Restructuring and other charges

12 Months Ended

Dec. 28, 2025

Restructuring and Related Activities [Abstract]

For the fiscal year ended December 28, 2025, restructuring and other charges were $48.8 million and include $25.8 million of start-up and transaction-related costs, $17.1 million of transformation-related costs, and $7.8 million of losses on the sale of customer accounts receivable, partially offset by credits of $1.9 million due to a reduction in severance-related reserves for approximately 45 employees for a previous restructuring in the AA&S segment. These costs were recorded in the consolidated statement of operations based on the nature of the charge, with $23.6 million recorded as cost of sales, $27.1 million recorded as selling and administrative expense and $1.9 million as restructuring credits on the consolidated statement of operations.

For the fiscal year ended December 29, 2024, restructuring and other charges were $22.1 million and include $13.4 million of start-up costs and transaction-related costs, $4.6 million of charges associated with the Company’s European restructuring, and $4.1 million of severance-related restructuring charges for approximately 100 employees primarily related to cost reduction actions in our domestic operation. These costs were recorded in the consolidated statement of operations based on the nature of the charge, with $15.3 million recorded as cost of sales, $2.7 million recorded as selling and administrative expenses and $4.1 million as restructuring charges on the consolidated statements of operations.

For the fiscal year ended December 31, 2023, restructuring and other charges were $31.4 million and include $7.7 million of severance-related restructuring charges and $23.7 million of charges included within cost of sales on the consolidated statements of operations. The $7.7 million of severance-related restructuring charges represent severance for the involuntary reduction of approximately 110 employees primarily for the restructuring of the European operations and across ATI’s domestic operations. The $23.7 million of charges within cost of sales include $11.5 million of start-up costs, $1.9 million of costs associated with an unplanned outage at our Lockport, NY facility, and $10.3 million primarily for asset write-offs for the restructuring of our European operations and the closure of our Robinson, PA operations.

Restructuring reserves for severance cost activity is as follows:


	Severance and Employee
	Benefit Costs
	December 28, 2025		December 29, 2024		December 31, 2023
Beginning of fiscal year balance	$	9.0	$	15.2	$	9.8
Additions/(Adjustments)	(1.9)		4.1		7.7
Divestitures	(0.5)		(3.5)		—
Payments	(6.2)		(6.8)		(2.3)
End of fiscal year balance	$	0.4	$	9.0	$	15.2

During fiscal year 2025, the Company derecognized $0.5 million of restructuring reserves in connection with the sale of non-core operations in Birmingham, UK and Dusseldorf, Germany (see Note 6 for further explanation). During fiscal year 2024, the Company derecognized $3.5 million of restructuring reserves in connection with the sale of its precision rolled strip operations (see Note 6 for further explanation). All of the $0.4 million restructuring reserve balance at December 28, 2025 is recorded in other current liabilities on the December 28, 2025 consolidated balance sheet. All of the $9 million restructuring reserve balance at December 29, 2024, is recorded in other current liabilities on the December 29, 2024 consolidated balance sheet.