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ATI Gets Defense & Aerospace Sales Commitments Worth $1.2B

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ATI Inc. (ATI - Free Report) stated that it has received new sales commitments worth about $1.2 billion from leading aerospace and defense companies. The collective commitments include nickel and titanium, which are crucial materials for premium manufacturers as they scale up production to meet rising demand.

These commitments also comprise materials for commercial engine and airframe applications, as well as ground-vehicle armor, and are worth an estimated $200 million annually in revenues between 2024 and 2029. The majority of the revenues are added to the company's earlier stated 2025 revenue objectives. The commitments will be met through previously announced capital and capacity increases.

ATI is collaborating with clients to ensure secure supply during this period of restricted supply for vital materials. These commitments offer ATI new contracted share positions and a future growth path.

Shares of ATI have gained 78.2% over the past year compared with a 62.9% rise of its industry.

Zacks Investment Research
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The company is making strategic investments with prudent capital allocation to have sufficient resources and the ability to meet the unprecedented demand. Through deliberate measures to transform, it is more resilient to potential challenges and can operate under reduced instability. The company anticipates higher profitable revenues from continued strength in its primary markets. With another strong quarter, it continues to make progress toward its long-term goals, delivering for its customers and shareholders.

ATI Inc. Price and Consensus

ATI Inc. Price and Consensus

ATI Inc. price-consensus-chart | ATI Inc. Quote

Zacks Rank & Other Key Picks

ATI currently carries a Zacks Rank #1 (Strong Buy).

Other top-ranked stocks to consider in the basic materials space include Koppers Holdings Inc. (KOP - Free Report) , Silvercorp Metals Inc. (SVM - Free Report) and Linde plc (LIN - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Koppers currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for current-year earnings for KOP is pegged at $4.40, implying year-over-year growth of 6.3%. It has a trailing four-quarter earnings surprise of roughly 13.64%, on average. The stock has gained around 47% in a year.

Silvercorp Metals currently carries a Zacks Rank #1. The consensus estimate for current fiscal-year earnings for Silvercorp is pegged at 27 cents, suggesting year-over-year growth of 28.6%. The stock has gained roughly 2.6% in the past year.

Linde currently carries a Zacks Rank #2. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 3.8% upward in the past 60 days. Linde beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 6.9% on average. The stock has gained roughly 23.6% in the past year.

 


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