Shares of ATI Inc. (ATI) plummeted 13.64% in pre-market trading on Thursday following the release of its second-quarter 2025 financial results. The significant drop comes as the specialty materials manufacturer's revenue fell short of analysts' estimates, overshadowing both its earnings beat and a positive development in its partnership with Boeing.

ATI reported Q2 revenue of $1,140.4 million, missing the IBES estimate of $1,152 million. However, the company's adjusted earnings per share (EPS) came in at $0.74, surpassing the estimated $0.72. ATI's net income rose to $100.7 million, or $0.70 per share, up from $81.9 million, or $0.58 per share, in the same period last year. The adjusted EBITDA for the quarter stood at $207.7 million, representing 18.2% of sales and marking a 14% increase year-over-year.

In a separate announcement, ATI revealed an extension and expansion of its long-term titanium supply agreement with Boeing, positioning the company to serve Boeing's third-party subsidiaries. Despite this positive development and the overall strong earnings report, the revenue miss appears to have significantly impacted investor sentiment. The company's outlook for Q3 adjusted EPS of $0.69-$0.75, below the consensus of $0.76, may have further contributed to the negative market reaction. As trading continues, investors will be closely watching how ATI addresses the revenue shortfall and whether it can maintain its positive outlook for the remainder of 2025 and into 2026.