Andrew Medrid

Andrew Medrid sought clarification on the updated airframe growth projection (mid- to high-single-digit vs. previous high-single-digit) and what factors could lead to the lower end of that range. He also asked if the 50% MRO contribution to jet engine sales is expected to continue into 2026.

Answer

CEO Kim Fields explained that the airframe guidance is based on executed customer production schedules and contractual commitments, not headline build rates, reflecting a conservative view of timing and a measured ramp weighted towards the second half of 2026. She noted that upside would come from accelerated build rates. CFO Rob Foster confirmed that the 2026 jet engine growth assumes a continuation of the 50% MRO and 50% OEM mix.

Andrew Medrid asked about the revised mid- to high-single-digit airframe growth projection for 2026, inquiring what factors might cause a pause or lead to the lower end of that range. He also asked if the 50% MRO contribution to jet engine sales, seen in the second quarter, is expected to continue into 2026.

Answer

Kim Fields, President and CEO, explained that the airframe guidance is based on executed customer production schedules and contractual commitments, reflecting a conservative view of timing rather than assuming immediate full-rate execution. She noted that contracts expanded ATI's mix, participation, product portfolio, price, and share, supporting steady growth with acceleration in the second half. Rob Foster, CFO, confirmed that the 2026 jet engine growth assumes a continuation of the 50% MRO and 50% OEM mix.