ATI Inc. (NYSE:ATI) Q3 2023 Earnings Conference Call November 2, 2023 10:30 AM ET

Company Participants

Dave Weston - Vice President of Investor Relations

Bob Wetherbee - Chairman and CEO

Don Newman - Executive VP of Finance and CFO

David Strauss - Barclays

Richard Safran - Seaport Research

Phil Gibbs - KeyBanc Capital Markets

Seth Seifman - JPMorgan

Timna Tanners - Wolfe Research

Gautam Khanna - TD Cowen

Josh Sullivan - Benchmark Company

Operator

Hello, and welcome to the ATI Third Quarter 2023 Results Conference Call. My name is Alex. I'll be coordinating the call today. [Operator Instructions]

I now hand it over to your host, Dave Weston, Vice President of Investor Relations. Please go ahead.

Dave Weston

Thank you. Good morning, and welcome to ATI's third quarter 2023 earnings call. Today's discussion is being broadcast on our website. Participating in today's call to share key points from our third quarter results, are Bob Wetherbee, Board, Chair and CEO; and Don Newman, Executive Vice President and CFO.

Before starting our prepared remarks, I would like to draw your attention to the supplemental presentation that accompanies this call. Those slides provide additional color and details on our results and outlook. It can be found on our website at atimaterials.com. After our prepared remarks, we'll open the lines 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, Dave. Good morning, everyone. Q3 marked another solid quarter of A&D growth and continued margin expansion for ATI. This morning, I'll highlight 3 major points: first, aerospace and defense market demand for ATI products is strong, and we expect continued growth for years to come; second, our transformational actions are driving meaningfully improved results, better still, we're in the early stages of the journey with many benefits yet to come; third, our strong execution is delivering for our customers and shareholders.

And now some insights into each of these. First up, the continued strong aerospace and defense market demand for ATI's products. Order lead times for some specialty product lines are out as far as the first quarter of 2025 and we're still years away from peak airframe build rates as recent world events reinforce safety, security and sustained performance remain more important than ever.

ATI is well positioned to deliver on this expectation. We have the right products, the right capabilities and the right team. A&D sales hit 61% in the third quarter, up from 58% in Q2. This is an all-time record for ATI, and we're well on our way to our 65% target.