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DALLAS - ATI Inc. (NYSE: ATI), a producer of high-performance materials with a market capitalization of $6.4 billion and annual revenue of $4.4 billion, has successfully secured a new six-year labor agreement with the United Steelworkers (USW) union, affecting nearly 1,000 employees at its facilities in Western Pennsylvania and Lockport, New York. ATI President and CEO Kimberly A. Fields announced the ratification of the contract, which promises competitive wages and benefits through February 28, 2031. According to InvestingPro data, the company maintains strong financial health with a current ratio of 2.44, indicating robust liquidity to meet its obligations.
The agreement is seen as a step toward ensuring operational stability and consistent service delivery to ATI’s customers in the aerospace, defense, electronics, medical, and specialty energy sectors. Fields expressed satisfaction with the deal, emphasizing the importance of collaboration between the company and its workforce in achieving shared success and serving customer needs. InvestingPro analysis shows the company is currently trading near its Fair Value, with analysts maintaining a strong buy consensus and setting price targets up to $81 per share. Get access to 6 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
ATI is known for its role in addressing complex challenges through materials science, producing materials that are integral to high-performance applications. The company prides itself on its proprietary process technologies, customer partnerships, and commitment to innovation, which are designed to meet the demands of today’s industries and the evolving challenges of the future.
The labor contract with USW is based on a press release statement from ATI and reflects the company’s efforts to maintain a competitive edge in the market by fostering a stable and motivated workforce. The new agreement is expected to contribute to the company’s ongoing performance and its capacity to meet the high standards required by its customers across various industries.
In other recent news, Allegheny Technologies Incorporated (ATI) reported a strong fourth quarter, with adjusted earnings per share (EPS) of $0.79, exceeding the consensus estimate by $0.20. The company also saw a year-over-year revenue increase of 10% to $1.17 billion. Analysts from CFRA raised their 12-month price target for ATI to $75, maintaining a Buy rating, while Benchmark increased their target to $81, citing benefits from a tight nickel alloy market and record Maintenance, Repair, and Overhaul (MRO) backlogs. KeyBanc Capital Markets also upgraded ATI shares to Overweight, with a $55 price target, highlighting potential operational improvements and a conservative estimate for engine after-market growth.
ATI’s recent labor agreement negotiations with the United Steelworkers (USW) resulted in a successful ratification at its Albany, Oregon facility, while negotiations continue in Western Pennsylvania and Lockport, New York. The company has adjusted its fiscal year 2025 EBITDA guidance to $800 million to $840 million, reflecting a slight revision from previous estimates. Despite potential risks from tariffs, ATI’s aerospace and defense applications are expected to benefit from long-term market support. Analysts from Benchmark anticipate that ATI will continue to benefit from record MRO backlogs throughout 2025, with guidance potentially being exceeded.
Furthermore, ATI’s expansion in titanium melt capacity by 80% positions it well for the expected commercial aerospace OEM re-ramp. The company’s strong balance sheet and robust liquidity are seen as advantageous for capitalizing on the ongoing normalization of the aerospace and defense supply chain. As negotiations with the USW progress, stakeholders are closely monitoring developments for potential impacts on workforce stability and operational consistency.
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