ATI Inc. (NYSE:ATI) Q3 2022 Earnings Conference Call November 2, 2022 2:30 PM ET

Company Participants

Tom Wright - IR

Bob Wetherbee - Board Chair, President and CEO

Don Newman - EVP and CFO

Conference Call Participants

Seth Seifman - JPMorgan

Phil Gibbs - KeyBanc

Gautam Khanna - Cowen

Josh Sullivan - The Benchmark Co.

Timna Tanners - Wolfe Research

Operator

Thank you for standing by and welcome to the ATI Q3 2022 Earnings Call. My name is Sam and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions]

I'd now like to turn the call over to our host, Tom Wright with ATI. You may proceed.

Tom Wright

Good afternoon and welcome to ATI's third quarter 2022 earnings calls. Today's discussion is being broadcast on our website. Participating in today's call are Bob Wetherbee, Board Chair, President and CEO; and Don Newman, Executive Vice President and CFO. Bob and Don will focus on our third quarter highlights and key messages.

A supplemental presentation is available on our website. It provides additional color and details on our results and outlook. After our prepared remarks, we'll open the line for questions. As a reminder, all forward-looking statements are subject to various assumptions and caveats. These are noted in the earnings release and in the slide presentation.

Now, I'll turn the call over to Bob.

Bob Wetherbee

Thanks, Tom. Good afternoon. We adjusted the time of our call to accommodate Boeing's Investor Day this morning. Thanks for altering your schedule to join us.

Let's go straight to the bottom line. Strong Q3 results confirmed another quarter of solid execution. We're delivering on customer commitments as commercial aerospace gains momentum and geopolitical events trigger significant spending for end-use applications in the defense market.

I'll highlight three key things today. First, strong aerospace and defense market momentum is accelerating and ATI is expanding to keep pace. In the third quarter, half of ATI's revenue came from aerospace and defense. That's the highest level since Q1 of 2020, a very notable milestone. Revenue in these core markets grew 22% sequentially and 87% year-over-year. That's really a truly astounding rate of change. The team has responded to the market opportunity, still early in the ramp of the recovery, depending on the market you're in, but phenomenal efforts and phenomenal results.