ATI Signals Confidence With $500M Multi-Year Buyback Plan

ATI Inc. ATI recently announced a new multi-year share repurchase program, authorizing it to buy back up to $500 million of its outstanding common stock. The program is in combination with the currently $120 million remaining from ATI’s prior authorization. It provides flexibility to repurchase shares through open-market transactions or privately negotiated deals, depending on market conditions and capital priorities. 

The move highlights ATI’s confidence in its long-term growth prospects, supported by strong demand in commercial aerospace and defense markets, as well as its solid free cash flow generation. 

ATI exited 2025 with cash and cash equivalents of $416.7 million. Its adjusted earnings of 93 cents rose 18% from the year-ago quarter’s figure of 79 cents. It exceeded the Zacks Consensus Estimate of 89 cents. Its adjusted free cash flow was $380 million in 2025. The company repurchased roughly 6.4 million shares for $470 million last year. 

The company continues to follow a disciplined capital allocation strategy, balancing investments in high-performance materials and advanced aerospace platforms with returning capital to shareholders. 

Although the authorization does not obligate ATI to repurchase a specific number of shares and may be modified or suspended at any time, the announcement signals management’s positive outlook on earnings growth and shareholder value creation. 

Shares of ATI are up 182.1% in the past year compared with the industry’s 46.2% rise. 

ATI’s Zacks Rank & Other Key Picks

ATI currently carries a Zacks Rank #2 (Buy). 

Other top-ranked stocks in the Aerospace sector include Astronics Corporation ATRO, Woodward, Inc. WWD, and BWX Technologies, Inc. BWXT.  

At present, ATRO, WWD and BWXT carry a Zacks Rank #1 (Strong Buy) each. You can see see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for ATRO’s current-year earnings is pegged at $2.55 per share, indicating a rise of 27%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 32%. 

The Zacks Consensus Estimate for WWD’s current fiscal-year earnings is pinned at $8.51 per share, indicating a 24% year-over-year decline. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 18%. 

The Zacks Consensus Estimate for BWXT’s current-year earnings stands at $4.26 per share, implying a 6.23% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise being 23%. 

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This article originally published on Zacks Investment Research (zacks.com).

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