Company leaders to share insights into
expanding A&D business, affirm long-term strategy
NEW
YORK, Nov. 29, 2023 /PRNewswire/ -- At its 2023
Investor Update, ATI Inc. (NYSE: ATI) forecast revenues exceeding
$5 billion with adjusted EBITDA of
$1 billion by 2027. "As we close out
a successful 2023, ATI is well-positioned to significantly increase
cash generation and deployment to shareholders over the next four
years," said Robert S. Wetherbee,
Board Chair and CEO. The company projects more than $1 billion in top-line organic growth and a 60%
increase in adjusted earnings from 2023 to 2027. "ATI's aerospace
and defense foundation, the majority of which is secured through
long term agreements, sets the stage for continued growth and value
creation," said Wetherbee.
Updated 2025 Targets:
- Estimated revenue between $4.5
and $4.6 billion dollars.
- Estimated Adjusted EBITDA between $0.8 and $0.9 billion
dollars.
- Reaffirmed 2025 Free Cash Flow conversion greater than 90% from
adjusted net income.
- Reaffirmed managed working capital less than 30% of sales.
Provided New 2027 Targets:
- Estimated revenue between $5.2
and $5.4 billion dollars.
- Estimated Adjusted EBITDA between $1.0 and $1.2 billion
dollars.
- Extended Free Cash Flow conversion greater than 90% from
adjusted net income to 2027.
- Extended managed working capital less than 30% of sales to
2027.
Announced:
- New share repurchase authorization of $150 million, beginning in 2024, demonstrating
continued confidence in ATI's future financial performance and
continued commitment to a balanced capital allocation strategy that
funds profitable growth, furthers balance sheet de-leveraging
efforts and provides for shareholder return.
"We're executing on a clear strategy of aerospace and defense
leadership, closing in our goal of 65% of revenue from these
high-growth markets," said Wetherbee. "The advantages of an
integrated ATI are powerful: superior materials science expertise
and advanced process technologies, serving strategic customers with
disciplined operational execution across our system," said
Wetherbee. "And the results are clear: we're gaining share,
expanding capacity and capabilities, and increasing shareholder
value, well-positioned for growth."
For a replay of the event, go to
https://ir.atimaterials.com/ATIInvestorUpdate2023.
ATI does not provide reconciliations of guidance for adjusted
EBITDA, free cash flow and managed working capital to comparable
GAAP measures, in reliance on the unreasonable efforts exception,
because it is unable, without unreasonable efforts, to forecast
certain items required to develop meaningful comparable GAAP
financial measures.
This news release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Certain statements in this news release relate to future
events and expectations and, as such, constitute forward-looking
statements. Forward-looking statements, which may contain such
words as "anticipates," "believes," "estimates," "expects,"
"would," "should," "will," "will likely result," "forecast,"
"outlook," "projects," and similar expressions, are based on
management's current expectations and include known and unknown
risks, uncertainties and other factors, many of which we are unable
to predict or control. Our performance or achievements may differ
materially from those expressed or implied in any forward-looking
statements due to the following factors, among others: (a) material
adverse changes in economic or industry conditions generally,
including global supply and demand conditions and prices for our
specialty materials; (b) material adverse changes in the markets we
serve; (c) our inability to achieve the level of cost savings,
productivity improvements, synergies, growth or other benefits
anticipated by management from strategic investments and the
integration of acquired businesses; (d) volatility in the price and
availability of the raw materials that are critical to the
manufacture of our products; (e) declines in the value of our
defined benefit pension plan assets or unfavorable changes in laws
or regulations that govern pension plan funding; (f) labor disputes
or work stoppages; (g) equipment outages and (h) business and
economic disruptions associated with extraordinary events beyond
our control, such as war, terrorism, international conflicts,
public health issues, such as epidemics or pandemics, natural
disasters and climate-related events that may arise in the future
and (i) other risk factors summarized in our Annual Report on Form
10-K for the year ended December 31, 2022, and in other reports
filed with the Securities and Exchange Commission. We assume no
duty to update our forward-looking statements. ATI: Proven to
Perform.
ATI (NYSE: ATI) is a global producer of high-performance
materials and solutions for the global aerospace and defense
markets, and critical applications in electronics, medical and
specialty energy. We're solving the world's most difficult
challenges through materials science. We partner with our customers
to deliver extraordinary materials that enable their greatest
achievements: their products fly higher and faster, burn hotter,
dive deeper, stand stronger and last longer. Our proprietary
process technologies, unique customer partnerships and commitment
to innovation deliver materials and solutions for today and the
evermore challenging environments of tomorrow. We are proven
to perform anywhere. Learn more at ATImaterials.com.
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SOURCE ATI