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DALLAS - On Thursday, Allegheny Technologies Inc. (NYSE:ATI) reported second-quarter earnings and revenue that fell short of analyst expectations, despite posting year-over-year growth.
The specialty materials producer’s shares tumbled nearly 5.98% in pre-market trading after the release.
The company reported second-quarter adjusted earnings of $0.74 per share, missing analysts’ expectations of $0.76, while revenue came in at $1.14 billion, below the consensus estimate of $1.16 billion. Despite the miss, revenue increased 4% YoY, driven by an 11% rise in aerospace and defense sales, which accounted for 67% of total quarterly revenue.
"Our second quarter performance demonstrates strong, sustained demand in ATI’s aerospace and defense end markets," said Kimberly A. Fields, President and CEO. "Consistent operational performance drove double-digit growth in net income, EPS and adjusted EBITDA on a year-over-year basis."
The company’s commercial jet engine sales were particularly strong, increasing 27% YoY, while commercial airframe sales decreased 18%, partly due to inventory destocking by customers. ATI’s adjusted EBITDA rose 14% YoY to $207.7 million, representing 18.2% of sales compared to 16.7% in the same period last year.
For the third quarter, ATI forecasts adjusted earnings of $0.69-$0.75 per share, below the consensus estimate of $0.76. However, the company raised the midpoint of its full-year adjusted earnings guidance to $2.90-$3.07 per share, with the midpoint of $2.99 slightly below analysts’ expectations of $3.02.
During the quarter, ATI repurchased $250 million of its common stock at an average price of $76.79 per share, bringing total 2025 share repurchases to $320 million. The company has $270 million remaining in its share repurchase authorization.
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