Shares of ATI Inc. (NYSE: ATI) surged 9.87% in pre-market trading on Thursday after the specialty materials manufacturer reported first-quarter 2025 results that significantly exceeded analyst expectations and raised its full-year guidance.

ATI reported adjusted earnings per share of $0.72 for Q1, handily beating the analyst consensus estimate of $0.59. Revenue came in at $1.14 billion, topping expectations of $1.09 billion. The company's aerospace and defense segment, which accounted for 66% of total Q1 sales, grew by 23% year-over-year, driven by robust demand for commercial jet engines and airframes.

"ATI's strong start to 2025 builds on the momentum we established in the fourth quarter of last year and reflects the value of our strategic investments in capacity, capabilities and reliability," said Kimberly A. Fields, President and CEO. "Our differentiated solutions continue to resonate with aerospace and defense customers, reflected in robust demand and growing contractual support."

Adding to investor optimism, ATI raised its full-year 2025 adjusted earnings per share guidance to a range of $2.87 to $3.09, up from its previous outlook of $2.80 to $3.00 and above the current analyst consensus of $2.86. The company also provided Q2 2025 adjusted EPS guidance of $0.67 to $0.73, in line with analysts' expectations.

The strong results and improved outlook underscore ATI's success in capitalizing on the ongoing recovery in the commercial aerospace market and sustained strength in defense spending. With its strategic positioning in high-performance materials for critical applications, ATI appears well-positioned to benefit from these positive industry trends throughout 2025 and beyond.