ATI Inc shares surged 13.18% during intraday trading on Thursday, as investors reacted to the company's second-quarter financial results that handily beat analyst expectations and a significantly upgraded full-year outlook.

The high-performance materials producer reported Q2 adjusted earnings per share of $1.23, crushing the consensus estimate of $1.04 by 18.27% and marking a 66% increase year-over-year. Revenue rose 11% to $1.26 billion, also exceeding analyst forecasts of $1.22 billion. The strong results were driven by robust demand in aerospace and defense markets, with sales to the sector climbing 13% overall and the Advanced Alloys & Solutions segment posting a 34% surge in aerospace and defense revenue. Adjusted EBITDA climbed 37% to $284.4 million, with margins widening 4.4 percentage points to 22.6%.

Adding to the bullish sentiment, ATI raised its full-year 2026 adjusted EBITDA guidance to a range of $1.135 billion to $1.185 billion, up from the prior $1.01 billion to $1.06 billion. The company also lifted its full-year adjusted EPS forecast to $4.90-$5.18, well above the earlier $4.20-$4.48 range and the consensus estimate of $4.48. For the third quarter, ATI projected adjusted EPS of $1.31 to $1.37, compared to the $1.15 analyst consensus. The record order backlog of $4.4 billion, up 18% year-over-year, further underscored the strong demand environment.