Core Insights - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, which can lead to exceptional returns [1] Group 1: Company Overview - ATI is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank, indicating strong growth prospects [2] - The company has a historical EPS growth rate of 58%, with projected EPS growth of 27.1% for the current year, surpassing the industry average of 20.9% [4] Group 2: Financial Metrics - ATI's year-over-year cash flow growth stands at 24%, exceeding the industry average of 19.1%, which is crucial for its expansion without relying on external funding [5] - The historical annualized cash flow growth rate for ATI over the past 3-5 years is 9.9%, compared to the industry average of 9% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for ATI, with the Zacks Consensus Estimate for the current year increasing by 5.2% over the past month [7] - This upward revision trend contributes to ATI's Zacks Rank of 2 (Buy) and a Growth Score of A, positioning the company well for potential outperformance [9]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum [2][7] Value Score - The Value Style Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [3] Growth Score - The Growth Style Score focuses on a company's future prospects and financial health, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends, using factors like one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines the three Style Scores to identify companies with the best value, growth forecasts, and momentum, serving as a strong indicator alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.83% since 1988, significantly outperforming the S&P 500 [8][10] Stock to Watch: ATI Inc. - ATI Inc., a diversified specialty materials producer, holds a 2 (Buy) Zacks Rank and a VGM Score of A, with a Momentum Style Score of A and a 9.2% increase in shares over the past four weeks [12][13] - Four analysts have raised their earnings estimates for ATI for fiscal 2026, with the consensus estimate increasing by $0.21 to $4.12 per share and an average earnings surprise of +11.2% [13]

Core Insights - Fidelity Growth Strategies Fund's fourth-quarter 2025 investor letter highlights a diversified equity strategy focused on domestic midcap growth stocks, emphasizing quality companies with steady above-average growth potential [1] Fund Performance - The Fund (Retail Class shares) returned -3.44% in Q4 2025, outperforming the benchmark Russell Midcap® Growth Index, which returned -3.70% [1] - The U.S. stock market experienced a rapid rebound in Q4, driven by strong corporate fundamentals and significant spending on artificial intelligence [1] Company Highlights: ATI Inc. - ATI Inc. (NYSE:ATI) was noted as a leading contributor to the Fund's performance, with its stock gaining 7.51% over the past month and 100.76% over the last 52 weeks, closing at $127.50 per share on February 4, 2026, with a market capitalization of $17.574 billion [2] - ATI primarily operates in the aerospace and defense sectors, which account for about two-thirds of its business, and reported solid revenue growth and improved profitability in Q3, driven by high-margin aerospace product sales [3] - The company projected strong earnings growth for 2025 and Q1 2026 [3] Hedge Fund Interest - ATI Inc. was held by 58 hedge fund portfolios at the end of Q3 2025, an increase from 57 in the previous quarter [4] - The company's 2025 revenue increased by 5% year-over-year, reaching $4.6 billion [4]

Core Insights - ATI Inc. reported a profit of $96.6 million or 69 cents per share for Q4 2025, a decrease from $137.1 million or 94 cents in the same quarter last year. Adjusted earnings were 93 cents, an 18% increase from 79 cents year-over-year, surpassing the Zacks Consensus Estimate of 89 cents [1][8]. Financial Performance - The company's net sales for Q4 were $1,177.1 million, falling short of the Zacks Consensus Estimate of $1,197.7 million, and were essentially flat year-over-year [2]. - High-Performance Materials & Components (HPMC) segment reported sales of $645.9 million, up 2% year-over-year but below the consensus estimate of $656 million. HPMC's EBITDA increased by 22.23% year-over-year to $155 million [3]. - Advanced Alloys & Solutions (AA&S) segment recorded sales of $531.2 million, down approximately 1.4% from $538.5 million in the prior year, missing the consensus estimate of $543 million. The segment's EBITDA for the quarter was $98.5 million, up 12% year-over-year [4]. - Cash and cash equivalents totaled $416.7 million, a decrease of 42.2% year-over-year, while long-term debt rose to $1,718.3 million, up 0.2% from the previous year [5]. Future Outlook - For Q1 2026, adjusted EBITDA is expected to be between $216 million and $226 million, with full-year guidance set at $975 million to $1,025 million. Adjusted earnings per share are projected to be between 83-89 cents for Q1 and $3.99 to $4.27 for the full year. Adjusted free cash flow for the year is estimated to be between $430 million and $490 million [6]. Stock Performance - ATI's shares have increased by 101.5% over the past year, significantly outperforming the industry average increase of 36.8% [7].

Core Insights - ATI reported revenue of $1.18 billion for the quarter ended December 2025, reflecting a year-over-year increase of 0.4% [1] - The company's EPS was $0.93, up from $0.79 in the same quarter last year, indicating a positive trend in earnings [1] - Revenue fell short of the Zacks Consensus Estimate of $1.2 billion, resulting in a surprise of -1.72%, while EPS exceeded expectations by 5.04% [1] Financial Performance Metrics - Sales in High Performance Materials & Components reached $645.9 million, slightly below the average estimate of $656.16 million, marking a year-over-year increase of 1.8% [4] - Sales in Advanced Alloys & Solutions were reported at $531.2 million, which is lower than the estimated $542.62 million, representing a decline of 1.4% year-over-year [4] - EBITDA for Advanced Alloys & Solutions was $98.5 million, surpassing the average estimate of $89.6 million [4] - EBITDA for High Performance Materials & Components was reported at $155 million, exceeding the average estimate of $151.61 million [4] Stock Performance - ATI shares have returned +1.6% over the past month, compared to a +1.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Core Insights - ATI reported quarterly earnings of $0.93 per share, exceeding the Zacks Consensus Estimate of $0.89 per share, and showing an increase from $0.79 per share a year ago, resulting in an earnings surprise of +5.04% [1] - The company posted revenues of $1.18 billion for the quarter ended December 2025, which was 1.72% below the Zacks Consensus Estimate, and a slight increase from $1.17 billion year-over-year [2] - ATI has surpassed consensus EPS estimates in all four of the last quarters, but has only topped revenue estimates once in the same period [2] Earnings Outlook - The sustainability of ATI's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.84 on revenues of $1.18 billion, and for the current fiscal year, it is $3.96 on revenues of $4.99 billion [7] Industry Context - The Aerospace - Defense Equipment industry, to which ATI belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Data and Key Metrics Changes - Q4 revenue was $1.2 billion, with adjusted EBITDA of $232 million, exceeding guidance [5][13] - Full year 2025 revenue totaled $4.6 billion, up 5% year-over-year, driven by 14% growth in aerospace and defense [5][13] - Adjusted EBITDA for 2025 exceeded $859 million, up 18% year-over-year, with adjusted EPS at $3.24, a 32% increase from 2024 [5][14] - Adjusted free cash flow totaled $380 million, up 53% from 2024, representing 124% of free cash flow returned to shareholders [5][14] Business Line Data and Key Metrics Changes - Aerospace and defense revenue represented 68% of total revenue in 2025, up from 62% in 2024, with jet engine sales growing 21% year-over-year [8][13] - Specialty energy business delivered 9% year-over-year growth in Q4, supported by multi-year customer commitments [8][9] - Adjusted EBITDA margins improved to 19.7% in Q4, a 900 basis point increase since 2019, with full-year margins at 18.7% [15][10] Market Data and Key Metrics Changes - Strong demand in commercial aerospace and defense markets, with significant growth in next-generation engines and aftermarket demand [6][7] - Defense revenue grew 14% year-over-year, with missile sales up 127% due to increased government spending [8][9] - Projected double-digit growth in jet engines and continued strength in defense and airframe demand [8][22] Company Strategy and Development Direction - Company focuses on differentiated products and long-term agreements to secure pricing and expand market share [9][10] - Capital discipline and operational execution are central to the strategy, with targeted investments in proprietary engine alloys [10][11] - Plans to prioritize aerospace and defense while reducing capacity in industrial, medical, and electronics sectors [22] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in customer demand and operational execution, guiding for $1 billion of adjusted EBITDA in 2026, a 16% increase year-over-year [6][17] - Anticipated continued margin expansion, with full-year consolidated margins projected to be around 20% in 2026 [23] - Management highlights the importance of long-term contracts and differentiated capabilities in supporting future growth [25] Other Important Information - Company plans to invest $220-$240 million in capital expenditures for 2026, focusing on proprietary engine alloys and high-return opportunities [10][19] - The backlog remains just under one year of revenue, with expectations for it to increase as lead times for specialized materials extend [70] Q&A Session Summary Question: Capacity expansion with customer support - Management explains that customer agreements ensure access to differentiated materials while allowing flexibility to serve other customers [29][30] Question: Airframe growth visibility - Management indicates that airframe inventories are normalizing, with modest improvements in order rates expected in the second half of 2026 [32] Question: Breakdown of defense revenue - Management provides insights into defense revenue composition, highlighting growth in naval and missile segments [37][38] Question: 2027 guidance update - Management expresses confidence in the 2027 guidance, indicating a bias towards the top end of EBITDA margin expectations [42][44] Question: Share gains opportunities - Management notes opportunities for share gains in defense, jet engines, and specialty energy, driven by customer demand and operational reliability [46][47] Question: Pricing outlook for exotic alloys - Management discusses pricing assumptions for 2026, indicating that half of the EBITDA growth is expected from pricing and mix improvements [55] Question: Headcount plans for 2026 - Management states that headcount will remain stable, with some open positions to support new capacity, leveraging the current experienced workforce [89][90] Question: Isothermal forging growth - Management confirms that isothermal forging is in high demand, with lead times extending beyond 18 months, indicating continued growth potential [92][93]

Financial Data and Key Metrics Changes - Q4 revenue was $1.2 billion, with adjusted EBITDA of $232 million, exceeding guidance [5][13] - Full year 2025 revenue totaled $4.6 billion, up 5% year-over-year, driven by 14% growth in aerospace and defense [5][13] - Adjusted EBITDA for 2025 exceeded $859 million, up 18% year-over-year, with adjusted EPS at $3.24, a 32% increase from 2024 [5][14] - Adjusted free cash flow totaled $380 million, up 53% from 2024, representing 124% of free cash flow returned to shareholders [5][14] Business Line Data and Key Metrics Changes - Aerospace and defense revenue represented 68% of total revenue in 2025, up from 62% in 2024, with jet engine sales growing 21% year-over-year [8][13] - Specialty energy business delivered 9% year-over-year growth in Q4, supported by multi-year customer commitments [8][9] - Adjusted EBITDA margins for the full year 2025 were 18.7%, a 200 basis point increase from 2024, with HPMC margins at 23.6% and AA&S margins at 16.3% [15] Market Data and Key Metrics Changes - Strong demand in aerospace and defense markets, with commercial aerospace demand accelerating and next-generation engines gaining market share [6][8] - Defense revenue grew 14% year-over-year, with missile sales up 127% due to sustained demand for specific alloys [8][39] - The company anticipates continued growth in defense spending, with a projected mid-teen growth rate for 2026 [22][39] Company Strategy and Development Direction - The company is focused on proprietary products and long-term agreements to secure pricing and expand market share [9][10] - Capital discipline and operational execution are central to the strategy, with a targeted capital investment of $220 million-$240 million for 2026 [10][19] - The company aims to prioritize aerospace and defense while strategically reducing capacity in industrial, medical, and electronics sectors [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in customer demand and operational execution, guiding for $1 billion of adjusted EBITDA in 2026, a 16% increase year-over-year [6][17] - The company expects continued margin expansion, with full-year consolidated margins projected to be around 20% in 2026 [23] - Management highlighted the importance of differentiated capabilities and strong customer partnerships in driving future growth [25] Other Important Information - The company has no significant debt repayments planned for 2026 and has repurchased about $1 billion of shares since 2022 [20] - The backlog remains just under one year of revenue, with expectations for it to increase as lead times for materials extend [70] Q&A Session Summary Question: Capacity expansion with customer support - Management explained that customer agreements ensure access to differentiated materials, allowing flexibility in capacity allocation [29][30] Question: Airframe growth visibility - Management noted that airframe inventories are normalizing, with modest improvements in order rates expected in the second half of 2026 [32] Question: Breakdown of defense revenue - Management provided insights into defense revenue, indicating naval and missile segments are key growth drivers, with missile spending expected to increase significantly [38][39] Question: 2027 guidance update - Management expressed confidence in the 2027 guidance, indicating a bias towards the top end of the EBITDA margin percentage [44] Question: Share gains opportunities - Management highlighted opportunities for share gains in defense, jet engines, and specialty energy, driven by customer demand and operational capabilities [48] Question: Pricing outlook for exotic alloys - Management indicated that pricing assumptions for 2026 are based on current market conditions, with significant movements in specialty alloys considered [56] Question: Headcount plans for 2026 - Management stated that headcount will remain stable, with some open positions to support new capacity, leveraging the existing experienced workforce [90] Question: Isothermal forging growth - Management confirmed that isothermal forging is in high demand, with lead times extending and continued growth expected from all major engine OEMs [94]

Financial Data and Key Metrics Changes - Q4 2025 revenue was $1.2 billion, with adjusted EBITDA of $232 million, exceeding guidance [4][13] - Full year 2025 revenue totaled $4.6 billion, up 5% year-over-year, driven by 14% growth in aerospace and defense [4][13] - Adjusted EBITDA for 2025 exceeded $859 million, up 18% year-over-year, with adjusted EPS at $3.24, a 32% increase from 2024 [4][13] - Adjusted free cash flow totaled $380 million, up 53% from 2024, with $470 million returned to shareholders [4][14] Business Line Data and Key Metrics Changes - Aerospace and defense revenue represented 68% of total revenue in 2025, up from 62% in 2024, with engine sales growing 21% [8][13] - Specialty energy business delivered 9% year-over-year growth in Q4, supported by multi-year customer commitments [8][9] - Full-year adjusted EBITDA margins increased to 18.7%, up from 16.7% in 2024, with HPMC margins at 23.6% and AA&S margins at 16.3% [15] Market Data and Key Metrics Changes - Strong demand in aerospace and defense markets, with commercial aerospace demand accelerating [5][7] - Defense revenue grew 14% year-over-year, with missile sales up 127% due to increased government spending [8][9] - Projected double-digit growth in jet engines and continued strength in defense and airframe demand [8][22] Company Strategy and Development Direction - Company is focused on proprietary products and long-term agreements to expand market share and improve pricing [9][10] - Capital discipline and operational execution are central to the strategy, with a focus on unlocking capacity through productivity improvements [10][11] - Investments in differentiated nickel capabilities and modernization of melting systems are planned to support growth [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in customer demand and operational execution, guiding for $1 billion of adjusted EBITDA in 2026, a 16% increase year-over-year [5][18] - The company anticipates continued margin expansion, with full-year consolidated margins projected to be around 20% [23] - Management highlighted the importance of long-term contracts and differentiated materials in securing premium pricing and expanding market share [25] Other Important Information - The company plans to invest $220-$240 million in capital expenditures for 2026, focusing on proprietary engine alloys [10][19] - The backlog remains just under one year of revenue, with lead times for specialized materials extending [70] Q&A Session Summary Question: Expansion of capacity with customer support - Management explained that customer agreements ensure access to differentiated materials, allowing flexibility in capacity allocation [28][29] Question: Update on airframe growth and inventory situation - Management noted that airframe inventories are normalizing, with modest improvements in order rates expected in the second half of 2026 [31][62] Question: Breakdown of defense revenue growth drivers - Management provided insights into defense revenue, indicating naval and missile segments as key growth areas, with significant contracts in place [36][38] Question: 2027 guidance update - Management expressed confidence in the 2027 guidance, indicating a bias towards the top end of EBITDA margin expectations [42][44] Question: Pricing outlook for exotic alloys - Management indicated that pricing assumptions for 2026 are based on current market conditions, with significant movements in specialty alloys considered [55][56] Question: Staffing plans for 2026 - Management stated that headcount will remain stable, with some open positions to support new capacity, leveraging the current experienced workforce [90] Question: Growth in isothermal forgings - Management confirmed that isothermal forgings are in high demand, with lead times extending and continued growth expected [92][95]

Fourth Quarter and Full Year 2025 Earnings February 3, 2026 ATI Proprietary and Confidential ©2025 ATI. All rights reserved. Proven to perform anywhere. 1 Forward Looking Statements This presentation contains forward-looking statements. Forward-looking statements, which may contain such words as "anticipates," "believes," "estimates," "expects," "would," "should," "will," "will likely result," "forecast," "outlook," "projects," and similar expressions, are based on management's current expectations. Actual ...