Slide 1: Proven to perform anywhere. Third Quarter 2024 Earnings
Proven to perform anywhere. Third Quarter 2024 Earnings October 29, 2024 ATI Proprietary and Confidential ©2024 ATI. All rights reserved. 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements. Actual results may differ materially from results anticipated in the forward-looking statements due to various known and unknown risks, many of which we are unable to predict or control. These and additional risk facto
Slide 3: Key Takeaways
Key Takeaways Performance Balance Sheet Strategic Progress Continued jet engine growth Deploying capital for shareholder Strategic investments extend offset by disruptions in aerospace returns, efficiently managing capital competitive advantages supply chain and operations Adj. EBITDA1 Margin grew t
Slide 4: A&D outlook strong despite near-term airframe disruptions
A&D outlook strong despite near-term airframe disruptions Forecasting double-digit Year-over-Year (YoY) growth for most core markets Q3-24 Revenue Sequential YoY 6-Mo 3-Yr Market ($M’s) Change Outlook Outlook ATI Perspective Change • Continued growth resulting from broadening customer Jet Engine $36
Slide 5: Third Quarter 2024 Financial Results
Third Quarter 2024 Financial Results $M (excl. EPS) Q3 2024 Q3 2023 % Chg. Q2 % Chg. HPMC Segment 2024 Revenue: Up 2% year-over-year (YoY), down 2% sequentially Revenue $1,051 $1,026 +2% $1,095 (4%) • Strong continued Jet Engine MRO growth and share gains • Airframe down due to build rate and supply
Slide 6: Cash & Liquidity
Cash & Liquidity Balance Sheet and Cash Flow (1) (2) Net Debt/Adj. EBITDA Ratio: 2.2x Q3 results • Liquidity of ~$960M, including $407M of cash on hand • Managed working capital(2) 40% of sales ‒ Anticipate trending lower, returning to 30%-35% levels by $600 year-end 2024 • Capital expenditures were
Slide 7: Fourth Quarter & Full Year 2024 Outlook
Fourth Quarter & Full Year 2024 Outlook Fourth Quarter 2024 Key Assumptions Adj. EPS (1)(3) Adj. EBITDA (3) Key Drivers $0.56 – $0.62 $181 – $191 million ✓ Continued growth in Jet Engine and Defense, offset by lower Previously X (Previously $X - $X million) Airframe due to disruptions in aerospace s
Slide 8: Additional Materials Appendix
Additional Materials Appendix
Slide 9: Appendix – 2024 Outlook Assumptions
Appendix 1 – 2024 Outlook Assumptions Earnings Drivers 2024 FY Net Interest Expense ~$107M Annual Cash Flow Drivers Capital Expenditures $210M - $230M Depreciation & Amortization ~$151M Managed Working Capital(1) Cash Usage of in Range of ~$100M Full Year Cash Taxes $15M - $20M Q4 2024: 146.3M share
Slide 10: Appendix 2 – Non-GAAP Financial Measures
Appendix 2 ATI Inc. and Subsidiaries Non-GAAP Financial Measures (Unaudited, dollars in millions, except per share amounts) The The Company Companyreports reportsitsits financial results financial in accordance results with with in accordance accounting principles accounting generally principles acc
Slide 11: Appendix 2 (continued)
Appendix 2 (continued) Fiscal Quarter Ended September 29, 2024 June 30, 2024 October 1, 2023 Reported Adjusted Reported Adjusted Reported Adjusted Numerator for Basic net income per common share - Net income attributable to ATI $ 82.7 $ 85.9 $ 81.9 $ 86.0 $ 90.2 $ 94.2 Effect of dilutive securities
Slide 12: Appendix 2 (continued)
Appendix 2 (continued) Fiscal Quarter Ended Latest year ended September 29, 2024 June 30, 2024 October 1, 2023 September 29, 2024 Net income attributable to ATI $ 82.7 $ 81.9 $ 90.2 $ 376.4 Net income attributable to noncontrolling interests 3.9 3.7 3.9 13.4 Net income 86.6 85.6 94.1 389.8 (+) Depre
Slide 13: Appendix 2 (continued) – Free Cash Flow
All Appendix 2 (continued) Eree Cash Flow. Free cash flow as defined by ATI includes the total of cash provided by (used in) operating activities and investing activities as presented on the consolidated statements of cash flows, adjusted to exclude cash contributions to the Company's U.S. qualified