ATI (ATI) 2 Nov 232023 Q3 Earnings call transcript

Hello, and welcome to the ATI Third Quarter 2023 Results Conference Call. My name is Alex. I'll be coordinating the call today. [Operator Instructions] I now hand it over to your host, Dave Western, Vice President of Investor Relations. Please go ahead.

you. Thank welcome Quarter and Earnings ATI's to morning, XXXX Third Call. Good our is being discussion website. broadcast Today's on Participating in Chair to CFO. results, Don today's call Executive are third from Newman, Bob quarter our Wetherbee, President Board, Vice and and share CEO; and key points

starting provide would to website additional and details our attention remarks, color draw accompanies this outlook. I presentation our prepared the After open questions. results be atimaterials.com. our the and at supplemental that prepared found It call. our your Before we'll like to Those on for can slides on remarks, lines

As a the reminder, the assumptions are presentation. all noted release These earnings subject slide to and in forward-looking are various statements in and caveats.

Now the I'll to Bob. turn over call

meaningfully A&D morning, margin for and defense actions to years the is Thanks, many for Dave. Good we growth come; early benefits our highlight stages morning, I'll market everyone. execution delivering customers products yet in continued third, journey for QX first, driving come; better and of demand ATI. expansion growth shareholders. and of aerospace with This is marked to our strong, transformational expect major quarter still, we're strong the X points: another ATI and our are for continued improved solid second, results,

each And now these. into some insights of

more of events some remain sustained quarter up, as recent product first lines rates and strong security ATI's as reinforce important from and defense for as than peak aerospace safety, and lead years the away the times specialty build continued products. are First market we're world ever. demand performance Order airframe for far still out XXXX

expectation. to positioned well is deliver on this ATI

XX% A&D third for to ATI, capabilities products, target. team. right our way in XX% This up XX% and is have right from record the sales right and well we're our all-time QX. in We on the an the quarter, the hit

year. in $XXX airframe Shipments high prior us, What our demand, airframe record the the up more notably drove watermark. It's titanium. last surpassed significant Another expansion? That's materials in third than for from million a XXXX this of quarter. quarter new QX XX% step-up in surpassing third

achieve referred industry Ramping operational share lot as well-earned of execution. a commonly work analysts of How build rates, this? to hard gains do we realization and

run melt Our additional been top baseline. overall investment line to titanium optimize capacity coupled It's helped in increased critical steps furnaces, to full capacity at enabler that the with has expand The a these Oregon by XXXX growth. X now rate. melt over our XX% titanium restart melt our throughput modest producing

so additional are that and high-value the fills It that bringing Customer Milk will discussed left that for supply the in by ATI much Oregon chain. applications. facility. customers last geopolitical disruption demand fierce a currently with furnace are strong critical online we're our fourth specialty gap by titanium produce at titanium commitments most the This another likely same furnace alloys to

reaching that incremental to step, coupled We're run team half in second half. of execution will the This higher ramp an by latest in year. full $XX capacity the guidance. our falls XXXX, This CapEx additional in on within per efficient million enable titanium our revenue track with first existing highly investment rate operating

coming forecast. XX% restarts Richland, and And up increased the by through we've we in XX% still online titanium XXXX. expansion melt optimizations, in, Washington from All capacity our previously have we

for ATI. cases, up part just to us. time demand, In we're It's How only XX incredible are exciting ramp, total clearly in these timely XX%. ATI commitments capacity months, customer Pretty town. additions, titanium results approximately sales and And some are the strong bottom of be the efficient an is titanium stronger demand game today? line strong and ahead

my move Let's to second point.

COVID of transformation, difference. are a which to sequential with ATI's results of is This more growth expand. quarter increased Our meaningful profitability improvement. room and the business the margin They're EBITDA delivering actions making began driving another was today. depths transformational in in

hit the working shipments, low day making HPMC system. operations mid-XX% times steady We're delivering XX.X% debottleneck to range. HPMC's we in EBITDA accelerate in every great throughout margins QX. and to optimize the and progress. We're consistently XXXX, streamline and margins flow By target

before. through high-value facilities, this are works ATI's more As material downstream are than and its delivering being way operations finishing tested ever

QX. We're at electrical legacy and was our not case immune Lockport, sometimes operation to challenges, New the mill fail. new in That bottlenecks transformers York emerge

offset While be potential significantly back in the the relatively quickly, bottom taking on operating otherwise steps responded the our aggressively divid outage created QX shipments. would a team has power team a impact. what QX to got The line

been we've hard. means demand Strong running

markets. So & news Solutions preventive a Alloys QX. XX% In improve. mix operations. defense our Advanced X on It to focus maintenance segment, points good when consistent reached our in than for to we're That's opportunities increasing these year and That's long-term think continues growth higher ago. about aerospace ensure you

and at our reflect value markets essential of taken our best We the at the by We're being focused of with product to why It's and core align near-term long-term those we've conditions. capabilities this aerospace returns we're ATI's critical our growth caused transitory generated our customers' with where another Commercially, actions structure an demand. softened. in know demand to optimizing reminder lower materials. that's leader strategy. Operationally, Industrial are where differentiated the mix. success cost on potential, our is defense

transform? which October, and pension reduced What XX% fund qualified else annuitization the by we that remaining through have expect our will contributions, In are additional obligations we fully we XX%. made we announced doing to

us like for huge worked deliberate something in for here. long time. years. team's our But we at retirees at this ATI. for a point, shareholders. we've decade this pleased here, Let I'm what getting It's X, And that hard almost been every This to We diligent earnings to appreciate take meeting commitments a milestone very and our be it We've accomplished. team in and talked our about really in me call maybe we're work on X, a the preparation second great. the a clear for and for X, to is

flow generate forward. This going and enhances derisks significantly cash ability transaction balance ATI's our sheet substantial to

greatest this benefit shared we to meaningfully starting we lower of see pension pension AA&S segment expense should As where this quarter. the annuitization

today, My third continues to ATI deliver. point

adjusted August earnings this were guidance. $X.XX. We midpoint is share XXXX of This per continuing above beyond. see the our into momentum Our and

Now into Don will us financials about talk a take bit Q&A. what's I'll and QX Then and Don? close us out back through ahead. the to take and the be

Thank you, Bob.

our reinforces rooted strong growing A&D serving content. us Our and third quarter well. It's foundation,

debt share annuitization and mind, include related not EPS adjusted the funding. per in outperformed Our the prior $X.XX $X.XX supporting guidance pension of the did interest guidance. expense to Keep of our midpoint of

A&D delivering The increase our our allowed to consecutive revenue $X EBITDA business quarter adjusted strength us total billion. of margin above fifth while of

quarter to the performance growth and of continues beyond, the ahead and As resiliency carry our to creation. our value we look support business fourth and

of increased basis and XX.X%. performance an A&D current XX%, this in market line ATI margin segment, increase EBITDA HPMC, In mix, to content The the building pricing optimization and of conditions with points around XXX supporting our to of this all demand.

our by like the increase in quarter's impacted growth EBITDA continued AA&S the at which in points. approximately A&D communicated our margins QX basis A&D by our seasonal quarter the outages, should previously in margins driven margins fourth and XX.X% cycle markets. AA&S XXX production reflect and segment

we in our I see also ability would will confident SRP to are in ahead also line, the of in and time We pension note benefits XXXX that recent AA&S's teen percentage remain delivering transformation initial actions. range. from EBITDA we our mid- margins the upper

to the Turning balance sheet.

near cash inventory driven strong motion level through receivable We well payable reshape future continue as remaining for be reductions this meaningful to focal by to we remains performance. a manage the business working This in capital have and levels QX. sales we generation. point. of a XX% as working QX, capital in project lot Managed will improvement Despite as

increase, we team are in finished initiatives is Inventory for in our melt area it improvement demand Those is that target flows process testing. and front-end through capacity as as a key optimizing to speak. our product growth as

year-end previous $XXX through largely This to full slightly be should XX% free managed impact areas. guidance offset expect be million. management will of range million but than cash Therefore, we to narrowing working to cash and flow QX XX% in very capital CapEx other We are performance our flow our that expectations, strong. we between $XXX sales. and is higher year anticipate

balance the annuitization. the including want pension to about sheet, talking I highlight While further actions, recent our the of impact

market taken recall, and reduce assets You'll many we've exposure past still liabilities our of by beyond control. several forward steps direct over element forces our so, our the driven to years. shareholders, an pension risk for represented Even

With the pension and approximately of out that ATI qualified successfully party. to been transferred risk third XX% trusted of a fully has annuitization,

of planned contributions, be result expect to additional funded. obligations a our As remaining fully we

plans. material qualified expect longer no contributions we the such, to any pension to cash make As

benefits. annuitization are the that to in emphasize expected actions substantial to deliver other want also taken I earnings and XXXX pension

we These glide than to have This were expense rates. drop $XX path from out annual for. we run see of us outcome largely steps expect the striving delivered that Specifically, the gets business. pension pension more pre-annuitization million

net deployment fourth going cash Our balanced strong We a only cash growth shareholders. exceeds also outlook a strategy, forward. following capital flow, this while quarter to activity. funding will for to continue and million With deliver debt our balance intend $XXX capital for improve delevering returning to

million and in quarter. of the we in million remaining that $XX complete quarter to end, in To purchased fourth our expect shares third $XX approximately outstanding authorization the

and continue reduced in forward. the on will We expect and performance volatility cycle our balance this moving growth, future with sheet strengthen

closer a take the our remainder for of look Let's XXXX. at guidance

fourth these XXXX. estimated reinforced towards with previously and we tracking and carry we're results, momentum As should quarter into a strong

for EPS previous to $X.XX end of per range $X.XX of As approach holding the year, we year share, we're our share. $X.XX full midpoint tightening guidance to the the per

A&D QX look capacity for at this optimized demand mark water cycles increasing the performance point to our ahead. EPS center XXXX. in Robust representing we EPS highest as and quarterly midpoint, this $X.XX, result high with and was along At

sales the estimate schedule. projects, our newly with prior on our free We're in with working by including discipline for of pressure our noted, capital and manufacturing All remain announced I capital tight As driven expectations. prudence significant increase cash additive our expansions balancing remains and flow facility investment. continued classified consistent

that, to million. year current With able to to $XXX still capital a our expenditures $XXX lower of million are range we

XXXX. we're see in for expanding performance While formal for and previously for we continued you outlined not we will targets guidance year, XXXX, growth yet have the that tell I line with next providing directionally

upcoming on on this for at targets. hand our call the join New back our We Stock by us offer for investor that trend website. conclude to to available in the I to into XXXX the is we provide event. over way, York XXXX hope will new into remarks. And and and perspective our and update continued growth. insights We'll November more also financial clarity ATI XX, through including intend At visibility beyond, upward our details on the registration person that, you'll Exchange With opening Bob

Thanks, of be our Don. for for truly and trajectory. are times confident ATI, the Best of I'm all, growth XXXX ATI. exciting peak These in and momentum sustained won't even

years of back We have agreements growth ahead many half visibility with the more decade. of the into and clear extending long-term

continue against to our insulating capitalize while also shape We business on risk. to increased demand our business future

later hope our update New I month in investor for us you'll join this York.

As ATI Don for question. means we'll our ready what said, like that, lot it With that about more first growth we're a open the for questions. shareholders. talk and the looks Operator, line for let's and for what

today for Strauss of first comes question Barclays. from Our David

outlook for Don. fourth clarify the to in the quarter, wanted I AA&S

you in performance your the then well pension neology. you the improvement So quarter. having on back the about about as remarks think talked lower stable fourth of about release as not pension, assuming I in talked now, But in just the margin

square So QX? top if you maybe in assuming and you're of could what two, the line just margins kind for AA&S exactly

Fair question. Great. Yes.

in business when those no. you hey, are as to margins We XX.X% line But expect, expect look right, line, the we similar their margin see A&D if and about you posted that look tailwinds the to of that really QX, sales would in outage point So QX, at $XX in top saying should QX. outage major you're in bottom some A&S we we expect improve is we're as million when in stabilization, to. change good of QX, margins reasons repeat QX. would the also EBITDA in couple standpoint. QX. we QX we you're towards stabilization of the but at trends. related talk was you terms One, We've some Those for reference industrial, to headwinds well you mix a $X won't had clarification, terms answer costs. from seen But looking a overall what to in really when of that exposure. at see The going to around think in A some a short costs. million A&S

And we good to that guide rate about run basis. the in we tied QX on is good million pension. talked would a the expect guide $XX pension, Second

us some That that per get We about down at $XX you we're to when of And $XX-plus like this. it's quarter. somewhere of quarter's million to get that to see worth want will benefit. the we're a corporation, And that million effect not think $XX the you to period. in million partial a about going down going just benefit break full million breaks $X.X plus annualized hit AA&S, QX. it million and because Of between $X.X to

terms Think it get that the and AA&S's we're you And think corporate of how you probably a be of about then split element. is in rest is XX% the much share. AA&S? HPMC. When break between say, help to down and Does okay, end would I going higher bit? of that that

was that's follow-up than I for quick Bob. Yes, A hoping more for.

So you terms engine guys couple look in help obviously, opportunity Is there any [indiscernible] and of pick your up one is of years. of to for the incremental some there be out over lot the to dips business replacing to next here share? manufacturers, of large a

other I collaboratively David. question, term, with And try in come with to producer our to accelerate today, visits, overexceed extra we'll well. and expectations answer Yes. simple would seeing Good and paths we're things their the that David. Obviously, the with continue -- spares simple very we're your as working sure increase Near yes. engine way. say, to flow stick flow current make answers shop

raw And think off. lot we and or cases relationship I I a this, build a both think materials there second backup will like have see you in of times that opportunities forgings. great sourcing sourcing for

forgings doing them term, you, that new So our given just near opportunities it's one finished Longer our the we actually and presses everything of term, flow on older materials the isothermal yes, systems. within help on I there's the upgrade CapEx think raw guidance probably can in we side. controls the some and upgrade an forge we've with of

the relationship pretty part engine. that there into big that. feel we And good be going those for forging upside the of So about can guys isothermal a

track. we're about So pretty 'XX, but Probably until 'XX, excited we the won't 'XX, upside. see the on right definitely

Seaport go comes Research. ahead. next question Safran from Richard of Our Please

try between you and So to the for make EPS 'XX. guiding to to comparison best can, what you could an XXXX apples-to-apples you're

strip favorable You last this out credits aviation year's year.

correct increase. increase. You close had to pension Is is it to say that EPS

would you're Now those you of are bridge my apples-to-apples. XXXX for thought words, XXXX to with what seeing but I kind maybe trying

Rich, me. all you've math my for done

right. you folks me for just I'm absolutely let the the the said. other you're what of -- So call, benefit on aligned with But

knew like there when a you we pension the that So to our about pop then posted was performance, think in but items we EPS, in expense $X.XX were existed there XXXX XXXX. credits. nonrecurring going And COVID

business about news a a underlying growth there exists really the defense it the other increase you our and you gets is, in for that to I year point is and $X.XX, news large something in the full believe, guidance, that compare indicator XX% this about in aerospace implies it's at not And you And at of about driven point to great we're good one, expecting the that, that that per midpoint number forma by a pro the for year-over-year this midpoint stop. share. good the earnings you're part the and that that range. making, If to is of in strategy. Phil, And EPS $X.XX it to you XXXX being

together think XXXX we're the well. saw this when a the growth, further and performance more in -- good of on -- you we expect increase about EPS, as all talk we'll in But is November XX. about We that harbinger future is

Okay. the want you're high transactional comment piece getting demand. with think you I the it, And and were transactional previously I if lastly then trending could business, a the the work you how or on of about this, selective if you is is part that's of know X give accretive. talked more being the margin to business,

I We've We if can start as Don price the wants But it's at add the to end the never industry there. can first. accretive. Rich, been guy. known low he here. go in definitely

to to products. that value So tend challenging, are if migrating to we definitely books, the see that the we should lead tend as orders the smaller The And said is and in some be titanium that's times of May, the and the business. or nickel nickel more in their such of alloys you're or if differentiated probably titanium in distributor happened. looking more on OEMs, get you earlier, anybody know for a transactional who

more it's But I of would We accretive. some So and to less distribution the OEMs tend say the lead to still times strong because to channel. migrate still and opportunity.

then be kind transactional. in be Our but contractual, and And actually to strategy alloys but applications. of factored decision is of to start of those Oregon, to kind pretty XXX% alloys, we to alloys tends what furnace being about well, strategies are And we be higher-value beta which the selective as sophisticated move the XX, that in our play. more holding not we're alloys, more critical challenging kind what the into mix contractual, we the fourth our of XX% stuff, into systems some XX%

accretive. So hopefully, that helps, but definitely

KeyBanc question Our comes Capital Gibbs from Markets. of next Phil

margin It's us it big that that expected results. improvement. in the just pricing be But know Question parse and and see is Is driver 'XX to a I and picture big intuitively, improvement. of obviously for big 'XX. to out on to on a mix enabler it's hard

all is an which million to going a all $XX see goes line, next company equal. increase year, instance, of about the For bottom they're else saying to like Hamad

of through terms you about you've of of So all thousands thinking in just contracts. that the given to fact that kind trying are how got see

Right. Yes. question. Fair

So of pretty and about at all Defense, confident we're the when short [indiscernible] we our hear in answer you is, not that regard. lagging some are

We seen a critical option are share. low as we're picking in industry. but said, not Bob as up a typically cost option And the our

how going got comes percentage growth. then A&D We XXXX, to it when have we've Phil, continued XXXX clear us. other we increasing. trajectories. that in In and growth our that end terms at We forward, We've it's share serve it see aerospace growth of strong similar to XXXX XX%. that think some about beyond to seen And pretty markets

short So mix beyond, expect see we improving continue and to that expect yes, and is XXXX answer a all should margins to the tailwind our we to line be profits. bottom our which

Is the mix pricing Or just underlying a improvement real shift? is well? as there it

high be There demand, we've there's there. that so and where we to each space, it right? is, A&D when see the And to you we opportunities ensuring AA&S when especially not to demand real -- the we're that saw pricing And clear, underlying pretty period, there's are at been that we that price at as getting look has. exposure have all -- well. HPMC When and that comes purposeful -- comes is that it

So it's price we'll It continue are not and well, we to. just -- mix. seeing is as

last a you seems near-term do little there Are the within when years. Stall that turns a It leveling secondly, well. signs really in for any down on for Any you been the That's That as also it then neutral if was headwinds and stuck and corner me. couple And energy. And of strong sliding sort that's business, regarding here while. that, be the to bit. the out? for it's then thoughts have of some

kind the the get and is on say would QX our could there flow kind we from oil same and there. Bill. here of pretty There's strength of space be say not in and the be in of next projects, QX. in yet. say day-to-day that would is queue we X seeing umbilicals, subsea feedback also but customers we're good that the hit I the where Thanks, bottom about questions some QX, our presence part in an that there back will I to I'd big of should it cloud by lines in of oil kind QX our to always the time. the uptick, of be pipelines. gas. But core year, we There's want gas,

to are to positive. it actually but have that back think we signs signs customers bottom, be markets I there and the not back, think say we're to first New Year, would the believe the particular, that up of until a year. deliver definitely through a destock. bottom see of be got I Chinese the So uptick great really in quarter we uptick. with in of the a those we but comes issue after electronics, When I positive about I in to projecting as to to some lot they not we and the starting they're huge actually kinds have going there's That's are get But signs. then few Asia. our the hit things signs here think we're a fast destocking economic and at ramp the start and Stall, I starting the Don talked in It's ramp

to some by come, improvement China, would business. next in Rollstrip should in in QX meaningful see I more particular our but we Precision So year, say

Seifman Our JPMorgan. next of Seth question comes from

regarding trajectory lowered allocating is? years. to sequentially. about think changed as it and direction think the steep the how engine wanted down this of all that make has I the the And past to the I several But a this going next I few anybody obviously the between year. quarters, we next ramp resources bit the don't the engine the get GE of over questions signals that and bit you months? builds about little that few touch a ask new the from wanted over shops. think guide Pratt about end for where morning, I Do decisions LEAP ask think little everyone. some sales a OEMs I has at were to so delivery market. is

I'll try let. them to like there. Seth, It's question. get X in X Good to or

strength agree positive. very So engines in is with you, I the

a XX If year-to-date lot Remember, up versus year-to-date of XX% 'XX 'XX were ago. got put on XX, look orders months these XX, you

say a tight demand of in think going didn't positive. back. QX, be XX% done will placed the The things. nickel the there been off business It's going surcharges of widebody the and going to kinds adder in part And little little demand issue, a to we went alloys, to engine spares the XXXX, But alloys XX% come obviously going on higher that think definitely a on get moving nickel your be XX% our very and are and for us direction which We've shift wide-body all based of nickel-based is the a kind long-term be to come that X and titanium hours XX% the twofold. right in here. I our I mix, and our OEM we're into point, XX%, talk that's bit very down for the are that's manufacturers availability would of is are signal. planes XXXX. fall increase -- has I bit new indications getting we they thing think, So historically forward to certainly I Europe to These But trends earlier the in wear positive a that's of price Number nice X those to X had second years are or demand. to in evenly, the to little our when definitely the capacity. on side, all and to nickel that will the about us. those tear one based the Don help alluded to was a

across good well we feel and we pretty are So positioned industry. the where about

question follow-up, Great. maybe the you wide-body in Great. Engine. a as touched on And

we side see about about XXXX rate on wide-bodies? We've another the point into XXX you year? it had is As on up a going airframe X for earnest starting to getting anticipation in talked -- increase seeing of side, you kind Boeing are are think to the up ramp month, pick that roughly to service. production where to to start airframe What the entry of

Yes.

airframe presence I product would -- perspective, Atlantic. our sides on I COVID both mill the on the expanded we we're period, think from strong. an very through it's side, the actually say of

we positioned talking in uptick. widebodies to raw about material the we're we So made definite just not in digits, the probably world. terms pretty issue, they're well strength. the both are It's would seeing XX%, I And type. XX%, of by are equal strong. the seeing wherever product they're depending it's on XXX It's what for say double the XX%,

So it. And produce of XX cases. you build to don't I know. many would it seeing we orders we're say months ahead use when they're forecast, to as to in And only going we we're produce the

a reschedules, and kind say You've kind us a that cancellations, of of we that stuff. seeing -- a emergent heard away of many times. need not But right we're lot stuff, lot of demand who by

a well obviously, positive but are the OEMs, we with, So very trend. positive connected and

question of -- Tanners Thank from Wolfe you comes Timna Research. next our

out, in to our R Wanted company that point you're word. coverage the actually used only the

seems that area. thought was your bit a with just little It we'd of that focal probe to say really like So outside your risk. point that's recessionary

your picked operations. lower-margin how maybe also commentary little And going of little just forward just about ability to you that AA&S? I could more and margin bit of these to away pivot So some bit that kind of in talked color contribute wanted proceed expansion a a about might on up how from

the part, let but with that's Don XX% but we heard use you start to the AA&S of piece, really recessionary words I'll little our expansion -- talk bit X our about Well, margin only about a segment.

you But ramp Park, ramp So around fair. time the on that's think margins. that's it's the a Don, right? small part. question ramp in a We're lot I this Tim the answer So more aerospace, how spending would

from want Well, toward purposeful we And exposures we've method. away shift at AA&S about shift continue first, fact the mix the we've industrial segment. in really been talked to that the A&D changing the and pretty to or

XX%. And share now &D% so segment share points. in you about within seen that would last is XXX regard, increased that have quarter, within the basis AA&S And just this our that

X/X more than of So that portfolio.

improving rightsizing come. doing key So to is really running, been value-add support sure should of margins. we're We've more part us structures this that really improving seeing our and the that changing like and there's in that our paths, transformation, also of a strategy footprint, purposeful be benefits flow in cost our which We're making things order already to transformation, our we're beneficial.

So I that's would share, what Timna

seems to be like if markets want of like. optionality Okay. maybe should end fair to to That's that's areas, deemphasize energy trying on in you it what just keep clarify It of the that the some some other seems that. I a some but . like come, these

right. Absolutely

You right. within energy, even more and play. energy oil industrial we by that the we specialty are and whereas view gas, is way, to as there's where there's gas. specialties Oil commodity-driven demand and And want absolutely of

being we're terms refined we of where and business. this want So to in fight focused pretty

a then And question. of Okay. follow-up, more modeling a

decrease a count an with to your of didn't share and see kind acceleration we down? buybacks. come progress in see see on just that buybacks expect Just great the we of in Should share . going from count general, big forward And the liability reducing there. pension

Yes, it's a fair assumption.

Tim $XX We're programs. current we've million the had buyback going to program. not X left $XXX in it. So that's program. the million last years, last on of finish There's the far,

generate really to shareholders. to returning And enjoy is max focus the to we to then with business then and balanced up business very set a grow delever. have flow, that capital capital Our this cash much strategy we clear,

So that to going forward. a imagine be going is that, deployment our key to

TD Our Gautam from Cowen. from comes Khanna question next

quarter make Please operational sure heard now ahead. is at open. in challenges go something wanted I there right. Youpline Were to the any third I HDM?

was guidance we that good indicator. think outage. was our event "Hey, it in facility comes one his an a it -- and had actually did Lockport this where we in actually there that and for X really have when I we're remarks, outcome, would earnings a say happened, Bob we a prepared outage it, that he when noted said, mentioned covering an to -- facilities was positive Bob X our but to We was I noted And transformer that QX.

It online. really failure. was an amazing have outage, could mention. here getting back that but One job So team an that did some key would are it been transformer is takeaways I extended a our

So it outage. question, cover the Gotham why the I did why going well, if of did very -- one, behind picking probably And is to you up fair and fully you you're number so consequences think share team. management you're outage was so is guys -- that a to as us, this it transparency important

to when investors with events happen. share want we like that So

that quickly I by this then it's indicator, the consequences we able operational of financial also good the financial manage that with a be the something have it. think to and and business deal to way, like strength pretty in

that outage So facility cycles otherwise is to that of because production we're backlog. are the meant strong our getting weren't of think would and we for off one coming and way that that products XX we about are demand, facility was the about that selling that days, the down have out pretty

that range about would do of the would be what $XX you us hit in being, million the math QX. on So consequence that sales you'll in the to

that said, is our really Bob we the it. covering way as described team However, is divot

when guidance. the and our that cover on so We're our going of QX comes guidance, consequences activities we interest other to going by million and to actions. we've And QX got held that reprioritizing of it cost $XX finishing

it's it's I challenge So would I I -- that that's one in operational mention, think but important context. think

color us in side. Adam's is that strategy to the add that about talk heard a X little to ATI probably really taking think melt years to many bold the for I

that a up have part it or this nickel, And through when titanium it. little allows capacity probably production, on an it's the we particular and we of both going of case, cover think to both in But I so effect that's it certainly debottlenecking, the that segments. have but in to feed worked that Gautam through where realigning leverage And because work bit QX. picked whether modest it's to segments all issue, kind [indiscernible] us the we're stuff has

was very Got financial much impact actually else. you. And yes. a -- That

it could you there whether absorbed? loss So QX was financial there be a Okay. that in impact

for. particular no. Yes, adjusted But bucket costs little we no there there. was adjusted small not. at that the the look We when of EBITDA answer you a consequence There's had a incremental is

just quick follow-up. And a

of engine relative to views of business? preliminary year terms rate business your the next are on airframe growth what in Just jet the

some QX some Yes. Good into lead we today, question. Certainly, into and for even applications, QX, times we're others. booking where are and out stretch

order we're we it's see digit gains the see on be and have for have will say, this activity of play side probably the the year-to-date, double something half into XXXX. to I having, year-over-year, growth would yet some we from X/X that the share would we'll in we year, We fully airframe think that be conversation still growth load. up going that So order airframe see realized on to that or of XX%. I sure, saw come airframe don't based But XX%.

little side, on rest airframe bit bring as So this on furnace. we'll on titanium market fourth especially we of the I growth ahead see side the think the of a the

would say into strong So still . I XXXX. growth going

of comes next question Benchmark from the Our Company. Josh Sullivan

is what say the market say or end another? by $XX lack one was product impacted that you product that board Did what you million, outage, or concentrated in

across say It be is is products. multiple would -- it would what I

articulated around So impacted. we products haven't any . specifics the

expertise And it. Got generally mitigate powder was on just risk GTF, process. Mellergy. extensive very at engaging internal product been increased ATI's the just there? a issue on the Has an any effort of ATI technology OEMs, history to customer looking Okay. got the from or given then has this either there with outcome

major things, we those daily, commitment answer, of question, That's looking all I which mean answer with side, a is, think OEMs, it to on industry, a engine quality, the for impurities, with pretty have I we yes, so how especially broad always, quarterly broad kinds do there's in critical the continue I'll exchanges to improve. technology weekly, this a

on. go do dialogues those So

a industry And qualifications they're think, give almost for. something takes OEMs almost them the we're involved I second very that qualifications obviously, are seriously. to the all everything in source on looking

and constant, continual a with positive conversation opportunities, them. a are there it's So

I upside think sure. for there's

medical that in or something reshoring the then VSMPO the is X gains The last you And related just mentioned else? one. side that deck, in

probably say pretty currently good to . SPEAKERXX Thank I would questions. At much have It's the a BS it way look you. time, NPO related no at we this further things.

So for to hand any back Weston further remarks. I'll Dave

everyone XXth to for This our website A of November. thanks be available have replay Alex. will third registration with for joining investor a quarter earnings on concludes again along great today. Thanks, our upcoming day. call. us info ATI's Thanks, the update on and And

Thank joining today's you for call.

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