ATI Announces Third Quarter 2025 Results
Continued year-over-year sales growth driven by aerospace & defense
Record aerospace & defense sales of $793 million, representing 70% of Q 3 2025 sales
Strong margin performance in HPMC and AA&S segments
Raising full year ranges for adjusted earnings and cash flow guidance
Third Quarter 2025 GAAP Financial Results
Third Quarter 2025 Non-GAAP Financial Information*
Guidance
The Company is providing fourth quarter and updated full year 2025 guidance in the table below.
Current Guidance
Prior Guidance
Q4 2025
Full Year 2025
Full Year 2025
Adjusted EBITDA**
$221M - $231M
$848M - $858M
$810M - $840M
Adjusted Earnings Per Share**
$0.84 - $0.90
$3.15 - $3.21
$2.90 - $3.07
Adjusted Free Cash Flow**
$330M - $370M
$270M - $350M
Capital expenditures
$260M - $280M
$260M - $280M
* Reconciliations of the reported information under accounting principles generally accepted in the United States (GAAP) to non-GAAP financial measures are included in accompanying financial tables. Non-GAAP financial measures should be viewed in addition to, and not superior to or as an alternative for, the Company's reported results prepared in accordance with GAAP.
** Detailed reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures are not available without unreasonable effort due to the complexity of the excluded components.
DALLAS, Oct. 28, 2025 /PRNewswire/ -- ATI Inc. (NYSE: ATI) reported third quarter 2025 results, with sales of $1.13 billion and net income attributable to ATI of $110.0 million, or $0.78 per share.
Sequential
Y-O-Y
($ in millions except per share amounts)
Q3 2025
Q2 2025
Change
Q3 2024
Change
Sales
$1,125.5
$1,140.4
(1) %
$1,051.2
7 %
Net income attributable to ATI
$110.0
$100.7
9 %
$82.7
33 %
Earnings per share
$0.78
$0.70
11 %
$0.57
37 %
Non-GAAP information*
Adjusted net income attributable to ATI*
$119.4
$106.4
12 %
$85.9
39 %
Adjusted earnings per share*
$0.85
$0.74
15 %
$0.60
42 %
ATI adjusted EBITDA*
$225.1
$207.7
8 %
$185.7
21 %
GAAP earnings per share for the third quarter 2025 were $0.78 and adjusted earnings per share* were $0.85. Net income attributable to ATI was $110.0 million and ATI adjusted EBITDA* was $225.1 million, or 20.0% of sales. Third quarter 2025 adjusted results exclude pre-tax charges of $12.9 million for special items and a $1.1 million gain on the sale of a non-core business previously reported in the HPMC segment. The after-tax impact of these special items was a charge of $9.4 million, or $0.07 per share.
Second quarter 2025 adjusted results exclude pre-tax charges of $7.4 million for special items. The after-tax impact of these special items was a charge of $5.7 million, or $0.04 per share. Third quarter 2024 adjusted results exclude pre-tax charges of $4.3 million for special items. The after-tax impact of these special items was a charge of $3.2 million, or $0.03 per share. The Non-GAAP tables included within this release provide the reconciliations of the GAAP to Non-GAAP financial measures and additional details on the special items noted above.
"We exceeded our guidance in the third quarter, delivering strong adjusted earnings and operating cash flow performance. We continue to see positive demand signals in our core markets, as our customers ramp to achieve their growth targets. We are well-positioned to grow our defense-related business through an expanding mix of highly differentiated products critical to the U.S. and our allies," said Kimberly A. Fields, President and CEO. "Our outstanding performance, contractual positions and steady demand give us the confidence to raise the full-year ranges of our adjusted earnings and cash flow guidance.
"We continue to drive efficiencies in working capital with the goal of maximizing free cash flow," said Fields. "Our year-to-date operating cash flow of $299 million reflects an improvement of $273 million compared to last year. This performance enabled us to support our growth while continuing to return capital to shareholders. During the third quarter, we repurchased $150 million of our stock, bringing our total 2025 share repurchases to $470 million." said Fields.
Operating Results by Segment
High Performance Materials & Components (HPMC)
($ millions)
Q3 2025
Q2 2025
Q3 2024
Sales
$602.9
$608.8
$552.4
Segment EBITDA*
$145.8
$144.0
$123.2
% of Sales
24.2 %
23.7 %
22.3 %
Advanced Alloys & Solutions (AA&S)
($ millions)
Q3 2025
Q2 2025
Q3 2024
Sales
$522.6
$531.6
$498.8
Segment EBITDA*
$90.4
$76.7
$73.6
% of Sales
17.3 %
14.4 %
14.8 %
Corporate Items and Cash
***********
ATI will conduct a conference call with investors and analysts on Tuesday, October 28, 2025, at 8:30 a.m. ET to discuss the financial results. The conference call will be broadcast, and accompanying presentation slides will be available, at ATImaterials.com. To access the broadcast, click on "Conference Call." Replay of the conference call will be available on the ATI website.
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Certain statements in this news release relate to future events and expectations and, as such, constitute forward-looking statements. Forward-looking statements, which may contain such words as "anticipates," "believes," "estimates," "expects," "would," "should," "will," "will likely result," "forecast," "outlook," "projects," and similar expressions, are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which we are unable to predict or control. Our performance or achievements may differ materially from those expressed or implied in any forward-looking statements due to the following factors, among others: (a) material adverse changes in economic or industry conditions generally, including global supply and demand conditions and prices for our specialty materials; (b) material adverse changes in the markets we serve; (c) our inability to achieve the level of cost savings, productivity improvements, synergies, growth or other benefits anticipated by management from strategic investments and the integration of acquired businesses; (d) volatility in the price and availability of the raw materials that are critical to the manufacture of our products; (e) declines in the value of our defined benefit pension plan assets or unfavorable changes in laws or regulations that govern pension plan funding; (f) labor disputes or work stoppages; (g) equipment outages; (h) business and economic disruptions associated with extraordinary events beyond our control, such as war, terrorism, international conflicts, public health issues, such as epidemics or pandemics, natural disasters and climate-related events that may arise in the future and (i) other risk factors summarized in our Annual Report on Form 10-K for the year ended December 29, 2024, and in other reports filed with the Securities and Exchange Commission. We assume no duty to update our forward-looking statements.
ATI: Proven to Perform.
ATI (NYSE: ATI) is a global producer of high performance materials and solutions for the global aerospace & defense markets, and critical applications in electronics, medical and specialty energy. We're solving the world's most difficult challenges through materials science. 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. 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. Learn more at ATImaterials.com.
ATI Inc.
Consolidated Statements of Operations
(Unaudited, dollars in millions, except per share amounts)
Fiscal Quarter Ended
Fiscal Year-To-Date
Period Ended
September 28,
June 29,
September 29,
September 28,
September 29,
2025
2025
2024
2025
2024
Sales
$ 1,125.5
$ 1,140.4
$ 1,051.2
$ 3,410.3
$ 3,189.4
Cost of sales
870.2
897.9
826.4
2,676.7
2,539.8
Gross profit
255.3
242.5
224.8
733.6
649.6
Selling and administrative expenses
94.6
82.8
82.4
262.4
253.3
Restructuring (credits) charges
(0.4)
(1.3)
0.5
(1.7)
(1.2)
(Gain) loss on asset sales and sales
of businesses, net
(1.3)
—
(0.3)
2.6
(2.5)
Operating income
162.4
161.0
142.2
470.3
400.0
Nonoperating retirement benefit
expense
(3.9)
(4.1)
(3.7)
(11.9)
(11.1)
Interest expense, net
(26.1)
(25.4)
(28.0)
(74.5)
(83.0)
Other income, net
12.2
1.8
4.4
15.5
5.2
Income before income taxes
144.6
133.3
114.9
399.4
311.1
Income tax provision
31.0
29.3
28.3
81.3
70.5
Net income
$ 113.6
$ 104.0
$ 86.6
$ 318.1
$ 240.6
Less: Net income attributable to
noncontrolling interests
3.6
3.3
3.9
10.4
9.9
Net income attributable to ATI
$ 110.0
$ 100.7
$ 82.7
$ 307.7
$ 230.7
Basic net income attributable to
ATI per common share
$ 0.80
$ 0.72
$ 0.64
$ 2.21
$ 1.82
Diluted net income attributable to
ATI per common share
$ 0.78
$ 0.70
$ 0.57
$ 2.16
$ 1.61
ATI Inc.
Selected Financial Data
(Unaudited, dollars in millions)
Fiscal Quarter Ended
Fiscal Year-To-Date
Period Ended
September 28,
June 29,
September 29,
September 28,
September 29,
2025
2025
2024
2025
2024
Sales:
High Performance Materials &
Components
$ 602.9
$ 608.8
$ 552.4
$ 1,795.8
$ 1,644.3
Advanced Alloys & Solutions
522.6
531.6
498.8
1,614.5
1,545.1
Total external sales
$ 1,125.5
$ 1,140.4
$ 1,051.2
$ 3,410.3
$ 3,189.4
Segment EBITDA (a):
High Performance Materials &
Components
$ 145.8
$ 144.0
$ 123.2
$ 420.8
$ 334.6
% of Sales
24.2 %
23.7 %
22.3 %
23.4 %
20.4 %
Advanced Alloys & Solutions
90.4
76.7
73.6
250.5
232.9
% of Sales
17.3 %
14.4 %
14.8 %
15.5 %
15.1 %
Corporate, Closed Operations and Other (income) expense (b):
Corporate expense
$ 15.6
$ 15.4
$ 13.4
$ 48.4
$ 49.9
Closed operations and other
(income) expense
(4.5)
(2.4)
(2.3)
(4.5)
(1.7)
Total Corporate, Closed
Operations and Other expense
$ 11.1
$ 13.0
$ 11.1
$ 43.9
$ 48.2
Depreciation & Amortization:
High Performance Materials &
Components
$ 21.2
$ 20.9
$ 18.6
$ 61.8
$ 52.8
Advanced Alloys & Solutions
19.7
19.1
18.2
58.3
54.5
Other
1.7
1.6
1.7
4.9
5.1
Total depreciation &
amortization
$ 42.6
$ 41.6
$ 38.5
$ 125.0
$ 112.4
Percentage of Total ATI Sales (c):
Nickel-based alloys and specialty
alloys
44 %
48 %
46 %
47 %
45 %
Precision forgings, castings and
components
22 %
21 %
20 %
21 %
19 %
Titanium and titanium-based
alloys
19 %
17 %
17 %
18 %
18 %
Zirconium and related alloys
9 %
9 %
8 %
9 %
9 %
Precision rolled strip products
6 %
5 %
9 %
5 %
9 %
Total
100 %
100 %
100 %
100 %
100 %
(a) The Company's Chief Operating Decision Maker ("CODM") utilizes the Segment EBITDA as a key metric to evaluate segment performance. Our measure of segment EBITDA, which we use to analyze the performance and results of our business segments, excludes net interest expense, income taxes, depreciation and amortization, special charges, unallocated corporate expenses, closed operations and other income (expense). See the company's Form 10-Q for the reconciliation of Segment EBITDA to Income before taxes.
(b) Amounts exclude depreciation & amortization expense.
(c) Hot-Rolling and Processing Facility conversion service sales in the AA&S segment are excluded from this presentation.
ATI Inc.
Condensed Consolidated Balance Sheets
(Unaudited, dollars in millions)
September 28,
December 29,
2025
2024
ASSETS
Current Assets:
Cash and cash equivalents
$ 372.2
$ 721.2
Accounts receivable, net of allowances for doubtful accounts
709.9
709.2
Short-term contract assets
94.3
75.6
Inventories, net
1,405.6
1,353.0
Prepaid expenses and other current assets
77.8
86.0
Total Current Assets
2,659.8
2,945.0
Property, plant and equipment, net
1,853.2
1,776.9
Goodwill
225.2
227.2
Other assets
264.5
281.5
Total Assets
$ 5,002.7
$ 5,230.6
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable
$ 493.5
$ 609.1
Short-term contract liabilities
159.2
169.4
Short-term debt and current portion of long-term debt
191.7
180.4
Other current liabilities
218.7
249.6
Total Current Liabilities
1,063.1
1,208.5
Long-term debt
1,715.2
1,714.9
Accrued postretirement benefits
153.6
164.3
Pension liabilities
35.1
37.2
Other long-term liabilities
209.9
150.5
Total Liabilities
3,176.9
3,275.4
Total ATI stockholders' equity
1,707.0
1,850.4
Noncontrolling interests
118.8
104.8
Total Equity
1,825.8
1,955.2
Total Liabilities and Equity
$ 5,002.7
$ 5,230.6
ATI Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, dollars in millions)
Fiscal Year-To-Date Period Ended
September 28,
September 29,
2025
2024
Operating Activities:
Net income
$ 318.1
$ 240.6
Depreciation and amortization
125.0
112.4
Share-based compensation
22.3
26.6
Deferred taxes
36.5
56.5
Net gain from disposal of property, plant and equipment
(10.6)
(6.0)
Net loss on sales of businesses
2.6
—
Changes in operating assets and liabilities:
Inventories
(57.5)
(198.4)
Accounts receivable
1.7
(111.3)
Accounts payable
(94.4)
20.2
Retirement benefits
(6.0)
(7.9)
Accrued liabilities and other
(39.2)
(106.4)
Cash used in operating activities
298.5
26.3
Investing Activities:
Purchases of property, plant and equipment
(187.9)
(191.8)
Proceeds from disposal of property, plant and equipment
10.9
10.6
Proceeds from sales of businesses, net of transaction costs
21.2
—
Other
6.8
3.0
Cash used in investing activities
(149.0)
(178.2)
Financing Activities:
Payments on long-term debt and finance leases
(24.2)
(21.9)
Net borrowings (payments) under credit facilities
11.3
(5.1)
Receipt of convertible note capped call
—
76.1
Purchase of treasury stock
(470.0)
(190.0)
Taxes on share-based compensation and other
(29.7)
(25.3)
Cash used in financing activities
(512.6)
(166.2)
Effect of exchange rate changes on cash and cash equivalents
14.1
—
Less: Cash held for sale
—
(19.2)
Decrease in cash and cash equivalents
(349.0)
(337.3)
Cash and cash equivalents at beginning of period
721.2
743.9
Cash and cash equivalents at end of period
$ 372.2
$ 406.6
ATI Inc.
Revenue by Market
(Unaudited, dollars in millions)
Fiscal Quarter Ended
Fiscal Year-To-Date Period Ended
September 28,
June 29,
September 29,
September 28,
September 29,
2025
2025
2024
2025
2024
Market
Aerospace & Defense:
Jet Engines-
Commercial
$ 433.6
38 %
$ 447.8
39 %
$ 365.9
35 %
$ 1,302.8
38 %
$ 1,029.9
32 %
Airframes-
Commercial
197.7
18 %
195.2
17 %
180.8
17 %
598.7
18 %
581.7
18 %
Defense
161.4
14 %
118.8
11 %
107.1
10 %
407.4
12 %
341.8
11 %
Total Aerospace
& Defense
792.7
70 %
761.8
67 %
653.8
62 %
2,308.9
68 %
1,953.4
61 %
Specialty Energy
53.9
5 %
63.5
6 %
69.9
7 %
167.9
5 %
202.6
6 %
Electronics
48.4
4 %
43.7
4 %
49.1
5 %
131.7
4 %
142.8
4 %
Medical
30.9
3 %
38.9
3 %
53.1
5 %
112.2
3 %
173.9
6 %
Other Core Markets
133.2
12 %
146.1
13 %
172.1
17 %
411.8
12 %
519.3
16 %
Core End Markets
925.9
82 %
907.9
80 %
825.9
79 %
2,720.7
80 %
2,472.7
77 %
Automotive
61.3
6 %
64.8
6 %
63.8
6 %
186.7
5 %
190.6
6 %
Conventional
Energy
56.8
5 %
92.9
8 %
72.6
7 %
271.5
8 %
241.2
8 %
Construction/Mining
36.8
3 %
33.3
3 %
41.8
4 %
103.0
3 %
113.2
4 %
Other
44.7
4 %
41.5
3 %
47.1
4 %
128.4
4 %
171.7
5 %
Industrial Markets
$ 199.6
18 %
$ 232.5
20 %
$ 225.3
21 %
$ 689.6
20 %
$ 716.7
23 %
Total
$ 1,125.5
100 %
$ 1,140.4
100 %
$ 1,051.2
100 %
$ 3,410.3
100 %
$ 3,189.4
100 %
ATI Inc.
Computation of Basic and Diluted Earnings Per Share Attributable to ATI
(Unaudited, dollars in millions, except per share amounts)
Fiscal Quarter Ended
Fiscal Year-To-Date
Period Ended
September 28,
June 29,
September 29,
September 28,
September 29,
2025
2025
2024
2025
2024
Numerator for Basic net income per
common share -
Net income attributable to ATI
$ 110.0
$ 100.7
$ 82.7
$ 307.7
$ 230.7
Effect of dilutive securities:
3.5% Convertible Senior Notes
due 2025
—
—
1.7
—
6.0
Numerator for Diluted net income
per common share -
Net income attributable to ATI
after assumed conversions
$ 110.0
$ 100.7
$ 84.4
$ 307.7
$ 236.7
Denominator for Basic net income
per common share -
Weighted average shares
outstanding
137.0
139.8
128.7
139.5
126.5
Effect of dilutive securities:
Share-based compensation
3.5
3.3
3.7
3.1
3.1
3.5% Convertible Senior Notes
due 2025
—
—
14.4
—
17.3
Denominator for Diluted net income
per common share -
Adjusted weighted average
shares and assumed conversions
140.5
143.1
146.8
142.6
146.9
Basic net income attributable to ATI
per common share
$ 0.80
$ 0.72
$ 0.64
$ 2.21
$ 1.82
Diluted net income attributable to
ATI per common share
$ 0.78
$ 0.70
$ 0.57
$ 2.16
$ 1.61
ATI Inc.
Non-GAAP Financial Measures
(Unaudited, dollars in millions, except per share amounts)
The Company reports its financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This report includes financial performance measures that are not defined by GAAP, including Adjusted net income attributable to ATI, Adjusted EPS, Adjusted EBITDA, Segment EBITDA, Adjusted free cash flow and Managed working capital. The Company uses these non-GAAP financial measures to assist in assessing operating performance on a consistent basis across multiple reporting periods by removing the impact of special items, which can vary from period to period, that management does not believe are directly reflective of the Company's core operations. The Company defines special items as significant non-recurring or non-operational charges or credits, restructuring and other charges/credits, gains or losses from the sale of accounts receivable, strike related costs, goodwill and long-lived asset impairments, debt extinguishment charges, pension remeasurement gains and losses, other postretirement/pension curtailment and settlement gains and losses, and gains or losses on sales of businesses.
Adjusted net income attributable to ATI and related Adjusted EPS are calculated by adjusting net income attributable to ATI for the tax-effected impact of special items. We define Adjusted EBITDA as net income, excluding net interest expense, income taxes, depreciation and amortization, and special items. Our measure of segment EBITDA, which we use to analyze the performance and results of our business segments, excludes net interest expense, income taxes, depreciation and amortization, special charges, corporate expenses, closed operations and other income (expense). Our methods of calculating Adjusted free cash flow and Managed working capital are discussed in greater detail below under the headings "Adjusted Free Cash Flow" and "Managed Working Capital," respectively.
Management believes presenting these non-GAAP financial measures is useful to investors because it (1) provides investors with meaningful supplemental information regarding financial and operating performance by excluding certain items management believes do not directly impact the Company's core operations, (2) permits investors to view performance using the same metrics that management uses to forecast, evaluate performance, and make operating and strategic decisions, and (3) provides additional information useful to investors on a period-to-period consistent basis that are commonly used to analyze companies' operating performance. Management believes that consideration of these non-GAAP financial measures, together with our GAAP financial measures and the corresponding reconciliations, provides investors with additional understanding of the Company's performance and trends that would be absent such disclosures.
Non-GAAP financial measures should be viewed in addition to, and not superior to or as an alternative for, the Company's reported results prepared in accordance with GAAP. The following tables provide the calculation of the non-GAAP financial measures discussed in this press release:
Net Income Attributable to ATI
Fiscal Quarter Ended
September 28, 2025
June 29, 2025
September 29, 2024
EPS
EPS
EPS
Net income attributable to ATI
$ 110.0
$ 0.78
$ 100.7
$ 0.70
$ 82.7
$ 0.57
Adjustments for special items, pre-tax:
Restructuring and other charges (a)
12.9
7.4
4.3
Gain on sales of businesses (b)
(1.1)
—
—
Total pre-tax adjustments for special items
11.8
0.08
7.4
0.05
4.3
0.03
Income tax on adjustments for special items
(2.4)
(0.01)
(1.7)
(0.01)
(1.1)
—
Adjusted Net income attributable to ATI
$ 119.4
$ 0.85
$ 106.4
$ 0.74
$ 85.9
$ 0.60
Earnings before interest, taxes, depreciation and amortization (EBITDA)
Fiscal Quarter Ended
September 28, 2025
June 29, 2025
September 29, 2024
Net income attributable to ATI
$ 110.0
$ 100.7
$ 82.7
Net income attributable to noncontrolling interests
3.6
3.3
3.9
Net income
113.6
104.0
86.6
(+) Depreciation and amortization
42.6
41.6
38.5
(+) Interest expense
26.1
25.4
28.0
(+) Income tax provision
31.0
29.3
28.3
EBITDA
213.3
200.3
181.4
Adjustments for special items, pre-tax:
(+) Restructuring and other charges (a)
12.9
7.4
4.3
(+) Gain on sales of businesses (b)
(1.1)
—
—
Adjusted EBITDA
225.1
207.7
185.7
(a) Third quarter 2025 includes pre-tax charges of $12.9 million consisting of $7.2 million of start-up and transaction-related costs, $3.6 million of transformation-related costs, and $2.5 million of losses on the sale of customer accounts receivable, partially offset by credits of $0.4 million due to a reduction in severance-related reserves. Second quarter 2025 includes pre-tax charges of $7.4 million consisting of $7.1 million of start-up and transaction-related costs and $1.6 million of losses on the sale of customer accounts receivable, partially offset by credits of $1.3 million due to a reduction in severance-related reserves. Third quarter 2024 includes pre-tax charges of $4.3 million primarily for start-up and transaction-related costs.
(b) Third quarter 2025 includes a $1.1 million gain on the sale of a non-core business previously reported in the HPMC segment.
Adjusted Free Cash Flow
Management utilizes a non-GAAP measure, Adjusted free cash flow, to assess the cash flow generation of the Company's operations. Adjusted free cash flow is defined as the total cash provided by (used in) operating activities and investing activities as presented on the consolidated statements of cash flows, adjusted to exclude cash contributions to the Company's U.S. qualified defined benefit pension plan.
Management utilizes this measure to assess the cash flow generation performance of its business as it excludes cash contributions to the Company's U.S. qualified benefit pension plan that are periodic rather than recurring. The impact of cash generated from the sale of assets and non-core businesses is included in the measure as the proceeds of such transactions are contemplated by Management in setting capital budgets to fund capital expenditures. Management believes this measure provides investors with additional meaningful insights as to the Company's ability to generate cash in excess of operational and investing needs. Adjusted free cash flow is not intended to be a measure of free cash flow for management's discretionary use, as it does not consider certain cash requirements such as interest, tax, or other contractually required payments. Further, adjusted free cash flow should be viewed in addition to, and not superior to or as an alternative for, the Company's reported results prepared in accordance with GAAP.
Fiscal Quarter Ended
Fiscal Year-To-Date
Period Ended
September 28,
2025
September 29,
2024
September 28,
2025
September 29,
2024
Cash provided by operating activities
$ 229.5
$ 24.0
$ 298.5
$ 26.3
Add back: Cash contributions to U.S. qualified
defined benefit pension plan
—
—
—
—
Cash provided by operating activities excluding
pension contributions
229.5
24.0
298.5
26.3
Cash used in investing activities
(29.8)
(61.1)
(149.0)
(178.2)
Adjusted Free Cash Flow
$ 199.7
$ (37.1)
$ 149.5
$ (151.9)
Managed Working Capital
As part of managing the performance of our business, we focus on Managed working capital, a non-GAAP financial measure that we define as gross accounts receivable, short-term contract assets and gross inventories, excluding the effects of reserves for uncollectible accounts receivable and inventory valuation reserves, less accounts payable and short-term contract liabilities. We assess Managed working capital performance as a percentage of the prior three months annualized sales. Managed working capital is not intended to replace working capital or other GAAP financial measures or to be used as a measure of liquidity.
Management believes this non-GAAP financial measure focuses on the assets and liabilities most closely attributable to our core operations, allowing Management to quantify and evaluate the asset intensity of our business. Further, Management believes this non-GAAP financial measure provides investors with additional insights into the Company's effectiveness in balancing the need to maintain appropriate asset levels to support sales growth and operations while deploying our cash effectively. The December 29, 2024 amounts include management working capital balances that were classified as held for sale.
September 28,
June 29,
December 29,
2025
2025
2024
Accounts receivable
$ 709.9
$ 787.9
$ 709.2
Short-term contract assets
94.3
86.4
75.6
Inventory
1,405.6
1,412.6
1,353.0
Accounts payable
(493.5)
(532.3)
(609.1)
Short-term contract liabilities
(159.2)
(171.7)
(169.4)
Subtotal
1,557.1
1,582.9
1,359.3
Allowance for doubtful accounts
4.7
3.4
15.0
Inventory reserves
77.5
80.3
68.5
Net managed working capital held for sale
—
—
8.5
Managed working capital
$ 1,639.3
$ 1,666.6
$ 1,451.3
Annualized prior 3 months sales
$ 4,502.2
$ 4,561.4
$ 4,690.5
Managed working capital as a
% of annualized sales
36.4 %
36.5 %
30.9 %
Change in managed working capital:
Year-to-date 2025
$ 188.0
Q3 2025
$ (27.3)
SOURCE ATI