Allegheny Technologies (ATI, Financial) saw a 9% increase in its stock price after reporting a significant Q4 earnings beat. As a key supplier of high-performance metals for aerospace and defense, ATI's performance is a strong indicator of the industry's health. Aerospace and defense account for 62% of ATI's fiscal year 2024 revenue, with additional exposure in energy (14%), automotive (6%), and medical (5%).

• Q4 revenue increased by 10.2% year-over-year to $1.17 billion, surpassing analyst forecasts and marking the first double-digit growth quarter since Q1 2023. Improved customer demand from Q3 contributed to the revenue boost, although there were short-term shifts in customer requirements affecting the mix.
• ATI's Q1 EPS guidance exceeded expectations, with 2025 EPS projected between $2.80 and $3.00. The company anticipates a steady increase in adjusted EBITDA throughout 2025, expecting a modest recovery in the first half as the commercial aerospace supply chain rebounds and grows following delays in the second half of 2024.
• Demand for 2025 remains strong, with Boeing (BA, Financial) ramping up 737 MAX production. Airbus shows steady performance with potential for growth. ATI's materials are in demand across all aerospace segments, present on every commercial platform currently in operation.
• ATI's 2025 guidance aligns with Boeing's projections, and as a key player in the supply chain, ATI anticipates early benefits from Boeing's increased build rates. Boeing plans to increase 787 production from 5 to 7 units in 2026, and the 777X's return to service marks further stability in the industry.

ATI concluded 2024 on a high note despite challenges, including delays from Boeing's labor strike in the latter half of the year. The company is optimistic about 2025, particularly in the second half, mirroring Boeing's positive outlook. Boeing reported delivering 33 airplanes in January alone, a promising sign for ATI and other aerospace suppliers.