ATI’s Forgings Backlog Soars Amid Increased MRO Demand

ATI

Specialty alloy producer ATI has seen its forgings backlog reach a historic high, fueled by heightened demand for Maintenance, Repair, and Overhaul (MRO) services. The demand for components used in the "hot section" of aircraft engines is driving this growth, particularly for isothermal forgings. The company’s forged products business has experienced significant lead-time extensions, with some parts now taking over a year to be delivered.

Strong Demand in Jet Engine Market Supports Sales Growth

MRO demand has had a substantial impact on ATI’s sales, particularly in the jet engine market. The company reported a 9% increase in sales for its jet engine end market in 2024, reaching $1.5 billion. This growth is largely attributed to the demand for isothermal forgings, a key component in the production of jet engines. The delay in new aircraft deliveries has forced airlines to extend the operational life of their fleets, creating a growing need for aftermarket services, including spares and upgrade kits.

To meet these demands, ATI increased its isothermal forgings output by 32% in 2024, following significant technology upgrades at its Cudahy, Wisconsin facility. The company also expanded its downstream capabilities, adding a heat treatment facility along with machining and testing capacities to improve throughput rates.

Looking Ahead: Titanium Products and Engine Revenue Growth

ATI anticipates continued growth in its jet engine business, projecting a similar 9% revenue increase for 2025. The company’s work with Pratt & Whitney, particularly the accelerated inspections of its PW1100G-JM (GTF) engine fleet used in Airbus’s A320neo program, is expected to further fuel this growth.

In addition, ATI has made significant investments in its titanium production capabilities. The company recently commissioned its electron beam (EB) furnace at its Richland, Washington facility, which will help boost titanium ingot production. With Boeing and Airbus planning to ramp up production of their titanium-bearing widebody models, ATI anticipates an acceleration in orders for titanium products in the second half of 2025.

Boeing titanium joint venture remains uncertain despite Russia’s overture

VSMPO-AVISMA

Russia signaled interest in reviving the Boeing titanium joint venture with VSMPO-AVISMA. However, Boeing has not indicated any plans to return. Sanctions, tariffs, and long requalification timelines complicate any restart of the Boeing titanium joint venture. Supply chains have shifted since 2022 and will not reverse quickly. The Boeing titanium joint venture once lowered logistics costs and secured critical forgings.

Ural Boeing Manufacturing’s past and the sanctions hurdle

Ural Boeing Manufacturing previously machined titanium forgings for the 787 and 737. The partnership expanded in 2010 and planned a second site in 2013. Boeing cut ties in March 2022 after Russia’s invasion. The US later imposed 70% tariffs on Russian unwrought titanium. VSMPO also faced export sanctions in 2023. These measures deter direct commercial engagement. Any revival would require regulatory relief and political alignment.

How Boeing filled the titanium gap

US and allied producers expanded premium-grade capacity after 2022. ATI added electron-beam melt for rotating-grade titanium. Perryman expanded melt and conversion capacity. TIMET is ramping a new Ravenswood ingot mill. Aerospace buyers still face long part qualifications. New PQ supply takes two to five years to certify. Boeing’s recovery also shapes demand. The 737 MAX returned to 38 jets per month. The 787 rose to seven per month.

The Metalnomist Commentary

Even if sanctions eased, a rapid restart looks unlikely. Boeing diversified supply and invested in non-Russian PQ routes. Reversing that shift would add risk without clear benefits.

ATI Tariff Impact 2025 Expected to Be Minimal as Aerospace Demand and Supply Strategies Offset Risks

ATI

Flexible sourcing, defense exemptions, and surcharges help ATI maintain 2025 earnings guidance

Aerospace and jet engine orders drive resilience despite raw material tariffs on nickel, vanadium, and zirconium

ATI tariff impact 2025 is expected to be limited, as the specialty alloys producer forecasts only a $50 million pre-mitigation earnings hit from recent U.S. trade measures. Despite the new tariffs, the Texas-based firm has reaffirmed its 2025 earnings guidance, leveraging a combination of duty drawbacks, defense exemptions, and pass-through pricing clauses to insulate operations.

Strategic tools and flexible sourcing preserve profitability under new trade conditions

ATI noted that surcharge mechanisms on new orders, effective April 7, and selective tariff exclusions for aerospace-related inputs are already helping to preserve income and control exposure. Key exemptions were granted for materials critical to defense, although nickel scrap, hafnium, vanadium, molybdenum, and zirconium remain tariffed. While some industrial customers have slowed purchases amid uncertainty, ATI’s core aerospace and defense segments remain solid.

Notably, aerospace and defense represent 66% of ATI’s total business. The company is the exclusive source for five of seven nickel-based alloys used in jet engine hot sections and is a top forger of rotating components. As a result, full-year jet engine sales are projected to grow 15–20%, with Q1 sales up 35% to $421 million.

Titanium contracts and capacity expansion support long-term aerospace growth

Though titanium-heavy airframe sales rose modestly by 8.2% due to OEM inventory drawdowns, ATI secured a new five-year, $1 billion supply deal with Airbus for flat-rolled titanium products. The company is also qualifying premium-grade titanium from its new electron beam (EB) furnace in Richland, Washington, targeting critical aerospace applications.

For Q1, ATI reported a 47% profit increase, reaching $97 million, with revenue climbing nearly 10% to over $1.1 billion. These results affirm ATI’s ability to navigate short-term tariff turbulence while capitalizing on long-term demand trends.

The Metalnomist Commentary

The ATI tariff impact 2025 story underscores the value of vertical integration, contract structure, and defense-linked exemptions in managing geopolitical trade risks. ATI’s proactive pricing and sourcing strategy may set a precedent for specialty metals producers facing future tariff regimes.

IperionX titanium powder expansion reshapes US titanium supply

IperionX

IperionX titanium powder expansion marks a major step in US titanium reindustrialisation. The company will invest $75mn to lift powder output sevenfold at its Virginia plant. As a result, IperionX titanium powder expansion supports domestic aerospace, defence and additive manufacturing supply chains.

Capacity, technology and cost reduction

The expansion will raise annual powder capacity from 200t to 1,400t by mid 2027. IperionX will add more HAMR furnaces while maintaining spherical powder capacity at 15t per year. Meanwhile, optimisation work has already lifted modular HAMR nameplate capacity by 60pc to 200t per year. These process gains cut unit operating costs by 27pc to $55 per kilogram today. Therefore the company targets $29 per kilogram once the IperionX titanium powder expansion is complete.

Downstream titanium parts and US supply chain impact

IperionX will grow downstream manufacturing alongside the IperionX titanium powder expansion in Virginia. The company targets near net shape production of titanium fasteners, brackets and other structural components. It will also produce mill products, including titanium plate, sheet and bar, for industrial customers. In addition, IperionX plans additive manufactured components using laser and electron beam powder bed fusion. As a result, the project strengthens US titanium value chains from powder through finished parts.

The Metalnomist Commentary

IperionX’s investment highlights how advanced process technology can reset titanium’s cost curve in North America. For aerospace and defence buyers, US based powder and parts capacity reduces reliance on imported sponge and mill products. However, execution on cost targets, quality standards and downstream qualifications will determine how quickly the market adopts this capacity.

PyroGenesis Gains Second Aerospace Order for Titanium Powder

PyroGenesis

Montreal-based PyroGenesis Canada, known for its advanced plasma processes, has secured a second order for titanium metal powder from a Spanish aerospace client for use in additive manufacturing. The client, who specializes in advanced aeronautics technologies for the European aerospace industry, had previously placed an order in April. This repeat order may lead to a long-term contract with PyroGenesis.

After terminating its distribution agreement with French alloy producer Aubert & Duval, PyroGenesis is now directly selling its metal powders to European customers. The company is also negotiating with other European clients interested in its titanium powder for additive manufacturing.

Earlier this month, a global aerospace original equipment manufacturer notified PyroGenesis that its Ti-6Al-4V titanium-vanadium alloy coarse powder has been approved for its supplier list. The powder, with a size range of 45-150µm, is typically used in additive manufacturing applications such as electron beam melting and direct energy deposition.

ATI Aerospace and Defense Demand Lifts 2026 Guidance

ATI

ATI aerospace and defense demand strengthened in the first quarter, prompting the specialty alloys manufacturer to raise its full-year earnings outlook. The Texas-based company lifted its 2026 adjusted profit guidance by $35mn to $1.01bn-1.06bn.

ATI aerospace and defense demand was strongest in jet engine materials, defence alloys and missile-related products. The company exceeded the high end of its first-quarter forecast by nearly $7mn, reporting adjusted profit of $232mn.

ATI aerospace and defense demand shows that high-performance metals remain central to the aircraft production ramp and defence replenishment cycle. Titanium, nickel-based alloys, isothermal forgings, zirconium and hafnium are all tied to programmes where qualification, lead times and supply reliability matter.

Quarterly profit rose by 20% on the year to nearly $120mn, while revenue increased by 6.2% to almost $1.2bn.

Jet Engine Materials Keep Specialty Alloy Lead Times Tight

Commercial jet engine sales rose by 12% on the year to $472mn, making the segment ATI’s largest product category. The company expects mid-teens growth in jet engine sales this year.

Demand is being driven by original equipment manufacturers and aftermarket service providers. Both need reliable access to specialty alloys and isothermal forgings as engine production and repair activity expand.

This is strategically important because jet engines consume some of the most demanding materials in the aerospace supply chain. Nickel-based superalloys, titanium alloys and premium-quality forgings must meet strict performance standards under heat, stress and fatigue conditions.

ATI is also working to qualify its new electron-beam furnace for premium-quality titanium at its Richland, Washington facility. This material is used in rotor-grade engine parts.

Approval of the furnace would help reduce pressure on ATI’s other premium-quality titanium melting operations. Some lead times for this material are now close to two years.

That lead-time signal matters. Aerospace buyers are not only chasing capacity. They are trying to secure qualified melt routes for materials that cannot be easily substituted.

Commercial airframe sales moved lower in the first quarter, falling by 9.3% to nearly $187mn. Airframers and OEMs continued drawing down internal stocks of raw materials and components.

However, ATI expects full-year airframe sales to grow by mid-to-upper single digits, with demand backloaded into the second half as inventories normalise. This should support stronger sales of standard-quality titanium used in structural aircraft components.

The company also expects much stronger titanium sales growth in 2027, based on long-term order patterns and customer production plans.

Defence Orders Strengthen Zirconium, Hafnium and Missile Materials

Defence sales rose by 9.3% on the year to $139mn in the first quarter. ATI expects full-year defence revenue to rise by low-to-mid teens from 2025 levels.

The company renewed a five-year, $1bn contract supporting the US Naval Nuclear Propulsion Program. This will drive continued demand for specialty alloys containing zirconium and hafnium.

Zirconium and hafnium are strategically important in nuclear and defence supply chains. Their use requires tight quality control, reliable processing and long-term customer qualification.

Missile-related demand also strengthened. ATI said first-quarter missile revenue doubled from a year earlier as contractors increased production and replenished munitions inventories.

The company supplies titanium and nickel products used in structural and propulsion applications for missile programmes, including Tomahawk, Patriot Advanced Capability-3 and Terminal High Altitude Area Defense interceptors.

Nickel-based and specialty alloys remained ATI’s largest revenue source, accounting for 49% of total sales in the quarter. Precision forgings, castings and components accounted for 20%, while titanium and titanium-based alloys represented 17%.

The mix shows ATI’s strategic position. The company is exposed to aerospace engine growth, defence replenishment, naval nuclear programmes and missile production, all of which depend on hard-to-qualify specialty metals.

ATI’s raised guidance therefore reflects more than a cyclical recovery. It points to structural demand for advanced materials across aerospace, defence and energy-security-related programmes.

The Metalnomist Commentary

ATI’s guidance increase confirms that aerospace and defence demand is pushing pressure upstream into qualified melt capacity and specialty alloys. The real bottleneck is not generic metal supply, but premium titanium, nickel alloys, zirconium, hafnium and forgings that meet mission-critical specifications.