ATI Inc.

Hello, everyone, and welcome to the ATI first quarter 2023 earnings call. My name is Bruno, and I'll be the operator of today. During this presentation, you can register to ask a question by pressing star followed by one on your telephone keypad. I will now hand over to your host, Tom Wright. Please go ahead.

Thank you. Good morning, and welcome to ATI's first quarter 2023 earnings calls. Today's discussion is being broadcast on our website. Participating in today's call are Bob Weatherby, Board Chair, President, and CEO, Kim Fields, Executive Vice President and COO, and Don Newman, Executive Vice President and CFO. Bob, Kim, and Don will focus on our first quarter highlights and key messages. Before starting our prepared remarks, I would like to draw your attention to the supplemental presentation that accompanies this call. Those slides provide additional color and details on our results and outlook and can 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 slide presentation. Now, I'll turn the call over to Bob.

Thanks, Tom, and good morning. Q1 marked another strong quarter of consistent performance and sequential top-line growth for ATI. Our team continues to build momentum, driving our business forward. I'll summarize my thoughts on our first quarter performance in three points. Number one, we're delivering. What did this solid quarter include? Our quarterly revenue again exceeded $1 billion, up 3% over the prior quarter and 25% higher than a year ago. Sales and high performance materials and components segments were up 6% over the prior quarter. That's 38% higher than a year ago. And adjusted earnings per share for the quarter was 49 cents, that on the higher side of our guidance range. We know the importance of delivering on our commitments. Today's results reaffirm the importance we place on that consistency. Our results also reflect the incredible work being done every day by our team. They're driving operational efficiencies, capitalizing on new opportunities, and growing our capabilities. After my remarks, ATI Chief Operating Officer Kim Fields will share her perspective on how we're doing that. Message number two, continuing momentum in aerospace and defense is driving historic demand for ATI's materials. Despite some supply chain and delivery delays, the signals are clear. The aero ramp continues. I don't think any of us expected a flawless ramp, and we haven't been disappointed in that expectation. You know, a couple bumps in the supply chain around incoming materials and forgings from non-ATI sources is probably the number one issue that we're dealing with. Even so, all signs indicate a positive trajectory this year. OEMs are bullish about aircraft deliveries, reaffirming future build rates. We're seeing it firsthand. In Q1, airframe sales grew by 81% versus the prior year period. ATI's significant widebody content provides strong tailwinds across our commercial aerospace portfolio. We're excited to see this progress and expect growth in this core market to continue. Quarterly jet engine sales grew by 58% over the same period last year, driven by continued growth and specialty materials and forgings. Obviously, we expect this growth to continue as well, quarter after quarter after quarter. Quarterly defense sales grew 24% over the same period last year. These gains were led by growth in titanium armor, military jet engine, and materials serving allied naval systems. There you have it in defense. It's roll, fly, and float, and business is really strong, and we expect that to continue into the future. In Q1, aerospace and defense markets represented 56% of ATI revenue. That's up from 44% in the first quarter of last year. It highlights the tremendous progress we're making toward our 65% A&D sales target. Q1 energy sales were up 32% over the prior year period. This was driven by growing demand for materials serving civilian nuclear power and conventional oil and gas applications. As we shared with you last quarter, we continue to see softness in our smaller industrial markets. Remember, we've dramatically reduced our exposure to cyclical changes in these markets through transformation of our specialty rolled products business. More specifically, we're also seeing continued softness in China. This pertains primarily to the electronics and automotive markets served by our Asian precision rolled strip business, remembering also that this business accounts for about 5% of our total sales. We see emerging signs of moderate year-over-year and sequential growth in China, but the economy there continues to significantly lag 2019 levels. More information about ATI sales to critical applications in adjacent markets can be found in the corresponding presentation on our website. Now my third message. We are executing. Our titanium and specialty alloy customers are asking for all we can produce. In many cases, even more. To deliver on these opportunities, we have the right team and the greatest capabilities. Across the enterprise, we're laser focused on optimizing flow times, accelerating inventory velocity, and extracting every ounce of output possible. We want the maximum value from every operation, every flow path, every asset, every melt batch. Now I'll turn it over to Kim so she can share recent actions on our path to unlocking ATI's full potential.