Carpenter Technology Reports Fourth Quarter and Fiscal Year 2025 Results
Carpenter Technology (NYSE:CRS) reported record-breaking financial results for Q4 and fiscal year 2025. The company achieved Q4 operating income of $151.4 million and earnings per diluted share of $2.21. For FY2025, Carpenter delivered $525.4 million in adjusted operating income, up 48% from FY2024.
Key highlights include record Q4 adjusted free cash flow of $201.3 million and full-year adjusted free cash flow of $287.5 million. The company's SAO segment achieved an impressive 30.5% operating margin. Carpenter executed $101.9 million in stock repurchases and paid $40.3 million in dividends during FY2025.
Looking ahead, Carpenter projects FY2026 operating income between $660-700 million, representing a 26-33% increase over FY2025, and remains on track for its FY2027 target of $765-800 million in operating income.
Carpenter Technology (NYSE:CRS) ha riportato risultati finanziari da record per il quarto trimestre e l'anno fiscale 2025. La società ha raggiunto un reddito operativo nel Q4 di 151,4 milioni di dollari e utili per azione diluita di 2,21 dollari. Per l'anno fiscale 2025, Carpenter ha registrato un reddito operativo rettificato di 525,4 milioni di dollari, in aumento del 48% rispetto al 2024.
Tra i principali risultati spiccano un flusso di cassa libero rettificato record nel Q4 di 201,3 milioni di dollari e un flusso di cassa libero rettificato annuale di 287,5 milioni di dollari. Il segmento SAO dell'azienda ha raggiunto un notevole margine operativo del 30,5%. Carpenter ha effettuato riacquisti di azioni per 101,9 milioni di dollari e ha distribuito dividendi per 40,3 milioni di dollari durante l'anno fiscale 2025.
Guardando al futuro, Carpenter prevede un reddito operativo per il FY2026 compreso tra 660 e 700 milioni di dollari, con un incremento del 26-33% rispetto al 2025, e conferma di essere sulla buona strada per raggiungere l'obiettivo di 765-800 milioni di dollari di reddito operativo nel FY2027.
Carpenter Technology (NYSE:CRS) reportó resultados financieros récord para el cuarto trimestre y el año fiscal 2025. La compañía logró un ingreso operativo en el Q4 de 151.4 millones de dólares y ganancias por acción diluida de 2.21 dólares. Para el año fiscal 2025, Carpenter entregó un ingreso operativo ajustado de 525.4 millones de dólares, un aumento del 48% respecto a 2024.
Los aspectos más destacados incluyen un flujo de caja libre ajustado récord en el Q4 de 201.3 millones de dólares y un flujo de caja libre ajustado anual de 287.5 millones de dólares. El segmento SAO de la compañía alcanzó un impresionante margen operativo del 30.5%. Carpenter ejecutó recompras de acciones por 101.9 millones de dólares y pagó dividendos por 40.3 millones de dólares durante el año fiscal 2025.
De cara al futuro, Carpenter proyecta un ingreso operativo para el FY2026 entre 660 y 700 millones de dólares, lo que representa un aumento del 26-33% respecto a 2025, y se mantiene en camino para alcanzar su objetivo de 765-800 millones de dólares en ingreso operativo para el FY2027.
Carpenter Technology (NYSE:CRS)는 2025 회계연도 4분기 및 연간 실적에서 사상 최고 기록을 달성했습니다. 회사는 4분기 영업이익 1억 5,140만 달러와 희석 주당순이익 2.21달러를 기록했습니다. 2025 회계연도에는 조정 영업이익 5억 2,540만 달러를 달성하며 2024년 대비 48% 증가했습니다.
주요 성과로는 4분기 조정 잉여현금흐름 2억 130만 달러와 연간 조정 잉여현금흐름 2억 8,750만 달러가 포함됩니다. 회사의 SAO 부문은 인상적인 30.5% 영업이익률을 기록했습니다. Carpenter는 2025 회계연도 동안 1억 190만 달러 규모의 자사주 매입과 4,030만 달러 배당금 지급을 실행했습니다.
앞으로 Carpenter는 2026 회계연도 영업이익을 6억 6,000만~7억 달러로 예상하며, 이는 2025년 대비 26~33% 증가한 수치입니다. 또한 2027 회계연도 목표인 7억 6,500만~8억 달러 영업이익 달성에도 순조롭게 진행 중입니다.
Carpenter Technology (NYSE:CRS) a annoncé des résultats financiers record pour le quatrième trimestre et l'exercice 2025. La société a réalisé un résultat opérationnel au T4 de 151,4 millions de dollars et un bénéfice par action diluée de 2,21 dollars. Pour l'exercice 2025, Carpenter a enregistré un résultat opérationnel ajusté de 525,4 millions de dollars, en hausse de 48 % par rapport à 2024.
Les points forts incluent un flux de trésorerie disponible ajusté record au T4 de 201,3 millions de dollars et un flux de trésorerie disponible ajusté annuel de 287,5 millions de dollars. Le segment SAO de l'entreprise a atteint une marge opérationnelle impressionnante de 30,5 %. Carpenter a procédé à des rachats d'actions pour 101,9 millions de dollars et a versé 40,3 millions de dollars de dividendes au cours de l'exercice 2025.
Pour l'avenir, Carpenter prévoit un résultat opérationnel pour l'exercice 2026 compris entre 660 et 700 millions de dollars, soit une augmentation de 26 à 33 % par rapport à 2025, et reste en bonne voie pour atteindre son objectif de 765 à 800 millions de dollars de résultat opérationnel pour l'exercice 2027.
Carpenter Technology (NYSE:CRS) meldete rekordverdächtige Finanzergebnisse für das vierte Quartal und das Geschäftsjahr 2025. Das Unternehmen erzielte einen operativen Gewinn von 151,4 Millionen US-Dollar im Q4 und einen Gewinn je verwässerter Aktie von 2,21 US-Dollar. Für das Geschäftsjahr 2025 erzielte Carpenter einen bereinigten operativen Gewinn von 525,4 Millionen US-Dollar, was einem Anstieg von 48 % gegenüber 2024 entspricht.
Zu den wichtigsten Highlights zählen ein rekordverdächtiger bereinigter Free Cashflow im Q4 von 201,3 Millionen US-Dollar sowie ein bereinigter Free Cashflow für das Gesamtjahr von 287,5 Millionen US-Dollar. Das SAO-Segment des Unternehmens erreichte eine beeindruckende operative Marge von 30,5 %. Carpenter führte im Geschäftsjahr 2025 Aktienrückkäufe im Wert von 101,9 Millionen US-Dollar durch und zahlte Dividenden in Höhe von 40,3 Millionen US-Dollar.
Mit Blick auf die Zukunft prognostiziert Carpenter für das Geschäftsjahr 2026 einen operativen Gewinn zwischen 660 und 700 Millionen US-Dollar, was einem Anstieg von 26–33 % gegenüber 2025 entspricht, und bleibt auf Kurs für das Ziel eines operativen Gewinns von 765–800 Millionen US-Dollar im Geschäftsjahr 2027.
- Record Q4 operating income of $151.4 million, up 21% year-over-year
- SAO segment operating margin expanded to 30.5%, up from 25.2% year-ago
- Generated $287.5 million in adjusted free cash flow for FY2025
- Strong FY2026 guidance projecting 26-33% operating income growth
- Aerospace and Defense revenue share increased to over 60%
- Maintained strong liquidity position of $664.4 million
- Net sales decreased 5% year-over-year to $755.6 million in Q4
- Shipment volume declined 14% compared to previous year
- Higher capital expenditures of $58.0 million in Q4 vs $27.7 million year-ago
Insights
Carpenter Technology delivered record quarterly and annual performance with strong guidance for continued growth through 2027.
Carpenter Technology (NYSE: CRS) has posted exceptional financial performance for both Q4 and the full fiscal year 2025, marking the most profitable year in company history. The Q4 results showed $151.4 million in operating income (up 21% year-over-year) and $2.21 earnings per diluted share.
The standout performer was the Specialty Alloys Operations (SAO) segment, which achieved a 30.5% operating margin - a significant improvement from 29.1% in Q3 and 25.2% a year ago. This segment generated $167 million in operating income, exceeding expectations.
Cash generation was particularly impressive, with $258 million in operating cash flow and $201.3 million in adjusted free cash flow for Q4 alone. For the full fiscal year 2025, the company delivered $525.4 million in adjusted operating income (up 48% from 2024) and $287.5 million in adjusted free cash flow.
Management's forward guidance is equally compelling. For fiscal 2026, they expect operating income between $660-700 million (representing 26-33% growth) and $240-280 million in adjusted free cash flow. They remain on track for their fiscal 2027 target of $765-800 million in operating income, which would represent a remarkable 25% compound annual growth rate from 2025's already record results.
The company's strong balance sheet ($664.4 million in total liquidity) and cash generation are funding both strategic investments (including a brownfield expansion to increase melt capacity) and shareholder returns. In Q4, they repurchased $24.1 million in shares, bringing the fiscal year total to $101.9 million against their $400 million authorization, while also paying $40.3 million in dividends.
The impressive margin expansion despite slightly lower revenues (Q4 sales of $755.6 million vs. $798.7 million last year) demonstrates Carpenter's successful focus on higher-value products, particularly in Aerospace and Defense (now >60% of revenue), improved pricing, and enhanced operational efficiency. With strong multi-year demand forecasts in key markets including Aerospace, Defense, Medical, and Power Generation, Carpenter appears well-positioned for continued profitable growth.
Delivered Record Quarterly Operating Income in Fourth Quarter
Generated Record Adjusted Free Cash Flow in Fourth Quarter
Completed Most Profitable Year in Company History
Fiscal Year 2026 Outlook
PHILADELPHIA, July 31, 2025 (GLOBE NEWSWIRE) -- Carpenter Technology Corporation (NYSE: CRS) (the “Company”) today announced financial results for the fiscal fourth quarter and year ended June 30, 2025. For the quarter, the Company reported operating income of
Fourth Quarter Highlights
- Delivered
$151.4 million of adjusted operating income, a record quarterly result, up 10 percent sequentially and 21 percent year-over-year - Realized earnings per diluted share of
$2.21 in the quarter - Generated
$258.0 million of cash from operating activities, or$201.3 million of adjusted free cash flow - Increased net sales excluding surcharge 4 percent sequentially, driven by increased sales in Aerospace and Defense and Energy end-use markets
- Exceeded expectations in Specialty Alloys Operations ("SAO") segment with operating income of
$167.0 million , up 10 percent sequentially and 19 percent year-over-year - Delivered adjusting operating margin of 30.5 percent in the SAO segment, up from 29.1 percent in the previous quarter and 25.2 percent a year ago
- Executed
$24.1 million in share repurchases in the quarter
Fiscal Year 2025 Highlights
- Completed most profitable year on record, with
$525.4 million of adjusted operating income in fiscal year 2025, up 48 percent over fiscal year 2024 - Generated
$287.5 million of adjusted free cash flow for fiscal year 2025 - Increased Aerospace and Defense share of revenue to greater than 60 percent
- Executed
$101.9 million of stock repurchases in fiscal year 2025 against$400.0 million share repurchase program and paid$40.3 million in annual dividends
Fiscal Year 2026 Outlook
- Expect operating income to be in the range of
$660 million to$700 million for fiscal year 2026, representing a 26 percent to 33 percent increase over fiscal year 2025 adjusted operating income - With operating income guidance, expect to generate
$240 million to$280 million in adjusted free cash flow - For first quarter of fiscal year 2026, anticipate between
$148 million to$152 million in operating income - Remain on track for fiscal year 2027 target of
$765 million to$800 million in operating income, a nearly 25 percent compound annual growth rate from our fiscal year 2025 adjusted operating income - Well positioned for continued growth beyond fiscal year 2027 with strong market demand outlook for our broad portfolio of specialized solutions, increasing productivity, optimizing product mix and pricing actions
“We delivered another record quarter in the fourth quarter of fiscal year 2025, generating
“Notably, the SAO segment expanded their adjusted operating margin to 30.5 percent, up from 29.1 percent in the previous quarter and 25.2 percent a year ago. As a result, the SAO segment realized
“At our recent Investor Update Event in February, we set a target of
“Further, we expect to generate
“Looking over the long term, the same dynamics that are driving our current performance are expected to only get stronger into the future. The markets that we serve, in particular Aerospace and Defense, Medical and Power Generation, have a strong, multi-year outlook. Further, our customers rely on our diverse portfolio of advanced material solutions and world class capabilities. And we are investing to accelerate our growth with our recently announced brownfield expansion which will add primary and secondary melt capacity. Altogether, Carpenter Technology is well positioned to achieve our goals and we believe our earnings growth journey will extend far beyond fiscal year 2027.”
Financial Highlights
| Q4 | Q4 | YTD | YTD | |||||||||||||
| ($ in millions, except per share amounts) | FY2025 | FY2024 | FY2025 | FY2024 | ||||||||||||
| Net sales | $ | 755.6 | $ | 798.7 | $ | 2,877.1 | $ | 2,759.7 | ||||||||
| Net sales excluding surcharge (a) | $ | 623.7 | $ | 635.8 | $ | 2,346.1 | $ | 2,167.7 | ||||||||
| Operating income | $ | 151.4 | $ | 108.3 | $ | 521.8 | $ | 323.1 | ||||||||
| Adjusted operating income excluding special items (a) | $ | 151.4 | $ | 125.2 | $ | 525.4 | $ | 354.1 | ||||||||
| Net income | $ | 111.7 | $ | 93.6 | $ | 376.0 | $ | 186.5 | ||||||||
| Earnings per diluted share | $ | 2.21 | $ | 1.85 | $ | 7.42 | $ | 3.70 | ||||||||
| Adjusted earnings per diluted share (a) | $ | 2.21 | $ | 1.82 | $ | 7.48 | $ | 4.74 | ||||||||
| Net cash provided from operating activities | $ | 258.0 | $ | 169.5 | $ | 440.4 | $ | 274.9 | ||||||||
| Adjusted free cash flow (a) | $ | 201.3 | $ | 142.4 | $ | 287.5 | $ | 179.0 | ||||||||
| (a) non-GAAP financial measures explained in the attached tables | ||||||||||||||||
Net sales for the fourth quarter of fiscal year 2025 were
Operating income for the fourth quarter of fiscal year 2025 was
Cash provided from operating activities in the fourth 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, July 31, 2025, at 10:00 a.m. ET, to discuss the financial results of operations for the fourth quarter and full 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, December 31, 2024, and March 31, 2025, 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 | Year Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| NET SALES | $ | 755.6 | $ | 798.7 | $ | 2,877.1 | $ | 2,759.7 | ||||||||
| Cost of sales | 541.7 | 608.1 | 2,108.5 | 2,175.4 | ||||||||||||
| Gross profit | 213.9 | 190.6 | 768.6 | 584.3 | ||||||||||||
| Selling, general and administrative expenses | 62.5 | 65.4 | 243.2 | 230.2 | ||||||||||||
| Goodwill impairment charge | — | — | — | 14.1 | ||||||||||||
| Restructuring and asset impairment charges | — | 16.9 | 3.6 | 16.9 | ||||||||||||
| Operating income | 151.4 | 108.3 | 521.8 | 323.1 | ||||||||||||
| Interest expense, net | 11.8 | 12.4 | 48.4 | 51.0 | ||||||||||||
| Other expense, net | 0.5 | 2.0 | 6.1 | 60.5 | ||||||||||||
| Income before income taxes | 139.1 | 93.9 | 467.3 | 211.6 | ||||||||||||
| Income tax expense | 27.4 | 0.3 | 91.3 | 25.1 | ||||||||||||
| NET INCOME | $ | 111.7 | $ | 93.6 | $ | 376.0 | $ | 186.5 | ||||||||
| EARNINGS PER COMMON SHARE: | ||||||||||||||||
| Basic | $ | 2.23 | $ | 1.87 | $ | 7.50 | $ | 3.75 | ||||||||
| Diluted | $ | 2.21 | $ | 1.85 | $ | 7.42 | $ | 3.70 | ||||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||||
| Basic | 50.1 | 50.0 | 50.2 | 49.7 | ||||||||||||
| Diluted | 50.6 | 50.6 | 50.7 | 50.3 | ||||||||||||
| Cash dividends per common share | $ | 0.20 | $ | 0.20 | $ | 0.80 | $ | 0.80 | ||||||||
| PRELIMINARY CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) | ||||||||
| Year Ended | ||||||||
| June 30, | ||||||||
| 2025 | 2024 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | $ | 376.0 | $ | 186.5 | ||||
| Adjustments to reconcile net income to net cash provided from operating activities: | ||||||||
| Depreciation and amortization | 139.2 | 134.6 | ||||||
| Goodwill impairment charge | — | 14.1 | ||||||
| Noncash restructuring and asset impairment charges | 2.5 | 15.8 | ||||||
| Deferred income taxes | (17.4 | ) | (13.3 | ) | ||||
| Net pension expense | 24.8 | 76.0 | ||||||
| Share-based compensation expense | 22.8 | 19.8 | ||||||
| Net loss on disposal of property, plant, and equipment | 2.0 | 4.6 | ||||||
| Changes in working capital and other: | ||||||||
| Accounts receivable | (1.8 | ) | (32.6 | ) | ||||
| Inventories | (60.4 | ) | (96.7 | ) | ||||
| Other current assets | 13.7 | (31.3 | ) | |||||
| Accounts payable | (1.4 | ) | (11.0 | ) | ||||
| Accrued liabilities | 13.7 | 23.6 | ||||||
| Pension plan contributions | (64.8 | ) | (11.3 | ) | ||||
| Other postretirement plan contributions | (3.6 | ) | (2.6 | ) | ||||
| Other, net | (4.9 | ) | (1.3 | ) | ||||
| Net cash provided from operating activities | 440.4 | 274.9 | ||||||
| INVESTING ACTIVITIES | ||||||||
| Purchases of property, plant, equipment and software | (154.3 | ) | (96.6 | ) | ||||
| Proceeds from disposals of property, plant and equipment and assets held for sale | 1.4 | 0.7 | ||||||
| Net cash used for investing activities | (152.9 | ) | (95.9 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Credit agreement borrowings | — | 62.5 | ||||||
| Credit agreement repayments | — | (62.5 | ) | |||||
| Dividends paid | (40.3 | ) | (40.0 | ) | ||||
| Purchases of treasury stock | (101.9 | ) | — | |||||
| Proceeds from stock options exercised | 13.4 | 40.9 | ||||||
| Withholding tax payments on share-based compensation awards | (38.3 | ) | (24.2 | ) | ||||
| Net cash used for financing activities | (167.1 | ) | (23.3 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (4.0 | ) | (1.1 | ) | ||||
| INCREASE IN CASH AND CASH EQUIVALENTS | 116.4 | 154.6 | ||||||
| Cash and cash equivalents at beginning of year | 199.1 | 44.5 | ||||||
| Cash and cash equivalents at end of year | $ | 315.5 | $ | 199.1 | ||||
| PRELIMINARY CONSOLIDATED BALANCE SHEETS (in millions) (Unaudited) | ||||||||
| June 30, | ||||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 315.5 | $ | 199.1 | ||||
| Accounts receivable, net | 575.5 | 562.6 | ||||||
| Inventories | 793.8 | 735.4 | ||||||
| Other current assets | 79.9 | 94.1 | ||||||
| Total current assets | 1,764.7 | 1,591.2 | ||||||
| Property, plant, equipment and software, net | 1,359.4 | 1,335.2 | ||||||
| Goodwill | 227.3 | 227.3 | ||||||
| Other intangibles, net | 9.5 | 15.2 | ||||||
| Deferred income taxes | 7.8 | 7.5 | ||||||
| Other assets | 118.1 | 115.3 | ||||||
| Total assets | $ | 3,486.8 | $ | 3,291.7 | ||||
| LIABILITIES | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 267.4 | $ | 263.9 | ||||
| Accrued liabilities | 216.3 | 202.4 | ||||||
| Total current liabilities | 483.7 | 466.3 | ||||||
| Long-term debt | 695.4 | 694.2 | ||||||
| Accrued pension liabilities | 146.9 | 207.6 | ||||||
| Accrued postretirement benefits | 12.5 | 21.1 | ||||||
| Deferred income taxes | 162.8 | 174.1 | ||||||
| Other liabilities | 98.5 | 99.6 | ||||||
| Total liabilities | 1,599.8 | 1,662.9 | ||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Common stock | 286.2 | 284.9 | ||||||
| Capital in excess of par value | 354.3 | 352.6 | ||||||
| Reinvested earnings | 1,710.2 | 1,374.5 | ||||||
| Common stock in treasury, at cost | (395.8 | ) | (289.3 | ) | ||||
| Accumulated other comprehensive loss | (67.9 | ) | (93.9 | ) | ||||
| Total stockholders' equity | 1,887.0 | 1,628.8 | ||||||
| Total liabilities and stockholders' equity | $ | 3,486.8 | $ | 3,291.7 | ||||
| PRELIMINARY SEGMENT FINANCIAL DATA (in millions, except pounds sold) (Unaudited) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Pounds sold ('000): | |||||||||||||||
| Specialty Alloys Operations | 46,872 | 57,204 | 186,270 | 208,154 | |||||||||||
| Performance Engineered Products | 2,674 | 2,856 | 10,098 | 10,094 | |||||||||||
| Intersegment | (800 | ) | (3,278 | ) | (3,388 | ) | (11,946 | ) | |||||||
| Consolidated pounds sold | 48,746 | 56,782 | 192,980 | 206,302 | |||||||||||
| Net sales: | |||||||||||||||
| Specialty Alloys Operations | |||||||||||||||
| Net sales excluding surcharge | $ | 548.0 | $ | 559.5 | $ | 2,057.9 | $ | 1,876.0 | |||||||
| Surcharge | 126.1 | 156.3 | 505.7 | 567.8 | |||||||||||
| Specialty Alloys Operations net sales | 674.1 | 715.8 | 2,563.6 | 2,443.8 | |||||||||||
| Performance Engineered Products | |||||||||||||||
| Net sales excluding surcharge | 97.1 | 102.3 | 372.4 | 377.8 | |||||||||||
| Surcharge | 7.5 | 8.9 | 33.0 | 33.2 | |||||||||||
| Performance Engineered Products net sales | 104.6 | 111.2 | 405.4 | 411.0 | |||||||||||
| Intersegment | |||||||||||||||
| Net sales excluding surcharge | (21.4 | ) | (26.0 | ) | (84.2 | ) | (86.1 | ) | |||||||
| Surcharge | (1.7 | ) | (2.3 | ) | (7.7 | ) | (9.0 | ) | |||||||
| Intersegment net sales | (23.1 | ) | (28.3 | ) | (91.9 | ) | (95.1 | ) | |||||||
| Consolidated net sales | $ | 755.6 | $ | 798.7 | $ | 2,877.1 | $ | 2,759.7 | |||||||
| Operating income (loss): | |||||||||||||||
| Specialty Alloys Operations | $ | 167.0 | $ | 140.9 | $ | 588.6 | $ | 408.5 | |||||||
| Performance Engineered Products | 11.7 | 10.6 | 37.0 | 36.0 | |||||||||||
| Corporate | (26.9 | ) | (43.8 | ) | (102.9 | ) | (123.0 | ) | |||||||
| Intersegment | (0.4 | ) | 0.6 | (0.9 | ) | 1.6 | |||||||||
| Consolidated operating income | $ | 151.4 | $ | 108.3 | $ | 521.8 | $ | 323.1 | |||||||
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 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 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)
| ADJUSTED OPERATING MARGIN EXCLUDING SURCHARGE REVENUE AND SPECIAL ITEMS | Three Months Ended June 30, | Year Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net sales | $ | 755.6 | $ | 798.7 | $ | 2,877.1 | $ | 2,759.7 | ||||||||
| Less: surcharge revenue | 131.9 | 162.9 | 531.0 | 592.0 | ||||||||||||
| Net sales excluding surcharge revenue | $ | 623.7 | $ | 635.8 | $ | 2,346.1 | $ | 2,167.7 | ||||||||
| Operating income | $ | 151.4 | $ | 108.3 | $ | 521.8 | $ | 323.1 | ||||||||
| Special items: | ||||||||||||||||
| Goodwill impairment charge | — | — | — | 14.1 | ||||||||||||
| Restructuring and asset impairment charges | — | 16.9 | 3.6 | 16.9 | ||||||||||||
| Adjusted operating income | $ | 151.4 | $ | 125.2 | $ | 525.4 | $ | 354.1 | ||||||||
| Operating margin | 20.0 | % | 13.6 | % | 18.1 | % | 11.7 | % | ||||||||
| Adjusted operating margin excluding surcharge revenue and special items | 24.3 | % | 19.7 | % | 22.4 | % | 16.3 | % | ||||||||
| ADJUSTED SEGMENT OPERATING MARGIN EXCLUDING SURCHARGE REVENUE | Three Months Ended June 30, | Year Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Specialty Alloys Operations | ||||||||||||||||
| Net sales | $ | 674.1 | $ | 715.8 | $ | 2,563.6 | $ | 2,443.8 | ||||||||
| Less: surcharge revenue | 126.1 | 156.3 | 505.7 | 567.8 | ||||||||||||
| Net sales excluding surcharge revenue | $ | 548.0 | $ | 559.5 | $ | 2,057.9 | $ | 1,876.0 | ||||||||
| Operating income | $ | 167.0 | $ | 140.9 | $ | 588.6 | $ | 408.5 | ||||||||
| Operating margin | 24.8 | % | 19.7 | % | 23.0 | % | 16.7 | % | ||||||||
| Adjusted operating margin excluding surcharge revenue | 30.5 | % | 25.2 | % | 28.6 | % | 21.8 | % | ||||||||
| ADJUSTED SEGMENT OPERATING MARGIN EXCLUDING SURCHARGE REVENUE | Three Months Ended June 30, | Year Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Performance Engineered Products | ||||||||||||||||
| Net sales | $ | 104.6 | $ | 111.2 | $ | 405.4 | $ | 411.0 | ||||||||
| Less: surcharge revenue | 7.5 | 8.9 | 33.0 | 33.2 | ||||||||||||
| Net sales excluding surcharge revenue | $ | 97.1 | $ | 102.3 | $ | 372.4 | $ | 377.8 | ||||||||
| Operating income | $ | 11.7 | $ | 10.6 | $ | 37.0 | $ | 36.0 | ||||||||
| Operating margin | 11.2 | % | 9.5 | % | 9.1 | % | 8.8 | % | ||||||||
| Adjusted operating margin excluding surcharge revenue | 12.0 | % | 10.4 | % | 9.9 | % | 9.5 | % | ||||||||
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 DILUTED SHARE EXCLUDING SPECIAL ITEM | Earnings Before Income Taxes | Income Tax Expense | Net Income | Earnings Per Diluted Share* | ||||||||||||
| Three months ended June 30, 2025, as reported | $ | 139.1 | $ | (27.4 | ) | $ | 111.7 | $ | 2.21 | |||||||
| Special item: | ||||||||||||||||
| None Reported | — | — | — | — | ||||||||||||
| Three months ended June 30, 2025, as adjusted | $ | 139.1 | $ | (27.4 | ) | $ | 111.7 | $ | 2.21 | |||||||
| * Impact per diluted share calculated using weighted average common shares outstanding of 50.6 million for the three months ended June 30, 2025. | ||||||||||||||||
| ADJUSTED EARNINGS PER DILUTED SHARE EXCLUDING SPECIAL ITEMS | Earnings Before Income Taxes | Income Tax Expense | Net Income | Earnings Per Diluted Share* | ||||||||||||
| Three months ended June 30, 2024, as reported | $ | 93.9 | $ | (0.3 | ) | $ | 93.6 | $ | 1.85 | |||||||
| Special items: | ||||||||||||||||
| Restructuring and asset impairment charges | 16.9 | (0.1 | ) | 16.8 | 0.33 | |||||||||||
| US tax benefit related to restructuring activities | — | (18.4 | ) | (18.4 | ) | (0.36 | ) | |||||||||
| Three months ended June 30, 2024, as adjusted | $ | 110.8 | $ | (18.8 | ) | $ | 92.0 | $ | 1.82 | |||||||
| * Impact per diluted share calculated using weighted average common shares outstanding of 50.6 million for the three months ended June 30, 2024. | ||||||||||||||||
| ADJUSTED EARNINGS PER DILUTED SHARE EXCLUDING SPECIAL ITEM | Earnings Before Income Taxes | Income Tax Expense | Net Income | Earnings Per Diluted Share* | ||||||||||||
| Year ended June 30, 2025, as reported | $ | 467.3 | $ | (91.3 | ) | $ | 376.0 | $ | 7.42 | |||||||
| Special item: | ||||||||||||||||
| Restructuring and asset impairment charges | 3.6 | (0.9 | ) | 2.7 | 0.06 | |||||||||||
| Year ended June 30, 2025, as adjusted | $ | 470.9 | $ | (92.2 | ) | $ | 378.7 | $ | 7.48 | |||||||
| * Impact per diluted share calculated using weighted average common shares outstanding of 50.7 million for the year ended June 30, 2025. | ||||||||||||||||
| ADJUSTED EARNINGS PER DILUTED SHARE EXCLUDING SPECIAL ITEMS | Earnings Before Income Taxes | Income Tax Expense | Net Income | Earnings Per Diluted Share* | ||||||||||||
| Year ended June 30, 2024, as reported | $ | 211.6 | $ | (25.1 | ) | $ | 186.5 | $ | 3.70 | |||||||
| Special items: | ||||||||||||||||
| Goodwill impairment charge | 14.1 | — | 14.1 | 0.28 | ||||||||||||
| Restructuring and asset impairment charges | 16.9 | (0.1 | ) | 16.8 | 0.33 | |||||||||||
| Pension settlement charge | 51.9 | (12.4 | ) | 39.5 | 0.79 | |||||||||||
| US tax benefit related to restructuring activities | — | (18.4 | ) | (18.4 | ) | (0.36 | ) | |||||||||
| Year ended June 30, 2024, as adjusted | $ | 294.5 | $ | (56.0 | ) | $ | 238.5 | $ | 4.74 | |||||||
| * Impact per diluted share calculated using weighted average common shares outstanding of 50.3 million for the year ended June 30, 2024. | ||||||||||||||||
Management believes that earnings per diluted share adjusted to exclude the impact of 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 | Year Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| ADJUSTED FREE CASH FLOW | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net cash provided from operating activities | $ | 258.0 | $ | 169.5 | $ | 440.4 | $ | 274.9 | ||||||||
| Purchases of property, plant, equipment and software | (58.0 | ) | (27.7 | ) | (154.3 | ) | (96.6 | ) | ||||||||
| Proceeds from disposals of property, plant and equipment | 1.3 | 0.6 | 1.4 | 0.7 | ||||||||||||
| Adjusted free cash flow | $ | 201.3 | $ | 142.4 | $ | 287.5 | $ | 179.0 | ||||||||
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 | Year Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| NET SALES BY END-USE MARKET | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| End-Use Market Excluding Surcharge Revenue: | ||||||||||||||||
| Aerospace and Defense | $ | 383.8 | $ | 376.3 | $ | 1,440.7 | $ | 1,199.2 | ||||||||
| Medical | 76.8 | 91.7 | 296.1 | 315.4 | ||||||||||||
| Energy | 44.6 | 36.5 | 151.3 | 130.4 | ||||||||||||
| Transportation | 22.0 | 26.6 | 86.4 | 108.9 | ||||||||||||
| Industrial and Consumer | 76.0 | 82.8 | 288.1 | 319.4 | ||||||||||||
| Distribution | 20.5 | 21.9 | 83.5 | 94.4 | ||||||||||||
| Total net sales excluding surcharge revenue | 623.7 | 635.8 | 2,346.1 | 2,167.7 | ||||||||||||
| Surcharge revenue | 131.9 | 162.9 | 531.0 | 592.0 | ||||||||||||
| Total net sales | $ | 755.6 | $ | 798.7 | $ | 2,877.1 | $ | 2,759.7 | ||||||||
| Investor Inquiries: John Huyette +1 610-208-2061 jhuyette@cartech.com | Media Inquiries: Heather Beardsley +1 610-208-2278 hbeardsley@cartech.com |
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