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ATI Accelerating Strategy to Become an Aerospace & Defense Materials Leader

Published: 2022-02-17 19:13:00 ET

Announces long-term financial targets as key markets recover

PITTSBURGH, Feb. 17, 2022 /PRNewswire/ -- Allegheny Technologies Incorporated (NYSE: ATI) conducted an investor event earlier today, covering a broad array of strategic topics and providing long-term financial targets.

The company's leadership shared their expectations for ATI in several key areas:

Revenue growth should outpace growth rates in key end-markets.
Adjusted EBITDA margins should expand significantly as a result of ongoing market recovery, lean cost structures and enhanced product mix.
Increased cash conversion rates driven by profitable growth, reduced managed working capital and pension funding needs.
Rapid improvement in return on invested capital, increasing opportunities to enhance shareholder value over time.

"ATI is accelerating its clear and defined strategy to become an aerospace and defense leader," said Robert S. Wetherbee, Board Chair, President and CEO. "We're solving the world's greatest challenges through materials science, thriving where the expectations are great and the barriers are high. That's where we perform the best and are valued the most. ATI is proven to perform in the most extreme conditions."

The company provided long-term financial targets that, based on current assumptions, it expects to achieve by year-end 2025.

Revenue growth of 9% to 11% per year through 2025;
ATI adjusted EBITDA margins of 18% to 20%;
Free cash flow conversion greater than 90% from adjusted net income;
Managed working capital less than 30% of sales.

"We are on-track to deliver significant top line growth, robust margin expansion and more deployable cash, creating meaningful value for our shareholders," said Wetherbee.

A replay of ATI's investor day will be available at ATImetals.com

ATI: Proven to Perform. ATI (NYSE: ATI) is a $3 billion 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. 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. 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. Learn more at ATIMetals.com.

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SOURCE Allegheny Technologies

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