Revenue growth accelerated to 10.6% in Q2 2026 with gross margin expanding to 24.6% from 19.2% in Q1 2024, driving operating margin to a series-high 17.4%.
ATI Inc. (ATI) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 4.72B | 4.59B | 4.36B | 4.17B | 3.84B | 2.8B | 2.98B | 4.12B | 4.05B | 3.53B | 3.13B | 3.72B | 4.22B | 4.04B | 4.67B | 5.18B | 4.05B | 3.05B | 5.31B | 5.45B | 4.94B | 3.54B | 2.73B | 1.94B | 1.91B | 2.13B | 2.46B | 2.3B | 3.92B | 3.75B | 3.82B |
| Revenue Growth % | 4.58% | 5.16% | 4.51% | 8.8% | 37.01% | -6.11% | -27.66% | 1.88% | 14.79% | 12.46% | -15.73% | -11.93% | 4.45% | -13.36% | -9.96% | 28.04% | 32.5% | -42.47% | -2.62% | 10.38% | 39.54% | 29.52% | 41.07% | 1.55% | -10.35% | -13.51% | 7.16% | -41.48% | 4.76% | -1.85% | - |
| Cost of Goods Sold | 3.61B | 3.59B | 3.45B | 3.35B | 3.12B | 2.47B | 2.69B | 3.48B | 3.42B | 3.03B | 2.9B | 3.66B | 3.84B | 3.79B | 4.04B | 4.37B | 3.56B | 2.65B | 4.16B | 4B | 3.74B | 2.89B | 2.49B | 1.87B | 1.74B | 1.86B | 2B | 1.78B | 2.95B | 2.83B | 2.9B |
| COGS % of Revenue | - | 78.21% | 79.06% | 80.2% | 81.38% | 88.07% | 90.18% | 84.52% | 84.42% | 85.9% | 92.53% | 98.38% | 91.04% | 93.75% | 86.6% | 84.31% | 87.89% | 86.63% | 78.31% | 73.42% | 75.79% | 81.63% | 91.04% | 96.71% | 91.44% | 87.51% | 81.23% | 77.64% | 75.2% | 75.53% | 76.05% |
| Gross Profit | 1.1B | 999.8M | 913.5M | 826.3M | 714.2M | 334M | 292.8M | 638M | 630.3M | 497M | 234.1M | 60.3M | 378.6M | 252.6M | 625.5M | 813.2M | 490.3M | 408.4M | 1.15B | 1.45B | 1.2B | 650.2M | 244.9M | 63.8M | 163.3M | 265.7M | 461.9M | 513.5M | 973.2M | 916.3M | 913.9M |
| Gross Margin % | 23.35% | 21.79% | 20.94% | 19.8% | 18.62% | 11.93% | 9.82% | 15.48% | 15.58% | 14.1% | 7.47% | 1.62% | 8.96% | 6.25% | 13.4% | 15.69% | 12.11% | 13.37% | 21.69% | 26.58% | 24.21% | 18.37% | 8.96% | 3.29% | 8.56% | 12.49% | 18.77% | 22.36% | 24.8% | 24.47% | 23.95% |
| Gross Profit Growth % | - | 9.45% | 10.55% | 15.7% | 113.83% | 14.07% | -54.11% | 1.22% | 26.82% | 112.3% | 288.23% | -84.07% | 49.88% | -59.62% | -23.08% | 65.86% | 20.05% | -64.55% | -20.53% | 21.21% | 83.91% | 165.5% | 283.86% | -60.93% | -38.54% | -42.48% | -10.05% | -47.24% | 6.21% | 0.26% | - |
| Operating Expenses | 377.5M | 365.1M | 304.6M | 359.9M | 398.1M | 216.4M | 1.6B | 271.7M | 268.2M | 362.4M | 775.9M | 429.7M | 272.5M | 295.2M | 321.6M | 382.1M | 304.9M | 315.7M | 282.7M | 296.7M | 295.3M | 275.8M | 233.3M | 248.8M | 188.3M | 198.8M | 203.7M | 324.4M | 503.6M | 484.1M | 515.5M |
| OpEx % of Revenue | - | 7.96% | 6.98% | 8.62% | 10.38% | 7.73% | 53.5% | 6.59% | 6.63% | 10.28% | 24.75% | 11.55% | 6.45% | 7.3% | 6.89% | 7.37% | 7.53% | 10.33% | 5.32% | 5.44% | 5.98% | 7.79% | 8.54% | 12.84% | 9.87% | 9.34% | 8.28% | 14.13% | 12.84% | 12.93% | 13.51% |
| Selling, General & Admin | 289.4M | 343.8M | 368.6M | 407.8M | 159.1M | 33.1M | 245.7M | 340.8M | 302.1M | 302.3M | 310.1M | 221.2M | 271.8M | 276.4M | 321.6M | 382.1M | 304.9M | 315.7M | 282.7M | 296.7M | 295.3M | 275.8M | 233.3M | 248.8M | 188.3M | 198.8M | 203.7M | 229.1M | 503.6M | 484.1M | 515.5M |
| SG&A % of Revenue | - | 7.49% | 8.45% | 9.77% | 4.15% | 1.18% | 8.24% | 8.27% | 7.47% | 8.58% | 9.89% | 5.95% | 6.44% | 6.84% | 6.89% | 7.37% | 7.53% | 10.33% | 5.32% | 5.44% | 5.98% | 7.79% | 8.54% | 12.84% | 9.87% | 9.34% | 8.28% | 9.98% | 12.84% | 12.93% | 13.51% |
| Research & Development | 0 | 21.3M | 22.1M | 22.1M | 17.7M | 20M | 14.8M | 20.2M | 24.9M | 14.7M | 16.9M | 15.7M | 20.1M | 18.8M | 23.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 0.46% | 0.51% | 0.53% | 0.46% | 0.71% | 0.5% | 0.49% | 0.62% | 0.42% | 0.54% | 0.42% | 0.48% | 0.46% | 0.51% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | -86.1M | -70M | 221.3M | 163.3M | 1.33B | -89.3M | -58.8M | 45.4M | 448.9M | 192.8M | -19.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 723.7M | 634.7M | 608.9M | 466.4M | 316.1M | 117.6M | -1.3B | 366.3M | 362.1M | 134.6M | -541.8M | -369.4M | 106.1M | -42.6M | 303.9M | 431.1M | 185.4M | 92.7M | 869.2M | 1.15B | 897.4M | 403.1M | -32.1M | -117.5M | 19.5M | 140.9M | 273.2M | 183.7M | 528.7M | 369.6M | 377.4M |
| Operating Margin % | 15.35% | 13.84% | 13.96% | 11.17% | 8.24% | 4.2% | -43.68% | 8.89% | 8.95% | 3.82% | -17.28% | -9.93% | 2.51% | -1.05% | 6.51% | 8.32% | 4.58% | 3.03% | 16.37% | 21.03% | 18.17% | 11.39% | -1.17% | -6.06% | 1.02% | 6.62% | 11.1% | 8% | 13.48% | 9.87% | 9.89% |
| Operating Income Growth % | - | 4.24% | 30.55% | 47.55% | 168.79% | 109.03% | -455.64% | 1.16% | 169.02% | 124.84% | -46.67% | -448.16% | 349.06% | -114.02% | -29.51% | 132.52% | 100% | -89.33% | -24.19% | 27.76% | 122.62% | 1355.76% | 72.68% | -702.56% | -86.16% | -48.43% | 48.72% | -65.25% | 43.05% | -2.07% | - |
| EBITDA | 943.4M | 812.1M | 734.7M | 587M | 439.5M | 243M | -1.15B | 517.4M | 518.5M | 279.8M | -389.9M | -199.8M | 263M | 147.3M | 497.9M | 605.5M | 326.9M | 225.3M | 988M | 1.25B | 981.6M | 480.4M | 44M | -42.9M | 109.5M | 239.5M | 372.9M | 279M | 637.7M | 468.1M | 482.7M |
| EBITDA Margin % | 20.01% | 17.7% | 16.84% | 14.06% | 11.46% | 8.68% | -38.61% | 12.55% | 12.81% | 7.94% | -12.44% | -5.37% | 6.23% | 3.64% | 10.67% | 11.68% | 8.08% | 7.38% | 18.61% | 22.91% | 19.87% | 13.57% | 1.61% | -2.21% | 5.74% | 11.25% | 15.16% | 12.15% | 16.25% | 12.5% | 12.65% |
| EBITDA Growth % | 18.24% | 10.53% | 25.16% | 33.56% | 80.86% | 121.1% | -322.54% | -0.21% | 85.31% | 171.76% | -95.15% | -175.97% | 78.55% | -70.42% | -17.77% | 85.22% | 45.1% | -77.2% | -20.92% | 27.28% | 104.33% | 991.82% | 202.56% | -139.18% | -54.28% | -35.77% | 33.66% | -56.25% | 36.23% | -3.02% | - |
| D&A (Non-Cash Add-back) | 219.7M | 177.4M | 125.8M | 120.6M | 123.4M | 125.4M | 151.3M | 151.1M | 156.4M | 145.2M | 151.9M | 169.6M | 156.9M | 189.9M | 194M | 174.4M | 141.5M | 132.6M | 118.8M | 102.9M | 84.2M | 77.3M | 76.1M | 74.6M | 90M | 98.6M | 99.7M | 95.3M | 109M | 98.5M | 105.3M |
| EBIT | 694.8M | 633M | 544.9M | 418.5M | 555.1M | 367.1M | 47.1M | 297.2M | 328.2M | 194.7M | -77.3M | -178.5M | 106.8M | -23.8M | 303.9M | 414.4M | 188.4M | 84.2M | 871.2M | 1.15B | 903.9M | 378.4M | 11.6M | -185M | -25M | 66.9M | 258.2M | 189.1M | 326.3M | 468.2M | 375.9M |
| Net Interest Income | -97.8M | -98.6M | -108.2M | -92.8M | -87.4M | -96.9M | -94.4M | -99M | -101M | -133.8M | -124M | -110.2M | -108.7M | -65.2M | -71.6M | -92.3M | -62.7M | -19.3M | -3.5M | -4.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 12.1M | 16M | 13M | 4.7M | 0 | 1.7M | 5.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 97.8M | 110.7M | 124.2M | 105.8M | 92.1M | 96.9M | 96.1M | 104.9M | 101M | 133.8M | 124M | 110.2M | 108.7M | 65.2M | 71.6M | 92.3M | 62.7M | 19.3M | 3.5M | 4.8M | 0 | 350.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -126.7M | -112.4M | -122.8M | -171.2M | 38.5M | 115.8M | -179.2M | -129.8M | -114.4M | -221.1M | -192.2M | -108.6M | -104.6M | -112.2M | -71.6M | -91.7M | -59.7M | -27.8M | -1.5M | -5.4M | -31.3M | -67.3M | 51.9M | -2.62B | -78.8M | -103.3M | -49.4M | -14.9M | -137.5M | 56M | 42.5M |
| Pretax Income | 597M | 522.3M | 486.1M | 295.2M | 354.6M | 233.4M | -1.48B | 236.5M | 247.7M | -86.5M | -734M | -478M | 1.5M | -154.8M | 232.3M | 339.4M | 125.7M | 64.9M | 860.1M | 1.15B | 869.2M | 307.1M | 19.8M | -2.8B | -103.8M | -36.4M | 208.8M | 174.2M | 391.2M | 475.2M | 384.7M |
| Pretax Margin % | 12.66% | 11.39% | 11.14% | 7.07% | 9.24% | 8.34% | -49.69% | 5.74% | 6.12% | -2.45% | -23.42% | -12.85% | 0.04% | -3.83% | 4.98% | 6.55% | 3.11% | 2.12% | 16.2% | 21.04% | 17.6% | 8.68% | 0.72% | -144.63% | -5.44% | -1.71% | 8.49% | 7.59% | 9.97% | 12.69% | 10.08% |
| Income Tax | 108.1M | 103.7M | 103.4M | -128.2M | 15.5M | 26.8M | 77.7M | -28.5M | 11M | -6.8M | -106.9M | -112.1M | -8.7M | -63.6M | 72.4M | 116.3M | 47M | 26.9M | 294.2M | 400.2M | 297.3M | -54.7M | -8.2M | 33.1M | -38M | -11.2M | 76.3M | 63.2M | 150M | 177.6M | 158.2M |
| Effective Tax Rate % | 18.11% | 19.85% | 21.27% | -43.43% | 4.37% | 11.48% | -5.24% | -12.05% | 4.44% | 7.86% | 14.56% | 23.45% | -580% | 41.09% | 31.17% | 34.27% | 37.39% | 41.45% | 34.21% | 34.88% | 34.2% | -17.81% | -41.41% | -1.18% | 36.61% | 30.77% | 36.54% | 36.28% | 38.34% | 37.37% | 41.12% |
| Net Income | 475.8M | 404.3M | 367.8M | 410.8M | 323.5M | 184.6M | -1.57B | 252.5M | 222.4M | -91.9M | -640.9M | -377.9M | -2.6M | 154M | 150.5M | 214.3M | 70.7M | 31.7M | 565.9M | 747.1M | 571.9M | 359.8M | 19.8M | -314.6M | -65.8M | -25.2M | 132.5M | 300.2M | 241.2M | 297.6M | 213M |
| Net Margin % | 10.09% | 8.81% | 8.43% | 9.84% | 8.43% | 6.59% | -52.73% | 6.12% | 5.5% | -2.61% | -20.45% | -10.16% | -0.06% | 3.81% | 3.22% | 4.13% | 1.75% | 1.04% | 10.66% | 13.7% | 11.58% | 10.16% | 0.72% | -16.24% | -3.45% | -1.18% | 5.39% | 13.07% | 6.15% | 7.95% | 5.58% |
| Net Income Growth % | 13.96% | 9.92% | -10.47% | 26.99% | 75.24% | 111.74% | -722.81% | 13.53% | 342% | 85.66% | -69.6% | -14434.62% | -101.69% | 2.33% | -29.77% | 203.11% | 123.03% | -94.4% | -24.25% | 30.63% | 58.95% | 1717.17% | 106.29% | -378.12% | -161.11% | -119.02% | -55.86% | 24.46% | -18.95% | 39.72% | - |
| Net Income (Continuing) | 488.9M | 418.6M | 382.7M | 423.4M | 339.1M | 206.6M | -1.56B | 265M | 236.7M | -79.7M | -627.1M | -365.9M | 10.2M | -91.2M | 0 | 211.7M | 78.7M | 38M | 573.5M | 753.9M | 580M | 364.4M | 24.6M | -313.3M | -65.8M | -25.2M | 132.5M | 111M | 155M | 328.8M | 248.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 252.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -600K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 121.5M | 112.2M | 104.8M | 107.5M | 111.3M | 147.1M | 120.3M | 103.1M | 105.9M | 105.1M | 89.6M | 101.6M | 110.9M | 100.5M | 107.5M | 96.3M | 88.6M | 77.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.50 | 2.85 | 2.55 | 2.81 | 2.23 | 1.31 | -12.43 | 1.81 | 1.61 | -0.83 | -5.97 | -3.52 | -0.02 | -0.93 | 1.36 | 1.97 | 0.72 | 0.32 | 5.67 | 7.26 | 5.61 | 3.59 | 0.22 | -3.89 | -0.82 | -0.31 | 1.60 | 3.13 | 4.86 | 3.73 | 2.65 |
| EPS Growth % | 18.4% | 11.76% | -9.25% | 26.01% | 70.23% | 110.54% | -786.74% | 12.42% | 293.98% | 86.1% | -69.6% | -16272.09% | 97.69% | -168.38% | -30.96% | 173.61% | 125% | -94.36% | -21.9% | 29.41% | 56.27% | 1531.82% | 105.66% | -374.39% | -164.52% | -119.38% | -48.88% | -35.6% | 30.29% | 40.75% | - |
| EPS (Basic) | - | 2.92 | 2.82 | 3.21 | 2.54 | 1.45 | -12.43 | 2.01 | 1.78 | -0.83 | -5.97 | -3.52 | -0.02 | -0.93 | 1.42 | 2.09 | 0.73 | 0.33 | 5.71 | 7.35 | 5.76 | 3.77 | 0.23 | -3.89 | -0.82 | -0.31 | 1.60 | 3.15 | 4.90 | 3.73 | 2.65 |
| Diluted Shares Outstanding | 136.04M | 141.8M | 146.8M | 150M | 151.2M | 127.1M | 126.5M | 146.5M | 145.9M | 110.1M | 107.3M | 107.3M | 107.1M | 106.8M | 116.6M | 113.9M | 98.7M | 98.1M | 99.8M | 102.96M | 102.34M | 100.84M | 90.49M | 80.87M | 80.24M | 81.29M | 82.81M | 95.91M | 96.85M | 87.47M | 88.05M |
| Basic Shares Outstanding | 136.04M | 138.6M | 130.4M | 128.1M | 127.5M | 127.1M | 126.5M | 125.8M | 145.9M | 110.1M | 107.3M | 107.21M | 107.1M | 106.24M | 106.1M | 102.5M | 97.5M | 97.2M | 99.1M | 101.69M | 99.67M | 96.23M | 86.63M | 80.87M | 80.24M | 81.29M | 82.81M | 95.3M | 96.85M | 87.47M | 88.05M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | 49.94% | 50.83% | 34.86% | 100.14% | 222.71% | 12.62% | 7.78% | 7.54% | 7.53% | 107.07% | - | - | - | 49.81% | 40.67% | 50.7% | 37.7% | 49.81% |
Quick answers to the most common questions about buying ATI stock.
For fiscal year 2025, ATI Inc. (ATI) reported total revenue of $4.59B. This represents a 20.2% increase compared to $3.82B in 1996.
ATI Inc. (ATI) is profitable, generating $404.3M in net income for the fiscal year ending 2025 with a net profit margin of 8.8%.
ATI Inc. (ATI) reported an operating income of $634.7M, resulting in an operating profit margin of 13.8%. This margin reflects the operational efficiency of the business before interest and taxes.
ATI Inc. (ATI) generated $999.8M in gross profit for the year, representing a gross profit margin of 21.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Aerospace OEM production delays
Metrics are mathematically derived from official filings.
Accelerating Growth on Aerospace Mix
ATI's revenue growth accelerated to 10.6% in Q2 2026, up from 0.6% in Q1, driven by aerospace demand and surcharge pass-throughs, as reported in the latest quarterly filing.
The sequential acceleration from 0.6% to 10.6% year-over-year growth suggests a re-acceleration in end-market demand, likely tied to aerospace build rates and the strategic shift toward high-performance materials. However, revenue includes metal surcharges, so the underlying volume growth may be more modest. Investors should monitor surcharge-normalized growth to gauge true organic momentum.
Margin Expansion from Mix Shift
Gross margin expanded to 24.6% in Q2 2026, up from 19.2% in Q1 2024, reflecting the exit from standard stainless and a richer aerospace product mix, per company financials.
The 540 basis point improvement in gross margin over the past two years underscores the structural shift toward higher-value alloys and forgings. This is consistent with the strategic pivot away from commodity stainless steel, which has lifted the margin floor. However, the gap to peers like Howmet (30.7%) and Carpenter (30.6%) suggests room for further expansion if the AA&S segment continues to transition toward advanced applications.
Operating Leverage Kicking In
Operating income grew 37% year-over-year in Q2 2026 on 11% sales growth, with operating margin up 330 basis points to 17.4%, indicating strong operating leverage, as per the income statement.
The disproportionate growth in operating income relative to revenue highlights the high fixed-cost base and the benefits of capacity utilization. SG&A as a percentage of revenue declined to roughly 7% in Q2 2026 from 8.5% in Q1 2024, reflecting disciplined overhead control. This leverage is likely to persist if aerospace volumes remain robust, but it also implies that any demand downturn could compress margins rapidly.
Earnings Quality Solid but Watch SBC
Net income rose to $151M in Q2 2026, with EPS of $1.09, while stock-based compensation remained modest at $7.7M, suggesting limited dilution, based on reported figures.
The quality of earnings appears high, with operating income driving net income and no significant non-operating items. SBC is relatively low at less than 1% of revenue, which is favorable for EPS quality. However, the effective tax rate and any one-time transformation costs should be monitored, as they have historically caused volatility in net income.
Raw Material Costs and Surcharge Timing
COGS as a percentage of revenue fell to 75.4% in Q2 2026 from 80.8% in Q1 2024, reflecting favorable metal costs and mix, though surcharge timing can distort quarterly comparisons.
The decline in COGS ratio suggests improved cost absorption and a favorable product mix. However, ATI's use of LIFO accounting and surcharge mechanisms can create timing mismatches, where cost increases are recognized before surcharge recoveries. Investors should focus on normalized gross margin trends to assess underlying cost discipline.
Q2 2026 Marks a Turning Point
Q2 2026 stands out as an inflection quarter, with EPS of $1.09 beating estimates and operating margin reaching 17.4%, the highest in the series, per the latest earnings report.
This quarter appears to confirm that the strategic pivot toward aerospace and defense is translating into tangible financial outperformance. The 37% year-over-year increase in adjusted EBITDA on 11% sales growth suggests that the company is past the initial ramp-up phase and is now realizing the benefits of operating leverage. The raised forward guidance implies management's confidence in sustained momentum, though execution risks remain.
What Could Invalidate the Base Case
Despite strong Q2 2026 results, ATI's heavy aerospace concentration and high operating leverage could amplify margin compression if OEM production delays persist, as noted in recent disclosures.
The recent beat and raised guidance may mask risks from Boeing and Airbus production bottlenecks, which could lead to inventory build-ups and deferred revenue recognition. Additionally, the 1.02% debt-to-equity ratio appears unusually low for the industry, warranting verification against total liabilities including pensions. If aerospace demand softens, the high fixed-cost base could cause operating margins to contract faster than peers, as seen in the 2024Q4 dip to 17.8% from 13.5% in 2024Q3, highlighting volatility.