ATI INC 10-Q

Item 1. Financial Statements ATI Inc. and Subsidiaries Consolidated Balance Sheets (In millions, except share and per share amounts) (Current period unaudited) March 29, 2026 December 28, 2025 ASSETS Current Assets: Cash and cash equivalents $ 401.7 $ 416.7 Accounts receivable, net 664.4 686.1 Short-term contract assets 63.1 72.8 Inventories, net 1,580.3 1,403.2 Prepaid expenses and other current assets 95.1 101.2 Total Current Assets 2,804.6 2,680.0 Property, plant and equipment, net 1,951.5 1,940.6 Goodwill 225.2 225.2 Other assets 252.8 253.8 Total Assets $ 5,234.1 $ 5,099.6 LIABILITIES AND EQUITY Current Liabilities: Accounts payable $ 654.9 $ 568.2 Accrued liabilities 189.1 240.5 Short-term contract liabilities 154.4 146.4 Short-term debt and current portion of long-term debt 33.2 31.1 Other current liabilities 17.9 20.1 Total Current Liabilities 1,049.5 1,006.3 Long-term debt 1,794.7 1,718.3 Accrued postretirement benefits 154.2 158.5 Pension liabilities 42.3 41.4 Other long-term liabilities 307.1 258.4 Total Liabilities 3,347.8 3,182.9 Equity: ATI Stockholders’ Equity: Preferred stock, par value $ 0.10 : authorized- 50,000,000 shares; issued- none — — Common stock, par value $ 0.10 : authorized- 500,000,000 shares; issued- 142,871,688 shares at March 29, 2026 and 142,871,688 shares at December 28, 2025; outstanding- 136,467,940 shares at March 29, 2026 and 135,934,852 shares at December 28, 2025 14.3 14.3 Additional paid-in capital 1,766.7 1,884.6 Retained earnings 586.9 468.7 Treasury stock: 6,403,748 shares at March 29, 2026 and 6,936,836 shares at December 28, 2025 ( 534.5 ) ( 502.7 ) Accumulated other comprehensive loss, net of tax ( 62.9 ) ( 60.4 ) Total ATI stockholders’ equity 1,770.5 1,804.5 Noncontrolling interests 115.8 112.2 Total Equity 1,886.3 1,916.7 Total Liabilities and Equity $ 5,234.1 $ 5,099.6 The accompanying notes are an integral part of these statements. 1 ATI Inc. and Subsidiaries Consolidated Statements of Operations (In millions, except per share amounts) (Unaudited) Quarter ended March 29, 2026 March 30, 2025 Sales $ 1,151.5 $ 1,144.4 Cost of sales 888.6 908.6 Gross profit 262.9 235.8 Selling and administrative expenses 92.1 85.0 Restructuring charges 7.0 — Loss on asset sales and sales of businesses, net — 3.9 Operating income 163.8 146.9 Nonoperating retirement benefit expense ( 4.3 ) ( 3.9 ) Interest expense, net ( 23.7 ) ( 23.0 ) Other income, net 0.8 1.5 Income before income taxes 136.6 121.5 Income tax provision 16.1 21.0 Net income 120.5 100.5 Less: Net income attributable to noncontrolling interests 2.3 3.5 Net income attributable to ATI $ 118.2 $ 97.0 Basic net income attributable to ATI per common share $ 0.86 $ 0.68 Diluted net income attributable to ATI per common share $ 0.85 $ 0.67 The accompanying notes are an integral part of these statements. 2 ATI Inc. and Subsidiaries Consolidated Statements of Comprehensive Income (Loss) (In millions) (Unaudited) Quarter ended March 29, 2026 March 30, 2025 Net income $ 120.5 $ 100.5 Currency translation adjustment Unrealized net change arising during the period ( 1.8 ) 7.4 Reclassification adjustment included in net income — 5.1 Total ( 1.8 ) 12.5 Derivatives Net derivatives loss on hedge transactions 2.4 6.4 Reclassification to net income of net realized loss ( 2.9 ) 1.0 Less: Income taxes on derivative transactions ( 0.1 ) 1.7 Total ( 0.4 ) 5.7 Postretirement benefit plans Actuarial loss Amortization of net actuarial loss 1.3 1.3 Prior service cost Amortization to net income of net prior service credits 0.1 ( 0.1 ) Less: Income taxes on postretirement benefit plans 0.4 0.3 Total 1.0 0.9 Other comprehensive income (loss), net of tax ( 1.2 ) 19.1 Comprehensive income 119.3 119.6 Less: Comprehensive income attributable to noncontrolling interests 3.6 4.7 Comprehensive income attributable to ATI $ 115.7 $ 114.9 The accompanying notes are an integral part of these statements. 3 ATI Inc. and Subsidiaries Consolidated Statements of Cash Flows (In millions) (Unaudited) Quarter ended March 29, 2026 March 30, 2025 Operating Activities: Net income $ 120.5 $ 100.5 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 45.0 40.8 Non-cash restructuring charges, net 4.8 — Share-based compensation 6.4 7.2 Deferred taxes 5.5 9.0 Net gain from disposal of property, plant and equipment 0.1 0.3 Net loss on sales of businesses — 3.7 Changes in operating assets and liabilities: Inventories ( 179.0 ) ( 40.8 ) Accounts receivable 21.5 ( 115.0 ) Accounts payable 94.8 ( 34.6 ) Retirement benefits ( 3.1 ) ( 2.3 ) Accrued liabilities and other 11.7 ( 61.3 ) Cash provided by (used in) operating activities 128.2 ( 92.5 ) Investing Activities: Purchases of property, plant and equipment ( 55.2 ) ( 53.3 ) Proceeds from sales of businesses, net of transaction costs 1.6 — Other — 2.7 Cash used in investing activities ( 53.6 ) ( 50.6 ) Financing Activities: Borrowings on long-term debt 105.0 — Payments on long-term debt and finance leases ( 38.6 ) ( 8.0 ) Net borrowings under credit facilities 0.9 — Purchase of treasury stock ( 75.0 ) ( 70.0 ) Shares repurchased for income tax withholding on share-based compensation and other ( 81.1 ) ( 29.5 ) Cash used in financing activities ( 88.8 ) ( 107.5 ) Effect of exchange rate changes on cash and cash equivalents ( 0.8 ) 5.2 Decrease in cash and cash equivalents ( 15.0 ) ( 245.4 ) Cash and cash equivalents at beginning of period 416.7 721.2 Cash and cash equivalents at end of period $ 401.7 $ 475.8 The accompanying notes are an integral part of these statements. 4 ATI Inc. and Subsidiaries Statements of Changes in Consolidated Equity (In millions) (Unaudited) ATI Stockholders Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) Non- controlling Interests Total Equity Balance, December 29, 2024 $ 14.3 $ 1,943.9 $ 64.3 $ ( 82.6 ) $ ( 89.5 ) $ 104.8 $ 1,955.2 Net income — — 97.0 — — 3.5 100.5 Other comprehensive income — — — — 17.9 1.2 19.1 Purchase of treasury stock — — — ( 70.2 ) — — ( 70.2 ) Employee stock plans — ( 70.1 ) — 47.8 — — ( 22.3 ) Balance, March 30, 2025 $ 14.3 $ 1,873.8 $ 161.3 $ ( 105.0 ) $ ( 71.6 ) $ 109.5 $ 1,982.3 Balance, December 28, 2025 $ 14.3 $ 1,884.6 $ 468.7 $ ( 502.7 ) $ ( 60.4 ) $ 112.2 $ 1,916.7 Net income — — 118.2 — — 2.3 120.5 Other comprehensive income (loss) — — — — ( 2.5 ) 1.3 ( 1.2 ) Purchase of treasury stock — — — ( 75.0 ) — — ( 75.0 ) Employee stock plans — ( 117.9 ) — 43.2 — — ( 74.7 ) Balance, March 29, 2026 $ 14.3 $ 1,766.7 $ 586.9 $ ( 534.5 ) $ ( 62.9 ) $ 115.8 $ 1,886.3 The accompanying notes are an integral part of these statements. 5 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Unaudited Note 1. Accounting Policies The interim consolidated financial statements include the accounts of ATI Inc. and its subsidiaries. Unless the context requires otherwise, “ATI” and “the Company” refer to ATI Inc. and its subsidiaries. The Company follows a 4-4-5 or 5-4-4 fiscal calendar, whereby each fiscal quarter consists of thirteen weeks grouped into two four-week months and one five-week month, and its fiscal year ends on the Sunday closest to December 31. Unless otherwise stated, references to years and quarters in this Quarterly Report on Form 10-Q relate to fiscal years and quarters, rather than calendar years and quarters. These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and note disclosures required by U.S. generally accepted accounting principles for complete financial statements. In management’s opinion, all adjustments (which include only normal recurring adjustments) considered necessary for a fair presentation have been included. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2025 Annual Report on Form 10-K. The results of operations for these interim periods are not necessarily indicative of the operating results for any future period. The December 28, 2025 financial information has been derived from the Company’s audited consolidated financial statements. Pending Accounting Pronouncements In November 2024, the FASB issued new accounting guidance related to expense disaggregation disclosures. This guidance requires entities to disclose specified information about certain costs and expenses including (1) the amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization, (2) include certain amounts that are already required to be disclosed under current generally accepted accounting principles in the same disclosure as the other disaggregation requirements, (3) a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, and (4) the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. This new guidance for annual disclosures will be effective for the Company for fiscal year 2027 and for interim disclosures will be effective for the Company for fiscal year 2028. The guidance can be applied prospectively or retrospectively and early adoption is permitted. The Company does not expect to early adopt this guidance and does not expect these changes to have an impact on the Company’s consolidated financial statements other than disclosure requirements. Reclassifications The Company reclassified certain prior period amounts in its unaudited condensed consolidated balance sheets to conform to our current period presentation. Specifically, we have reclassified certain amounts in “Other current liabilities” to “Accrued liabilities”. This reclassification has no impact on total liabilities or cash flows. Note 2. Revenue from Contracts with Customers Disaggregation of Revenue The Company operates in two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). Revenue is disaggregated within these two business segments by diversified global markets, primary geographical markets and diversified products. Comparative information regarding the Company’s overall revenues by global and geographical markets for the quarterly periods ended March 29, 2026 and March 30, 2025 is included in the following tables. 6 (in millions) Quarter ended March 29, 2026 March 30, 2025 HPMC AA&S Total HPMC AA&S Total Diversified Global Markets: Aerospace & Defense: Jet Engines- Commercial $ 431.0 $ 41.0 $ 472.0 $ 397.3 $ 24.1 $ 421.4 Airframes- Commercial 78.7 107.9 186.6 81.8 124.0 205.8 Defense 59.0 80.0 139.0 58.4 68.8 127.2 Total Aerospace & Defense 568.7 228.9 797.6 537.5 216.9 754.4 Other Markets: Specialty Energy 15.6 46.0 61.6 12.4 38.1 50.5 Electronics — 28.3 28.3 — 39.6 39.6 Medical 9.7 17.8 27.5 15.8 26.6 42.4 Automotive 0.7 60.8 61.5 1.4 59.2 60.6 Conventional Energy 1.9 82.3 84.2 1.7 120.1 121.8 Construction/Mining 11.7 27.3 39.0 7.1 25.8 32.9 Other 6.0 45.8 51.8 8.2 34.0 42.2 Total Other Markets 45.6 308.3 353.9 46.6 343.4 390.0 Total $ 614.3 $ 537.2 $ 1,151.5 $ 584.1 $ 560.3 $ 1,144.4 (in millions) Quarter ended March 29, 2026 March 30, 2025 HPMC AA&S Total HPMC AA&S Total Primary Geographical Market: United States $ 335.6 $ 356.9 $ 692.5 $ 316.4 $ 327.4 $ 643.8 Europe 201.6 47.1 248.7 191.3 69.4 260.7 Asia 36.9 67.0 103.9 33.3 81.0 114.3 Canada 19.8 22.4 42.2 20.1 19.7 39.8 South America, Middle East and other 20.4 43.8 64.2 23.0 62.8 85.8 Total $ 614.3 $ 537.2 $ 1,151.5 $ 584.1 $ 560.3 $ 1,144.4 Comparative information regarding the Company’s major products based on their percentages of sales is included in the following table. Hot-Rolling and Processing Facility (HRPF) conversion service sales in the AA&S segment are excluded from this presentation. Quarter ended March 29, 2026 March 30, 2025 HPMC AA&S Total HPMC AA&S Total Diversified Products and Services: Nickel-based alloys and specialty alloys 45 % 53 % 49 % 41 % 55 % 48 % Precision forgings, castings and components 36 % — % 20 % 39 % — % 20 % Titanium and titanium-based alloys 19 % 15 % 17 % 20 % 17 % 19 % Zirconium and related alloys — % 21 % 9 % — % 17 % 8 % Precision rolled strip products — % 11 % 5 % — % 11 % 5 % Total 100 % 100 % 100 % 100 % 100 % 100 % The Company maintained a backlog of confirmed orders totaling $ 4.1 billion and $ 4.0 billion at March 29, 2026 and March 30, 2025, respectively. Due to the structure of the Company’s long-term agreements, approximately 70 % of this backlog at March 29, 2026 represented booked orders with performance obligations that will be satisfied within the next 12 months. The backlog does not reflect any elements of variable consideration. Accounts Receivable 7 As of March 29, 2026 and December 28, 2025, accounts receivable from customers were $ 668.3 million and $ 690.3 million, respectively. The following represents the rollforward of accounts receivable - reserve for doubtful accounts for the quarterly periods ended March 29, 2026 and March 30, 2025: (in millions) Accounts Receivable - Reserve for Doubtful Accounts March 29, 2026 March 30, 2025 Balance as of beginning of year $ 4.2 $ 15.0 Expense to increase the reserve — 0.1 Write-offs and recoveries of uncollectible accounts ( 0.3 ) ( 3.5 ) Balance as of period end $ 3.9 $ 11.6 Contract Balances The following represents the rollforward of contract assets and liabilities for the quarterly periods ended March 29, 2026 and March 30, 2025: (in millions) Contract Assets Short-term March 29, 2026 March 30, 2025 Balance as of beginning of year $ 72.8 $ 75.6 Recognized in current year 28.2 35.2 Reclassified to accounts receivable ( 37.9 ) ( 24.9 ) Balance as of period end $ 63.1 $ 85.9 (in millions) Contract Liabilities Short-term March 29, 2026 March 30, 2025 Balance as of beginning of year $ 146.4 $ 169.4 Recognized in current year 59.4 53.4 Amounts in beginning balance reclassified to revenue ( 41.7 ) ( 48.5 ) Current year amounts reclassified to revenue ( 11.5 ) ( 6.6 ) Other ( 0.9 ) ( 0.3 ) Reclassification to/from long-term 2.7 19.7 Balance as of period end $ 154.4 $ 187.1 Long-term (a) March 29, 2026 March 30, 2025 Balance as of beginning of year $ 91.3 $ 45.3 Recognized in current year 51.8 1.7 Amounts in beginning balance reclassified to revenue ( 1.8 ) ( 0.4 ) Other ( 0.6 ) ( 1.9 ) Reclassification to/from short-term ( 2.7 ) ( 19.7 ) Balance as of period end $ 138.0 $ 25.0 (a) Long-term contract liabilities are included in other long-term liabilities on the consolidated balance sheets. Contract costs for obtaining and fulfilling a contract were $ 16.0 million and $ 15.6 million as of March 29, 2026 and December 28, 2025, respectively, and are reported in other long-term assets on the consolidated balance sheet. Contract cost amortization expense for the quarter ended March 29, 2026 was $ 0.5 million. Contract cost amortization expense for the quarter ended March 30, 2025 was $ 0.2 million. Note 3. Inventories Inventories at March 29, 2026 and December 28, 2025 were as follows (in millions): 8 March 29, 2026 December 28, 2025 Raw materials and supplies $ 308.6 $ 245.6 Work-in-process 1,268.2 1,137.4 Finished goods 103.5 100.6 1,680.3 1,483.6 Inventory valuation reserves ( 100.0 ) ( 80.4 ) Total inventories, net $ 1,580.3 $ 1,403.2 Inventories are stated at the lower of cost (first-in, first-out (FIFO) and average cost methods) or net realizable value. Note 4. Property, Plant and Equipment Property, plant and equipment at March 29, 2026 and December 28, 2025 was as follows (in millions): March 29, 2026 December 28, 2025 Land $ 31.2 $ 31.2 Buildings and leasehold improvements 773.1 759.2 Equipment 3,423.2 3,389.8 4,227.5 4,180.2 Accumulated depreciation and amortization ( 2,276.0 ) ( 2,239.6 ) Total property, plant and equipment, net $ 1,951.5 $ 1,940.6 The construction in progress portion of property, plant and equipment at March 29, 2026 and December 28, 2025 was $ 375.2 million and $ 359.4 million, respectively. Capital expenditures on the consolidated statement of cash flows for the quarters ended March 29, 2026 and March 30, 2025 exclude $ 31.4 million and $ 26.0 million, respectively, of accrued capital expenditures that were included in property, plant and equipment at March 29, 2026 and March 30, 2025, respectively. Note 5. Divestitures During the first quarter of 2025, the Company completed the sale of certain immaterial, non-core operations in Birmingham, UK and Dusseldorf, Germany, which were part of our European business in the HPMC Segment. A $ 3.7 million loss on sale of these operations is reported in gain/loss on asset sales and sales of businesses, net, on the consolidated statement of operations for the quarter ended March 30, 2025, and is excluded from segment results. The Company received proceeds, net of transaction costs, of $ 5.0 million in 2025. As of December 28, 2025, the Company expected to receive additional proceeds of $ 4.9 million, of which, $ 1.6 million was received during the quarter ended March 29, 2026. These proceeds are reported as an investing activity on the consolidated statement of cash flows. Note 6. Joint Ventures The financial results of majority-owned joint ventures are consolidated into the Company’s operating results and financial position, with the minority ownership interest recognized in the consolidated statements of operations as net income attributable to noncontrolling interests, and as equity attributable to the noncontrolling interests within total stockholders’ equity. Investments in which the Company exercises significant influence, but which it does not control (generally a 20% to 50% ownership interest), are accounted for under the equity method of accounting. Majority-Owned Joint Venture STAL: The Company has a 60 % interest in the Chinese joint venture known as STAL. The remaining 40 % interest in STAL is owned by China Baowu Steel Group Corporation Limited, a state authorized investment company whose equity securities are publicly traded in the People’s Republic of China. STAL is part of ATI’s AA&S segment and manufactures Precision Rolled Strip (PRS) stainless products mainly for the electronics and automotive markets located in Asia. Cash and cash equivalents held by STAL as of March 29, 2026 were $ 75.1 million. 9 Note 7. Supplemental Financial Statement Information Other income (expense), net for the quarters ended March 29, 2026 and March 30, 2025 was as follows: (in millions) Quarter ended March 29, 2026 March 30, 2025 Rent and royalty income $ 0.8 $ 1.5 Total other income, net $ 0.8 $ 1.5 Restructuring The Company recognized restructuring charges of $ 7.0 million in the quarter ended March 29, 2026, related to the rationalization of certain domestic facilities in the HPMC segment. These charges included $ 3.3 million of severance-related charges for approximately 100 employees and $ 3.7 million of impairment charges for equipment, leases and inventory. These amounts are presented as restructuring charges in the consolidated statements of operations and are excluded from segment results. Additionally, the $ 3.6 million restructuring reserve balance at March 29, 2026 is recorded in accrued liabilities on the consolidated balance sheet. During the first quarter ended March 30, 2025, the Company de-recognized $ 0.5 million of restructuring reserves in connection with the sale of non-core operations in Birmingham, UK and Dusseldorf, Germany (see Note 5 for further explanation). Restructuring reserves for severance cost activity is as follows: Severance and Employee Benefit Costs Balance at December 28, 2025 $ 0.4 Additions 3.3 Payments ( 0.1 ) Balance at March 29, 2026 $ 3.6 Supplier Financing The Company participates in supplier financing programs with two financial institutions to offer its suppliers the option for access to payment in advance of an invoice due date. Under such programs, these financial institutions provide early payment to suppliers at their request for invoices that ATI has confirmed as valid at a predetermined discount rate commensurate with the creditworthiness of ATI. As of March 29, 2026 and December 28, 2025, the Company had $ 101.0 million and $ 52.8 million, respectively, reported in accounts payable on the consolidated balance sheets under such programs. Accounts Receivable Securitization On September 19, 2025, ATI Specialty Materials, LLC (“Specialty Materials”) and its indirect wholly owned subsidiary, ATI Securitization LLC (“ATI Securitization”) entered into a three-year , $ 125.0 million Receivables Purchase and Financing Agreement (the “Receivables Facility”) with PNC Bank, National Association, as Administrative Agent, and certain Purchasers/Lenders party thereto. Under the Receivables Facility, Specialty Materials sells or contributes, on an ongoing basis, certain of its trade accounts receivable, together with related security and interests in the proceeds thereof, to its wholly owned subsidiary, ATI Securitization Holdings LLC (ATI Holdings). ATI Holdings subsequently sells or contributes those receivable and related security and interests to ATI Securitization, its wholly owned subsidiary, which is a consolidated bankruptcy-remote special purpose entity created for the sole purpose of transacting under the Receivables Facility. ATI Securitization may borrow from, and/or sell receivables under the Receivables Facility at fair value and will secure its obligations with a pledge of undivided interests in such receivables, together with related security and interest in the proceeds thereof. In all instances, Specialty Materials retains the servicing of the accounts receivable transferred, which includes collection and administrative activities. ATI has agreed to guarantee the performance of Specialty Materials obligations under the Receivables Facility. The maximum aggregate funding available under the Receivables Facility is $ 125.0 million at any one time, subject to the availability of eligible receivables and other customary factors and conditions as well as covenants as set forth in the Receivables Facility. Amounts outstanding under the Receivables Facility accrue interest at an adjusted SOFR plus the applicable margin. The Receivables Facility also requires the maintenance of a minimum utilization level equal to 50 % of the facility amount. 10 ATI Securitization is a separate legal entity with its own creditors. In the event of a liquidation of ATI Securitization, its creditors would be entitled to be satisfied out of the assets of ATI Securitization prior to any assets or value becoming available to creditors or equity holders for other ATI entities. The assets of ATI Securitization, including any funds of ATI Securitization that may be commingled with funds of any of its affiliates for purposes of cash management and related efficiencies, are not available to pay creditors of ATI or any affiliate thereof, except to the extent collections of receivables are in excess of the amounts owed by ATI Securitization under the Receivables Facility. Sales of accounts receivable under the Receivables Facility meet the sale criteria under ASC 860, Transfers and Servicing (“ASC 860”) , and are derecognized from the consolidated balance sheet. Cash receipts, received at the time of the sale of receivables under the Receivables Facility, are classified as cash flow from operating activities in the consolidated statement of cash flows. As the Company retains the servicing rights of the receivables sold, the Company assessed the associated servicing liability under ASC 860 and determined that the liability is immaterial to the Company’s financial statements. During the quarterly period ended March 29, 2026, ATI Securitization sold $ 40.0 million of accounts receivable in exchange for $ 40.0 million of cash. The Company recorded a $ 1.0 million charge associated with the sale of the accounts receivable within selling and administrative expenses on its consolidated statement of operations, which is excluded from segment results. As of March 29, 2026, the Company has utilized $ 120 million of the maximum aggregate funding available under the Receivables facility. There were no borrowings under the Receivables Facility during the quarterly period ended March 29, 2026. Sale of Receivables Program During the fourth quarter of 2024, the Company entered into an accounts receivables purchase agreement (Receivables Purchase Agreement) with a third-party financial institution to periodically sell certain accounts receivable at a discount. These accounts receivable sales were accounted for as a sale of assets under ASC 860, Transfers and Servicing, as the Company’s continuing involvement is limited to servicing the accounts receivable, collecting the payments for the underlying accounts receivable and remitting such collections to the financial institution. The financial institution was responsible for any credit risk associated with the sold accounts receivable. The Company received the purchase price, equal to the accounts receivable less the discount, at the time of the sale. As of March 29, 2026, this program has ended and no amounts were outstanding to the financial institution. Other Customer Receivable Sales During the quarterly periods ended March 29, 2026 and March 30, 2025, the Company sold $ 131.7 million and $ 72.6 million, respectively, of certain customers’ accounts receivable through programs established by those customers with third-party financial institutions. These customers have extended payment terms and provide the programs to enable suppliers to receive more timely payments. The Company has no continuing involvement with the receivables sold under these programs, including no servicing requirement. The proceeds from these transactions are presented as changes in receivables within operating activities in the consolidated statement of cash flows. The losses associated with these transactions, which were $ 1.4 million for both quarters ended March 29, 2026 and March 30, 2025, respectively, are reflected in the Company’s consolidated statements of operations and are excluded from segment results. 11 Note 8. Debt Debt at March 29, 2026 and December 28, 2025 was as follows (in millions): March 29, 2026 December 28, 2025 ATI Inc. 7.25 % Notes due 2030 $ 425.0 $ 425.0 ATI Inc. 5.875 % Notes due 2027 350.0 350.0 ATI Inc. 5.125 % Notes due 2031 350.0 350.0 ATI Inc. 4.875 % Notes due 2029 325.0 325.0 ABL Term Loan 200.0 200.0 U.S. revolving credit facility 75.0 — Foreign credit facilities 1.0 — Finance leases and other 112.8 111.0 Debt issuance costs ( 10.9 ) ( 11.6 ) Debt 1,827.9 1,749.4 Short-term debt and current portion of long-term debt 33.2 31.1 Long-term debt $ 1,794.7 $ 1,718.3 Revolving Credit Facility The Company's amended Asset Based Lending (ABL) Credit Facility, is collateralized by the accounts receivable and inventory of the Company’s operations and includes a $ 600 million revolving credit facility, a letter of credit sub-facility of up to $ 200 million, a $ 200 million term loan (Term Loan), and a swing loan facility of up to $ 60 million. Additionally, the Company has the ability, through June 13, 2026 and as long as no default or event of default has occurred and is continuing, to borrow an additional term loan of up to $ 100 million in total, using one or two draws (the Delayed-Draw Term Loan). The Term Loan and Delayed-Draw Term Loan each bear interest at rate of 2.0 % above the adjusted Secured Overnight Financing Rate (SOFR) and can be prepaid in increments of $ 25 million if certain minimum liquidity conditions are satisfied. In addition, the Company has the right to request an increase of up to $ 300 million in the maximum amount available under the revolving credit facility for the duration of the ABL. The ABL facility also provides the Company with the option of including certain machinery and equipment as additional collateral for purposes of determining availability under the facility. The ABL term runs through June of 2030. The applicable interest rate for revolving credit borrowings under the ABL facility includes interest rate spreads based on available borrowing capacity that range between 1.25 % and 1.75 % for SOFR-based borrowings and between 0.25 % and 0.75 % for base rate borrowings. The ABL facility contains a financial covenant whereby the Company must maintain a fixed charge coverage ratio of not less than 1.00 :1.00 after an event of default has occurred and is continuing or if the undrawn availability under the ABL revolving credit portion of the facility is less than the greater of (i) 10 % of the then applicable maximum loan amount under the revolving credit portion of the ABL and the outstanding Term Loan balance, or (ii) $ 60.0 million. The Company was in compliance with the fixed charge coverage ratio as of March 29, 2026. Additionally, the Company must demonstrate minimum liquidity specified by the facility during the 90 -day period immediately preceding the stated maturity date of its 5.875 % Senior Notes due 2027 and the 4.875 % Notes due 2029. Costs associated with entering into the June 2025 ABL amendment were $ 2.8 million, and are being amortized to interest expense over the extended term of the facility ending June 2030, along with $ 1.9 million of unamortized deferred costs previously recorded for the ABL. The ABL, as amended, also contains customary affirmative and negative covenants for credit facilities of this type, including limitations on the Company’s ability to incur additional indebtedness or liens or to enter into investments, mergers and acquisitions, dispositions of assets and transactions with affiliates, some of which are more restrictive at any time during the term of the ABL when the Company’s fixed charge coverage ratio is less than 1.00 :1.00 and its undrawn availability under the revolving portion of the ABL is less than the greater of (a) $ 120 million or (b) 20 % of the sum of the maximum loan amount under the revolving credit portion of the ABL and the outstanding Term Loan balance. As of March 29, 2026, there were $ 75.0 million outstanding borrowings under the revolving portion of the ABL facility, and $ 29.3 million was utilized to support the issuance of letters of credit. There were average revolving credit borrowings of $ 62.8 million bearing an average annual interest rate of 5.4 % under the ABL facility for the quarter ended March 29, 2026. There were no revolving credit borrowings under the ABL facility during the quarter ended March 30, 2025. The Company also has foreign credit facilities, primarily in China, that total $ 74.2 million based on March 29, 2026 foreign exchange rates, $ 1.0 million of which was drawn as of March 29, 2026. There were no amounts drawn under foreign credit facilities as of December 28, 2025. 12 Note 9. Derivative Financial Instruments and Hedging As part of its risk management strategy, the Company, from time-to-time, utilizes derivative financial instruments to manage its exposure to changes in raw material prices, energy costs, foreign currencies, and interest rates. In accordance with applicable accounting standards, the Company accounts for most of these contracts as hedges. The Company sometimes uses futures and swap contracts to manage exposure to changes in prices for forecasted purchases of raw materials, such as nickel, and natural gas. Under these contracts, which are generally accounted for as cash flow hedges, the price of the item being hedged is fixed at the time that the contract is entered into, and the Company is obligated to make or entitled to receive a payment equal to the net change between this fixed price and the market price at the date the contract matures. The majority of ATI’s products are sold under contractual arrangements that include raw material surcharges and index mechanisms. However, as of March 29, 2026, the Company had entered into financial hedging arrangements, primarily at the request of its customers related to firm orders, for an aggregate notional amount of approximately 1 million pounds of nickel with hedge dates through 2027. The aggregate notional amount hedged is approximately 2 % of a single year’s estimated nickel raw material purchase requirements. These derivative instruments are used to hedge the variability of a selling price that is based on the London Metal Exchange (LME) index for nickel, as well as to hedge the variability of the purchase cost of nickel based on this LME index. Any gain or loss associated with these hedging arrangements is included in sales or cost of sales, depending on whether the underlying risk being hedged is the variable selling price or the variable raw material cost, respectively. At March 29, 2026, the outstanding financial derivatives used to hedge the Company’s exposure to energy cost volatility consisted of natural gas cost hedges. At March 29, 2026, the Company hedged approximately 60 % of its forecasted domestic requirements for natural gas for the remainder of 2026 and approximately 25 % for 2027. While most of the Company’s direct export sales are transacted in U.S. dollars, it uses foreign currency exchange contracts, from time-to-time, to limit transactional exposure to changes in currency exchange rates for those transactions denominated in a non-U.S. currency. The Company sometimes purchases foreign currency forward contracts that permit it to sell specified amounts of foreign currencies it expects to receive from its export sales for pre-established U.S. dollar amounts at specified dates. In addition, the Company may also hedge forecasted capital expenditures and designate cash balances held in foreign currencies as hedges of forecasted foreign currency transactions. At March 29, 2026, the Company had no material outstanding foreign currency forward contracts. The Company may enter into derivative interest rate contracts to maintain a reasonable balance between fixed- and floating-rate debt. There were no outstanding derivative interest rate contracts at March 29, 2026. There are no credit risk-related contingent features in the Company’s derivative contracts, and the contracts contain no provisions under which the Company has posted, or would be required to post, collateral. The counterparties to the Company’s derivative contracts are substantial and creditworthy commercial banks that are recognized market makers. The Company controls its credit exposure by diversifying across multiple counterparties and by monitoring credit ratings and credit default swap spreads of its counterparties. The Company also enters into master netting agreements with counterparties when possible. The fair values of the Company’s derivative financial instruments are presented below, representing the gross amounts recognized which are not offset by counterparty or by type of item hedged. All fair values for these derivatives were measured using Level 2 information as defined by the accounting standard hierarchy, which includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs derived principally from or corroborated by observable market data. 13 (In millions) Asset derivatives Balance sheet location March 29, 2026 December 28, 2025 Derivatives designated as hedging instruments: Natural gas contracts Prepaid expenses and other current assets $ 0.5 $ 1.0 Nickel and other raw material contracts Prepaid expenses and other current assets 1.1 0.6 Foreign exchange contracts Prepaid expenses and other current assets 0.3 0.1 Nickel and other raw material contracts Other assets 0.1 — Natural gas contracts Other assets 0.1 0.1 Total derivatives designated as hedging instruments $ 2.1 $ 1.8 Liability derivatives Balance sheet location Derivatives designated as hedging instruments: Nickel and other raw material contracts Other current liabilities $ 0.1 $ 0.1 Natural gas contracts Other current liabilities 2.0 1.3 Natural gas contracts Other long-term liabilities 0.4 0.4 Total derivatives designated as hedging instruments $ 2.5 $ 1.8 For derivative financial instruments that are designated as cash flow hedges, the gain or loss on the derivative is reported as a component of other comprehensive income (OCI) and reclassified into earnings in the same period or periods during which the hedged item affects earnings. For derivative financial instruments that are designated as fair value hedges, changes in the fair value of these derivatives are recognized in current period results. There were no outstanding fair value hedges as of March 29, 2026. The cash flow impact for all derivative financial instruments is reported in cash flows provided by operating activities on the consolidated statement of cash flows. The Company did not use net investment hedges for the periods presented. The effects of derivative instruments in the tables below are presented net of related income taxes, excluding any impacts of changes to income tax valuation allowances affecting results of operations or other comprehensive income, when applicable (see Note 15 for further explanation). Assuming market prices remain constant with those at March 29, 2026, a pre-tax loss of $ 0.4 million is expected to be recognized over the next 12 months. Activity for derivatives designated as cash flow hedges for the quarters ended March 29, 2026 and March 30, 2025 was as follows (in millions): Amount of Gain (Loss) Recognized in OCI on Derivatives Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (a) Quarter ended Quarter ended Derivatives in Cash Flow Hedging Relationships March 29, 2026 March 30, 2025 March 29, 2026 March 30, 2025 Nickel and other raw material contracts $ 0.9 $ 0.7 $ 0.4 $ ( 1.0 ) Natural gas contracts 0.6 4.3 1.6 0.1 Foreign exchange contracts 0.3 ( 0.1 ) 0.2 0.1 Total $ 1.8 $ 4.9 $ 2.2 $ ( 0.8 ) (a) The gains (losses) reclassified from accumulated OCI into income related to the derivatives, with the exception of any interest rate swaps, are presented in sales and cost of sales in the same period or periods in which the hedged item affects earnings. The gains (losses) reclassified from accumulated OCI into income on the interest rate swap are presented in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings. The disclosures of gains or losses presented above for nickel and other raw material contracts and foreign currency contracts do not consider the anticipated underlying transactions. Since these derivative contracts represent hedges, the net effect of any gain or loss on results of operations may be fully or partially offset. The Company may also use derivative instruments that are not designated as hedges to protect the Company’s results from certain fluctuations in foreign exchange rates, as well as to offset a portion of the foreign currency gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies. Changes in the fair value of these 14 foreign exchange contract derivatives not designated as hedging instruments are recorded in cost of sales or selling, general and administrative expenses on the consolidated statement of operations, and the Company recognized $ 1.0 million of expense, net for settled foreign currency forward contracts that were not designated as hedges during the quarter ended March 29, 2026, and $ 1.8 million of income, net, during the quarter ended March 30, 2025, which offset foreign currency gains/losses in the relevant currency. We have no significant outstanding hedges that are not designated as of March 29, 2026. Note 10. Fair Value of Financial Instruments The estimated fair value of financial instruments at March 29, 2026 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Carrying Amount Total Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Cash and cash equivalents $ 401.7 $ 401.7 $ 401.7 $ — Derivative financial instruments: Assets 2.1 2.1 — 2.1 Liabilities 2.5 2.5 — 2.5 Debt (a) 1,838.8 1,839.6 1,450.8 388.8 The estimated fair value of financial instruments at December 28, 2025 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Carrying Amount Total Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Cash and cash equivalents $ 416.7 $ 416.7 $ 416.7 $ — Derivative financial instruments: Assets 1.8 1.8 — 1.8 Liabilities 1.8 1.8 — 1.8 Debt (a) 1,761.0 1,787.9 1,476.9 311.0 (a) The total carrying amount for debt for both periods excludes debt issuance costs related to the recognized debt liability which is presented in the consolidated balance sheet as a direct reduction from the carrying amount of the debt liability. In accordance with accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting standards established three levels of a fair value hierarchy that prioritize the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments: Cash and cash equivalents: Fair value was determined using Level 1 information. 15 Derivative financial instruments: Fair values for derivatives were measured using exchange-traded prices for the hedged items. The fair value was determined using Level 2 information, including consideration of counterparty risk and the Company’s credit risk. Short-term and long-term debt: The fair values of the Company’s publicly traded debt were based on Level 1 information. The fair values of the other short-term and long-term debt were determined using Level 2 information. Note 11. Business Segments The Company operates under two business segments: HPMC and AA&S. ATI’s Chief Operating Decision Maker (CODM) is the Chief Executive Officer. Segment EBITDA, the Company’s segment operating measure, is used by the CODM to assess segment operating performance and to determine the allocation of resources. Segment EBITDA as a percentage of segment revenues is utilized to assess the profitability of each segment and whether the Company’s strategies are resulting in margin expansion and expected operating performance improvements. The measure of segment EBITDA excludes net interest expense, income taxes, depreciation and amortization, goodwill impairment charges, debt extinguishment charges, corporate expenses, closed operations and other income (expense), restructuring and other credits/charges, gains or losses on the sale of accounts receivables, strike related costs, long-lived asset impairments, pension remeasurement gains and losses, other postretirement/pension curtailment and settlement gains and losses, and gains or losses on sales of businesses. Management believes segment EBITDA, as defined, provides an appropriate measure of controllable operating results at the business segment level. 16 Following is certain financial information with respect to the Company’s business segments for the periods indicated (in millions): Quarter ended March 29, 2026 Quarter ended March 30, 2025 HPMC AA&S Total HPMC AA&S Total Sales to external customers $ 614.3 $ 537.2 $ 1,151.5 $ 584.1 $ 560.3 $ 1,144.4 Intersegment sales 41.1 99.6 140.7 59.9 57.4 117.3 Total sales 655.4 636.8 1,292.2 644.0 617.7 1,261.7 Reconciliation of sales Elimination of intersegment sales ( 140.7 ) ( 117.3 ) Total consolidated sales $ 1,151.5 $ 1,144.4 Less (1) : Allocated corporate overhead 15.6 16.3 15.8 16.1 Other segment items (2) 486.9 523.5 497.2 518.2 Segment EBITDA 152.9 97.0 249.9 131.0 83.4 214.4 Reconciliation of segment EBITDA Corporate expenses ( 17.0 ) ( 17.4 ) Closed operations and other income ( 1.2 ) ( 2.4 ) Depreciation & amortization ( 45.0 ) ( 40.8 ) Interest expense, net ( 23.7 ) ( 23.0 ) Restructuring and other charges ( 26.4 ) ( 5.6 ) Loss on sales of businesses — ( 3.7 ) Income before taxes $ 136.6 $ 121.5 (1) The CODM is regularly provided with allocated corporate overhead and segment EBITDA, which is used to assess operating performance. Therefore, the significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown. (2) Other segment items for each reportable segment include: cost of sales, general and administrative expenses, and gain/loss on asset sales. General & administrative expenses consist of non-manufacturing payroll and benefits, office expenses, professional service and legal expenses, occupancy expenses including rent and lease expense, and travel expense. Total international sales for the quarter ended March 29, 2026 were $ 459.0 million and $ 500.6 million for the quarter ended March 30, 2025. Of these amounts, sales by operations in the U.S. to customers in other countries for the quarter ended March 29, 2026 were $ 375.3 million and $ 414.9 million for the quarter ended March 30, 2025. Restructuring and other charges of $ 26.4 million for the quarter ended March 29, 2026 include $ 11.1 million of start-up and transaction-related costs and $ 1.1 million of restructuring-related impairment costs, which are primarily included within cost of sales on the consolidated statements of operations, and $ 7.0 million of restructuring-related severance and impairment costs, $ 4.8 million of transformation-related costs, and $ 2.4 million of losses on the sale of accounts receivable, which are included within selling and administrative expenses on the consolidated statements of operations. Restructuring and other charges of $ 5.6 million for the quarter ended March 30, 2025 include $ 4.0 million of start-up and transaction-related costs, which are included within cost of sales on the consolidated statements of operations. These charges also include $ 1.6 million of losses on the sale of accounts receivables, which are included within selling and administrative expenses on the consolidated statements of operations. Certain additional information regarding the Company’s business segments is presented below: 17 Quarter ended (In millions) March 29, 2026 March 30, 2025 Depreciation and amortization: High Performance Materials & Components $ 19.6 $ 19.7 Advanced Alloys & Solutions 23.7 19.5 Other 1.7 1.6 Total depreciation and amortization $ 45.0 $ 40.8 Capital expenditures: High Performance Materials & Components $ 28.4 $ 29.4 Advanced Alloys & Solutions 24.8 23.0 Corporate 2.0 0.9 Total capital expenditures $ 55.2 $ 53.3 Identifiable assets: March 29, 2026 December 28, 2025 High Performance Materials & Components $ 2,267.1 $ 2,368.6 Advanced Alloys & Solutions 2,493.0 2,249.1 Corporate: Deferred Taxes 35.6 33.5 Cash and cash equivalents and other 438.4 448.4 Total assets $ 5,234.1 $ 5,099.6 ($ in millions) March 29, 2026 Percent of total December 28, 2025 Percent of total Total assets: United States $ 4,724.3 90 % $ 4,544.4 89 % China 294.1 6 % 321.8 6 % Other 215.7 4 % 233.4 5 % Total Assets $ 5,234.1 100 % $ 5,099.6 100 % Note 12. Retirement Benefits The Company has defined contribution retirement plans or defined benefit pension plans covering substantially all employees. Company contributions to defined contribution retirement plans are generally based on either a percentage of eligible pay or on hours worked. Benefits under the defined benefit pension plans are generally based on years of service and/or final average pay. The Company funds the U.S. pension plans in accordance with the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended. The Company also sponsors several postretirement plans covering certain collectively bargained salaried and hourly employees. The plans provide health care and life insurance benefits for eligible retirees. In most retiree health care plans, Company contributions towards premiums are capped based on the cost as of a certain date, thereby creating a defined contribution. All defined benefit pension and retiree health care plans are closed to new entrants. For the quarters ended March 29, 2026 and March 30, 2025, the components of pension and other postretirement benefit expense for the Company’s defined benefit plans included the following (in millions): 18 Pension Benefits Other Postretirement Benefits Quarter ended Quarter ended March 29, 2026 March 30, 2025 March 29, 2026 March 30, 2025 Service cost - benefits earned during the year $ 1.4 $ 1.3 $ 0.1 $ 0.1 Interest cost on benefits earned in prior years 4.8 4.3 2.2 2.4 Expected return on plan assets ( 4.1 ) ( 4.0 ) — — Amortization of prior service cost (credit) 0.1 0.1 — ( 0.2 ) Amortization of net actuarial loss — — 1.3 1.3 Total retirement benefit expense $ 2.2 $ 1.7 $ 3.6 $ 3.6 Note 13. Income Taxes For the quarter ended March 29, 2026, the Company’s effective tax rate was 11.8 %, resulting in an income tax provision of $ 16.1 million. For the quarter ended March 30, 2025, the Company’s effective tax rate was 17.3 %, resulting in an income tax provision of $ 21.0 million. The effective tax rate for the quarter ended March 29, 2026 included discrete tax benefits of $ 11.9 million, primarily related to share-based compensation. Excluding discrete tax impacts, the Company’s effective tax rate for the quarter ended March 29, 2026 was 20.5 %. The effective tax rate for the quarter ended March 30, 2025 included discrete tax benefits of $ 5.1 million. Excluding discrete tax impacts, the Company’s effective tax rate for the quarter ended March 30, 2025 was 21.5 %. 19 Note 14. Per Share Information The following table sets forth the computation of basic and diluted income per common share: (In millions, except per share amounts) Quarter ended March 29, 2026 March 30, 2025 Numerator: Numerator for basic income per common share – Net income attributable to ATI $ 118.2 $ 97.0 Denominator: Denominator for basic net income per common share – weighted average shares 136.7 141.7 Effect of dilutive securities: Share-based compensation 1.9 2.5 Denominator for diluted net income per common share – adjusted weighted average shares and assumed conversions 138.6 144.2 Basic net income attributable to ATI per common share $ 0.86 $ 0.68 Diluted net income attributable to ATI per common share $ 0.85 $ 0.67 Periodically, the Company’s Board of Directors authorizes the repurchase of ATI common stock (the “Share Repurchase Program”), most recently authorizing the repurchase of up to an additional $ 500 million, as announced in February 2026. Repurchases under these programs are made in the open market or in privately negotiated transactions, with the amount and timing of repurchases depending on market conditions and corporate needs. Open market repurchases are structured to occur within the pricing and volume requirements of SEC Rule 10b-18. In the quarter ended March 29, 2026, ATI used $ 75.0 million to repurchase 0.5 million of its common stock under the Share Repurchase Program. At March 29, 2026, the Company has utilized $ 655 million of the $ 700 million currently authorized under its previous Share Repurchase Program, announced in September 2024. As of March 29, 2026, total share repurchase authorization remaining under the Company's active Share Repurchase Programs was $ 545 million. In the quarter period ended March 30, 2025, ATI used $ 70.0 million to repurchase 1.2 million of its common stock under the Share Repurchase Program. The Company’s share repurchases are subject to a 1% excise tax due to the Inflation Reduction Act of 2022. Excise taxes incurred on share repurchases represent direct costs of the repurchase and are recorded as part of the cost basis of the shares within treasury stock. 20 Note 15. Accumulated Other Comprehensive Income (Loss) The changes in AOCI by component, net of tax, for the quarter ended March 29, 2026 were as follows (in millions): Post- retirement benefit plans Currency translation adjustment Derivatives Deferred Tax Asset Valuation Allowance Total Attributable to ATI: Balance, December 28, 2025 $ ( 32.2 ) $ ( 52.1 ) $ 0.6 $ 23.3 $ ( 60.4 ) OCI before reclassifications — ( 3.1 ) 1.8 — ( 1.3 ) Amounts reclassified from AOCI (a) 1.0 — (b) ( 2.2 ) — ( 1.2 ) Net current-period OCI 1.0 ( 3.1 ) ( 0.4 ) — ( 2.5 ) Balance, March 29, 2026 $ ( 31.2 ) $ ( 55.2 ) $ 0.2 $ 23.3 $ ( 62.9 ) Attributable to noncontrolling interests: Balance, December 28, 2025 $ — $ 12.0 $ — $ — $ 12.0 OCI before reclassifications — 1.3 — — 1.3 Amounts reclassified from AOCI — — — — — Net current-period OCI — 1.3 — — 1.3 Balance, March 29, 2026 $ — $ 13.3 $ — $ — $ 13.3 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 12). (b) Amounts related to derivatives are included in sales, cost of goods sold or interest expense in the period or periods the hedged item affects earnings (see Note 9). The changes in AOCI by component, net of tax, for the quarter ended March 30, 2025 were as follows (in millions): Post- retirement benefit plans Currency translation adjustment Derivatives Deferred Tax Asset Valuation Allowance Total Attributable to ATI: Balance, December 29, 2024 $ ( 30.5 ) $ ( 79.8 ) $ ( 2.5 ) $ 23.3 $ ( 89.5 ) OCI before reclassifications — 6.2 4.9 — 11.1 Amounts reclassified from AOCI (a) 0.9 (b) 5.1 (d) 0.8 (e) — 6.8 Net current-period OCI 0.9 11.3 5.7 — 17.9 Balance, March 30, 2025 $ ( 29.6 ) $ ( 68.5 ) $ 3.2 $ 23.3 $ ( 71.6 ) Attributable to noncontrolling interests: Balance, December 29, 2024 $ — $ 5.7 $ — $ — $ 5.7 OCI before reclassifications — 1.2 — — 1.2 Amounts reclassified from AOCI — (c) — — — — Net current-period OCI — 1.2 — — $ 1.2 Balance, March 30, 2025 $ — $ 6.9 $ — $ — $ 6.9 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 12). (b) Amounts were included in gain/loss of asset sales and sales of businesses, net, as part of the loss on sale of the Birmingham, UK and Dusseldorf, Germany operations (see Note 5). (c) No amounts were reclassified to earnings. (d) Amounts related to derivatives are included in sales, cost of goods sold or interest expense in the period or periods the hedged item affects earnings (see Note 9). (e) Represents the net change in deferred tax asset valuation allowances on changes in AOCI balances between the balance sheet dates. Other comprehensive income (loss) amounts (OCI) reported above by category are net of applicable income tax expense (benefit) for each period presented. Income tax expense (benefit) on OCI items is recorded as a change in a deferred tax asset or 21 liability. Amounts recognized in OCI include the impact of any deferred tax asset valuation allowances, when applicable. Foreign currency translation adjustments, including those pertaining to noncontrolling interests, are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. Reclassifications out of AOCI for the quarters ended March 29, 2026 and March 30, 2025 were as follows: Details about AOCI Components (In millions) Three months ended March 29, 2026 Three months ended March 30, 2025 Affected line item in the statements of operations Postretirement benefit plans Prior service credit $ ( 0.1 ) 0.1 (a) Actuarial losses ( 1.3 ) ( 1.3 ) (a) ( 1.4 ) ( 1.2 ) (d) Total before tax ( 0.4 ) ( 0.3 ) Tax benefit (e) $ ( 1.0 ) $ ( 0.9 ) Net of tax Currency translation adjustment $ — $ ( 5.1 ) (b,d) Derivatives Nickel and other raw material contracts $ 0.5 $ ( 1.3 ) (c) Natural gas contracts 2.1 0.2 (c) Foreign exchange contracts 0.3 0.1 (c) Interest rate swap — — (c) 2.9 ( 1.0 ) (d) Total before tax 0.7 ( 0.2 ) Tax benefit (e) $ 2.2 $ ( 0.8 ) Net of tax (a) Amounts are reported in nonoperating retirement benefit expense (see Note 12). (b) Amounts in 2025 were included in gain/loss on asset sales and sales of businesses, net, as part of the loss on sale of the Birmingham, UK and Dusseldorf, Germany operations (see Note 5). (c) Amounts related to derivatives, with the exception of the interest rate swap, are included in sales or cost of goods sold in the period or periods the hedged item affects earnings. Amounts related to the interest rate swap are included in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings (see Note 9). (d) For pre-tax items, positive amounts are income and negative amounts are expense in terms of the impact to net income. Tax effects are presented in conformity with ATI’s presentation in the consolidated statements of operations. (e) These amounts exclude the impact of any deferred tax asset valuation allowances, when applicable. Note 16. Commitments and Contingencies The Company is subject to various domestic and international environmental laws and regulations that govern the discharge of pollutants and disposal of wastes, and which may require that it investigate and remediate the effects of the release or disposal of materials at sites associated with past and present operations. The Company could incur substantial cleanup costs, fines, and civil or criminal sanctions, third party property damage or personal injury claims as a result of violations or liabilities under these laws or noncompliance with environmental permits required at its facilities. The Company is currently involved in the investigation and remediation of a number of its current and former sites, as well as third party sites. Environmental liabilities are recorded when the Company’s liability is probable and the costs are reasonably estimable. In many cases, however, the Company is not able to determine whether it is liable or, if liability is probable, to reasonably estimate the loss or range of loss. Estimates of the Company’s liability remain subject to additional uncertainties, including the nature and extent of site contamination, available remediation alternatives, the extent of corrective actions that may be required, and the number, participation, and financial condition of other potentially responsible parties (PRPs). The Company adjusts its 22 accruals to reflect new information as appropriate. Future adjustments could have a material adverse effect on the Company’s consolidated results of operations in a given period, but the Company cannot reliably predict the amounts of such future adjustments. At March 29, 2026, the Company’s reserves for environmental remediation obligations totaled approximately $ 15 million, of which $ 7 million was included in other current liabilities. The reserve includes estimated probable future costs of $ 3 million for federal Superfund and comparable state-managed sites; $ 6 million for formerly owned or operated sites for which the Company has remediation or indemnification obligations; and $ 6 million for owned or controlled sites at which Company operations have been or plan to be discontinued. The timing of expenditures depends on a number of factors that vary by site. The Company expects that it will expend present accruals over many years and that remediation of all sites with which it has been identified will be completed within thirty years . The Company continues to evaluate whether it may be able to recover a portion of past and future costs for environmental liabilities from third parties and to pursue such recoveries where appropriate. Based on currently available information, it is reasonably possible that costs for recorded matters may exceed the Company’s recorded reserves by as much as $ 19 million. Future investigation or remediation activities may result in the discovery of additional hazardous materials or potentially higher levels of contamination than discovered during prior investigation and may impact costs associated with the success or lack thereof in remedial solutions. Therefore, future developments, administrative actions or liabilities relating to environmental matters could have a material adverse effect on the Company’s consolidated financial condition or results of operations and cash flows. A number of other lawsuits, claims and proceedings have been or may be asserted against the Company relating to the conduct of its currently and formerly owned businesses, including those pertaining to product liability, environmental, health and safety matters and occupational disease (including as each relates to alleged asbestos exposure), as well as patent infringement, commercial, government contracting, construction, employment, employee and retiree benefits, taxes, environmental, and stockholder and corporate governance matters. While the outcome of litigation cannot be predicted with certainty, and some of these lawsuits, claims or proceedings may be determined adversely to the Company, management does not believe that the disposition of any such pending matters is likely to have a material adverse effect on the Company’s financial condition or liquidity, although the resolution in any reporting period of one or more of these matters could have a material adverse effect on the Company’s consolidated results of operations for that period. The Company received employee retention tax credits under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) during the fiscal year ended December 31, 2022. Due to the complex nature of the employee retention credit computations, the Company deferred recognition of a portion of the tax credits pending the completion of any potential audit or examination, or the expiration of the related statute of limitations. During the quarter ended March 29, 2026, the Company did not recognize a benefit related to these credits. As of March 29, 2026, The Company has approximately $ 5 million of remaining deferred retention tax credits with statute of limitations expirations in 2028. In August 2024, the Company received notice that it and certain of its affiliates are parties to two lawsuits captioned (1) William L. Schoen, Mary J. Nesbit, Robin L. Rosewicz, George E. Poole and James E. Swartz, Jr., individually and as representatives of a class of participants and beneficiaries of the Allegheny Technologies Incorporated Pension Plan v. ATI Inc., The Allegheny Technologies Incorporated Pension Plan Administrative Committee, State Street Global Advisors Trust Co., and John Does 1-5 (Case No. 2:24-cv-01109) and (2) J ohn Souza and Karen Souza, individually and as representatives on behalf of a class of similarly situated persons v. ATI Inc. and State Street Global Advisors Trust Co. (Case No. 2:24-cv-01214) , both of which are filed in federal district court for the Western District of Pennsylvania. These lawsuits, which were consolidated in late 2024, assert various claims associated with the Company’s October 2023 purchase of group annuity contracts to transfer a portion of its U.S. qualified defined benefit pension plan obligations to Athene Annuity and Life Company and Athene Annuity & Life Assurance of New York. The Company filed a Motion to Dismiss the consolidated claims in January 2025. Following an August 2025 hearing on the Motion to Dismiss, the magistrate judge overseeing the Motion issued a report recommending that all of the plaintiffs’ claims be dismissed for lack of standing. The recommendation remains subject to review and disposition by the presiding judge. The Company disputes and intends to vigorously defend against these claims, but given the preliminary nature of these matters, cannot predict their outcome or estimate any range of reasonably possible loss at this time. 23