Abstract
ATI Inc will report quarterly results on February 03, 2026 Pre-Market. This preview compiles consensus-style expectations and institutional viewpoints, outlines last quarter’s financial performance, and evaluates the current quarter’s revenue, gross margin, net margin, and adjusted EPS setup alongside segment drivers and risks, based on information available through January 27, 2026.
Market Forecast
For the current quarter, forecasts indicate revenue of $1.19 billion, EBIT of $191.07 million, and adjusted EPS of $0.88, implying year-over-year growth of 8.82% for revenue, 26.07% for EBIT, and 43.73% for EPS. Margin assumptions embedded in these forecasts suggest modest operating leverage as aerospace volumes and mix improve. The main business, Aerospace & Defense, is expected to sustain momentum on higher engine and airframe demand; Energy and Automotive remain secondary contributors with steadier, lower-volatility growth. The most promising segment is Aerospace & Defense, which contributed $0.79 billion last quarter and is positioned for continued year-over-year expansion on OEM build schedules and aftermarket engine components demand.
Last Quarter Review
Last quarter, ATI Inc delivered revenue of $1.13 billion, a gross profit margin of 23.32%, GAAP net profit attributable to the parent of $110.00 million, a net profit margin of 9.77%, and adjusted EPS of $0.85, with revenue up 7.07% year over year and adjusted EPS up 41.67% year over year. A key highlight was robust EBIT performance of $174.20 million, exceeding the prior estimate and underscoring favorable aerospace mix and pricing. In the main business, Aerospace & Defense generated $0.79 billion, with Energy at $0.11 billion and Automotive at $0.06 billion, reinforcing the company’s mix shift toward higher-value jet engine materials and components.
Current Quarter Outlook
Aerospace & Defense: Momentum and margin cadence
Aerospace & Defense remained the revenue engine last quarter at $0.79 billion and should continue to lead growth this quarter as engine component shipments align with elevated narrow-body and recovering wide-body build rates. The setup favors incremental margin as premium alloys and advanced forgings remain supply-constrained and command pricing power, especially on engine rotating parts. Gross margin of 23.32% last quarter provides a baseline; assuming similar mix tailwinds, EBIT growth of 26.07% year over year suggests operating leverage tied to better throughput, yield, and pricing on long-cycle programs. Watch for update commentary on OEM order books, de-bottlenecking in premium melt capacity, and aftermarket demand for engine components, which can lift both revenue and margins. Execution on long-lead contracts, stable input costs, and on-time deliveries are pivotal for sustaining double-digit EPS growth.
Energy and Automotive: Steadier volumes, mix protection
Energy contributed $0.11 billion last quarter and typically correlates with downstream maintenance cycles and capital budgets in refining, petrochemicals, and power applications. This quarter, volumes are expected to be stable, with mix emphasizing corrosion-resistant alloys for maintenance and reliability projects. Automotive, at $0.06 billion last quarter, remains a smaller contributor but offers incremental growth from specialty components where specification barriers are high. These segments help balance cyclicality and support asset utilization, though margin contribution is typically below aerospace. The key for profitability is maintaining mix toward higher-value applications and keeping production efficiency and yields intact against potential supply chain tightness. A steady performance from these segments should underpin the consolidated revenue outlook and provide some cushion if aerospace deliveries shift intra-quarter.
Pricing, costs, and the earnings bridge
The forecasted adjusted EPS of $0.88, up 43.73% year over year, implies a favorable earnings bridge dominated by higher aerospace mix, price realization, and productivity savings. Input costs, including nickel and energy, matter for spread dynamics, but ATI Inc’s contract structures and hedging typically moderate short-term volatility. EBIT forecast of $191.07 million, up 26.07% year over year, aligns with fixed-cost absorption as throughput rises and with lower scrap and better yields across premium alloys. The net margin trajectory will be sensitive to interest expense and tax rate; with last quarter’s net margin at 9.77%, a modest sequential improvement is plausible if gross-to-operating conversion holds and operating overheads remain disciplined. Management commentary on backlog, schedules, and any capacity additions will be key to validating the implied operating leverage.
Analyst Opinions
Institutional sentiment appears predominantly bullish during the six months ending January 27, 2026. BTIG reiterated a Buy rating with a price target of $120.00, citing confidence in ATI Inc’s growth trajectory. TD Cowen also reaffirmed a Buy rating and raised its price target to $120.00, highlighting strategic partnerships in aerospace and a constructive multi-quarter margin setup. The ratio of bullish to bearish stances in the collected period skews bullish, with no captured bearish calls, pointing to institutional expectations for continued growth in aerospace-driven revenue and improving profitability metrics this quarter. Analysts emphasize the ramp in engine components, sustained price realization on differentiated alloys, and operating leverage as the core drivers for near-term EPS outperformance relative to last year’s comparable period.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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