Carpenter Technology Reports Third Quarter Fiscal Year 2025 Results
Carpenter Technology (NYSE: CRS) reported record financial results for Q3 FY2025, with operating income of $137.8 million and earnings per diluted share of $1.88. The company's Specialty Alloys Operations (SAO) segment achieved an adjusted operating margin of 29.1%, up from 21.4% year-over-year, marking thirteen consecutive quarters of margin growth.
Net sales reached $727.0 million, a 6% increase from Q3 FY2024, despite a 7% decrease in shipment volume. The company generated $74.2 million in operating cash flow and executed $37.5 million in share repurchases under its $400.0 million repurchase program.
Looking ahead, Carpenter has raised its FY2025 operating income guidance to $520-527 million and projects $250-300 million in adjusted free cash flow. The company aims to reach $765-800 million in operating income by FY2027, representing approximately 25% CAGR over two years.
Carpenter Technology (NYSE: CRS) ha riportato risultati finanziari record per il terzo trimestre dell'anno fiscale 2025, con un reddito operativo di 137,8 milioni di dollari e un utile per azione diluito di 1,88 dollari. Il segmento Specialty Alloys Operations (SAO) dell'azienda ha raggiunto un margine operativo rettificato del 29,1%, in aumento rispetto al 21,4% dell'anno precedente, segnando tredici trimestri consecutivi di crescita del margine.
Le vendite nette hanno raggiunto 727,0 milioni di dollari, con un aumento del 6% rispetto al terzo trimestre dell'anno fiscale 2024, nonostante una diminuzione del 7% nel volume delle spedizioni. L'azienda ha generato 74,2 milioni di dollari di flusso di cassa operativo e ha effettuato riacquisti di azioni per 37,5 milioni di dollari nell'ambito del suo programma di riacquisto da 400,0 milioni di dollari.
Guardando al futuro, Carpenter ha aumentato la sua previsione di reddito operativo per l'anno fiscale 2025 a 520-527 milioni di dollari e prevede un flusso di cassa libero rettificato tra 250 e 300 milioni di dollari. L'azienda punta a raggiungere un reddito operativo tra 765 e 800 milioni di dollari entro l'anno fiscale 2027, con un tasso di crescita annuo composto (CAGR) di circa il 25% in due anni.
Carpenter Technology (NYSE: CRS) reportó resultados financieros récord para el tercer trimestre del año fiscal 2025, con un ingreso operativo de 137,8 millones de dólares y ganancias por acción diluida de 1,88 dólares. El segmento Specialty Alloys Operations (SAO) de la compañía alcanzó un margen operativo ajustado del 29,1%, frente al 21,4% del año anterior, marcando trece trimestres consecutivos de crecimiento en el margen.
Las ventas netas alcanzaron 727,0 millones de dólares, un aumento del 6% respecto al tercer trimestre del año fiscal 2024, a pesar de una disminución del 7% en el volumen de envíos. La empresa generó 74,2 millones de dólares en flujo de caja operativo y ejecutó recompras de acciones por 37,5 millones de dólares bajo su programa de recompra de 400,0 millones de dólares.
De cara al futuro, Carpenter ha elevado su pronóstico de ingreso operativo para el año fiscal 2025 a 520-527 millones de dólares y proyecta un flujo de caja libre ajustado de 250-300 millones de dólares. La compañía apunta a alcanzar un ingreso operativo de 765-800 millones de dólares para el año fiscal 2027, lo que representa una tasa compuesta anual (CAGR) de aproximadamente el 25% en dos años.
Carpenter Technology (NYSE: CRS)는 2025 회계연도 3분기에 기록적인 재무 실적을 보고했으며, 영업이익은 1억 3,780만 달러, 희석 주당순이익은 1.88달러를 기록했습니다. 회사의 Specialty Alloys Operations(SAO) 부문은 조정 영업이익률 29.1%를 달성했으며, 이는 전년 동기 대비 21.4%에서 상승한 수치로, 13분기 연속 마진 성장세를 이어갔습니다.
순매출은 7억 2,700만 달러에 달해 2024 회계연도 3분기 대비 6% 증가했으나, 출하량은 7% 감소했습니다. 회사는 7,420만 달러의 영업 현금 흐름을 창출했으며, 4억 달러 규모의 자사주 매입 프로그램 하에 3,750만 달러 상당의 자사주를 매입했습니다.
앞으로 Carpenter는 2025 회계연도 영업이익 가이던스를 5억 2,000만~5억 2,700만 달러로 상향 조정했으며, 조정된 잉여 현금 흐름을 2억 5,000만~3억 달러로 예상하고 있습니다. 회사는 2027 회계연도까지 영업이익을 7억 6,500만~8억 달러로 끌어올려 2년간 약 25%의 연평균 성장률(CAGR)을 달성하는 것을 목표로 하고 있습니다.
Carpenter Technology (NYSE : CRS) a annoncé des résultats financiers records pour le troisième trimestre de l’exercice 2025, avec un résultat opérationnel de 137,8 millions de dollars et un bénéfice dilué par action de 1,88 dollar. Le segment Specialty Alloys Operations (SAO) de l’entreprise a atteint une marge opérationnelle ajustée de 29,1 %, en hausse par rapport à 21,4 % l’année précédente, marquant treize trimestres consécutifs de croissance de la marge.
Le chiffre d’affaires net a atteint 727,0 millions de dollars, soit une augmentation de 6 % par rapport au troisième trimestre de l’exercice 2024, malgré une baisse de 7 % du volume des expéditions. L’entreprise a généré 74,2 millions de dollars de flux de trésorerie opérationnel et a réalisé des rachats d’actions pour 37,5 millions de dollars dans le cadre de son programme de rachat d’actions de 400,0 millions de dollars.
Pour l’avenir, Carpenter a relevé ses prévisions de résultat opérationnel pour l’exercice 2025 à 520-527 millions de dollars et prévoit un flux de trésorerie disponible ajusté de 250-300 millions de dollars. L’entreprise vise un résultat opérationnel compris entre 765 et 800 millions de dollars d’ici l’exercice 2027, ce qui représente un taux de croissance annuel moyen (TCAM) d’environ 25 % sur deux ans.
Carpenter Technology (NYSE: CRS) meldete Rekordergebnisse für das dritte Quartal des Geschäftsjahres 2025 mit einem operativen Ergebnis von 137,8 Millionen US-Dollar und einem verwässerten Gewinn je Aktie von 1,88 US-Dollar. Das Segment Specialty Alloys Operations (SAO) des Unternehmens erreichte eine bereinigte operative Marge von 29,1 %, gegenüber 21,4 % im Vorjahr, was dreizehn aufeinanderfolgende Quartale mit Margensteigerungen markiert.
Der Nettoumsatz erreichte 727,0 Millionen US-Dollar, eine Steigerung von 6 % gegenüber dem dritten Quartal des Geschäftsjahres 2024, trotz eines Rückgangs des Versandvolumens um 7 %. Das Unternehmen generierte 74,2 Millionen US-Dollar operativen Cashflow und führte Aktienrückkäufe im Wert von 37,5 Millionen US-Dollar im Rahmen seines Rückkaufprogramms in Höhe von 400,0 Millionen US-Dollar durch.
Für die Zukunft hat Carpenter seine Prognose für das operative Ergebnis im Geschäftsjahr 2025 auf 520-527 Millionen US-Dollar angehoben und erwartet einen bereinigten freien Cashflow von 250-300 Millionen US-Dollar. Das Unternehmen strebt an, bis zum Geschäftsjahr 2027 ein operatives Ergebnis von 765-800 Millionen US-Dollar zu erreichen, was einer durchschnittlichen jährlichen Wachstumsrate (CAGR) von etwa 25 % über zwei Jahre entspricht.
- Record quarterly operating income of $137.8 million, up 53% year-over-year
- SAO segment operating margin expanded to 29.1% from 21.4% year-over-year
- Net sales increased 6% to $727.0 million despite lower shipment volume
- Generated $74.2 million in operating cash flow
- Raised FY2025 operating income guidance to $520-527 million
- Strong liquidity position of $500.4 million
- 7% decrease in shipment volume compared to previous year
- Adjusted free cash flow declined to $34.0 million from $61.9 million year-over-year
- Higher pension contributions affecting cash flow
Insights
Carpenter Technology delivered record quarterly results with 53% operating income growth and raised FY2025 guidance, demonstrating strong execution and margin expansion.
Carpenter Technology has achieved a significant financial milestone with its most profitable quarter in company history. The $137.8 million in operating income represents a 53% year-over-year increase, substantially exceeding previous guidance. This translates to earnings per share of $1.88, compared to adjusted EPS of $1.19 in the same period last year.
What's particularly impressive is the Specialty Alloys Operations (SAO) segment performance, which expanded operating margins to 29.1% from 21.4% a year ago. This marks the thirteenth consecutive quarter of margin improvement in this critical segment, demonstrating a sustainable trajectory rather than a one-time event.
The company's strategic shift toward more complex, higher-value materials is clearly paying off, as they achieved revenue growth of 6% despite a 7% decrease in shipment volume. This product mix improvement, combined with expanding operational efficiencies, underscores management's successful execution.
Cash generation remains strong with $74.2 million from operations and $34.0 million in adjusted free cash flow. Management is deploying this cash strategically, repurchasing $37.5 million in shares during the quarter as part of their $400 million authorization. The company maintains solid liquidity with $500.4 million available between cash and credit facilities.
Looking forward, management has raised full-year FY2025 guidance to $520-527 million in operating income, which would represent a nearly 50% increase over FY2024. They also project $250-300 million in adjusted free cash flow for the fiscal year.
Most notably, Carpenter has established ambitious long-term targets of $765-800 million in operating income by FY2027, representing approximately 25% CAGR over the two-year period from FY2025. This growth trajectory is supported by their brownfield capacity expansion expected to come online in FY2028.
Delivered Most Profitable Quarter in Company History
Exceeded Third Quarter Operating Income Guidance
Expanded Operating Margins in Specialty Alloys Operations Segment
Generated Positive Adjusted Free Cash Flow
Repurchased Shares Against Authorized Share Repurchase Program
Raising Fiscal Year 2025 Guidance
PHILADELPHIA, April 24, 2025 (GLOBE NEWSWIRE) -- Carpenter Technology Corporation (NYSE: CRS) (the “Company”) today announced financial results for the fiscal third quarter ended March 31, 2025. For the quarter, the Company reported operating income of
Third Quarter Fiscal Year 2025 Highlights
- Exceeded expectations with record
$137.8 million of adjusted operating income, up 53 percent year-over-year - Realized earnings per diluted share of
$1.88 - Delivered adjusted operating margin of 29.1 percent in the Specialty Alloys Operations (“SAO”) segment, up from 21.4 percent in the third quarter of the previous year
- Exceeded expectations in SAO segment with operating income of
$151.4 million, up 46 percent year-over-year - Generated
$74.2 million of cash from operating activities, or$34.0 million of adjusted free cash flow - Executed
$37.5 million in share repurchases against$400.0 million repurchase program
Fiscal Year 2025 Outlook
- Raising operating income guidance to the range of
$520 million to$527 million in fiscal year 2025 - Project
$250 million to$300 million in adjusted free cash flow in fiscal year 2025 - Expect
$146 million to$153 million in operating income for the fourth quarter of fiscal year 2025 - Anticipate continued earnings growth beyond fiscal year 2025, with operating income outlook of
$765 million to$800 million in fiscal year 2027
“In the third quarter of fiscal year 2025 we generated a record
“Notably, the SAO segment expanded their adjusted operating margin to 29.1 percent, up from 21.4 percent in the third quarter a year ago, representing the thirteenth quarter in a row with increasing adjusted operating margins. As a result, the SAO segment realized
“With strong earnings and disciplined working capital management, we generated
“Building on the record third quarter performance, we expect to carry our operating momentum into the fourth quarter. As a result, we are raising our guidance again for the full fiscal year 2025, now to the range of
“We also anticipate generating
“Carpenter Technology continues to deliver record results, despite disruptions in the supply chains where we participate. We offer a broad portfolio of highly specialized alloys, serving high value applications in high growth end-use markets. Looking beyond fiscal year 2025, we see exceptional growth in the mid and long-term. As we presented in our investor update event in February, our goal is to reach
Financial Highlights
| Q3 | Q2 | Q3 | |||||||
| ($ in millions, except per share amounts) | FY2025 | FY2025 | FY2024 | ||||||
| Net sales | $ | 727.0 | $ | 676.9 | $ | 684.9 | |||
| Net sales excluding surcharge (a) | $ | 597.0 | $ | 548.0 | $ | 553.8 | |||
| Operating income | $ | 137.8 | $ | 118.9 | $ | 75.9 | |||
| Adjusted operating income excluding special item (a) | $ | 137.8 | $ | 118.9 | $ | 90.0 | |||
| Net income | $ | 95.4 | $ | 84.1 | $ | 6.3 | |||
| Earnings per diluted share | $ | 1.88 | $ | 1.66 | $ | 0.12 | |||
| Adjusted earnings per diluted share (a) | $ | 1.88 | $ | 1.66 | $ | 1.19 | |||
| Net cash provided from operating activities | $ | 74.2 | $ | 67.9 | $ | 83.4 | |||
| Adjusted free cash flow (a) | $ | 34.0 | $ | 38.6 | $ | 61.9 | |||
| (a) Non-GAAP financial measures explained in the attached tables | |||||||||
Net sales for the third quarter of fiscal year 2025 were
Operating income was
Cash provided from operating activities in the third quarter of fiscal year 2025 was
Under the Company's authorized share repurchase program of up to
Total liquidity, including cash and available revolver balance, was
Conference Call and Webcast Presentation
Carpenter Technology will host a conference call and webcast presentation today, April 24, 2025, at 10:00 a.m. ET, to discuss the financial results of operations for the third quarter of fiscal year 2025. Please dial +1 (800) 715-9871 for access to the live conference call. Access to the live webcast will be available at Carpenter Technology’s website (https://www.carpentertechnology.com), and a replay will soon be made available at https://www.carpentertechnology.com. Presentation materials used during this conference call will be available for viewing and download at https://www.carpentertechnology.com.
Non-GAAP Financial Measures
This press release includes discussions of financial measures that have not been determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). A reconciliation of the non-GAAP financial measures to their most directly comparable financial measures prepared in accordance with GAAP, accompanied by reasons why the Company believes the non-GAAP measures are important, are included in the attached schedules.
About Carpenter Technology
Carpenter Technology Corporation is a recognized leader in high-performance specialty alloy materials and process solutions for critical applications in the aerospace and defense, medical, and other markets. Founded in 1889, Carpenter Technology has evolved to become a pioneer in premium specialty alloys, including nickel, cobalt, and titanium and material process capabilities that solve our customers' current and future material challenges. More information about Carpenter Technology can be found at https://www.carpentertechnology.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected, anticipated or implied. The most significant of these uncertainties are described in Carpenter Technology's filings with the Securities and Exchange Commission, including its report on Form 10-K for the fiscal year ended June 30, 2024, Form 10-Q for the fiscal quarters ended September 30, 2024, and December 31, 2024, and the exhibits attached to such filings. They include but are not limited to: (1) the cyclical nature of the specialty materials business and certain end-use markets, including aerospace, defense, medical, energy, transportation, industrial and consumer, or other influences on Carpenter Technology's business such as new competitors, the consolidation of competitors, customers, and suppliers or the transfer of manufacturing capacity from the United States to foreign countries; (2) the ability of Carpenter Technology to achieve cash generation, growth, earnings, profitability, operating income, cost savings and reductions, qualifications, productivity improvements or process changes; (3) the ability to recoup increases in the cost of energy, raw materials, freight or other factors; (4) domestic and foreign excess manufacturing capacity for certain metals; (5) fluctuations in currency exchange and interest rates; (6) the effect of government trade actions, including tariffs; (7) the valuation of the assets and liabilities in Carpenter Technology's pension trusts and the accounting for pension plans; (8) possible labor disputes or work stoppages; (9) the potential that our customers may substitute alternate materials or adopt different manufacturing practices that replace or limit the suitability of our products; (10) the ability to successfully acquire and integrate acquisitions; (11) the availability of credit facilities to Carpenter Technology, its customers or other members of the supply chain; (12) the ability to obtain energy or raw materials, especially from suppliers located in countries that may be subject to unstable political or economic conditions; (13) Carpenter Technology's manufacturing processes are dependent upon highly specialized equipment located primarily in facilities in Reading and Latrobe, Pennsylvania and Athens, Alabama for which there may be limited alternatives if there are significant equipment failures or a catastrophic event; (14) the ability to hire and retain a qualified workforce and key personnel, including members of the executive management team, management, metallurgists and other skilled personnel; (15) fluctuations in oil and gas prices and production; (16) the impact of potential cyber attacks and information technology or data security breaches; (17) the ability of suppliers to meet obligations due to supply chain disruptions or otherwise; (18) the ability to meet increased demand, production targets or commitments; (19) the ability to manage the impacts of natural disasters, climate change, pandemics and outbreaks of contagious diseases and other adverse public health developments; (20) geopolitical, economic, and regulatory risks relating to our global business, including geopolitical and diplomatic tensions, instabilities and conflicts, such as the war in Ukraine, the war between Israel and HAMAS, the war between Israel and Hezbollah, Houthi attacks on commercial shipping vessels and other naval vessels as well as compliance with U.S. and foreign trade and tax laws, sanctions, embargoes and other regulations; (21) challenges affecting the commercial aviation industry or key participants including, but not limited to production and other challenges at The Boeing Company; and (22) the consequences of the announcement, maintenance or use of Carpenter Technology’s share repurchase program. Any of these factors could have an adverse and/or fluctuating effect on Carpenter Technology's results of operations. The forward-looking statements in this document are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this press release or as of the dates otherwise indicated in such forward-looking statements. Carpenter Technology undertakes no obligation to update or revise any forward-looking statements.
| PRELIMINARY CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (Unaudited) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| March 31, | March 31, | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| NET SALES | $ | 727.0 | $ | 684.9 | $ | 2,121.5 | $ | 1,961.1 | ||||
| Cost of sales | 526.2 | 537.9 | 1,566.9 | 1,567.4 | ||||||||
| Gross profit | 200.8 | 147.0 | 554.6 | 393.7 | ||||||||
| Selling, general and administrative expenses | 63.0 | 57.0 | 180.6 | 164.8 | ||||||||
| Restructuring and asset impairment charges | — | — | 3.6 | — | ||||||||
| Goodwill impairment | — | 14.1 | — | 14.1 | ||||||||
| Operating income | 137.8 | 75.9 | 370.4 | 214.8 | ||||||||
| Interest expense, net | 12.0 | 12.9 | 36.6 | 38.6 | ||||||||
| Other expense, net | 3.8 | 52.9 | 5.6 | 58.5 | ||||||||
| Income before income taxes | 122.0 | 10.1 | 328.2 | 117.7 | ||||||||
| Income tax expense | 26.6 | 3.8 | 63.9 | 24.8 | ||||||||
| NET INCOME | $ | 95.4 | $ | 6.3 | $ | 264.3 | $ | 92.9 | ||||
| EARNINGS PER COMMON SHARE: | ||||||||||||
| Basic | $ | 1.90 | $ | 0.12 | $ | 5.27 | $ | 1.87 | ||||
| Diluted | $ | 1.88 | $ | 0.12 | $ | 5.21 | $ | 1.85 | ||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||
| Basic | 50.2 | 49.7 | 50.2 | 49.5 | ||||||||
| Diluted | 50.7 | 50.3 | 50.7 | 50.1 | ||||||||
| Cash dividends per common share | $ | 0.20 | $ | 0.20 | $ | 0.60 | $ | 0.60 | ||||
| PRELIMINARY CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) | ||||||||
| Nine Months Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | $ | 264.3 | $ | 92.9 | ||||
| Adjustments to reconcile net income to net cash provided from operating activities: | ||||||||
| Depreciation and amortization | 103.6 | 100.8 | ||||||
| Goodwill impairment charge | — | 14.1 | ||||||
| Noncash restructuring and asset impairment charges | 2.5 | — | ||||||
| Deferred income taxes | (12.3 | ) | (11.3 | ) | ||||
| Net pension expense | 18.6 | 69.8 | ||||||
| Share-based compensation expense | 16.2 | 13.7 | ||||||
| Net loss on disposals of property, plant and equipment | 0.9 | 3.5 | ||||||
| Changes in working capital and other: | ||||||||
| Accounts receivable | (39.4 | ) | 9.3 | |||||
| Inventories | (93.3 | ) | (155.6 | ) | ||||
| Other current assets | 10.2 | (19.2 | ) | |||||
| Accounts payable | (10.6 | ) | (1.0 | ) | ||||
| Accrued liabilities | (14.0 | ) | (5.2 | ) | ||||
| Pension plan contributions | (58.5 | ) | (4.9 | ) | ||||
| Other postretirement plan contributions | (2.8 | ) | (1.8 | ) | ||||
| Other, net | (3.1 | ) | 0.3 | |||||
| Net cash provided from operating activities | 182.3 | 105.4 | ||||||
| INVESTING ACTIVITIES | ||||||||
| Purchases of property, plant, equipment and software | (96.3 | ) | (68.9 | ) | ||||
| Proceeds from disposals of property, plant and equipment | 0.1 | 0.1 | ||||||
| Net cash used for investing activities | (96.2 | ) | (68.8 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Credit agreement borrowings | — | 62.5 | ||||||
| Credit agreement repayments | — | (62.5 | ) | |||||
| Dividends paid | (30.2 | ) | (29.9 | ) | ||||
| Purchases of treasury stock | (77.8 | ) | — | |||||
| Proceeds from stock options exercised | 12.2 | 19.8 | ||||||
| Withholding tax payments on share-based compensation awards | (36.6 | ) | (18.2 | ) | ||||
| Net cash used for financing activities | (132.4 | ) | (28.3 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (1.3 | ) | 0.7 | |||||
| (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (47.6 | ) | 9.0 | |||||
| Cash and cash equivalents at beginning of year | 199.1 | 44.5 | ||||||
| Cash and cash equivalents at end of period | $ | 151.5 | $ | 53.5 | ||||
| PRELIMINARY CONSOLIDATED BALANCE SHEETS (in millions) (Unaudited) | ||||||||
| March 31, | June 30, | |||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 151.5 | $ | 199.1 | ||||
| Accounts receivable, net | 602.8 | 562.6 | ||||||
| Inventories | 825.0 | 735.4 | ||||||
| Other current assets | 86.3 | 94.1 | ||||||
| Total current assets | 1,665.6 | 1,591.2 | ||||||
| Property, plant, equipment and software, net | 1,337.1 | 1,335.2 | ||||||
| Goodwill | 227.3 | 227.3 | ||||||
| Other intangibles, net | 11.0 | 15.2 | ||||||
| Deferred income taxes | 7.7 | 7.5 | ||||||
| Other assets | 113.1 | 115.3 | ||||||
| Total assets | $ | 3,361.8 | $ | 3,291.7 | ||||
| LIABILITIES | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 258.4 | $ | 263.9 | ||||
| Accrued liabilities | 185.8 | 202.4 | ||||||
| Total current liabilities | 444.2 | 466.3 | ||||||
| Long-term debt | 695.1 | 694.2 | ||||||
| Accrued pension liabilities | 158.9 | 207.6 | ||||||
| Accrued postretirement benefits | 22.2 | 21.1 | ||||||
| Deferred income taxes | 163.9 | 174.1 | ||||||
| Other liabilities | 95.8 | 99.6 | ||||||
| Total liabilities | 1,580.1 | 1,662.9 | ||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Common stock | 286.0 | 284.9 | ||||||
| Capital in excess of par value | 347.7 | 352.6 | ||||||
| Reinvested earnings | 1,608.6 | 1,374.5 | ||||||
| Common stock in treasury, at cost | (371.1 | ) | (289.3 | ) | ||||
| Accumulated other comprehensive loss | (89.5 | ) | (93.9 | ) | ||||
| Total stockholders' equity | 1,781.7 | 1,628.8 | ||||||
| Total liabilities and stockholders' equity | $ | 3,361.8 | $ | 3,291.7 | ||||
| PRELIMINARY SEGMENT FINANCIAL DATA (in millions, except pounds sold) (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| March 31, | March 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Pounds sold ('000): | |||||||||||||||
| Specialty Alloys Operations | 44,584 | 50,846 | 139,400 | 150,952 | |||||||||||
| Performance Engineered Products | 2,584 | 2,618 | 7,424 | 7,238 | |||||||||||
| Intersegment | (672 | ) | (3,256 | ) | (2,590 | ) | (8,672 | ) | |||||||
| Consolidated pounds sold | 46,496 | 50,208 | 144,234 | 149,518 | |||||||||||
| Net sales: | |||||||||||||||
| Specialty Alloys Operations | |||||||||||||||
| Net sales excluding surcharge | $ | 519.4 | $ | 483.0 | $ | 1,509.9 | $ | 1,316.5 | |||||||
| Surcharge | 123.5 | 125.5 | 379.6 | 411.5 | |||||||||||
| Specialty Alloys Operations net sales | 642.9 | 608.5 | 1,889.5 | 1,728.0 | |||||||||||
| Performance Engineered Products | |||||||||||||||
| Net sales excluding surcharge | 96.8 | 94.6 | 275.3 | 275.6 | |||||||||||
| Surcharge | 8.1 | 7.8 | 25.5 | 24.3 | |||||||||||
| Performance Engineered Products net sales | 104.9 | 102.4 | 300.8 | 299.9 | |||||||||||
| Intersegment | |||||||||||||||
| Net sales excluding surcharge | (19.2 | ) | (23.8 | ) | (62.8 | ) | (60.2 | ) | |||||||
| Surcharge | (1.6 | ) | (2.2 | ) | (6.0 | ) | (6.6 | ) | |||||||
| Intersegment net sales | (20.8 | ) | (26.0 | ) | (68.8 | ) | (66.8 | ) | |||||||
| Consolidated net sales | $ | 727.0 | $ | 684.9 | $ | 2,121.5 | $ | 1,961.1 | |||||||
| Operating income (loss): | |||||||||||||||
| Specialty Alloys Operations | $ | 151.4 | $ | 103.5 | $ | 421.5 | $ | 267.6 | |||||||
| Performance Engineered Products | 10.9 | 9.2 | 25.3 | 25.4 | |||||||||||
| Corporate | (24.4 | ) | (37.1 | ) | (76.0 | ) | (79.1 | ) | |||||||
| Intersegment | (0.1 | ) | 0.3 | (0.4 | ) | 0.9 | |||||||||
| Consolidated operating income | $ | 137.8 | $ | 75.9 | $ | 370.4 | $ | 214.8 | |||||||
The Company has two reportable segments, Specialty Alloys Operations (“SAO”) and Performance Engineered Products (“PEP”).
The SAO segment is comprised of Carpenter's major premium alloy and stainless steel manufacturing operations. This includes operations performed at mills primarily in Reading and Latrobe, Pennsylvania and surrounding areas as well as South Carolina and Alabama.
The PEP segment is comprised of the Company’s differentiated operations. This segment includes the Dynamet titanium business, the Carpenter Additive business and the Latrobe and Mexico distribution businesses. The businesses in the PEP segment are managed with an entrepreneurial structure to promote flexibility and agility to quickly respond to market dynamics. It is our belief this model will ultimately drive overall revenue and profit growth. The pounds sold data above for the PEP segment includes only the Dynamet and Additive businesses.
Corporate costs are comprised of executive and director compensation, and other corporate facilities and administrative expenses not allocated to the segments. Also included are items that management considers not representative of ongoing operations, such as restructuring charges and other specifically identified income or expense items.
The service cost component of net pension expense, which represents the estimated cost of future pension liabilities earned associated with active employees, is included in the operating results of the business segments. The residual net pension expense is included in other expense, net, and is comprised of the expected return on plan assets, interest costs on the projected benefit obligations of the plans, amortization of actuarial gains and losses and prior service costs.
| PRELIMINARY NON-GAAP FINANCIAL MEASURES (in millions, except per share data) (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| ADJUSTED OPERATING MARGIN EXCLUDING SURCHARGE REVENUE AND SPECIAL ITEMS | March 31, | March 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net sales | $ | 727.0 | $ | 684.9 | $ | 2,121.5 | $ | 1,961.1 | ||||||||
| Less: surcharge revenue | 130.0 | 131.1 | 399.1 | 429.2 | ||||||||||||
| Net sales excluding surcharge revenue | $ | 597.0 | $ | 553.8 | $ | 1,722.4 | $ | 1,531.9 | ||||||||
| Operating income | $ | 137.8 | $ | 75.9 | $ | 370.4 | $ | 214.8 | ||||||||
| Special items: | ||||||||||||||||
| Restructuring and asset impairment charges | — | — | 3.6 | — | ||||||||||||
| Goodwill impairment | — | 14.1 | — | 14.1 | ||||||||||||
| Adjusted operating income | $ | 137.8 | $ | 90.0 | $ | 374.0 | $ | 228.9 | ||||||||
| Operating margin | 19.0 | % | 11.1 | % | 17.5 | % | 11.0 | % | ||||||||
| Adjusted operating margin excluding surcharge revenue and special items | 23.1 | % | 16.3 | % | 21.7 | % | 14.9 | % | ||||||||
| ADJUSTED SEGMENT OPERATING MARGIN EXCLUDING SURCHARGE REVENUE | Three Months Ended | Nine Months Ended | ||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Specialty Alloys Operations | ||||||||||||||||
| Net sales | $ | 642.9 | $ | 608.5 | $ | 1,889.5 | $ | 1,728.0 | ||||||||
| Less: surcharge revenue | 123.5 | 125.5 | 379.6 | 411.5 | ||||||||||||
| Net sales excluding surcharge revenue | $ | 519.4 | $ | 483.0 | $ | 1,509.9 | $ | 1,316.5 | ||||||||
| Operating income | $ | 151.4 | $ | 103.5 | $ | 421.5 | $ | 267.6 | ||||||||
| Operating margin | 23.5 | % | 17.0 | % | 22.3 | % | 15.5 | % | ||||||||
| Adjusted operating margin excluding surcharge revenue | 29.1 | % | 21.4 | % | 27.9 | % | 20.3 | % | ||||||||
| ADJUSTED SEGMENT OPERATING MARGIN EXCLUDING SURCHARGE REVENUE | Three Months Ended | Nine Months Ended | ||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Performance Engineered Products | ||||||||||||||||
| Net sales | $ | 104.9 | $ | 102.4 | $ | 300.8 | $ | 299.9 | ||||||||
| Less: surcharge revenue | 8.1 | 7.8 | 25.5 | 24.3 | ||||||||||||
| Net sales excluding surcharge revenue | $ | 96.8 | $ | 94.6 | $ | 275.3 | $ | 275.6 | ||||||||
| Operating income | $ | 10.9 | $ | 9.2 | $ | 25.3 | $ | 25.4 | ||||||||
| Operating margin | 10.4 | % | 9.0 | % | 8.4 | % | 8.5 | % | ||||||||
| Adjusted operating margin excluding surcharge revenue | 11.3 | % | 9.7 | % | 9.2 | % | 9.2 | % | ||||||||
Management believes that removing the impact of raw material surcharge from operating margin provides a more consistent basis for comparing results of operations from period to period, thereby permitting management to evaluate performance and investors to make decisions based on the ongoing operations of the Company. In addition, management believes that excluding the impact of special items from operating margin is helpful in analyzing the operating performance of the Company, as these items are not indicative of ongoing operating performance. Management uses its results excluding these amounts to evaluate its operating performance and to discuss its business with investment institutions, the Company’s board of directors and others.
| ADJUSTED EARNINGS PER SHARE EXCLUDING SPECIAL ITEM | Earnings Before Income Taxes | Income Tax Expense | Net Income | Earnings Per Diluted Share* | |||||||||
| Three Months Ended March 31, 2025, as reported | $ | 122.0 | $ | (26.6 | ) | $ | 95.4 | $ | 1.88 | ||||
| Special item: | |||||||||||||
| None reported | — | — | — | — | |||||||||
| Three Months Ended March 31, 2025, as adjusted | $ | 122.0 | $ | (26.6 | ) | $ | 95.4 | $ | 1.88 | ||||
| * Impact per diluted share calculated using weighted average common shares outstanding of 50.7 million for the three months ended March 31, 2025. | |||||||||||||
| ADJUSTED EARNINGS PER SHARE EXCLUDING SPECIAL ITEMS | Earnings Before Income Taxes | Income Tax Expense | Net Income | Earnings Per Diluted Share* | |||||||||
| Three Months Ended March 31, 2024, as reported | $ | 10.1 | $ | (3.8 | ) | $ | 6.3 | $ | 0.12 | ||||
| Special items: | |||||||||||||
| Goodwill impairment | 14.1 | — | 14.1 | 0.28 | |||||||||
| Pension settlement charge | 51.9 | (12.4 | ) | 39.5 | 0.79 | ||||||||
| Three Months Ended March 31, 2024, as adjusted | $ | 76.1 | $ | (16.2 | ) | $ | 59.9 | $ | 1.19 | ||||
| * Impact per diluted share calculated using weighted average common shares outstanding of 50.3 million for the three months ended March 31, 2024. | |||||||||||||
| ADJUSTED EARNINGS PER SHARE EXCLUDING SPECIAL ITEM | Earnings Before Income Taxes | Income Tax Expense | Net Income | Earnings Per Diluted Share* | |||||||||
| Nine Months Ended March 31, 2025, as reported | $ | 328.2 | $ | (63.9 | ) | $ | 264.3 | $ | 5.21 | ||||
| Special item: | |||||||||||||
| Restructuring and asset impairment charges | 3.6 | (0.9 | ) | 2.7 | 0.06 | ||||||||
| Nine Months Ended March 31, 2025, as adjusted | $ | 331.8 | $ | (64.8 | ) | $ | 267.0 | $ | 5.27 | ||||
| * Impact per diluted share calculated using weighted average common shares outstanding of 50.7 million for the nine months ended March 31, 2025. | |||||||||||||
| ADJUSTED EARNINGS PER SHARE EXCLUDING SPECIAL ITEMS | Earnings Before Income Taxes | Income Tax Expense | Net Income | Earnings Per Diluted Share* | |||||||||
| Nine Months Ended March 31, 2024, as reported | $ | 117.7 | $ | (24.8 | ) | $ | 92.9 | $ | 1.85 | ||||
| Special items: | |||||||||||||
| Goodwill impairment | 14.1 | — | 14.1 | 0.28 | |||||||||
| Pension settlement charge | 51.9 | (12.4 | ) | 39.5 | 0.79 | ||||||||
| Nine Months Ended March 31, 2024, as adjusted | $ | 183.7 | $ | (37.2 | ) | $ | 146.5 | $ | 2.92 | ||||
| * Impact per diluted share calculated using weighted average common shares outstanding of 50.1 million for the nine months ended March 31, 2024. | |||||||||||||
Management believes that earnings per share adjusted to exclude the impact of the special items is helpful in analyzing the operating performance of the Company, as these items are not indicative of ongoing operating performance. Management uses its results excluding these amounts to evaluate its operating performance and to discuss its business with investment institutions, the Company’s board of directors and others.
| Three Months Ended | Nine Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| ADJUSTED FREE CASH FLOW | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net cash provided from operating activities | $ | 74.2 | $ | 83.4 | $ | 182.3 | $ | 105.4 | ||||||||
| Purchases of property, plant, equipment and software | (40.2 | ) | (21.6 | ) | (96.3 | ) | (68.9 | ) | ||||||||
| Proceeds from disposals of property, plant and equipment | — | 0.1 | 0.1 | 0.1 | ||||||||||||
| Adjusted free cash flow | $ | 34.0 | $ | 61.9 | $ | 86.1 | $ | 36.6 | ||||||||
Management believes that the presentation of adjusted free cash flow provides useful information to investors regarding our financial condition because it is a measure of cash generated which management evaluates for alternative uses. It is management's current intention to use excess cash to fund investments in capital equipment, acquisition opportunities and consistent dividend payments. Additionally, we will discretionarily use excess cash for a share repurchase program up to
| PRELIMINARY SUPPLEMENTAL SCHEDULE (in millions) (Unaudited) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| March 31, | March 31, | |||||||||||
| NET SALES BY END-USE MARKET | 2025 | 2024 | 2025 | 2024 | ||||||||
| End-Use Market Excluding Surcharge Revenue: | ||||||||||||
| Aerospace and Defense | $ | 373.2 | $ | 315.1 | $ | 1,056.8 | $ | 823.0 | ||||
| Medical | 72.4 | 84.2 | 219.3 | 223.7 | ||||||||
| Energy | 35.0 | 27.8 | 106.6 | 93.8 | ||||||||
| Transportation | 21.9 | 26.3 | 64.4 | 82.2 | ||||||||
| Industrial and Consumer | 72.4 | 77.1 | 212.2 | 236.7 | ||||||||
| Distribution | 22.1 | 23.3 | 63.1 | 72.5 | ||||||||
| Total net sales excluding surcharge revenue | 597.0 | 553.8 | 1,722.4 | 1,531.9 | ||||||||
| Surcharge revenue | 130.0 | 131.1 | 399.1 | 429.2 | ||||||||
| Total net sales | $ | 727.0 | $ | 684.9 | $ | 2,121.5 | $ | 1,961.1 | ||||
| Investor Inquiries: | Media Inquiries: |
| John Huyette | Heather Beardsley |
| +1 610-208-2061 | +1 610-208-2278 |
| jhuyette@cartech.com | hbeardsley@cartech.com |
FAQ
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