Excluding the $40 million cost attributed to the strike and a small improvement in our restructuring reserves, we lost $0.12 per share in the second quarter.
Our jet engine product revenues were up over 20% compared to the first quarter 2021.
The High Performance Materials & Components segment, or HPMC, saw its margins improve by more than 200 basis points sequentially and nearly 300 basis points year-over-year.
Under this contract, annual healthcare cost inflation will be capped at 3.5%.
On a year-to-year basis, we grew sales in most of our key end markets, most notably Energy, up 60%; and Defense, up 22%.
We expect this positive growth trend to continue and expand as increased production rates on the 737 MAX become a larger part of our order book.
In the second quarter, sales of our Specialty Materials like Rene 65 for LEAP engines grew significantly compared to the first quarter, but were still below prior year.
On a reported basis, ATI lost $0.39 per share in the second quarter.
Excluding $40 million of costs associated with the strike and a small favorable true-up to our restructuring reserves, the company lost $0.12 per share in the second quarter.
This is readily apparent in our HPMC segment results where jet engines account for more than 40% of overall segment revenues.
As Bob shared, jet engine revenues increased by more than 20% sequentially for ATI as a whole and for HPMC.
As a result of our profitable jet engine growth and increased asset utilization, HPMC EBITDA margins increased by 220 basis points compared to the first quarter and nearly 300 basis points versus the second quarter of 2020.
We anticipate third quarter growth across HPMC's key end markets, most notably jet engine and specialty energy and further utilization benefits from increasing production rates across our network.
It should be noted that while we removed strike-related costs from segment earnings, segment revenues also declined nearly $140 million versus the first quarter due to plant outages and resulting production declines.
As a result of the strike continuing throughout most of July and the inefficiencies associated with the production reramp, we anticipate approximately $25 million of additional third quarter costs.
While HPMC revenues were flat versus prior year, earnings grew 30%.
Despite the recent strike, we ended the quarter with roughly $830 million of total liquidity, including at least $475 million of cash.
Looking ahead, we anticipate contributing up to $50 million to our U.S. defined benefit pension plan in the third quarter to improve our funding status and long-term leverage profile.
This will result in a onetime noncash pre-tax gain of approximately $65 million in our third quarter results.
This benefit and associated $15 million tax charge will be excluded from our adjusted earnings.
In aggregate, we expect third quarter adjusted earnings to be between breakeven and a loss of $0.08 per share, excluding strike-related costs and the $65 million post-retirement medical accounting gain.
Finally, due to the negative strike-related earnings impact, we now anticipate full year free cash flow to be at breakeven to slightly positive levels.

Summary:
Excluding the $40 million cost attributed to the strike and a small improvement in our restructuring reserves, we lost $0.12 per share in the second quarter.
On a reported basis, ATI lost $0.39 per share in the second quarter.
Excluding $40 million of costs associated with the strike and a small favorable true-up to our restructuring reserves, the company lost $0.12 per share in the second quarter.
We anticipate third quarter growth across HPMC's key end markets, most notably jet engine and specialty energy and further utilization benefits from increasing production rates across our network.
Finally, due to the negative strike-related earnings impact, we now anticipate full year free cash flow to be at breakeven to slightly positive levels.