating cash flow for fiscal year 2025 was $614 million, over 50% higher than in 2024, providing the company with the capital to repurchase $470 million in shares and repay $150 million in debt, thereby enhancing financial flexibility.
- Optimistic Future Outlook: ATI projects adjusted EBITDA for fiscal year 2026 to be between $975 million and $1.025 billion, reflecting confidence in sustained demand in core markets and plans to drive higher earnings and cash flows through strong operational execution.
- Earnings Announcement Date: ATI is set to release its Q4 earnings on February 3rd before market open, with a consensus EPS estimate of $0.87, reflecting a 10.1% year-over-year increase, indicating ongoing improvement in profitability that could positively impact stock prices.
- Revenue Expectations: The anticipated revenue for Q4 is $1.19 billion, representing a slight decline of 0.8% year-over-year; while this indicates a minor drop, it still shows the company's ability to maintain stable revenue levels in a competitive market, reflecting its adaptability.
- Historical Performance Review: Over the past two years, ATI has beaten EPS estimates 88% of the time and revenue estimates 63% of the time, which may bolster investor confidence and provide support for the stock price due to its strong performance track record.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen two upward revisions and one downward revision, while revenue estimates have experienced three upward revisions and one downward revision, suggesting analysts maintain an optimistic outlook on the company's future performance, potentially attracting more investor interest.
- Market Performance Review: U.S. stocks closed mostly lower on Friday, with the Dow Jones falling approximately 0.2% to 49,359.33, indicating investor caution and contributing to a generally bearish market sentiment.
- Weekly Loss Overview: Last week, the S&P 500 dropped 0.4%, the Dow lost 0.3%, and the Nasdaq declined 0.7%, illustrating ongoing market pressure amid economic uncertainties that have affected investor confidence.
- Analyst Rating Dynamics: Benzinga's Analyst Ratings API offers high-quality stock ratings, and while the accuracy of market analysts varies, the platform's rating changes can provide valuable trading signals, aiding investors in making informed decisions in a volatile market.
- Stock Recommendation Updates: Analyst Ruben Roy maintained a Buy rating on nLIGHT Inc, raising the price target from $40 to $45, indicating an expected upside of about 3%, reflecting optimism regarding the company's future performance.










