Financial Analysis

Commitments and Contingencies The Company is subject to various domestic and international environmental laws and regulations that govern the discharge of pollutants and disposal of wastes, and which may require that it investigate and remediate the effects of the release or disposal of materials at sites associated with past and present operations. The Company could incur substantial cleanup costs, fines, and civil or criminal sanctions, third party property damage or personal injury claims as a result of violations or liabilities under these laws or noncompliance with environmental permits required at its facilities. The Company is currently involved in the investigation and remediation of a number of its current and former sites, as well as third party sites. Environmental liabilities are recorded when the Companys liability is probable and the costs are reasonably estimable. In many cases, however, the Company is not able to determine whether it is liable or, if liability is probable, to reasonably estimate the loss or range of loss. Estimates of the Companys liability remain subject to additional uncertainties, including the nature and extent of site contamination, available remediation alternatives, the extent of corrective actions that may be required, and the number, participation, and financial condition of other potentially responsible parties (PRPs). The Company adjusts its accruals to reflect new information as appropriate. Future adjustments could have a material …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt Debt at March 29, 2026 and December 28, 2025 was as follows (in millions): March 29, 2026 December 28, 2025 ATI Inc. 7.25% Notes due 2030 $ 425.0 $ 425.0 ATI Inc. 5.875% Notes due 2027 350.0 350.0 ATI Inc. 5.125% Notes due 2031 350.0 350.0 ATI Inc. 4.875% Notes due 2029 325.0 325.0 ABL Term Loan 200.0 200.0 U.S. revolving credit facility 75.0 Foreign credit facilities 1.0 Finance leases and other 112.8 111.0 Debt issuance costs (10.9) (11.6) Debt 1,827.9 1,749.4 Short-term debt and current portion of long-term debt 33.2 31.1 Long-term debt $ 1,794.7 $ 1,718.3 Revolving Credit Facility The Company's amended Asset Based Lending (ABL) Credit Facility, is collateralized by the accounts receivable and inventory of the Companys operations and includes a $600 million revolving credit facility, a letter of credit sub-facility of up to $200 million, a $200 million term loan (Term Loan), and a swing loan facility of up to $60 million. Additionally, the Company has the ability, through June 13, 2026 and as long as no default or event of default has occurred and is continuing, to borrow an additional term loan of up to $100 million in total, using one or two draws (the Delayed-Draw Term Loan). The Term Loan and Delayed-Draw Term Loan each bear interest at rate of 2.0% above the adjusted Secured Overnight Financing Rate (SOFR) and can be prepaid in increments of $25 million if certain minimum liquidity conditions are satisfied. In addition, the Company has the right to request an inc …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Comparative information regarding the Companys overall revenues by global and geographical markets for the quarterly periods ended March 29, 2026 and March 30, 2025 is included in the following tables. (in millions) Quarter ended March 29, 2026 March 30, 2025 HPMC AA&S Total HPMC AA&S Total Diversified Global Markets: Aerospace & Defense: Jet Engines- Commercial $ 431.0 $ 41.0 $ 472.0 $ 397.3 $ 24.1 $ 421.4 Airframes- Commercial 78.7 107.9 186.6 81.8 124.0 205.8 Defense 59.0 80.0 139.0 58.4 68.8 127.2 Total Aerospace & Defense 568.7 228.9 797.6 537.5 216.9 754.4 Other Markets: Specialty Energy 15.6 46.0 61.6 12.4 38.1 50.5 Electronics 28.3 28.3 39.6 39.6 Medical 9.7 17.8 27.5 15.8 26.6 42.4 Automotive 0.7 60.8 61.5 1.4 59.2 60.6 Conventional Energy 1.9 82.3 84.2 1.7 120.1 121.8 Construction/Mining 11.7 27.3 39.0 7.1 25.8 32.9 Other 6.0 45.8 51.8 8.2 34.0 42.2 Total Other Markets 45.6 308.3 353.9 46.6 343.4 390.0 Total $ 614.3 $ 537.2 $ 1,151.5 $ 584.1 $ 560.3 $ 1,144.4 (in millions) Quarter ended March 29, 2026 March 30, 2025 HPMC AA&S Total HPMC AA&S Total Primary Geographical Market: United States $ 335.6 $ 356.9 $ 692.5 $ 316.4 $ 327.4 $ 643.8 Europe 201.6 47.1 248.7 191.3 69.4 260.7 Asia 36.9 67.0 103.9 33.3 81.0 114.3 Canada 19.8 22.4 42.2 20.1 19.7 39.8 South America, Middle East and other 20.4 43.8 64.2 23.0 62.8 85.8 Total $ 614.3 $ 537.2 $ 1,151.5 $ 584.1 $ 560.3 $ 1,144.4 Comparative information regarding the Companys major products based on …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Fair Value of Financial Instruments The estimated fair value of financial instruments at March 29, 2026 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Carrying Amount Total Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Cash and cash equivalents $ 401.7 $ 401.7 $ 401.7 $ Derivative financial instruments: Assets 2.1 2.1 2.1 Liabilities 2.5 2.5 2.5 Debt (a) 1,838.8 1,839.6 1,450.8 388.8 The estimated fair value of financial instruments at December 28, 2025 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Carrying Amount Total Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Cash and cash equivalents $ 416.7 $ 416.7 $ 416.7 $ Derivative financial instruments: Assets 1.8 1.8 1.8 Liabilities 1.8 1.8 1.8 Debt (a) 1,761.0 1,787.9 1,476.9 311.0 (a) The total carrying amount for debt for both periods excludes debt issuance costs related to the recognized debt liability which is presented in the consolidated balance sheet as a direct reduction from the carrying amount of the debt liability. In accordance with accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between marke …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes For the quarter ended March 29, 2026, the Companys effective tax rate was 11.8%, resulting in an income tax provision of $16.1 million. For the quarter ended March 30, 2025, the Companys effective tax rate was 17.3%, resulting in an income tax provision of $21.0 million. The effective tax rate for the quarter ended March 29, 2026 included discrete tax benefits of $11.9 million, primarily related to share-based compensation. Excluding discrete tax impacts, the Companys effective tax rate for the quarter ended March 29, 2026 was 20.5%. The effective tax rate for the quarter ended March 30, 2025 included discrete tax benefits of $5.1 million. Excluding discrete tax impacts, the Companys effective tax rate for the quarter ended March 30, 2025 was 21.5%. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Pending Accounting Pronouncements In November 2024, the FASB issued new accounting guidance related to expense disaggregation disclosures. This guidance requires entities to disclose specified information about certain costs and expenses including (1) the amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization, (2) include certain amounts that are already required to be disclosed under current generally accepted accounting principles in the same disclosure as the other disaggregation requirements, (3) a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, and (4) the total amount of selling expenses and, in annual reporting periods, an entitys definition of selling expenses. This new guidance for annual disclosures will be effective for the Company for fiscal year 2027 and for interim disclosures will be effective for the Company for fiscal year 2028. The guidance can be applied prospectively or retrospectively and early adoption is permitted. The Company does not expect to early adopt this guidance and does not expect these changes to have an impact on the Companys consolidated financial statements other than disclosure requirements. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Retirement Benefits The Company has defined contribution retirement plans or defined benefit pension plans covering substantially all employees. Company contributions to defined contribution retirement plans are generally based on either a percentage of eligible pay or on hours worked. Benefits under the defined benefit pension plans are generally based on years of service and/or final average pay. The Company funds the U.S. pension plans in accordance with the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended. The Company also sponsors several postretirement plans covering certain collectively bargained salaried and hourly employees. The plans provide health care and life insurance benefits for eligible retirees. In most retiree health care plans, Company contributions towards premiums are capped based on the cost as of a certain date, thereby creating a defined contribution. All defined benefit pension and retiree health care plans are closed to new entrants. For the quarters ended March 29, 2026 and March 30, 2025, the components of pension and other postretirement benefit expense for the Companys defined benefit plans included the following (in millions): Pension Benefits Other Postretirement Benefits Quarter ended Quarter ended March 29, 2026 March 30, 2025 March 29, 2026 March 30, 2025 Service cost - benefits earned during the year $ 1.4 $ 1.3 $ 0.1 $ 0.1 Interest cost on benefits earned in prior years 4.8 4.3 …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Revenue from Contracts with Customers Disaggregation of Revenue The Company operates in two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). Revenue is disaggregated within these two business segments by diversified global markets, primary geographical markets and diversified products. Comparative information regarding the Companys overall revenues by global and geographical markets for the quarterly periods ended March 29, 2026 and March 30, 2025 is included in the following tables. (in millions) Quarter ended March 29, 2026 March 30, 2025 HPMC AA&S Total HPMC AA&S Total Diversified Global Markets: Aerospace & Defense: Jet Engines- Commercial $ 431.0 $ 41.0 $ 472.0 $ 397.3 $ 24.1 $ 421.4 Airframes- Commercial 78.7 107.9 186.6 81.8 124.0 205.8 Defense 59.0 80.0 139.0 58.4 68.8 127.2 Total Aerospace & Defense 568.7 228.9 797.6 537.5 216.9 754.4 Other Markets: Specialty Energy 15.6 46.0 61.6 12.4 38.1 50.5 Electronics 28.3 28.3 39.6 39.6 Medical 9.7 17.8 27.5 15.8 26.6 42.4 Automotive 0.7 60.8 61.5 1.4 59.2 60.6 Conventional Energy 1.9 82.3 84.2 1.7 120.1 121.8 Construction/Mining 11.7 27.3 39.0 7.1 25.8 32.9 Other 6.0 45.8 51.8 8.2 34.0 42.2 Total Other Markets 45.6 308.3 353.9 46.6 343.4 390.0 Total $ 614.3 $ 537.2 $ 1,151.5 $ 584.1 $ 560.3 $ 1,144.4 (in millions) Quarter ended March 29, 2026 March 30, 2025 HPMC AA&S Total HPMC AA&S Total Primary Geographical Market: United States $ 3 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Business Segments The Company operates under two business segments: HPMC and AA&S. ATIs Chief Operating Decision Maker (CODM) is the Chief Executive Officer. Segment EBITDA, the Companys segment operating measure, is used by the CODM to assess segment operating performance and to determine the allocation of resources. Segment EBITDA as a percentage of segment revenues is utilized to assess the profitability of each segment and whether the Companys strategies are resulting in margin expansion and expected operating performance improvements. The measure of segment EBITDA excludes net interest expense, income taxes, depreciation and amortization, goodwill impairment charges, debt extinguishment charges, corporate expenses, closed operations and other income (expense), restructuring and other credits/charges, gains or losses on the sale of accounts receivables, strike related costs, long-lived asset impairments, pension remeasurement gains and losses, other postretirement/pension curtailment and settlement gains and losses, and gains or losses on sales of businesses. Management believes segment EBITDA, as defined, provides an appropriate measure of controllable operating results at the business segment level. Following is certain financial information with respect to the Companys business segments for the periods indicated (in millions): Quarter ended March 29, 2026 Quarter ended March 30, 2025 HPMC AA&S Total HPMC AA&S Total Sales to external customers $ 614.3 $ 537. …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Accounting Policies The interim consolidated financial statements include the accounts of ATI Inc. and its subsidiaries. Unless the context requires otherwise, ATI and the Company refer to ATI Inc. and its subsidiaries. The Company follows a 4-4-5 or 5-4-4 fiscal calendar, whereby each fiscal quarter consists of thirteen weeks grouped into two four-week months and one five-week month, and its fiscal year ends on the Sunday closest to December 31. Unless otherwise stated, references to years and quarters in this Quarterly Report on Form 10-Q relate to fiscal years and quarters, rather than calendar years and quarters. These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and note disclosures required by U.S. generally accepted accounting principles for complete financial statements. In managements opinion, all adjustments (which include only normal recurring adjustments) considered necessary for a fair presentation have been included. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Companys 2025 Annual Report on Form 10-K. The results of operations for these interim periods are not necessarily indicative of the operating results f …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing