ATI titanium sales hit by OEM destocking, with engine demand offsetting weakness

ATI Factory

OEM destocking pressures ATI titanium sales in 2Q

ATI titanium sales weakened as Boeing and Airbus continued to destock inventories. The company said ATI titanium sales fell as airframe shipments dropped 7pc to $195mn. However, engine-related revenue surged and cushioned overall results. ATI titanium sales should stabilize as widebody build rates rise into 2026.

Capacity moves and engine programs support near-term outlook

ATI expects tightness in billets and landing-gear alloys by 4Q. Boeing lifted 787 output to seven per month, aiding demand. Meanwhile, the company broadened a titanium supply deal with Boeing. The agreement adds South Carolina sheet and more alloys.

ATI advanced new melt capacity to strengthen future flow. The Richland, Washington EB furnace targets standard-quality certification this year. Premium-quality approvals should follow in late 2025. Most ATI titanium serves structures, while PQ feeds rotating engine parts.

Engine programs drove growth across the quarter. Jet-engine product sales jumped 27pc to $448mn. Isothermal forging lead times stretch into 2027 as Pratt & Whitney ramps GTF fleet fixes. ATI balanced forgings between spares and new builds.

Financial snapshot signals resilience

ATI delivered higher profit despite airframe softness. Quarterly profit rose 23pc to $100mn on revenue up 4.1pc to $1.1bn. Nickel investments continue, with melting capacity rising 8-10pc by 2026. These steps hedge aerospace swings and support defense demand.

The Metalnomist Commentary

Destocking is a timing headwind, not a demand problem. With 787 and other widebodies improving, structural titanium should firm into 2026. Watch EB furnace qualifications and Boeing’s expanded scope, which could pull forward orders once inventory clears.