- The 2Q21 was overshadowed by an accounting loss of $44.4 million, as the strike and dismal performance of the key markets hit the top and the bottom lines.
- The adjusted net loss was only marginally better. Revenues continued sliding touching a multi-year nadir, while last twelve months FCF dived below zero for the first time since 2018.
- Assuming the modest increase in demand and cost-control efforts that should save the company approximately $100 million this year, ATI is expecting to finally reach an inflection point in Q3.
- The company is FCF negative, with a high debt load. The recovery of its key end market, probably the most heavily battered by the pandemic, is not totally certain, as it still may face delays. I would prefer to remain neutral.
For further details see:
Revisiting Allegheny Technologies After Q2 2021 Earnings