Ati Inc. · NYSE:ATI
Ati — Q4 2024 Earnings Presentation
15 slides from Ati's earnings presentation, Feb 4, 2025
Slide 1: Proven to perform anywhere. Fourth Quarter and Full Year 2024 Earnings
Proven to perform anywhere. Fourth Quarter and Full Year 2024 Earnings February 4, 2025 ATI Proprietary and Confidential ©2025 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 Strong recovery from Q3 outages; Deploying capital for shareholder Strategic investments extend Growth in Jet Engine & Defense returns, efficiently managing capital competitive advantages Q4 Adj. EBITDA1 of $210M Ended Q4 with $1.3B of total
Slide 4: A&D outlook strong despite near-term airframe disruptions
A&D outlook strong despite near-term airframe disruptions Forecasting double-digit Year-over-Year (YoY) growth for most core markets Q4-24 Sequential YoY 6-Mo 3-Yr Market Revenue ($M’s) Change Outlook Outlook ATI Perspective Change • Sequential and year-over-year growth resulting from broadening Jet
Slide 5: Fourth Quarter 2024 Financial Results
Fourth Quarter 2024 Financial Results $M (excl. EPS) Q4 2024 Q4 2023 % Chg. Q3 2024 % Chg. HPMC Segment Revenue: Up 9% year-over-year (YoY); up 15% sequentially Revenue $1,173 $1,064 +10% $1,051 +12% • Led by continued growth in Jet Engine and Defense materials and forgings HPMC Segment $634 $583 +9
Slide 6: Full Year 2024 Financial Results
Full Year 2024 Financial Results $M (excl. EPS) FY 2024 FY 2023 % Chg. HPMC Segment Revenue: 8% year-over-year top-line growth driven by: Revenue $4,362 $4,174 +5% • Year over year sales growth from increases in Jet Engine and Defense materials, driven by price gains in nickel and higher volume in t
Slide 7: Cash & Liquidity
Cash & Liquidity Balance Sheet and Cash Flow (1) (2) Net Debt/Adj. EBITDA Ratio: 1.6x Q4 results • Liquidity of ~$1.3B, including $721M of cash on hand • Managed working capital(2) 30.9% of sales • Capital expenditures were $47M in Q4 $600 $500 Capital structure $400 • Executing multi-year $700M sha
Slide 8: First Quarter & Full Year 2025 Outlook
First Quarter & Full Year 2025 Outlook First Quarter 2025 Key Assumptions Adj. EPS (1)(3) Adj. EBITDA (3) Key Drivers $0.55 – $0.61 $170 – $180 million ✓ Strong demand in A&D, timing of growth in Commercial Aero Previously X (Previously $X - $X million) accelerating in 2H 2025 ✓ All outage recovery
Slide 9: Additional Materials Appendix
Additional Materials Appendix
Slide 10: Appendix 1 – 2025 Outlook Assumptions
Appendix 1 – 2025 Outlook Assumptions Earnings Drivers FY 2025 Net Interest Expense ~$100M Annual Cash Flow Drivers Capital Expenditures $260-$280M Depreciation & Amortization ~$168M Managed Working Capital(1) Cash Usage of in Range of ~$100M Full Year Cash Taxes ~$62M (1) See Appendix 3 for reconci
Slide 11: Appendix 2 - Capital Expenditures, Net of Sale Proceeds & Customer Funded Partnerships
Appendix 2 - Capital Expenditures, Net of Sale Proceeds & Customer Funded Partnerships $M 2022 2023 2024 2025 Guide Annual Spend / Proceeds Capital Expenditures $131 $201 $239 $270 (1) Less Asset Sale Proceeds ($3) ($4) ($28) Business Sale Proceeds ($0) ($0) ($48) Customer Funded Partnerships ($7) (
Slide 12: Appendix 3 - Non-GAAP Financial Measures
Appendix 3 ATI Inc. and Subsidiaries Non-GAAP Financial Measures (Unaudited, dollars in millions, except per share amounts) The The Company Companyreports reports itsits financial results financial in accordance results with with in accordance accounting principles accounting generally principles ac
Slide 13: Appendix 3 (continued)
Appendix 3 (continued) Fiscal Quarter Ended December 29, 2024 September 29, 2024 December 31, 2023 Reported Adjusted Reported Adjusted Reported Adjusted Numerator for Basic net income per common share - Net income attributable to ATI $ 137.1 $ 114.6 $ 82.7 $ 85.9 $ 145.7 $ 93.0 Effect of dilutive se
Slide 14: Appendix 3 (continued)
Appendix 3 (continued) Fiscal Quarter Ended Fiscal Year Ended December 29, 2024 September 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 Net income attributable to ATI $ 137.1 $ 82.7 $ 145.7 $ 367.8 $ 410.8 Net income attributable to noncontrolling interests 5.0 3.9 3.5 14.9 12.6 Net
Slide 15: Appendix 3 (continued)
Appendix 3 (continued) Free 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 defi