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ATI expects to deliver most of its record backlog in the next year
The company targets delivering 70% of its $4.4 billion record backlog within the next 12 months, citing sustainable mid-20% margins in its AA&S defense business.
Defense spending plans outlined by the Pentagon are expected to keep flowing into aerospace and defense suppliers, and MarketBeat Ratings highlights ATI, Astronics, and Ducommun as defense names with record backlogs in their most recent earnings reports.
ATI is described as the largest of the three, with a $27.8 billion market cap and more than $4.5 billion in trailing 12-month sales. The outlet attributes ATI’s defense exposure to its shift from Flat Rolled Products toward its Advanced Alloys and Solutions, or AA&S, unit, where aerospace now accounts for more than 44% of segment revenue based on the company’s Q2 2026 numbers.
MarketBeat Ratings says ATI has built a niche around hafnium and zirconium, materials it supplies to aerospace and military standards, and that it has pulled capacity from other segments to prioritize defense orders with closer delivery dates. The outlet adds that ATI expects to deliver 70% of its record $4.4 billion backlog over the next 12 months.
On margins, the outlet reports that ATI’s management believes AA&S margins are sustainable in the mid-20% range, which it says gives the unit pricing power compared with the other two companies it profiled. MarketBeat Ratings also notes ATI’s stock has been holding near its 50-day moving average and that its Relative Strength Index rarely falls below 50.