ATI Inc.

Hello, everyone. Thank you for joining us and welcome to ATI's first quarter 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to David Weston. Please go ahead.

Good morning, and welcome to ATI's first quarter 2026 earnings call. Today's discussion is being webcast at atimaterials.com. Joining me today are Kim Fields, President and CEO, and Rob Foster, Senior Vice President and CFO. 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, capabilities, and outlook and can also 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 accompanying presentation. Now, I'll turn the call over to Kim.

Good morning, and thank you for joining us. We're off to a great start in 2026. We delivered strong first quarter performance by driving higher quality revenue, expanded margins, and improved cash flow. This quarter demonstrates that the ATI model is working. We're prioritizing the right volume, expanding margins, and converting demand into earnings and cash flows. First quarter results exceeded the high end of our guidance, supported by disciplined operational execution and richer mix. Demand across our core markets remains robust, and we continue to grow alongside our customers. I'll highlight the quarter's results. Revenue was $1.15 billion in line with expectations, with 69% attributed to aerospace and defense. Adjusted EBITDA was $232 million, up 19% year-over-year and above the high end of our guidance. Adjusted EBITDA margin reached 20%, up more than 300 basis points year over year. Adjusted free cash flow was $75 million, a meaningful improvement from last year and a clear indicator of strong cash discipline. This performance reflects more than favorable market conditions. It signals a fundamentally stronger ATI. What sets us apart today is the improved quality and resilience of our earnings. We are strategically allocating capacity towards our highest value opportunities in aerospace, defense, and specialty energy. That shift is driving better mix, stronger pricing, and more consistent execution. Order activity continues to be strong, with our order backlog growing by 10% sequentially to an all-time high of $4.1 billion. Additionally, lead times are extending for our most differentiated products, super alloy nickels, premium quality titanium, isothermal forgings, and exotic alloys. This is a key point. This is not short cycle demand. It is tied to long-term contracts, production schedules, and well-funded programs, giving us strong visibility into future performance. This momentum accelerates throughout 2026. Operationally, our disciplined execution is delivering results. Across ATI, we are improving throughput, increasing yields, and streamlining production flow, particularly in melting, forging, and downstream processing. That demand strength is most valuable when we convert it to deliveries, and that's where execution is making a difference. Across operations, we are unlocking capacity through productivity. Weekly output at our primary melt facilities increased by more than 15% year over year. We achieve record shipment levels across multiple product lines in both segments, and we continue to improve flow through forging, testing, and finishing operations. These structural operational improvements are being driven by better equipment reliability, tightened product quality control, and targeted investments in the highest return areas of the business. Combining this execution with the strong market demand provides the foundation to raise our full year adjusted EBITDA guidance by $35 million. bringing the midpoint to $1,035,000,000. This represents 20% growth year over year. Our full year outlook is now adjusted EBITDA of $1,010,000,000 to $1,060,000,000. Adjusted EPS of $4.20 to $4.48. Adjusted free cash flow of $465 to $525,000,000. Our outlook reflects continued strength across our core markets, focused execution, and confidence in our ability to convert demand into earnings and cash flow. Importantly, a significant portion of this growth is already embedded in our $4.1 billion order backlog and long-term contracts, providing strong visibility into the second half outlook. Like others in the industry, we're closely monitoring the geopolitical developments in the Middle East. The primary areas we're watching are demand impacted by fuel price, MRO activity levels, and aircraft retirements. We've seen no material impact on demand or order activity. There have been no changes to our order books or requests for delivery deferrals. In fact, last week I personally had several calls from customers eagerly emphasizing they'll take any capacity that opens up. With our record backlog and the ability to redeploy assets to support multiple differentiated markets, our portfolio is designed for this kind of dynamic environment. Turning to defense, revenues grew 9% year over year and are on track for mid-teens growth in full year 2026. Our materials support a broad range of platforms across air, land, sea, and missile systems, with accelerating demand across key programs. I am pleased to share that we have renewed a five-year agreement supporting the Naval Nuclear Program. This agreement is projected to generate $1 billion in revenue over the contract term at attractive arrow-like margins and more than doubled annual revenue over the prior contract. Q1 marks the third consecutive quarter our advanced alloys and solutions segment has achieved margins in the high teens well ahead of plan. It reflects the success of our strategy to focus on differentiated products, driving stronger value capture, and sustained margin expansion. The most notable evolution in recent months is the acceleration of missile-related demand. Q1 revenue in missiles and missile systems more than doubled year over year as customers are scaling production and replenishing inventories. We have seen a meaningful increase in customer inquiries and order activities tied to the production ramps. even in advance of program funding. Our materials, titanium, nickel, and hafnium, are vital to missile platforms like Tomahawk, PAC-3, and THAAD. These materials are used for structural applications and propulsion systems where high temperature performance, strength, and durability are required. This is a small percentage of our business today, but provides an opportunity for accelerated growth and strong visibility ahead. Our execution is also being recognized by our defense customers. In high-performance titanium plate and sheet for ground armor, we were honored to be named General Dynamics Land Systems 2025 Supplier of the Year. Selected from over 2,500 suppliers, this award recognizes our execution on key programs, including the XM-30 prototype. This distinction reflects not only the quality and performance of our materials, but also our team's speed, adaptability, and coordination. We appreciate the recognition and congratulate the ATI Specialty Role Products team for their outstanding work. Turning to aerospace, fundamentals remain strong. Commercial aerospace continues to be supported by increasing build rates and significant aircraft backlogs. We are encouraged by progress at both Boeing and Airbus and are well positioned across these platforms. Airframe performance reflects timing and supply chain phasing. Customer schedules, backlog, and production plans support a second half ramp. We remain confident in our full year outlook with revenue growth in the mid to high single digits. Within aerospace, jet engine is our largest and most important growth market. Jet engine sales grew 12% year over year, supported by both OEM production and aftermarket demand. The full year outlook for revenue growth remains in the mid-teens. This is driven by high fleet utilization, increasing shop visits, and continued growth in engine platforms like LEAP and GTS. Our materials are vital in the most demanding parts of these engines where performance and reliability are essential. We supply six of the seven most advanced jet engine nickel alloys. This remains a capacity-constrained market where our differentiated capabilities allow us to capture both share and value. Finally, in specialty energy, strong momentum continues. Revenue grew 22% year over year, driven by nuclear and land-based gas turbine markets. We recently extended our longstanding partnership with Cameco through a new five-year agreement. reinforcing ATI's role as a trusted supplier within the global nuclear supply chain. This $250 million agreement includes meaningful improvements in product mix and pricing. More broadly, our advanced materials portfolio, including highly engineered specialty alloys like zirconium and hafnium, supports specialized applications across energy, defense, and space. Performance requirements in these markets are ever increasing. and leverage the unique capabilities of ATI. Bringing it all together, our strategy is delivering measurable results. We delivered a strong first quarter with higher earnings, expanded margins, and significantly improved cash flow. Our customers are ramping, our backlog is growing, and our portfolio is aligned with the most attractive, highest value markets, especially in A&D and specialty energy. With strong core market demand and record backlog, we are confident in our increased full-year outlook. $5 billion of revenue at 20% plus margins is in clear sight, with an increasing share converting into earnings and free cash flow. That performance enables us to reinvest in the business, create value, and return capital to shareholders. We are focused on execution and raising the bar for performance. I'll now turn the call over to Rob.