Shares of ATI Inc. (ATI) jumped 5.74% in pre-market trading on Thursday after the specialty materials and components manufacturer reported first-quarter earnings that surpassed analyst expectations and provided an optimistic outlook for the year.

For the first quarter of 2025, ATI reported:

• Adjusted earnings per share of $0.72, beating the analyst consensus of $0.59
• Revenue of $1.14 billion, surpassing estimates of $1.09 billion
• Adjusted EBITDA of $194.6 million, exceeding expectations of $184.4 million

The company's strong performance was driven by robust demand in its aerospace and defense markets, which accounted for 66% of Q1 2025 sales. ATI reported a 23% year-over-year increase in aerospace and defense sales, demonstrating the strength of its core business segments.

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."

Looking ahead, ATI provided a positive outlook for the second quarter and full year 2025. The company expects adjusted earnings per share of $0.67 to $0.73 for Q2 and raised its full-year guidance to $2.87 to $3.09 per share, which is above the current analyst consensus of $2.86.

The market's enthusiastic response to ATI's earnings report and improved guidance suggests investors are confident in the company's growth trajectory and its ability to capitalize on strong demand in its key markets.