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

The company reported adjusted earnings per share of $0.72, handily beating the analyst consensus estimate of $0.59. Revenue for the quarter came in at $1.14 billion, surpassing expectations of $1.09 billion. ATI's strong performance was driven primarily by its aerospace and defense segment, which accounted for 66% of total Q1 sales and grew 23% year-over-year.

Kimberly A. Fields, President and CEO of ATI, commented on the results: "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. Our differentiated solutions continue to resonate with aerospace and defense customers, reflected in robust demand and growing contractual support."

Adding to investor optimism, ATI provided an upbeat outlook for the full year 2025. The company raised its adjusted earnings per share guidance to a range of $2.87 to $3.09, above the current analyst consensus of $2.86. For the second quarter, ATI expects adjusted EPS between $0.67 and $0.73, compared to the analyst estimate of $0.68.

The impressive earnings beat and raised guidance have fueled investor enthusiasm, leading to the significant pre-market stock price increase. As the aerospace and defense industries continue to show strong demand for ATI's specialty materials and components, the company appears well-positioned for continued growth throughout 2025.