ATI Q1 2025 Earnings Report

ATI EPS Results

• Actual EPS: $0.72
• Consensus EPS: $0.58
• Beat/Miss: Beat by +$0.14
• One Year Ago EPS: $0.48

ATI Revenue Results

• Actual Revenue: $1.14 billion
• Expected Revenue: $1.07 billion
• Beat/Miss: Beat by +$71.79 million
• YoY Revenue Growth: +9.70%

ATI Announcement Details

• Quarter: Q1 2025
• Date: 5/1/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, May 1, 2025
• Conference Call Time: 8:30AM ET

ATI (NYSE:ATI) produces and sells specialty materials and complex components worldwide. It operates in two segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). The HPMC segment produces various materials, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, metallic powder alloys, advanced powder alloys and other specialty materials, in long product forms, such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, as well as precision forgings, components, and machined parts. The AA&S segment produces zirconium and related alloys, including hafnium and niobium, nickel-based alloys, titanium and titanium-based alloys, and specialty alloys in a variety of forms, such as plate, sheet, and precision rolled strip products. It also provides hot-rolling conversion services, including carbon steel products. ATI Inc. serves to aerospace and defense, energy, automotive, construction and mining, food equipment and appliances, and medical markets. The company was formerly known as Allegheny Technologies Incorporated. ATI Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.

ATI Q1 2025 Earnings Call Transcript

Presentation

[Operator]

Hello, and welcome, everyone, to the ATI First Quarter twenty twenty five Earnings Call. My name is Becky, and I'll be your operator today. I will now hand over to your host, David Weston, Vice President of Investor Relations, to begin. Please go ahead.

[David Weston, Vice President - IR at ATI]

Thank you. Good morning and welcome to ATI's first quarter twenty twenty five earnings call. Today's discussion is being webcast online at atimaterials.com. Participating in today's call to share key points from our first quarter results are Kim Fields, President and CEO and Don Newman, Executive Vice President and CFO. Before starting our prepared remarks, I would like to draw your attention to the supplemental presentation that accompanies this call.

[David Weston, Vice President - IR at ATI]

Those slides provide additional color and details on our results and outlook and can also be found on our website at atimaterials.com. After our prepared remarks, we'll open the line for questions. As a reminder, all forward looking statements are subject to various assumptions and caveats. These are noted in the earnings release and in the accompanying presentation. Now I'll turn the call over to Kim.

[Kimberly Fields, President & CEO at ATI]

Thanks, Dave. Good morning, everyone, and thank you for joining us. Q1 was an excellent start to 2025 for ATI, continuing the strong momentum we built in the fourth quarter. Our focus is firmly on execution, and our results reflect that. Demand remains strong in our core aerospace and defense markets.

[Kimberly Fields, President & CEO at ATI]

Customers continue to turn to ATI for our differentiated products, recognizing us as a critical supplier in their value chain. Our ability to deliver high quality, consistently at scale has led to expansion of long term contracts and increased share positions across key platforms. Before we discuss our growth drivers, let's look at the Q1 results we announced this morning. Revenues grew 10 year over year, exceeding $1,100,000,000 for the quarter. Adjusted EBITDA reached $195,000,000 surpassing the top end of our guidance range by $15,000,000 Adjusted earnings per share came in at $0.72 again, beating the top of our guidance range of $0.55 to $0.61 And last week, we reported that 1,000 USW represented employees in our AA and S segment ratified a six year labor agreement.

[Kimberly Fields, President & CEO at ATI]

This is a good outcome for ATI and our team. It brings long term labor stability to a critical part of our operations and sets the foundation for continued success. Don will walk through the financials in greater detail shortly, but the takeaway is clear. ATI started the year strong. We're confident in our position, particularly given the sustained strength in A and D demand.

[Kimberly Fields, President & CEO at ATI]

At the same time, we're staying prudent amid the recent trade related uncertainty affecting the industrial markets. As such, we're maintaining our full year 2025 guidance for adjusted EBITDA and free cash flow as we monitor how the environment evolves. Our capital deployment reflects that confidence. We continue to prioritize returning value to the shareholders. In Q1, we repurchased shares worth $70,000,000 in line with our plan.

[Kimberly Fields, President & CEO at ATI]

Looking ahead, we intend to repurchase as much as $250,000,000 in the second quarter, effectively pulling forward our full year buyback program. We see clear value in our current share price and recognize the opportunity to capture it. Now turning to the evolving trade and tariff environment. We recognize this is top of mind for many. While the headlines continue to shift, we remain confident in our view that ATI is uniquely positioned to navigate the evolving tariff and trade landscape.

[Kimberly Fields, President & CEO at ATI]

Here's why. One, ATI is a US based producer with the majority of our production footprint located domestically, even as we serve global aerospace and defense programs. Two, we have a flexible, diversified global supply chain. While certain raw materials must be imported due to the lack of domestic availability, our sourcing strategy allows us to adapt our supply chain to maintain quality and manage costs effectively. And three, our customer contracts are built to handle volatility.

[Kimberly Fields, President & CEO at ATI]

Many include built in mechanisms like pass throughs and surcharges to help offset inflation, raw material swings, and tariff costs. I'm pleased to report that to date, these tools are working as intended, preserving income and limiting financial exposure. We're actively deploying all available levers, including duty drawback programs, defense related exemptions and ongoing operational efficiencies to mitigate remaining impacts. Let's talk about the tariffs announced in 2025 and currently in effect, including those paused. These represent approximately $50,000,000 in annual cost exposure prior to offsets.

[Kimberly Fields, President & CEO at ATI]

Thanks to these mitigation offsets, we anticipate minimal impact on our full year earnings, allowing us to reaffirm our current guidance. From a demand standpoint, tariffs are having little effect on the aerospace and defense markets. Both airframers have recently reaffirmed robust backlog, and ATI continues to see strong engine material orders with no cancellations or BAP pushouts. On the industrial side, which represents approximately 20% of our total business, some customers are taking a wait and see posture. That impact, if any, would be confined to our AA and S segment.

[Kimberly Fields, President & CEO at ATI]

To illustrate how ATI creates value, particularly in A and D, consider a recent example. In Q1, we renewed a profitable sole source contract for an advanced alloy codeveloped with a major engine OEM. This material is critical in MRO applications due to its unique performance characteristics. This agreement extends well into the next decade and reinforces ATI's role as a trusted partner in delivering high performance material for the most demanding applications. Commercial jet engine remains our most strategic end market, accounting for 37% of total Q1 revenue.

[Kimberly Fields, President & CEO at ATI]

Sales in this area grew 35% year over year. Our alloys for the rotating components in the hot section of the current and coming generation engines are essential. We're the sole source supplier for five of the seven alloys found in the hot section, secured under long term contracts that extend well into the 2030s and even 2040s. Our relationships span all three major commercial engine manufacturers. As engine production ramps up, ATI is growing with it.

[Kimberly Fields, President & CEO at ATI]

We're proud to earn contract extensions and increase share by consistently delivering innovation, quality and scale. Beyond engines, our airframe business is also growing, representing 18% of Q1 revenue. Our titanium capabilities are in high demand. We've just recently finalized a major new contract with a leading airframe OEM, establishing ATI as one of their top suppliers for flat products. In defense, our momentum continues to build.

[Kimberly Fields, President & CEO at ATI]

We are well positioned across a variety of funded platforms. We've recently qualified a new material for a long term classified program, and our R and D pipeline has strong backing from the U. S. Government and our allies. Our defense sales grew 11% year over year in the first quarter.

[Kimberly Fields, President & CEO at ATI]

The bottom line, our strategy is working. We're increasing yields, strengthening reliability, expanding capabilities and unlocking capacity through debottlenecking. The investments we have made in press, forging and downstream assets for testing and finishing are translating into higher output, improved reliability and enhanced customer value. With strong order rates and a robust backlog, the message from our customers is clear. They need our products and ATI is delivering.

[Kimberly Fields, President & CEO at ATI]

Since 2020, we've been executing our growth strategy to focus on high value A and D applications. This transformation is evident in our results. In Q1, A and D represented 66% of our total revenue. We are pleased to announce that effective today, ATI's Global Industry Classification Standard, or GICS code, has been reclassified to aerospace and defense. This reclassification validates our strategic evolution and provides greater visibility of ATI as a world class A and D supplier.

[Kimberly Fields, President & CEO at ATI]

All of this is made possible by our ATI team who continue to deliver high quality products safely, on schedule, and at scale. It's the result of strategic focus, operational discipline, and execution. Our customers are gaining momentum and with them, so too is ATI. With that, I will turn it over to Don.

[Don Newman, EVP, Finance and CFO at ATI]

Thanks, Kim. I'll provide additional insights into our first quarter performance and then look ahead to the Q2 and full year outlook. We finished the quarter well ahead of expectations from a revenue and profit standpoint. Revenue in the first quarter was approximately $1,140,000,000 an increase of 10% year over year. You may recall that we expected a modest sequential decline in sales and earnings this quarter, driven by some accelerations in seasonality as we completed Q4.

[Don Newman, EVP, Finance and CFO at ATI]

Our guidance also considered anticipated slow recovery for commercial aero customers, particularly airframe, and expected seasonal timing in defense. Even with all of that, our adjusted EBITDA at $195,000,000 was $20,000,000 higher than the midpoint of our Q1 guidance. That's 11% favorable. Strong operational performance in both segments and robust customer demand drove results. Our consolidated adjusted EBITDA margins were 17%, reflecting HPMC margins of 22.4% and AANS margins of nearly 15%.

[Don Newman, EVP, Finance and CFO at ATI]

In HPMC, margin increases were driven by the building strength in our A and D core, which is 92 of Q1 segment revenues. HPMC margins were up two forty basis points sequentially and 400 basis points year over year. Even more than we expected, positive pricing and demand powered the step up in margins. Solid, reliable production from our key melt and forging assets support enhanced sales and improved absorption. We expect greater gains in the coming quarters.

[Don Newman, EVP, Finance and CFO at ATI]

In AANS, we expected a sequential step back in first quarter margins due to the timing of above the line tax reserve releases and 45X manufacturing credits in Q4 twenty twenty four. As anticipated, margins were down 140 basis points sequentially. Year over year, AANS margins were up 90 basis points. Segment results this quarter exceeded our expectations. We realized timing benefits in specialty rolled products as our team worked with customers to mitigate risks and accelerate deliveries during our ongoing labor negotiations and the dynamic tariff environment.

[Don Newman, EVP, Finance and CFO at ATI]

The SRP business also generated substantial gains in conventional energy centered on a prioritized project delivery. Congratulations to our team for delivering under a tight schedule, supporting our customers when they needed us most. Turning to cash flow. Q1 free cash flow usage was 143,000,000 That was a lower cash burn than Q1 twenty twenty four and modestly favorable to our 2025 estimates. Better than expected performance was supported by improvements in cash used in operations and lower CapEx.

[Don Newman, EVP, Finance and CFO at ATI]

We expect to be cash flow positive for each remaining quarter of the year as we drive a tightened cycle for working capital and profitable growth. With that, let's turn to our 2025 outlook. As

[Don Newman, EVP, Finance and CFO at ATI]

we

[Don Newman, EVP, Finance and CFO at ATI]

look ahead, many of our core assumptions in our outlook remain consistent. We are encouraged by the progress we see in A and D. At the same time, we appreciate that some customers still anticipate inventory drawdowns next quarter, largely tied to airframe sales. That keeps our first half outlook balanced. This timing is compounded by near term uncertainty on the transactional side of the business as the world economy adjusts to the new norm of increased tariffs.

[Don Newman, EVP, Finance and CFO at ATI]

With those conditions in place, we expect Q2 to look like the first quarter with more ramp and recovery expected later this year. For the second quarter, we are setting our guidance range for adjusted EBITDA at 195,000,000 to two zero five million dollars That equates to an adjusted earnings per share range of $0.67 to $0.73 per share. For the full year, we strive to balance positive signals of A and D demand and growth with conservatism tied to non A and D markets such as industrials. We are affirming our full year adjusted EBITDA guide of $800,000,000 to $840,000,000 We are increasing our full year EPS guidance to a range of $2.87 to $3.09 per share. This higher view of 2025 EPS is thanks to the benefit of the accelerated share repurchases Kim highlighted as we plan to reduce total share count ahead of our previous schedule.

[Don Newman, EVP, Finance and CFO at ATI]

Let me add some color about how we are thinking about the top line, mix and adjusted EBITDA margin so that you can better model our outlook. As we shared, A and D continues to show strength, especially in jet engine and defense. Based upon customer demand signals and Q1 performance, we expect full year 2025 jet engine sales to grow between 1520% over 2024 levels. Defense, which grew 11% in Q1, also remains robust. We expect to maintain a growth rate in the upper single digit percentages for full year 2025.

[Don Newman, EVP, Finance and CFO at ATI]

Overall, we anticipate A and D sales will grow 12% to 14% in 2025 as momentum in jet engine and defense combines with modest airframe growth. G and A growth is expected to more than offset lower year over year sales in industrials and other areas impacted by lower U. S. Demand and China's slowed economy. Our EBITDA margins are expected to continue to improve during the year.

[Don Newman, EVP, Finance and CFO at ATI]

We anticipate full year consolidated 2025 adjusted EBITDA margins to be in the range of 18%. Consolidated Q2 margins should be similar or modestly better than our Q1 performance of 17%. Margins should expand in the second half of the year as A and D sales continue to grow. At the segment level, in the second half of the year, we anticipate HPMC margins to exceed 24% and AANS margins to be in the range of 15% to 16%. These margin expectations exclude potential impact of tariff pass throughs.

[Don Newman, EVP, Finance and CFO at ATI]

Stock prices for many A and D businesses have been impacted by recent volatility. Yet our conviction around the opportunity for ATI value creation has never been stronger. Compare the contractually covered profitable growth in our forecast with our stock's current valuation multiple, We are compelled to invest in ourselves, returning even more cash to shareholders this coming quarter than previously planned. At this stock price, how can we not? In the second quarter, we expect to buy back as much as $250,000,000 in shares, moving notably ahead of our previously planned timeline.

[Don Newman, EVP, Finance and CFO at ATI]

The strength of our balance sheet and our confidence in current liquidity and favorable cash generation fuel this acceleration. With this confidence, we are reaffirming our full year free cash flow range of $240,000,000 to $360,000,000 Our full year CapEx range remains at $260,000,000 to $280,000,000 with continuing opportunities emerging for customer funding of these investments. The CapEx range includes redeployment of cash generated from sale of non core assets of businesses in late twenty twenty four. To summarize, we remain on track for profitable growth. We'll adjust and be agile as the world around us changes.

[Don Newman, EVP, Finance and CFO at ATI]

The underlying strength of our A and D end markets, coupled with highly differentiated contractually secured products and high demand guide our course for the future. We are on or ahead of schedule to deliver every day for our customers and our shareholders. With that, I will turn the call back over to Kim.

[Kimberly Fields, President & CEO at ATI]

Thanks, Don. Q1 was a great start to 2025, and we have so much more to look forward to. In summary, strong Q1 results demonstrate consistent execution. Aerospace and defense demand is continuing to grow. We're navigating trade uncertainty strategically and effectively.

[Kimberly Fields, President & CEO at ATI]

And ATI is growing, well positioned to deliver increasing value in the quarters and years ahead. We're confident in our team's ability to execute. The strength of our people, our products and our customer relationships continues to drive our performance. Our long term strategy is not just delivering results, it's unlocking greater promise ahead. The world around us is not without risk, but we believe the opportunities ahead far outweigh them.

[Kimberly Fields, President & CEO at ATI]

We are proactive in anticipating and mitigating these risks, backed by the expertise and dedication of our 8,000 team members. That collective experience positions us to maximize the tremendous opportunities we've created together with our customers in this moment for aerospace and defense. And with that, let's open the line for your questions.

[Operator]

Thank you. Our first question comes from Andre Madrid from BTIG. Your line is now open. Please go ahead.

[Andre Madrid, VP - Aerospace and Defense Analyst at BTIG]

Thanks. Good morning, Kim and Don. Real quick

[Andre Madrid, VP - Aerospace and Defense Analyst at BTIG]

to start out, can you

[Andre Madrid, VP - Aerospace and Defense Analyst at BTIG]

provide more color on aftermarket or MRO contribution to A and D growth this quarter?

[Kimberly Fields, President & CEO at ATI]

Well, why don't we we'll do that in two parts. Let me just share a little bit of color, and then Don can share some of the financials and so forth behind it. We continue to see strong demand from MRO as we've shared in the past calls. MRO is running 40% to 50%, and it does seem that that's continuing the demand is continuing to rise there. We're seeing it both on the materials as well as the forging side.

[Kimberly Fields, President & CEO at ATI]

We've talked in the past about some of the work that we're doing with the GTF, and that's continuing to grow. You know, if I step back in 2024, we we doubled our revenue from, the work that we are doing with Pratt and supporting the GTF program. This year, we're anticipating doubling or slightly more than that in 2025. And I think as we look forward, there is an opportunity for us to continue to double that even again between now and the end of the decade. And so that strength that we're seeing in the GTF program, we're seeing across the board for all of the OEM manufacturers as they are continuing to see strong demand on the MRO side, and it is driving both our margins and our revenues up.

[Kimberly Fields, President & CEO at ATI]

Don, I don't know if you want to share any details.

[Don Newman, EVP, Finance and CFO at ATI]

What I would add, and one clarification, Andre, you I thought I heard you say MRO related to defense. Is it aero and defense or just defense, you're asking? No. Just overall. And then

[Don Newman, EVP, Finance and CFO at ATI]

if you wanna dig deeper into defense too, that's fine.

[Don Newman, EVP, Finance and CFO at ATI]

No. You're good. You're good. My hearing is now is very good. So I'll echo what Kim said.

[Don Newman, EVP, Finance and CFO at ATI]

When it comes to aerospace and defense and how MRO is impacting, with the jet engine sales, which are now a substantial part of our overall a and d, you're this is a category that we really don't have specific discernment in terms of the split between what's driving revenue growth due to the MRO versus what is new builds. But clearly, MRO continues to be an area of strength for us. So we think that a meaningful amount of the growth you're seeing period over period around jet engine sales, for example, is certainly tied to

[Andre Madrid, VP - Aerospace and Defense Analyst at BTIG]

Got it. Got it. That's super helpful.

[Andre Madrid, VP - Aerospace and Defense Analyst at BTIG]

I

[Andre Madrid, VP - Aerospace and Defense Analyst at BTIG]

guess beyond that, and this might be a little bit more of a high level question. And I mean, the timing, it might be hard to give a definitive answer. But we did see The U. S. And Ukraine signed the mineral deal yesterday.

[Andre Madrid, VP - Aerospace and Defense Analyst at BTIG]

Apparently, 6% of global production comes from titanium mines. Do you think this could have any impact, on ATI and sourcing of feedstock?

[Kimberly Fields, President & CEO at ATI]

Well, certainly, as you said, probably not in the near term. Historically, Ukraine was supplier and one of our partners in a joint venture that we had here. But I do believe that, that will be a positive as we go forward and we look at this aerospace ramp in demand and continue to diversify the titanium sponge supply into the melters here in The U. S. So I do think, again, getting that deal confirmed and finalized will, as they start to develop in Ukraine and they get the war behind them, you know, and they start to develop that and we start to get access to that.

[Kimberly Fields, President & CEO at ATI]

And as you said, there's a lot of color here, but you have to go through any levels of qualification First, to get into airframe and then to get into jet engine. But historically, they've been at that place. So I do think that there's opportunity for for this to maybe expand that supply chain from a titanium sponge standpoint.

[Andre Madrid, VP - Aerospace and Defense Analyst at BTIG]

Got it. Got it. That's super helpful. I'll leave it there. Thanks so much.

[Kimberly Fields, President & CEO at ATI]

Thanks.

[Operator]

Thank you. Our next question comes from Richard Safran from Seaport Research Partners. Your line is now open. Please go ahead.

[Richard Safran, Managing Director and Senior Analyst at Seaport Research Partners]

Thanks. Tim, Don, Dave, good morning. Wanted to know if you could talk a more about pricing. Good morning. I want to know if you could talk a bit more about pricing at HP.

[Richard Safran, Managing Director and Senior Analyst at Seaport Research Partners]

It's just that it appears to be improving in the face of higher volume and that's a bit counter to typical step down pricing. I'm curious as to how much of the pricing was impacting your 1Q results and just how we should think about pricing from here in the face of higher volume?

[Don Newman, EVP, Finance and CFO at ATI]

So I'll tell you what, I'll take that question. We are seeing price. And to give you some perspective on the HPMC side, the way to think about the Q1 price year over year, we saw prices increase both in titanium and nickel, generally in the 6% to 7% range. And we also saw some nice increase in terms of volumes for nickel in that segment. From a titanium standpoint, the volumes were down a bit.

[Don Newman, EVP, Finance and CFO at ATI]

But we're very, very pleased with the direction of price. Of course, a lot of our HPMC business is tied to LTA. And and with each of the renewals of a contract, we are very purposeful in going after appropriate price increases. And because they're long term agreements, when we capture those price increases, they stay with us for multiple years. So those trends are certainly looking in our favor.

[Richard Safran, Managing Director and Senior Analyst at Seaport Research Partners]

Okay. Thanks for that. One just follow-up on Kim, on your opening remarks about the $50,000,000 tariff impact, but mitigated by offsets. I thought you might elaborate a bit more, get more specific about those offsets. What's driving you to maintain your outlook?

[Richard Safran, Managing Director and Senior Analyst at Seaport Research Partners]

And I'm just kind of wondering if the macro situation were to deteriorate, I mean, do you have further offsets that you can use to mitigate that?

[Kimberly Fields, President & CEO at ATI]

Sure. Yes, it's certainly been dynamic time with tariff headlines changing almost daily, it seems. But as you mentioned, we do believe our overall cost impacts can be manageable with that where we might see from tariffs. One of them is, like you said, the cost management. I think, you know, we've got multiple levers there that we can pull.

[Kimberly Fields, President & CEO at ATI]

You mentioned one you know, one of the big ones, which we talked about here earlier, is we have a pretty diversified diversified nimble supply chain. We're able to move our supply to low cost sources depending on how the trade and tariff environment evolves and how those trade deals evolve. So we're continuing to monitor that and use those levers to make sure that we're tapping into the lowest cost supply. Secondarily, we're also looking at taking cost out, driving productivity to help offset this for our customers as well. And so those are things that, as you mentioned, you know, you've seen some of the uptick from the improvements in reliability and productivity that we've got already starting to to come through.

[Kimberly Fields, President & CEO at ATI]

Then there's levers like duty drawback and defense exemptions that we can utilize as well. And, you know, we are taking advantage of those, and we've used those in the past. So we anticipate doing that. I think the last one, and we talked a lot about this, our our contracts are really built to manage this type of volatility. They're set up with surcharges and mechanisms to pass through material fluctuations, to pass through inflation, and to pass through tariffs, which, frankly, we started implementing and incorporating this into our contracts back in like 2017, '20 '18 during the first administration when we started to see the use of these tariffs become more prevalent.

[Kimberly Fields, President & CEO at ATI]

And so that allows us, if there are any of these tariff costs that we aren't able to offset, to pass through to our customers to make sure that it doesn't impact our financial results. Now, I think the one area that we are looking at is on the demand side. I do think it's going to take a little bit more time for us to fully understand what the impact might be. Clearly, if there's a recession, the industrial markets will start to feel that. I'd say today, as I mentioned, we do see some behavior of people kind of taking a wait and see approach, a pause, trying to process and determine where the markets are going.

[Kimberly Fields, President & CEO at ATI]

Clearly, the outcome of these trade negotiations will have an impact into both domestic with distribution and others, but also international customers and how they think about their supply chains. And so we're continuing to monitor that. I'd say, though, our defense and aerospace is very, very strong and growing demand. Strong backlog, obviously, with airplane orders, newbuilds and strong MRO, which we just spent some time talking about, that continues to build. And the engine guys are continuing to try to get on pace with the demand that they're seeing.

[Kimberly Fields, President & CEO at ATI]

So I think across the board, this is you know, it's gonna be an evolving situation. I do feel comfortable that we're gonna be able to mitigate or pass through any of the costs, and then we'll react to the changing demand situation on those industrial markets.

[Richard Safran, Managing Director and Senior Analyst at Seaport Research Partners]

Thank you very much.

[Kimberly Fields, President & CEO at ATI]

Sure.

[Operator]

Thank you. Our next question comes from Scott Deuschler from Deutsche Bank. Your line is now open. Please go ahead.

[Scott Deuschle, Director - Aerospace & Defense Equity Research at Deutsche Bank]

Hey, good morning. Nice results.

[Kimberly Fields, President & CEO at ATI]

Thanks, Scott.

[Scott Deuschle, Director - Aerospace & Defense Equity Research at Deutsche Bank]

Don, just to be clear and follow-up on that last question, does the reiterated guide include significant contingency for softer sales and other industrial end markets for the second half of the year? Just wanted to double check on that and get a further sense for what specifically is being assumed there.

[Don Newman, EVP, Finance and CFO at ATI]

Yes.

[Don Newman, EVP, Finance and CFO at ATI]

I'm glad you asked the question. Just for clarity, when you look at our guide for 2025, we have built in risk that we see and the trend that we're seeing around those industrial ordering patterns. So yes, it should be included.

[Scott Deuschle, Director - Aerospace & Defense Equity Research at Deutsche Bank]

Great. Thank you. And then, Don, you spoke recently about spending a greater share of your growth CapEx on nickel alloys. I just wanted to get maybe a better sense as to what that looks like in terms of any specific product areas that growth CapEx might focus on? How much capacity that might add on a percentage basis?

[Scott Deuschle, Director - Aerospace & Defense Equity Research at Deutsche Bank]

And over what period of time that would come online? And then maybe more for Kim, just generally curious for how you're thinking about balancing the need for capacity discipline with the growing demand impulse that you're seeing from customers. Thank you.

[Don Newman, EVP, Finance and CFO at ATI]

So I'm going to take a run at that. I think that was a one question with 10 subparts to it. So there's a high probability, Scott, that I won't miss something. But, you know, long short. So let me just a from a history standpoint, let me touch on one thing.

[Don Newman, EVP, Finance and CFO at ATI]

With titanium, we saw titanium demand really ramping, In 2022, it was accelerated by the invasion of Ukraine, and we reacted. We reacted really accelerating a strategy we already had in place, restarted a plant very cost efficiently, built some additional capacity through brownfield. The outcome of all of that is the titanium business is performing well, even though right now there's a destocking. And if you look at what we've done with that titanium business between 2022 and 2024, we have doubled the titanium revenues. Back in 2022, they were about $400,000,000.20 24, they were about $800,000,000 You asked about nickel.

[Don Newman, EVP, Finance and CFO at ATI]

Why am I talking about titanium? Because the plays that we are running for nickel will look a lot like the plays we ran for titanium. For nickel, the demand for nickel, which is primarily I mean, it's many areas of our of our book, but, you know, think jet engine. Right? The jet hot section of the jet engine is where we have our greatest competitive advantages and where we are quite focused, whether it be in melt or it's an isothermal forgings or it can be in powder applications.

[Don Newman, EVP, Finance and CFO at ATI]

We are interested in defending our competitive advantage and market positions, which are very, very powerful, we're interested in defending those. Our expenditures are gonna reflect running those plays. So where are we where are we thinking about spending from a capital standpoint? First, as a reminder, we said we're gonna spend on average about $200,000,000 a year on CapEx. So the the nickel investments we're talking about to meet the current demand and our contract commitments are all encompassed in that guide.

[Don Newman, EVP, Finance and CFO at ATI]

And and so our prioritization within there is, first, you have to be able to melt. If you can't melt at purity and at scale, you you can't unlock the value. So we have great melt assets. We've invested in debottlenecking in that area. We're getting we're reaping the rewards of that.

[Don Newman, EVP, Finance and CFO at ATI]

We are investing in in new discrete pieces of equipment that will help with that debottlenecking. And we're going beyond just debottlenecking and saying, hey. We can add incremental VIM capacity, for example, and other elements in our in production that could be really well returning investments. So all of that is being driven by this underlying consistent demand around jet engine materials and components, which our customers, I would it's not an exaggeration, Scott. Every day, we are hearing from the major OEMs.

[Don Newman, EVP, Finance and CFO at ATI]

They're communicating to us. We're a critical part of the supply chain. They want us to be a critical partner and a consistent partner, and our discrete investments are all are all pointed toward helping to meet those needs but with discipline on our side. So I don't know if I hit one of your sub points or if I hit half of them. So what other what what else would you like me to answer in that regard?

[Scott Deuschle, Director - Aerospace & Defense Equity Research at Deutsche Bank]

No. I think I took up enough of the call. I appreciate that, Don. That was a good answer. I appreciate it.

[Don Newman, EVP, Finance and CFO at ATI]

I don't think you took up the call.

[Don Newman, EVP, Finance and CFO at ATI]

Was me taking up the call.

[Don Newman, EVP, Finance and CFO at ATI]

All right.

[Scott Deuschle, Director - Aerospace & Defense Equity Research at Deutsche Bank]

Fair point.

[Don Newman, EVP, Finance and CFO at ATI]

Thanks, Ken.

[Scott Deuschle, Director - Aerospace & Defense Equity Research at Deutsche Bank]

I'll pass it along,

[Scott Deuschle, Director - Aerospace & Defense Equity Research at Deutsche Bank]

though. Thank you.

[Operator]

Thank you. Our next question comes from Seth Seifman from JPMorgan. Your line is now open. Please go ahead.

[Seth Seifman, Executive Director at JP Morgan]

Thanks very much and good morning and good results. Maybe to follow-up quickly on the last question. When we think about the 15% to 20% growth in jet engine that you're looking for this year, there's some additional CapEx this year, but I assume that that's probably not yet contributing much, and that will be in front of us. First of all, is that sort of correct? And then when we think about that 15% to 20% increase on the jet engine side this year, How much of that comes from maybe additional capacity and capital spending that's been done in recent years?

[Seth Seifman, Executive Director at JP Morgan]

And how much comes from kind of the improved maybe some improved productivity versus last year?

[Kimberly Fields, President & CEO at ATI]

Yes. I'll take a crack at that and just add a little color to what, as you said, Don just talked a little bit about. So we have been spending on capacity. We've talked about some of our downstream debottlenecking, ultrasonic inspection, heat treat. We have a brand new heat treat facility that's come on with our forged products.

[Kimberly Fields, President & CEO at ATI]

And as you mentioned, additionally, the work we're doing about debottlenecking and reliability upstream in our mouth are all coming, and we're seeing good results and momentum from the work that we've been doing. We do have several projects in the pipeline that have been installed or getting installed and are coming up to speed. And really, what's driving this is the demand from that jet engine. And I'll direct everyone to kind of page five in our presentation materials. In that jet engine, we're producing most of the proprietary alloys at a sole source position well into twenty thirties and, in some cases, into 2045.

[Kimberly Fields, President & CEO at ATI]

And so as our engine customers are growing and their MRO needs are growing, they're really looking for us to keep pace with them so that we can continue to supply those critical alloys for that for those applications. I would say just around the discipline around capital, we are being very disciplined where we see if customers want to put in capital or accelerate capital investment. We're looking for their contribution and participation in that capital cost. And as we shared on past calls, we are seeing multiple customers that are willing to do that, again, to have that surety of supply and position. So that's really what we're thinking about, and that's what's driving that demand.

[Kimberly Fields, President & CEO at ATI]

And so it is a combination, as you said, of both process and productivity improvements, reliability as well as some of those prior investments in downstream testing and finishing.

[Seth Seifman, Executive Director at JP Morgan]

Great. Great. Thanks. And then maybe as a quick follow-up in when you think about A and S and on the titanium side, when you think about the progression on wide bodies through the year and the pull from the OEMs? How are you thinking about that with regard to July, a350 and 777x?

[Kimberly Fields, President & CEO at ATI]

Well, yeah. I mean, from the airframe side, obviously, like you said, with the wide body that has up to five times more titanium than the single aisles, and so that demand is starting to come. You know, we've gotten good news that Boeing is, you know, is ramping well, and we are seeing some we're starting to have conversations around what that demand will be as we're looking in the back half of this year and into next year. You remember, our melt is gonna be a very long lead time in advance of those rate step changes. I would like to share, you know, our new investment in titanium that we talked about, out in Oregon and our brownfield is online and is melting now, and we are in qualification.

[Kimberly Fields, President & CEO at ATI]

So we've got new capacity coming online to support that ramp as they start to pull more need for demand. And I'd say, lastly, I'm I'm very excited to announce that we just signed this week a new five year agreement with Airbus that approaches $1,000,000,000 in sales, over the next five years and puts really puts us in a position as a leading flat rolled supplier for them. So, lots of good things happening there, capacity coming on at the right time along to match the demand that's coming from both airframers, Airbus and Boeing.

[Seth Seifman, Executive Director at JP Morgan]

Great. That's super helpful. Thanks.

[Kimberly Fields, President & CEO at ATI]

Thanks.

[Operator]

Thank you. Our next question comes from Bill Gibbs from KeyBanc Capital. Your line is now open. Please go ahead.

[Phil Gibbs, Director, Metals Equity Research Analyst at KeyBanc Capital Markets]

Hey, thanks so much. Good morning.

[Don Newman, EVP, Finance and CFO at ATI]

Good morning, Phil.

[Phil Gibbs, Director, Metals Equity Research Analyst at KeyBanc Capital Markets]

The

[Phil Gibbs, Director, Metals Equity Research Analyst at KeyBanc Capital Markets]

isothermal forgings business, can you talk about how that business has developed and grown over the last several quarters and what you see moving ahead? And sub question to that, where are your headcount additions specifically related to that business now and looking forward? Meaning, are you still adding folks to grow that business because I know it wasn't imperative last year?

[Kimberly Fields, President & CEO at ATI]

Yes. So our forged products business has grown pretty substantially over the last few years. In fact, our lead times right now, we're booking out into 2027. So isothermal demand is very high. And as you said, we have been focused on adding headcount and shifts to, one, get to a twenty four seven schedule, but also we've put in, as I mentioned, some new capacity downstream, from a finishing standpoint, both testing and heat treating, that we're getting up and running.

[Kimberly Fields, President & CEO at ATI]

We have finalized. We've finished adding new crews, and so now we're working on training and development. I think I've talked in the past about some of our ultrasonic testers. That's a pretty extensive qualification period, up to six months. Many I think we're about two thirds of the way through that qualification, and so we've got about another third of new employees that are coming and that will be qualified as a level two, and then hopefully get a few to level three.

[Kimberly Fields, President & CEO at ATI]

So but we are from a a hiring standpoint, we've reached our our stable point or our level point. All of our crews are now staffed. We're training, and they're coming up to speed, and you're seeing that benefit. You know, I talked a little bit about some of the productivity. We are starting to see improvements at productivity outputs from both of my HPMC businesses, and they're doing a nice job at meeting this demand.

[Kimberly Fields, President & CEO at ATI]

But it's continuing to grow. And, you know, they are on a path to be over a billion dollars here in the next five years, and the demand is there. Well, let me let me correct that. They'll they'll be over a billion dollars this year, just to be very specific. And so that's up about 2025% in the last year.

[Kimberly Fields, President & CEO at ATI]

And with our lead times and our backlogs, we have more opportunity. So we're clearly having conversations with customers around how do we continue to expand our capacity.

[Phil Gibbs, Director, Metals Equity Research Analyst at KeyBanc Capital Markets]

Perfect. And then I have one question as it relates to titanium. So the new titanium upstream capacity that you talked about just a little bit ago, Are you harboring some of those P and L costs given some of the qualifications you're talking about in early stage production prior to adding stronger volumes, meaning is that a drag on the results right now? And then secondly, the Airbus contract, you talked about the five years for $1,000,000,000 was that specifically for titanium? Thank you.

[Don Newman, EVP, Finance and CFO at ATI]

So for the new facility, I would say, number one, it's certainly a use of cash. In terms of our adjusted earnings, it is not a drag on our earnings at this point. And then in your last question, could you repeat that, Phil?

[Phil Gibbs, Director, Metals Equity Research Analyst at KeyBanc Capital Markets]

Asked was the $1,000,000,000 that you mentioned yes, the $1,000,000,000 that you mentioned for the five year contract with Airbus, was that specifically for titanium?

[Don Newman, EVP, Finance and CFO at ATI]

Yes,

[Don Newman, EVP, Finance and CFO at ATI]

it is. It would largely be titanium.

[Phil Gibbs, Director, Metals Equity Research Analyst at KeyBanc Capital Markets]

Thank you.

[Don Newman, EVP, Finance and CFO at ATI]

Thank you.

[Operator]

Thank you. Our next question comes from David Strauss from Barclays. Your line is now open. Please go ahead.

[Joshua Korn, Assistant VP, Equity Research at Barclays Capital]

Hi, good morning. This is Josh Korn on for David. Wanted to add, you mentioned potential for AA and S, some of the industrial markets to see declines in the rest of the year. In that scenario, how do

[Joshua Korn, Assistant VP, Equity Research at Barclays Capital]

you expect margins to hold up?

[Don Newman, EVP, Finance and CFO at ATI]

So

[Don Newman, EVP, Finance and CFO at ATI]

let me take a shot at that. I think I included in my prepared remarks some color around what we expect for margins. The bottom line with AANS is we're in the mid teens right now, even with the headwinds that we can foresee with industrials and potential pullback on sales demand there, we would still expect that business to be generating EBITDA margins in those mid teens. So 15% to 16%, I think, is what I shared for the second half of the year. That segment includes the industrial, but there's other good businesses in there.

[Don Newman, EVP, Finance and CFO at ATI]

We've got what we call Aero like specialty energy and our electronics business as well as medical. They generate very, very nice margins, And we would expect that that would continue throughout this year, which will help to buoy the AANS margins for the balance.

[Joshua Korn, Assistant VP, Equity Research at Barclays Capital]

Great. And then just wanted to ask about any financial impact on the new labor contract?

[Kimberly Fields, President & CEO at ATI]

Yes. I can let Don take that. I would say just generally that it was in line with what we expected, and it's built into our guidance. And we're very pleased that we came to fair contract for the employees and for the business so that we can continue to support these aerospace customers that have come to rely on us in this new contract so that we can support their ramp. But Don, if you have any specifics?

[Don Newman, EVP, Finance and CFO at ATI]

I can't add a single word. You hit it all. Thanks.

[Joshua Korn, Assistant VP, Equity Research at Barclays Capital]

Okay, great. Thanks for taking the questions.

[Kimberly Fields, President & CEO at ATI]

Thank you.

[Operator]

Thank you. Our next question comes from Gautam Khanna from TD Cowen. Your line is now open. Please go ahead.

[Gautam Khanna, Analyst at Cowen]

Yes, thanks. Good morning, guys.

[Don Newman, EVP, Finance and CFO at ATI]

Good morning.

[Kimberly Fields, President & CEO at ATI]

Good morning.

[Gautam Khanna, Analyst at Cowen]

I had

[Gautam Khanna, Analyst at Cowen]

two questions. I was curious on the Airbus contract, which is very promising. Any sense can you size how much of a increase the contract represents relative to what you have been doing kind of over the last five years? Is it 30% more, 50% more? Do you

[Gautam Khanna, Analyst at Cowen]

have a sense that you can give us?

[Kimberly Fields, President & CEO at ATI]

Yeah. I mean, I can give you a sense of that. Don can share more color if he'd like. You know, I just wanna if I step back, you know, and we go back to 2020, we had no share at that time with Airbus. I think we had just announced, winning the convent and winning a position in that contract.

[Kimberly Fields, President & CEO at ATI]

And through the last five years, we really accelerated our support of them, especially with the conflict in Ukraine. And I'd say as we look at this contract, it will double our participation next year with Airbus.

[Gautam Khanna, Analyst at Cowen]

That's great. Thank you. And enjoyed that slide you mentioned you showed where the you have a number of sole source alloys in the nickel side. I'm curious, what is the duration of the contracts there? Do you and is there any risk that in the next five years, you'll see a second source come in on any of those alloys?

[Gautam Khanna, Analyst at Cowen]

And are any of them much more meaningful, that we should be paying closer attention to in terms of contribution to the business today?

[Kimberly Fields, President & CEO at ATI]

Yeah. No. I I appreciate you asking. There's been a lot of conversation about some of these alloys. So I would say, you know, the duration I won't share any specifics about a specific customer or contract, but all of these alloys are contracted into the middle of the next of next decade, and many of them go into the middle of twenty forty.

[Kimberly Fields, President & CEO at ATI]

Primarily because being a sole source provider of these critical alloys, these customers wanna make sure they have the surety of the supply, and they make sure they're aligning to us because this is critical. They don't have other alternatives. You know, as I look at these alloys here, you know, the ones that, you know, we think about around the Rolls Royce or I'm sorry. The r 1,000, is an integrated supply chain. We do both the forgings and the the powder supply for that, and so that is one that we are continuing to optimize the work that we're doing there, and it it hits both the the specialty materials as well as well as the forged products business.

[Kimberly Fields, President & CEO at ATI]

And so that's one that we spend a lot of time with them. We help co develop their new next generation alloy, and we're continuing to work together for you know, to expand that participation. And I just wanna mention, you know, these alloys, as I mentioned, they are critical to our customers. There is no substitution for these alloys. There isn't another alloy or another supplier that they can go to.

[Kimberly Fields, President & CEO at ATI]

So, again, making sure that they have the capacity, the quality, the consistency to continue to support. And as you know, since they go into the hot section of the jet engine predominantly in the discs, that is a very, very high frequency MRO part, and that's where you're seeing that increase of 35% on jet engine growth.

[Gautam Khanna, Analyst at Cowen]

May I just follow-up? Is it one of those things where there's not a second supplier because there's exclusivity with ATI through the next decade? Or is it there's still the potential for a second supplier, they just haven't qualified yet?

[Kimberly Fields, President & CEO at ATI]

No. With these contracts, they are 100 share or most of them are 100% share. But I think more importantly to remember is the barriers to entry are pretty high. These are difficult alloys to produce. They take a lot of focus and discipline around controlling both the melt and the forging process, heating times, forming times.

[Kimberly Fields, President & CEO at ATI]

They are, again, they're very, very difficult, primarily because of the the composition that they put in there to be able to withstand the the temperatures as well as the stresses on them in that hot section of the engine. So our contracts have, you know, long sole source, % share positions, and they've taken years to develop and perfect the process.

[Gautam Khanna, Analyst at Cowen]

Excellent. Thank you. Great job, guys.

[Kimberly Fields, President & CEO at ATI]

Thank you.

[Operator]

Thank you. Our next question comes from Timna Tanners from Wolfe Research. Your line is now open. Please go ahead.

[Timna Tanners, Managing Director - Equity Research at Wolfe Research, LLC]

Yes. Hey, thanks and good morning. I wanted to probe a little bit more on the industrial side, not taking away from all the strength obviously in A and D. But given that, that is one area that you called out, how easy or desirable would it be to try to pivot some of that business to some of the stronger areas?

[Don Newman, EVP, Finance and CFO at ATI]

Well, so the strategy of continuing to tax to attack our product mix is something we work on a regular basis. It's one of the reasons why we've been able to really accelerate our focus on aerospace and defense. So as far as as far as the industrial, we're gonna continue to look for opportunities to maximize where the demand is as it aligns to our our capabilities and especially our core capabilities. And so if there's if there's room there for us to create value and it makes sense to the core, of course, we would do that.

[Kimberly Fields, President & CEO at ATI]

And I would just add that was a big portion of the transformation. Timna, I was just gonna add, that was really where our focus on the transformation was, was to move into those higher margin aerospace and defense alloys. And it's been very successful. You've seen the A and S margins come up over the last three or four years. And, you know, with this announcement, you know, we are now producing almost we're we're reaching parity for both of the large airframers.

[Kimberly Fields, President & CEO at ATI]

So I think it's been very successful. We'll continue to drive in that direction and go after more opportunities to leverage the strength of that business.

[Timna Tanners, Managing Director - Equity Research at Wolfe Research, LLC]

Now, of course, I know you but you've also mentioned that because of the strength in A and D, you were able to have some leverage with some of the stronger components outside of A and D. So was just wondering if that was still the case and wondering if there was opportunity to do further pivoting or if it would require further investment.

[Don Newman, EVP, Finance and CFO at ATI]

I would say, we wouldn't expect something like that to take any significant investment. But, you know, most certainly, we're looking at opportunities that, will fully will more fully utilize our assets. And if there's an opportunity to expand business with customers and leverage our other capabilities, we're keen to do that. One other thing to remember now in the you know, clearly, right now, we're seeing where the industrial demand is kinda pausing as, the distributors, for example, try to evaluate where where all this stuff is gonna settle in the macro. Just like that pauses quickly, it can spring back very quickly.

[Don Newman, EVP, Finance and CFO at ATI]

Now we haven't baked into our guidance, Timna, the assumption that industrial will come back screaming in the third quarter. We've kind of assumed flatness in terms of that demand, but that truly can happen. And so we're looking to maximize the cash generation and bottom line in across all of this.

[Timna Tanners, Managing Director - Equity Research at Wolfe Research, LLC]

But keeping some spare capacity for that potential, you know, recovery is is part of your strategy, sounds like.

[Don Newman, EVP, Finance and CFO at ATI]

Yeah. Yeah. I would say I I would say. And, you know, whatever capacity we have, we certainly wanna maximize it. We're also continuing to develop new products that open up new opportunities for us.

[Don Newman, EVP, Finance and CFO at ATI]

You know, one example would be, we built a a titanium alloy sheet facility in South Carolina in 2024. That facility is in service. That's something we're bringing to the market that, you know, again, is a product offering that opens up, not just capabilities to sell that product, but can open up opportunities to sell other products, including some that you might classify as industrial, for example.

[Timna Tanners, Managing Director - Equity Research at Wolfe Research, LLC]

Okay. I'll leave it there. Thank you.

[Operator]

Thank you. Our next question comes from Josh Sullivan from The Benchmark Company. Your line is now open. Please go ahead.

[Josh Sullivan, Managing Director & Equity Research Analyst at The Benchmark Company LLC]

Hey, good morning.

[Kimberly Fields, President & CEO at ATI]

Good morning.

[Josh Sullivan, Managing Director & Equity Research Analyst at The Benchmark Company LLC]

What is the buck stop with pass throughs as they relate to tariffs, most of the supply chain outlining passing through tariff costs. And then this morning, another large historically very vocal European airline talking about canceling orders of tariffs materially affect the price of aircraft. How does this evolve? Does this mean there's just greater leaning on MRO? Is this figured out?

[Josh Sullivan, Managing Director & Equity Research Analyst at The Benchmark Company LLC]

Or are there just only so many options for Lyft and that demand will move elsewhere? Maybe it's just too early to know, but curious on your thoughts.

[Kimberly Fields, President & CEO at ATI]

Yes. I think it is early. It's going to evolve. And I've seen certain airlines either choose delivery or I think I even heard yesterday an airline taking delivery in an Asian country to avoid tariffs here in The US and and having them just do long haul flights. So, yeah, it is very early.

[Kimberly Fields, President & CEO at ATI]

We'll have to see, you know, how this develops. But, ultimately, you know, demand for air travel, we've seen the ages of the aircraft that are in the industry. That's, you know, not gonna that's not gonna reverse without new airplanes, and there's two air framers in the world that are developing and and building planes. And so I do think that possibly in the short term, in the near term, you could see people slow down on taking delivery of planes. I haven't heard and I'll let, you know, Airbus and Boeing talk about their business specifically, but I haven't heard anything that says that they're seeing any cancellations or huge pushouts or anything that would say in the near term that there's concern.

[Kimberly Fields, President & CEO at ATI]

Now long term, I do think it will depend on how the trade deals continue to evolve and develop. And if that treaty back from 1979 gets put back in place, which the aerospace industry being is very global, I think many would say successful because of that treaty that that would help resume deliveries. But right now, as I mentioned in my prepared remarks, we've seen no push outs. We've seen no cancellations. Everybody is continuing, frankly, to try to catch up with the demand.

[Kimberly Fields, President & CEO at ATI]

And as they start to ramp the wide body, that's going to put even more demand into the system.

[Josh Sullivan, Managing Director & Equity Research Analyst at The Benchmark Company LLC]

Got it. And then maybe just on that wide body comment, as we look at the airframe inventory drawdowns currently and then just as you look at that skyline expectation, what inning do you think were in the destock right now?

[Kimberly Fields, President & CEO at ATI]

I think early. I do think that they've had some good early success with their ramp and that's good news for the whole industry. As I look at it, we've seen some small emergent demand in orders, but I think that's more offsetting where they might not have demand. But overall, they're working that inventory level down and and rightsizing it. So as I look at opportunities, the faster they ramp, what I would say is that pulls and puts opportunity for 2026.

[Kimberly Fields, President & CEO at ATI]

And that's where we would start to see those orders coming in and that demand start to ramp much quicker than maybe that our outlook has today.

[Josh Sullivan, Managing Director & Equity Research Analyst at The Benchmark Company LLC]

Great. Thank you for the time.

[Kimberly Fields, President & CEO at ATI]

Sure.

[Operator]

Thank you. We currently have no further questions, so I'll hand back to David for closing remarks.

[David Weston, Vice President - IR at ATI]

Thank you. We just want to thank everyone for their time today. We're very pleased with our first quarter results. Please reach out to Clay and myself and the Investor Relations team if you have any further questions. Have a great day.

[Operator]

This concludes today's call. Thank you for joining. You may now disconnect your line.

Participants

Executives

• David Weston, Vice President - IR
• Kimberly Fields, President & CEO
• Don Newman, EVP, Finance and CFO

Analysts

• Andre Madrid, VP - Aerospace and Defense Analyst at BTIG
• Richard Safran, Managing Director and Senior Analyst at Seaport Research Partners
• Scott Deuschle, Director - Aerospace & Defense Equity Research at Deutsche Bank
• Seth Seifman, Executive Director at JP Morgan
• Phil Gibbs, Director, Metals Equity Research Analyst at KeyBanc Capital Markets
• Joshua Korn, Assistant VP, Equity Research at Barclays Capital
• Gautam Khanna, Analyst at Cowen
• Timna Tanners, Managing Director - Equity Research at Wolfe Research, LLC
• Josh Sullivan, Managing Director & Equity Research Analyst at The Benchmark Company LLC