ATI Accelerating Strategy to Become an Aerospace & Defense Materials Leader

Rhea-AI Summary

Allegheny Technologies Incorporated (NYSE: ATI) held an investor event on February 17, 2022, outlining its strategic goals and long-term financial targets. The company anticipates revenue growth surpassing key market rates, with adjusted EBITDA margins expanding due to a recovering market and improved product mix. ATI expects to achieve revenue growth of 9% to 11% annually through 2025, with free cash flow conversion above 90% from adjusted net income. Leadership aims to enhance shareholder value through increased cash conversion and return on invested capital.

Positive

• Projecting 9% to 11% annual revenue growth through 2025.
• Expected adjusted EBITDA margins of 18% to 20%.
• Free cash flow conversion forecasted at over 90% from adjusted net income.
• Increased cash conversion rates anticipated due to profitable growth.

Negative

• None.

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

FAQ

What are ATI's long-term financial targets?

ATI targets revenue growth of 9% to 11% annually, adjusted EBITDA margins of 18% to 20%, and over 90% free cash flow conversion through 2025.

When was ATI's investor event held?

ATI's investor event took place on February 17, 2022.

How does ATI plan to increase shareholder value?

ATI aims to enhance shareholder value through improved cash conversion rates and return on invested capital.

What is ATI's expected revenue growth rate for 2025?

ATI expects a revenue growth rate between 9% and 11% per year through 2025.