Shares of ATI Inc. tumbled 6.62% in pre-market trading, despite the company reporting better-than-expected earnings for the second quarter of 2025. The sharp decline comes as the specialty materials manufacturer's revenue fell short of analysts' estimates, overshadowing its earnings beat and positive developments in its Boeing partnership.
ATI reported adjusted earnings per share of $0.74, surpassing the IBES estimate of $0.72. However, the company's revenue of $1,140.4 million missed the mark, falling below the expected $1,152 million. This revenue shortfall appears to be the primary driver behind the stock's pre-market plunge, as investors express concerns about the company's top-line growth.
Despite the negative market reaction, ATI's Q2 results showed some positive trends. The company's net income rose to $100.7 million, up from $81.9 million in the same quarter last year. Additionally, ATI announced an extension and expansion of its long-term titanium supply agreement with Boeing, potentially securing future revenue streams. However, these positive developments were not enough to offset investor disappointment in the revenue miss, leading to the significant pre-market decline.
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