ATI extends and expands titanium supply agreement with Boeing

DALLAS - ATI Inc. (NYSE:ATI), a $13.3 billion market cap materials company with annual revenues of $4.5 billion, announced Thursday the extension and expansion of its long-term titanium products agreement with Boeing, strengthening its position as a supplier of high-performance titanium materials for aerospace applications. According to InvestingPro data, the company has shown strong momentum, trading near its 52-week high of $96.20.

The agreement covers Boeing’s commercial airplane programs, including both narrowbody and widebody aircraft, with growth opportunities. It also positions ATI to serve Boeing’s third-party subsidiaries.

Under the terms, ATI will supply a range of titanium materials including ingots, billets, rectangles, bars, plate, sheet, and coil. The agreement includes titanium alloy sheet from ATI’s new Pageland, South Carolina facility.

"We’re proud to expand our decades-long partnership with Boeing," said Kimberly Fields, ATI President and CEO, according to the company’s press release. "This agreement reaffirms ATI’s leadership in titanium at a time of accelerating aerospace production and growing demand for differentiated materials."

The expanded agreement draws on capabilities from both ATI’s Specialty Materials and Specialty Rolled Products businesses. The company noted that its materials and components are used on virtually every commercial aircraft platform currently in service.

ATI produces high-performance materials for global aerospace, defense, electronics, medical and specialty energy markets. The financial terms of the agreement were not disclosed in the announcement.

This article is based on a press release statement from ATI Inc.

In other recent news, ATI Inc. reported first-quarter earnings that surpassed analyst expectations, with adjusted earnings per share reaching $0.72, compared to the anticipated $0.60. The company’s revenue for the quarter was $1.14 billion, exceeding projections of $1.08 billion and marking a 10% increase year-over-year. Additionally, ATI provided an optimistic outlook for the full year. In a significant development, ATI has secured a multi-year agreement with Airbus to supply titanium plate, sheet, and billet, positioning ATI as a leading supplier for Airbus’s titanium requirements. This partnership more than doubles ATI’s previous support level to Airbus, as stated by ATI President and CEO Kimberly A. Fields. The company’s investments in titanium production capacity, including a new facility in Pageland, South Carolina, enable it to meet the rising demand from Airbus. Furthermore, ATI has launched a new production facility in Pageland dedicated to manufacturing titanium alloy sheets for aerospace applications. These recent developments highlight ATI’s strategic expansion and strengthening position in the aerospace materials market.

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