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 ...

Financial Performance - Annual sales for fiscal year 2025 reached $4.6 billion, the highest total since 2012[2] - Q4 2025 sales amounted to $1.2 billion, with net income attributable to ATI of $97 million, or $0.69 per share[5] - Fiscal year 2025 adjusted net income attributable to ATI was $460.1 million, a 30% increase compared to fiscal year 2024[17] - Adjusted earnings per share for fiscal year 2025 increased by 32% to $3.24 compared to $2.46 in fiscal year 2024[17] - Net income for the fiscal year ended December 28, 2025, increased to $418.6 million, up from $382.7 million in the previous year, representing a growth of 9.8%[26] - Net income attributable to ATI for the fiscal year ended December 28, 2025, was $404.3 million, an increase from $367.8 million in the previous year, resulting in EPS of $2.85 compared to $2.55[33] - Total revenue for the fiscal year ended December 28, 2025, reached $4,587.4 million, a 5.2% increase from $4,362.1 million in the previous year[27] Segment Performance - Sales to the aerospace & defense market represented 68% of Q4 2025 sales, an increase from 65% in Q4 2024[5] - HPMC segment sales in Q4 2025 were $645.9 million, with segment EBITDA of $155 million, or 24.0% of sales[11] - AA&S segment sales in Q4 2025 were $531.2 million, with segment EBITDA of $98.5 million, or 18.5% of sales[12] - Aerospace & Defense segment revenue accounted for 68% of total revenue, with a total of $3,111.5 million, up from $2,720.9 million, reflecting a growth of 14.4%[27] Cash Flow and Investments - Fiscal year 2025 operating cash flow was $614 million, up from $407 million in fiscal year 2024, representing a year-over-year increase of over 50%[10] - Cash provided by operating activities rose to $614.3 million, compared to $407.2 million in the prior year, marking a significant increase of 50.8%[26] - Cash used in investing activities was $234.5 million, an increase from $159.6 million in the prior year, reflecting the company's ongoing investment in property, plant, and equipment[26] - The company paid $470.0 million for treasury stock during the fiscal year, compared to $260.0 million in the previous year, indicating a significant increase in share repurchase activity[26] Balance Sheet and Assets - Total current assets decreased to $2,680.0 million from $2,945.0 million year-over-year, primarily due to a reduction in cash and cash equivalents[25] - Total liabilities decreased slightly to $3,182.9 million from $3,275.4 million year-over-year, with long-term debt remaining stable at $1,718.3 million[25] - The total cash and cash equivalents at the end of the period decreased to $416.7 million from $721.2 million, a decline of 42.2%[26] - The company experienced a net loss on sales of businesses of $2.9 million for the fiscal year, a significant improvement from a net loss of $52.9 million in the previous year[26] Operational Highlights - Q4 2025 adjusted EBITDA was $232 million, or 19.7% of sales, compared to $209.8 million, or 11% increase year-over-year[7] - Gross profit for the same quarter was $273.4 million, compared to $255.3 million in the prior quarter, reflecting a gross margin improvement[22] - Managed working capital as a percentage of annualized sales decreased to 32.5% for the quarter ended December 28, 2025, from 36.4% in the previous quarter[42] - The company reported a basic net income per common share of $2.92 for the fiscal year ended December 28, 2025, compared to $2.82 in the previous year, indicating a growth of 3.5%[28] Future Outlook - The company anticipates continued growth in sales driven by demand in aerospace and defense markets, despite potential economic uncertainties[19] - ATI's commitment to innovation and strategic partnerships is expected to enhance its product offerings and market position in the coming years[20] - The company reported a significant increase in inventory levels to $1,403.2 million, up from $1,353.0 million, indicating a proactive approach to meet future demand[25] Adjustments and Charges - Total pre-tax adjustments for special items in fiscal year 2025 amounted to $70.3 million, compared to a negative adjustment of $16.7 million in fiscal year 2024[33] - The company reported a restructuring and other charges of $48.8 million for fiscal year 2025, significantly higher than $22.1 million in fiscal year 2024[34] - The company experienced a pension remeasurement loss of $18.6 million in fiscal year 2025, compared to a loss of $14.1 million in fiscal year 2024[35]

Core Insights - ATI Inc. reported strong financial results for Q4 2025, with sales of $1.18 billion and net income of $96.6 million, reflecting a 5% increase in sales compared to Q3 2025 and stable year-over-year performance [1][2] - The company achieved annual sales of $4.6 billion, the highest since 2012, with a 5% increase from the previous fiscal year [1][2] - Adjusted free cash flow for fiscal year 2025 was $380 million, up 53% from fiscal year 2024, indicating strong cash generation capabilities [1][2] Financial Performance - Q4 2025 adjusted EBITDA was $232 million, representing 19.7% of sales, while adjusted net income attributable to ATI was $130 million, or $0.93 per share [1][2] - For fiscal year 2025, net income attributable to ATI increased by 10% to $404.3 million, and earnings per share rose by 12% to $2.85 [2][5] - Adjusted net income for fiscal year 2025 was $460.1 million, a 30% increase compared to fiscal year 2024, with adjusted earnings per share rising by 32% to $3.24 [2][5] Segment Performance - High Performance Materials & Components (HPMC) segment sales for Q4 2025 were $645.9 million, with segment EBITDA of $155 million, or 24% of sales, reflecting strong demand in aerospace and defense markets [1][2] - Advanced Alloys & Solutions (AA&S) segment sales were $531.2 million, with segment EBITDA of $98.5 million, or 18.5% of sales, showing a sequential increase in margins due to favorable manufacturing costs [2][4] - Aerospace & defense sales represented 91% of total HPMC sales in Q4 2025, driven by strong demand for commercial jet engine and defense products [1][2] Cash Flow and Capital Management - Operating cash flow for fiscal year 2025 was $614 million, an increase of over 50% year-over-year, allowing the company to repurchase $470 million in shares and repay $150 million of outstanding debt [1][2] - The company’s strong balance sheet and cash flow generation provide flexibility to support growth and return capital to shareholders [1][2] Guidance - ATI provided guidance for Q1 2026, expecting adjusted EBITDA between $216 million and $226 million, and for fiscal year 2026, adjusted EBITDA is projected to be between $975 million and $1,025 million [1][2]

Group 1 - Steven Cress is the Head of Quantitative Strategies at Seeking Alpha, managing quant ratings and factor grades on stocks and ETFs [1] - Cress leads Alpha Picks, selecting two attractive stocks to buy each month and determining when to sell them [1] - The quantitative stock rating system created by Cress is designed to interpret data for investors, offering insights and saving time [2] Group 2 - Cress has over 30 years of experience in equity research, quantitative strategies, and portfolio management, positioning him well to discuss various investment topics [2] - He previously founded CressCap Investment Research, which was acquired by Seeking Alpha in 2018, enhancing its quant analysis and market data capabilities [2] - Cress also founded a quant hedge fund, Cress Capital Management, and has experience running a proprietary trading desk at Morgan Stanley [2]

Core Viewpoint - Altai Resources Inc. held its annual and special meeting of shareholders, where all matters were approved with rates exceeding 99% [1] Group 1: Election of Directors - Kursat Kacira, Jeffrey Ackert, and Eric Yao were elected as directors with approval rates of 99.5%, 99.5%, and 99.9% respectively [2] Group 2: Appointment of Auditors - CAN Partners LLP, Chartered Professional Accountants, were appointed as auditors with a shareholder approval rate of 99.9% [3] Group 3: Adoption of New General By-Law No. 1 - All existing by-laws were repealed, and a new by-law no. 1 was enacted with a shareholder approval rate of 99.9% [4] Group 4: About the Company - Altai Resources Inc. is a junior resource company based in Toronto, Ontario, with an investment portfolio consisting of cash and cash equivalents [5]

Company Overview - ATI Inc. is positioned as an attractive opportunity within the aerospace and defense sector, benefiting from increased defense spending by the Trump administration, particularly in the U.S. [1] Investment Strategy - The focus is on identifying GARP (Growth At a Reasonable Price) and turnaround stocks, emphasizing the importance of valuation as a foundation for stock selection [1] Market Context - The aerospace and defense segment is experiencing significant sector tailwinds due to government spending initiatives, which may enhance growth prospects for companies like ATI Inc. [1]

Core Insights - German sports car maker Porsche reported a 10% decrease in global vehicle deliveries for 2025, aligning with the trend observed among other German automakers such as Mercedes and BMW [1] Company Performance - Porsche's vehicle deliveries fell by 10% in 2025, indicating a significant decline in sales performance [1] - The decline in deliveries places Porsche in the same category as its German competitors, Mercedes and BMW, who also reported weaker figures [1]

Company Performance - ATI's stock increased by 1.74% to $125.39, outperforming the S&P 500's gain of 0.26% on the same day [1] - Year-to-date, ATI shares have risen by 14.23%, surpassing the Aerospace sector's increase of 10.62% and the S&P 500's rise of 1.57% [1] Earnings Expectations - ATI is set to release its earnings on February 3, 2026, with an expected EPS of $0.89, reflecting a 12.66% increase from the same quarter last year [2] - The Zacks Consensus Estimate projects net sales of $1.2 billion, which is a 2.13% increase compared to the previous year [2] Full Year Projections - For the full year, earnings are projected at $3.2 per share, indicating a 30.08% increase, while revenue is expected to remain stable at $4.61 billion [3] - Recent revisions to analyst forecasts for ATI may indicate shifting business dynamics, with positive revisions suggesting optimism about profitability [3] Valuation Metrics - ATI has a Forward P/E ratio of 31.1, which is lower than the industry average of 37.34, indicating a discount relative to its peers [6] - The company has a PEG ratio of 1.18, compared to the Aerospace - Defense Equipment industry's average PEG ratio of 2.29 [6] Industry Context - The Aerospace - Defense Equipment industry is ranked 47 in the Zacks Industry Rank, placing it in the top 20% of over 250 industries [7] - Strong industry rankings correlate with performance, as the top 50% of rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Overview - ATI Inc. is a U.S. specialty materials company that focuses on high-performance metals for aerospace, defense, energy, and industrial markets [2]. Analyst Background - The analysis is conducted by Dhierin-Perkash Bechai, an aerospace, defense, and airline analyst with a background in aerospace engineering [2]. - The analyst runs The Aerospace Forum, which aims to discover investment opportunities in the aerospace, defense, and airline industries [2]. Investment Insights - The investing ideas provided by the analyst are driven by data-informed analysis, offering context to developments in the aerospace and defense industries [2]. - The investing group also provides direct access to data analytics monitors, enhancing the investment research process [2].

Core Insights - The presentation outlines the top 10 stock picks for 2026, emphasizing strong performance in previous years and the potential for continued growth in the current market environment [10][99]. Market Overview - The financial markets experienced significant volatility in 2025, with technology stocks rising by 25% and communication services by 22%, while consumer staples finished in the red [13][12]. - The S&P 500 saw a decline of nearly 20% at one point, with the top stocks for 2025 down more than 20% before rebounding to finish up close to 45% [14][23]. - Gold reached historic highs during this period, driven by global economic uncertainties and increased central bank purchases [15]. AI and Technology Sector - The AI sector played a crucial role in market dynamics, with the "Mag 7" stocks trading at a forward P/E of 31x compared to the S&P 493 at 22x, indicating a significant premium for AI-driven companies [16][17]. - Hyperscalers like Amazon, Google, and Microsoft have increased their capital expenditures on AI infrastructure, raising concerns about the return on investment for these projects [18]. Stock Performance and Recommendations - Micron Technology (MU) is highlighted as a top pick with a market cap of $355 billion, showing a 254% increase over the past year and strong growth metrics [40][41]. - Advanced Micro Devices (AMD) has a market cap of $363 billion and a one-year return of 70%, with improved valuation metrics [52][53]. - Ciena Corporation (CIEN) has a market cap of $34 billion and a one-year return of 166%, with strong analyst revisions indicating positive sentiment [58][59]. - Celestica (CLS) and Coherent (COHR) are also noted for their strong growth and profitability metrics, with significant year-over-year returns [65][69]. Financial Sector Insights - Allstate Corporation (ALL) has a market cap of $53 billion and is focusing on AI underwriting, showing strong EPS growth of 99% year-over-year compared to the financial sector's 14% [72][76]. - Incyte Corporation (INCY) is recognized for its positive earnings and diverse pipeline in biotechnology, with a market cap of $19 billion [81][84]. Mining and Industrial Sector - Barrick Mining Corporation (B) has a market cap of $16 billion and is diversifying into copper, with a forward EPS growth rate of 46% [86][90]. - Willdan Group (WLDN) has a market cap of $1.57 billion and shows strong growth metrics, with a 61% EPS diluted growth rate [91][94]. - ATI has a market cap of $16 billion and is noted for its profitability improvements and strong analyst revisions [95][98].