Supplemental Financial Statement Information

3 Months Ended

Mar. 29, 2026

Other Income and Expenses [Abstract]

Supplemental Financial Statement Information

Other income (expense), net for the quarters ended March 29, 2026 and March 30, 2025 was as follows:


(in millions)	Quarter ended
	March 29, 2026		March 30, 2025
Rent and royalty income	$	0.8	$	1.5


Total other income, net	$	0.8	$	1.5

Restructuring

The Company recognized restructuring charges of $7.0 million in the quarter ended March 29, 2026, related to the rationalization of certain domestic facilities in the HPMC segment. These charges included $3.3 million of severance-related charges for approximately 100 employees and $3.7 million of impairment charges for equipment, leases and inventory. These amounts are presented as restructuring charges in the consolidated statements of operations and are excluded from segment results. Additionally, the $3.6 million restructuring reserve balance at March 29, 2026 is recorded in accrued liabilities on the consolidated balance sheet.

During the first quarter ended March 30, 2025, the Company de-recognized $0.5 million of restructuring reserves in connection with the sale of non-core operations in Birmingham, UK and Dusseldorf, Germany (see Note 5 for further explanation).

Restructuring reserves for severance cost activity is as follows:


	Severance and Employee
	Benefit Costs
Balance at December 28, 2025	$	0.4
Additions	3.3

Payments	(0.1)
Balance at March 29, 2026	$	3.6

Supplier Financing

The Company participates in supplier financing programs with two financial institutions to offer its suppliers the option for access to payment in advance of an invoice due date. Under such programs, these financial institutions provide early payment to suppliers at their request for invoices that ATI has confirmed as valid at a predetermined discount rate commensurate with the creditworthiness of ATI. As of March 29, 2026 and December 28, 2025, the Company had $101.0 million and $52.8 million, respectively, reported in accounts payable on the consolidated balance sheets under such programs.

Accounts Receivable Securitization

On September 19, 2025, ATI Specialty Materials, LLC (“Specialty Materials”) and its indirect wholly owned subsidiary, ATI Securitization LLC (“ATI Securitization”) entered into a three-year, $125.0 million Receivables Purchase and Financing Agreement (the “Receivables Facility”) with PNC Bank, National Association, as Administrative Agent, and certain Purchasers/Lenders party thereto. Under the Receivables Facility, Specialty Materials sells or contributes, on an ongoing basis, certain of its trade accounts receivable, together with related security and interests in the proceeds thereof, to its wholly owned subsidiary, ATI Securitization Holdings LLC (ATI Holdings). ATI Holdings subsequently sells or contributes those receivable and related security and interests to ATI Securitization, its wholly owned subsidiary, which is a consolidated bankruptcy-remote special purpose entity created for the sole purpose of transacting under the Receivables Facility. ATI Securitization may borrow from, and/or sell receivables under the Receivables Facility at fair value and will secure its obligations with a pledge of undivided interests in such receivables, together with related security and interest in the proceeds thereof. In all instances, Specialty Materials retains the servicing of the accounts receivable transferred, which includes collection and administrative activities. ATI has agreed to guarantee the performance of Specialty Materials obligations under the Receivables Facility.

The maximum aggregate funding available under the Receivables Facility is $125.0 million at any one time, subject to the availability of eligible receivables and other customary factors and conditions as well as covenants as set forth in the Receivables Facility. Amounts outstanding under the Receivables Facility accrue interest at an adjusted SOFR plus the applicable margin. The Receivables Facility also requires the maintenance of a minimum utilization level equal to 50% of the facility amount.

ATI Securitization is a separate legal entity with its own creditors. In the event of a liquidation of ATI Securitization, its creditors would be entitled to be satisfied out of the assets of ATI Securitization prior to any assets or value becoming available to creditors or equity holders for other ATI entities. The assets of ATI Securitization, including any funds of ATI Securitization that may be commingled with funds of any of its affiliates for purposes of cash management and related efficiencies, are not available to pay creditors of ATI or any affiliate thereof, except to the extent collections of receivables are in excess of the amounts owed by ATI Securitization under the Receivables Facility.

Sales of accounts receivable under the Receivables Facility meet the sale criteria under ASC 860, Transfers and Servicing (“ASC 860”), and are derecognized from the consolidated balance sheet. Cash receipts, received at the time of the sale of receivables under the Receivables Facility, are classified as cash flow from operating activities in the consolidated statement of cash flows. As the Company retains the servicing rights of the receivables sold, the Company assessed the associated servicing liability under ASC 860 and determined that the liability is immaterial to the Company’s financial statements.

During the quarterly period ended March 29, 2026, ATI Securitization sold $40.0 million of accounts receivable in exchange for $40.0 million of cash. The Company recorded a $1.0 million charge associated with the sale of the accounts receivable within selling and administrative expenses on its consolidated statement of operations, which is excluded from segment results. As of March 29, 2026, the Company has utilized $120 million of the maximum aggregate funding available under the Receivables facility.

There were no borrowings under the Receivables Facility during the quarterly period ended March 29, 2026.

Sale of Receivables Program

During the fourth quarter of 2024, the Company entered into an accounts receivables purchase agreement (Receivables Purchase Agreement) with a third-party financial institution to periodically sell certain accounts receivable at a discount. These accounts receivable sales were accounted for as a sale of assets under ASC 860, Transfers and Servicing, as the Company’s continuing involvement is limited to servicing the accounts receivable, collecting the payments for the underlying accounts receivable and remitting such collections to the financial institution. The financial institution was responsible for any credit risk associated with the sold accounts receivable. The Company received the purchase price, equal to the accounts receivable less the discount, at the time of the sale. As of March 29, 2026, this program has ended and no amounts were outstanding to the financial institution.

Other Customer Receivable Sales

During the quarterly periods ended March 29, 2026 and March 30, 2025, the Company sold $131.7 million and $72.6 million, respectively, of certain customers’ accounts receivable through programs established by those customers with third-party financial institutions. These customers have extended payment terms and provide the programs to enable suppliers to receive more timely payments. The Company has no continuing involvement with the receivables sold under these programs, including no servicing requirement. The proceeds from these transactions are presented as changes in receivables within operating activities in the consolidated statement of cash flows. The losses associated with these transactions, which were $1.4 million for both quarters ended March 29, 2026 and March 30, 2025, respectively, are reflected in the Company’s consolidated statements of operations and are excluded from segment results.