ATI Inc. (ATI): Business Model Canvas [Dec-2025 Updated]

You're digging into a true industrial powerhouse, and honestly, understanding how a company like ATI Inc. makes its money-especially when they're projecting around $4.68 billion in revenue for 2025 while pouring $260 million to $280 million back into CapEx-is key. As someone who spent years mapping these giants, I can tell you their model hinges on being the sole-source supplier of mission-critical, high-performance alloys to aerospace OEMs, which is why those long-term agreements are everything. So, let's cut through the noise and look at the nine blocks that explain exactly how they turn proprietary materials science into that projected $848 million to $858 million in Adjusted EBITDA this year.

ATI Inc. (ATI) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep ATI Inc. running, especially as they navigate the high-demand environment of late 2025. These aren't just vendor lists; these are multi-year commitments that underpin their revenue stability.

Long-term agreements (LTAs) with major aerospace OEMs like The Boeing Company and Airbus

The relationship with major airframers provides the backbone for ATI Inc.'s revenue visibility. The company recently announced an estimated $1.2 billion in aerospace and defense sales commitments, which cover both nickel and titanium materials. This is crucial as the company focuses on ramping production to meet increasing demand.

Specifically, ATI Inc. has reinforced its position with both major players:

• The long-term titanium products agreement with The Boeing Company was extended and expanded, covering Boeing's entire commercial airplane portfolio, including narrowbody and widebody aircraft.
• ATI Inc. signed a multi-year agreement with Airbus for titanium plate, sheet, and billet, which more than doubles ATI's previous support level to Airbus.

These agreements directly leverage ATI Inc.'s strategic investments, such as the new titanium alloy sheet facility in Pageland, South Carolina. The focus on these high-strength materials is clear in the segment performance; for instance, the HPMC segment (heavily focused on aerospace and defense) saw first quarter 2025 sales of $754 million, representing a 23% year-over-year increase and accounting for 92% of total HPMC sales.

Strategic customer partnerships for joint materials science development

ATI Inc. explicitly states that its proprietary process technologies and unique customer partnerships drive its ability to deliver materials for tomorrow's challenging environments. This partnership approach extends beyond simple supply contracts into joint development, particularly in advanced areas. For example, the company celebrated the commissioning of its world-class Additive Manufacturing Products facility in February 2025, which was built upon nearly a decade of additive expertise. This facility is capable of printing parts up to 1.5 meters tall, and its first contract was awarded by Bechtel Plant Machinery Inc. in support of the U.S. Naval Nuclear Propulsion Program, showing deep integration with critical defense customers.

Key suppliers for critical raw materials like nickel and titanium

Managing the supply chain for primary inputs is a constant focus, as volatility in raw material price and availability is a noted risk factor. ATI Inc.'s core material inputs define a significant portion of its business structure.

• Nickel: Accounts for about half of ATI Inc.'s sales.
• Titanium: Accounts for roughly 20% of sales.

The company has made strategic moves to secure its titanium supply, including expanding its titanium melt capacity by 80%. This focus on core, high-performance materials is expected to yield strong returns; analysts anticipate margins for the HPMC segment should be north of 23% by the end of 2025, marching toward the mid-20s by 2027 guidance.

Labor agreements, including the ratified contract with the United Steelworkers (USW)

Workforce stability is secured through formal labor agreements. ATI Inc. recently ratified a new six-year collective bargaining agreement with the United Steelworkers (USW) union, covering facilities in Western Pennsylvania and Lockport, New York. This contract impacts more than 1,200 workers and runs through February 28, 2031.

The financial impact of this agreement is factored into the company's outlook. The new deal delivers a 26% wage improvement over the life of the agreement, starting with a 6% increase in the first year, plus a $3,000 ratification bonus. Consequently, ATI Inc. adjusted its fiscal year 2025 EBITDA guidance to a range of $800 million to $840 million.

ATI Inc. (ATI) - Canvas Business Model: Key Activities

You're looking at the core engine room of ATI Inc., the activities that actually generate the revenue and build the competitive moat. For ATI, this is all about mastering complex metallurgy and then executing flawlessly on high-stakes customer ramps.

• Manufacturing high-performance titanium and nickel-based alloys.
• Proprietary process technology and materials science R&D.
• Operational execution to improve margins and efficiency.
• Capital deployment for capacity expansion, targeting $260M to $280M CapEx in 2025.

Manufacturing is clearly centered on the most demanding sectors. In the third quarter of 2025, total sales hit $1.13 billion. That quarter saw record Aerospace & Defense sales of $793 million, which made up 70% of the total revenue. Defense revenue specifically jumped 51% year-over-year for that period. To support this, ATI commissioned a 12,500-ton billet forging press in Q1-2024, directly linking capital investment to increased titanium production capability.

The focus on proprietary process technology is what underpins the value proposition; these processes are what give the materials their tremendous strength and resistance to heat and corrosion. While specific 2025 R&D spend isn't explicitly detailed here, the activity is validated by the company's continued focus on solving difficult materials science challenges for its customers.

Operational execution is where you see the tangible results of internal focus. The company raised its full-year 2025 Adjusted EBITDA guidance to a range of $848 million to $858 million. The third quarter of 2025 itself delivered an Adjusted EBITDA margin of 20.0% of sales. Cash generation is also strong, with cash provided by operating activities year-to-date 2025 reaching $299 million.

Here's a quick look at the specific productivity gains driving that margin improvement:

Finally, capital deployment is disciplined and targeted. The company is sticking to its plan for capacity expansion, with Capital Expenditures for the full year 2025 guided to be between $260 million and $280 million. This CapEx is aligned with customer-funded investments and asset redeployment, meaning it's not just spending for spending's sake, but to directly support the order book which extends into mid-2027.

ATI Inc. (ATI) - Canvas Business Model: Key Resources

You're looking at the core assets that let ATI Inc. (ATI) command its position in the high-performance materials space. These aren't just factories; they are specialized, hard-to-replicate capabilities.

Proprietary materials science expertise and intellectual property.

ATI's fundamental resource is its deep knowledge base in materials science, which underpins its ability to create materials that perform under extreme conditions, like next-generation jet engine components that run hotter, up to 3,000 degrees Fahrenheit. This expertise is what allows ATI to maintain its unique market positions.

The company explicitly states it solves the world's most difficult challenges through materials science, supported by its proprietary process technologies and unique customer partnerships. This is not easily copied.

Integrated, advanced manufacturing and forging facilities (e.g., Pageland, SC).

ATI operates a network of specialized facilities that are critical for its integrated production flow, from melt to finished product. The new facility in Pageland, South Carolina, is a key example, being a nearly 125,000 square foot greenfield operation producing technically challenging titanium alloy sheet, including sheets as thin as 0.020 inches and up to 25 feet in length. Operations at this facility are already online. Furthermore, ATI recently announced a multi-year agreement with Airbus for titanium plate, sheet, and billet, with more than two-thirds of the Pageland facility's capacity already committed under long-term agreements with various aerospace customers. This facility joins other key sites like the specialty materials production in Richburg, SC, and primary titanium operations in Richland, WA.

Here's a look at some of the physical and financial scale supporting these resources as of the end of the third quarter of 2025:

Sole-source production capability for key jet engine alloys.

This is where ATI's differentiation really shines, particularly in the High Performance Materials & Components segment. The company holds a near-monopoly on several critical components for next-generation jet engines. This capability is secured by long-term agreements with major original equipment manufacturers (OEMs).

ATI is the sole source producer for five of the seven advanced nickel powder and nickel cast and wrought jet engine alloys used in the core of next-generation engines. Also, ATI is the only producer of isothermally forged jet engine disks for all three engine OEMs. This exclusivity is a massive barrier to entry for competitors.

The company's partnership with Airbus was recently strengthened, with a new long-term agreement that more than doubles ATI's prior support for Airbus on titanium flat rolled and long products.

Strong balance sheet with managed working capital targeted at less than 30% of sales.

ATI maintains a balance sheet designed to support long-term, capital-intensive growth, evidenced by Total Assets of $5,002.7 million at the end of Q3 2025. The company has also seen credit rating upgrades from both S&P and Moody's to BB/Ba2 in September 2025. The stated long-term goal, reaffirmed in 2023, was to achieve managed working capital below 30% of sales by year-end 2025. However, the actual performance shows the challenge in hitting that specific target in the near term, given inventory builds to support growth.

Here are the recent actual figures for managed working capital:

• Managed working capital as a percent of annualized sales was 35.9% at the end of Q1 2025.
• Managed working capital as a percent of annualized sales was 36.5% at the end of Q2 2025.
• Managed working capital as a percent of annualized sales was 36.4% at the end of Q3 2025.

The company is actively managing this, with year-to-date operating cash flow in Q3 2025 reaching $299 million, an improvement of $273 million compared to the prior year period, which helps fund operations without stressing the balance sheet excessively.

ATI Inc. (ATI) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose ATI Inc. over anyone else, and honestly, the numbers from late 2025 really back up their claims of indispensability in the aerospace sector.

High-performance materials for extreme environments (e.g., high-heat jet engines).

ATI Inc. provides materials science solutions for the most demanding applications, like next-generation jet engines that run hotter for better fuel efficiency. These engines require high-strength alloys that can withstand temperatures up to 3,000°F, resisting creep and corrosion with uncompromising quality.

Critical supply chain reliability secured by long-term agreements.

The reliance on ATI Inc. is clear when you look at their sales mix. For the third quarter of 2025, Aerospace & Defense sales hit a record $793 million, making up 70% of total third quarter 2025 sales. This segment saw year-over-year sales growth of 21% in that quarter, showing sustained customer commitment. In the second quarter of 2025, commercial jet engine sales alone grew 27% year-over-year, which speaks volumes about the stability of those long-term supply relationships.

ATI Inc. is uniquely positioned to navigate supply chain volatility, partly because they are a U.S.-based producer with the majority of their production footprint domestically. The company's total external sales for the twelve months ending September 30, 2025, reached $4.583B.

Sole-source producer for 5 of 7 advanced nickel powder and cast/wrought jet engine alloys.

This is perhaps the most concrete value proposition. ATI Inc. is the sole source producer of five of the seven advanced nickel powder and nickel cast and wrought jet engine alloys. These materials are used in critical rotating forged components like the High Pressure Compressor and High Pressure Turbine.

• ATI Inc. is the only producer of isothermally forged jet engine disks for all three engine original equipment manufacturers (OEMs).
• They are one of just two integrated U.S. suppliers that forge rotating components from their own nickel alloys.

Enabling products to fly higher, burn hotter, and last longer.

The performance metrics of ATI Inc.'s materials directly translate into customer product capability. The focus on high-performance materials drives the growth seen across their key segments. You can see the financial results reflecting this enabling capability:

The company's focus on shareholder value, while secondary to the product value proposition, is also evident in their capital deployment. ATI Inc. repurchased $150 million of its stock in the third quarter of 2025, bringing total 2025 repurchases to $470 million.

Finance: draft 13-week cash view by Friday.

ATI Inc. (ATI) - Canvas Business Model: Customer Relationships

You're looking at how ATI Inc. (ATI) locks in its future revenue stream, which is heavily reliant on a few massive, long-term partners in the aerospace and defense (A&D) space. This isn't about transactional sales; it's about deep integration.

Dedicated, high-touch strategic partnership model with major OEMs

ATI Inc. operates with a dedicated, high-touch strategic partnership model, especially with Original Equipment Manufacturers (OEMs) in the A&D sector. This focus is clear in the revenue mix: Aerospace & Defense (A&D) reached an all-time high of 70% of total revenue in the third quarter of 2025. This deep relationship means ATI materials are on virtually every commercial platform flying today.

The company's Q3 2025 performance highlights this concentration:

• Aerospace & defense sales were $793 million in Q3 2025.
• Jet engine revenue grew 19% year-over-year in Q3 2025, now accounting for 39% of total revenue.
• Defense revenue increased 51% year-over-year in Q3 2025.

ATI was recognized for this partnership quality, being named Supplier of the Year by General Dynamics U.K. in Q3 2025.

Embedded technical support and joint problem-solving with customers

The relationship goes beyond just supplying materials; it involves solving the world's most difficult challenges through materials science. This is evidenced by the nature of the agreements, which often involve differentiated materials and advanced technologies for extreme conditions. The company's focus on strategic investments, like advancing titanium alloy sheet capabilities, directly supports customer needs, such as supplying titanium alloy sheet from the new Pageland, South Carolina, facility.

Long-term, contractual relationships securing future demand

Long-term contracts are the bedrock of ATI Inc.'s customer relationships, providing visibility and securing future demand as production ramps up. You see this commitment reflected in several major, multi-year agreements:

These contractual positions support consistent growth through 2026 and beyond. The focus on securing supply is critical, as demonstrated by the $299 million in cash generated from operations year-to-date (Q3 2025), which was a $273 million improvement from the prior year. The jet engine order book extends into mid-2027.

ATI Inc. (ATI) - Canvas Business Model: Channels

You're looking at how ATI Inc. gets its highly engineered materials and components into the hands of the most demanding customers, which is almost entirely through direct relationships, given the specialized nature of the products.

The core of ATI Inc.'s channel strategy is built around its two primary operating segments, which dictate how the product reaches the market. These segments are High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). The success of these channels is evident in the top-line results; for instance, in the third quarter of 2025, total sales hit $1.13 billion, with record aerospace & defense sales reaching $793 million, which was 70% of that quarter's total sales.

The HPMC segment, which focuses heavily on aerospace & defense, saw its aerospace & defense sales represent 92% of its total sales in the third quarter of 2025. The AA&S segment, while more diversified, still saw aerospace & defense sales account for 46% of its total sales in the same period.

Here's a look at the segment performance that flows through these channels:

The reliance on direct engagement is clear because these materials go into critical applications, meaning the relationship must be managed closely from design through delivery. This is where the direct sales force and technical account managers step in.

The channel execution involves:

• Direct sales force and technical account managers to end-use OEMs. These teams act as the primary interface, communicating complex technical requirements and providing tailored material recommendations directly to Original Equipment Manufacturers (OEMs) in aerospace, defense, and energy sectors. This direct link ensures alignment with long-term engine programs and defense platforms.
• Direct supply chain delivery from integrated production facilities. ATI Inc. manages production across its integrated facilities, such as restarting titanium melt capacity in Albany, Oregon, and investing in Richland, Washington, to control the entire material lifecycle. This direct control over the supply chain minimizes external dependencies and ensures product traceability and quality for critical applications.

The focus on high-value, proprietary materials means the sales cycle is long and relationship-driven, not transactional. For example, the company is capitalizing on next-gen engine requirements, where MRO (Maintenance, Repair, and Overhaul) represents about 50% of total engine sales. This sustained demand requires continuous, direct engagement with maintenance providers and OEMs alike.

Financially, this direct channel effectiveness is reflected in margin expansion; the HPMC segment achieved an EBITDA margin of 22.4% in Q1 2025, and the AA&S segment reached 14.9%. By Q3 2025, the overall Adjusted EBITDA margin was 20.0% of sales, up 230 basis points year-over-year.

The company is actively managing its capital through this channel success, repurchasing $150 million of its stock in Q3 2025 alone, bringing total 2025 repurchases to $470 million.

Finance: draft 13-week cash view by Friday.

ATI Inc. (ATI) - Canvas Business Model: Customer Segments

You're looking at the core customer base for ATI Inc. (ATI) as of late 2025, and honestly, it's all about keeping the planes flying and the defense systems ready. The company's structure clearly shows where the real money and momentum are right now.

The most critical customer group is the Aerospace and Defense OEMs. This is the bedrock of ATI Inc.'s business. For the third quarter of 2025, these sectors delivered record sales of $793 million, which accounted for exactly 70% of the total Q3 2025 sales of $1.13 billion. That's a massive concentration, but it's backed by strong, sustained demand.

The primary engine for recent growth has been the Commercial jet engine manufacturers. You saw that primary growth driver hit 27% year-over-year sales growth in Q2 2025. By Q3 2025, the jet engine market-which is a major component of the High Performance Materials & Components (HPMC) segment-continued its acceleration, growing 19% year-over-year and making up 39% of ATI Inc.'s total revenue in that quarter. The order book extending into mid-2027 definitely gives you a clear line of sight on near-term revenue visibility here.

Here's a quick look at how the main segments stacked up in Q3 2025, which gives you a better feel for the underlying customer exposure:

• Aerospace and Defense OEMs (core segment, representing 70% of Q3 2025 sales).
• Commercial jet engine manufacturers (primary growth driver, 27% YoY growth in Q2 2025).
• Electronics and medical device manufacturers.
• Specialty energy and conventional energy markets.

To be fair, the other segments are present, but they are currently acting as a slight drag or a smaller tailwind. Sales to the Electronics and medical device manufacturers were noted as being lower in Q2 2025 compared to the prior year. Similarly, the Specialty energy and conventional energy markets saw sequential sales decreases in Q3 2025, which partially offset the strength coming from aerospace and defense.

This segmentation data helps map out the revenue profile for ATI Inc. as of the latest reported quarter:

What this estimate hides is the specific revenue split within the $793 million Aerospace & Defense bucket between pure OEM production and the aftermarket (MRO, or maintenance, repair, and overhaul). We do know that for jet engines specifically, MRO represented about 50% of total engine sales in Q3 2025, which is a key stability factor.

ATI Inc. (ATI) - Canvas Business Model: Cost Structure

Raw material procurement costs are a significant driver, centered on nickel, titanium, and other specialty metals. ATI Specialty Materials publishes a standard raw material index (RMI) quarterly, effective with shipments during the current quarter, Quarter 4, 2025, based on the difference between the Prior QTR's Cost and Base Cost for critical elements used in melting nickel, cobalt, and specialty steel alloys.

High fixed costs stem from operating integrated, energy-intensive manufacturing facilities. For context, the Cost of Goods Sold (COGS) for the full year 2024 was $3.5B, which represented 79.4% of the full year 2024 Revenue of $4.4B. The HPMC segment, which includes many of these materials, achieved an EBITDA margin of 23.7% of sales in the third quarter 2025.

Capital expenditures for reliability and growth were guided at $260M to $280M for FY 2025. Net interest expense is estimated at approximately $100 million for FY 2025.

You can see the quarterly capital expenditure spend below, which contributes to the overall cost base:

The composition of key raw material sales is a major cost factor:

• Nickel accounts for about half of ATI Inc. sales.
• Titanium accounts for roughly 20 percent of ATI Inc. sales.

ATI Inc. (ATI) - Canvas Business Model: Revenue Streams

You're looking at how ATI Inc. brings in its money, which is heavily weighted toward high-end, long-term aerospace and defense work as of late 2025. Analyst consensus pegs the full-year 2025 revenue projected at approximately $4.68 billion. A significant part of this top line is secured through long-term aerospace contracts, which are expected to contribute an incremental $500 million in revenue specifically in 2025 from recent commitments. The company's operational strength is reflected in the latest guidance; Adjusted EBITDA for FY 2025 is set between $848 million and $858 million.

The revenue streams fundamentally divide into two major product categories, which you can see reflected in the key financial expectations for the year:

The core of ATI Inc.'s revenue generation comes from the Sales of High Performance Materials & Components (HPMC) products and Sales of Advanced Alloys & Solutions (AA&S) products. These segments serve demanding end markets, with Aerospace & Defense being the dominant driver, reaching 70% of total sales in Q3 2025 at $793 million for that quarter alone. The nature of these revenue streams is characterized by high barriers to entry and deep customer integration.

Here's a look at the composition and profitability underpinning these revenue streams, based on recent quarterly performance:

• Sales of High Performance Materials & Components (HPMC) products.
• Sales of Advanced Alloys & Solutions (AA&S) products.
• HPMC segment EBITDA margin in Q3 2025 reached 24.2% of sales.
• AA&S segment EBITDA margin in Q3 2025 was 17.3% of sales.

To be fair, the HPMC segment, which includes critical jet engine alloys, consistently delivers higher margins, with its Q3 2025 segment EBITDA at $145.8 million. The AA&S segment, which focuses more on fabricated alloy sheets and plates, contributed segment EBITDA of $90.4 million in the same period, showing strong profitability even with a slightly lower margin profile.