Core Viewpoint - Carpenter Technology Corporation (CRS) is expected to report strong revenue and earnings growth in its upcoming fiscal Q2 2025 results, driven by demand in aerospace, defense, and medical applications, despite facing challenges from labor and chip shortages [2][7][8]. Financial Performance - The Zacks Consensus Estimate for CRS's revenues is $718 million, reflecting a 15% increase from the previous year [2]. - The earnings estimate for CRS is $1.58 per share, indicating a significant year-over-year increase of 85.9% [2]. - CRS has a history of beating earnings estimates, with an average surprise of 14.1% over the last four quarters [3]. Segment Performance - The Specialty Alloys Operations segment is projected to generate sales of $620 million, a 12.8% increase from the same quarter last year, with an expected operating profit of $139 million, up from $83.3 million [9]. - Performance Engineered Products' net sales are anticipated to rise by 11.1% year over year to $106 million, with an estimated operating profit of $6.9 million [10]. Stock Performance - Carpenter Technology's stock has increased by 208.4% over the past year, significantly outperforming the industry average growth of 72% [11].

Core Viewpoint - Carpenter Technology Corporation (CRS) has experienced significant stock performance, achieving a 209.7% increase over the past year, driven by strong demand in key end-use markets and solid financial results [1][3]. Group 1: Stock Performance - CRS shares reached a new 52-week high of $207.99 before closing at $206.58, with a market capitalization of $10.3 billion [1]. - The company's stock has outperformed the industry growth of 65.4% and the S&P 500 index's rise of 26.5% over the past year [1]. Group 2: Financial Performance - In the first quarter of fiscal 2025, CRS reported an adjusted operating income of $117 million, marking its most profitable first quarter on record [4]. - The company anticipates operating income to be at the high end of its revised target of $460-$500 million for fiscal 2025, previously set for fiscal 2027 [7]. Group 3: Market Demand and Growth - Carpenter Technology is experiencing strong demand recovery in aerospace, defense, and medical end-use markets, which is expected to continue through fiscal 2025 [5]. - The aerospace sector is benefiting from increased global travel, with demand accelerating across all aerospace submarkets [6]. Group 4: Backlog and Future Outlook - The company reported near-record backlog levels in the first quarter of fiscal 2025, supported by strong booking growth, indicating positive near and long-term outlooks for its end-use markets [3]. - The anticipated growth will be driven by higher prices, improved product mix, and increased shipment volumes [8]. Group 5: Financial Health - At the end of the first quarter of fiscal 2025, Carpenter Technology had total liquidity of $499 million, consisting of $150 million in cash and $349 million in available borrowings [9]. - The company has authorized a share repurchase program of up to $400 million, reflecting confidence in its financial position [9].

Market Overview - U.S. stock markets have experienced significant volatility since the start of 2025, with concerns surrounding inflation and interest rates [1] - The Federal Reserve reduced the benchmark lending rate by 1% in 2024 and indicated another potential 1% cut in 2025, but strong economic indicators have raised doubts about further cuts this year [1] Stock Performance - Several stocks have shown price strength, particularly those on a recent bull run, indicating potential for continued momentum [2] - Five highlighted stocks include OppFi Inc. (OPFI), DXP Enterprises Inc. (DXPE), Carpenter Technology Corp. (CRS), United Airlines Holdings Inc. (UAL), and Gulfport Energy Corp. (GPOR) [2] Stock Screening Criteria - Stocks must show a percentage change in price greater than zero over the last four weeks, indicating upward movement [4] - A percentage change in price greater than 10% over the last 12 weeks is required to ensure sustained momentum [4] - Stocks should have a Zacks Rank of 1 (Strong Buy) and an average broker rating of 1 or 2, indicating strong future performance expectations [5] - Current stock prices must be above $5 and trading near their 52-week highs, with a price/52-week high-low range greater than 85% [6] Individual Stock Highlights - **OppFi Inc. (OPFI)**: Stock price increased by 28.5% in the past four weeks, with expected earnings growth of 16.3% for the current year [8][7] - **DXP Enterprises Inc. (DXPE)**: Stock price rose by 13.6% in the past four weeks, with expected earnings growth of 5.9% for the current year [10][9] - **Carpenter Technology Corp. (CRS)**: Stock price surged by 10.1% in the past four weeks, with an expected earnings growth rate of 42.8% for the current year [13][12] - **United Airlines Holdings Inc. (UAL)**: Stock price advanced by 9.7% in the past four weeks, with expected earnings growth of 20.3% for the current year [15][14] - **Gulfport Energy Corp. (GPOR)**: Stock price gained 6.8% in the past four weeks, with expected earnings growth of 51% for the current year [17][16]

Group 1: DXP Enterprises - DXP Enterprises is a leading products and service distributor providing value and cost-saving solutions to industrial customers across the United States, Canada, Mexico, and Dubai [1] - The company has a Zacks Rank of 1 (Strong Buy) and its current year earnings estimate has increased by 14.3% over the last 60 days [1] - DXP Enterprises' shares have gained 47.5% over the last three months, significantly outperforming the S&P 500's gain of 5.4% [2] Group 2: Dolby Laboratories - Dolby Laboratories develops audio and imaging technologies that enhance entertainment across user-generated content, TV shows, films, music, and gaming [2] - The company also holds a Zacks Rank of 1 and has seen a 2.9% increase in its current year earnings estimate over the last 60 days [2] - Dolby Laboratories' shares have increased by 8.6% over the last three months, again outperforming the S&P 500's gain of 5.4% [3] Group 3: Carpenter Technology - Carpenter Technology is a producer and distributor of premium specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as drilling tools [4] - The company has a Zacks Rank of 1 and its current year earnings estimate has risen by 6.7% over the last 60 days [4] - Carpenter Technology's shares have appreciated by 11.5% over the last three months, also surpassing the S&P 500's gain of 5.4% [5]

Industry Overview - The steel industry has experienced a loss of momentum after a strong performance earlier in the year, with steel prices undergoing a sharp downward correction both in the United States and globally [1][3] - A significant pullback in steel prices has been observed, with benchmark hot-rolled coil (HRC) prices dropping over 40% from $1,200 per short ton at the start of 2024 to around $700 per short ton [3][4] - Factors contributing to the downturn include oversupply, reduced demand from key industries, economic uncertainties, and sluggish industrial production and construction activities [4][5] Demand Dynamics - Steel demand in China has softened due to a slowdown in the economy, particularly following a protracted property crisis, which has significantly impacted the real estate sector that accounts for approximately 40% of China's steel consumption [5] - The global automotive production slowdown has also curtailed steel consumption, while high interest rates have dampened demand in the U.S. construction sector [6] - Despite challenges, demand from non-residential construction remains strong, driven by government initiatives for infrastructure projects, which are expected to continue into 2025 [6] Company Performances - Certain steel companies have shown resilience and delivered impressive performances in 2024, including Carpenter Technology Corporation, Universal Stainless & Alloy Products, L.B. Foster Company, and Worthington Steel [2][7] - Carpenter Technology has a strong financial position and is benefiting from demand in aerospace and defense, with expected earnings growth of 42.2% for fiscal 2025 and a share price increase of 156.5% year to date [10][11] - Universal Stainless & Alloy Products is experiencing significant growth in the aerospace market, with an expected earnings growth rate of 522.4% for 2024 and a share price increase of 120.2% year to date [12][13] - L.B. Foster is seeing growth in its Rail Technologies and Precast Concrete businesses, with an expected earnings growth of 3,146.2% for 2024 and a share price increase of 31.5% year to date [14][15][16] - Worthington Steel is focused on value-added solutions and investments in the electrical steel market, with stable earnings estimates and a share price increase of 57.5% year to date [16][17]

Group 1: Market Overview - U.S. stock markets have shown renewed momentum in 2024 following a strong performance in 2023, with a bull run lasting 21 months, excluding minor fluctuations [1] - Market participants anticipate a 70% chance of a 25 basis points rate hike by the Fed in December, which could lead to a 1% reduction in the benchmark lending rate in 2024 [1] Group 2: Mid-Cap Stocks Performance - The S&P 400 index, focused on mid-cap stocks, has rallied 21.4% year to date, indicating strong performance in this segment [2] - Five mid-cap stocks with potential to transition to large-cap status by 2025 include MACOM Technology Solutions Holdings Inc. (MTSI), Masimo Corp. (MASI), Leonardo DRS Inc. (DRS), Ingredion Inc. (INGR), and Carpenter Technology Corp. (CRS) [2] Group 3: Investment Rationale for Mid-Cap Stocks - Mid-cap stocks are recognized for their portfolio diversification benefits, combining attributes of both small and large-cap stocks, with high potential for profitability and market share growth [3] - In a slowing economy, mid-cap stocks are less vulnerable to losses compared to large-cap stocks due to lower international exposure [4] - Conversely, in a thriving economy, mid-cap stocks are expected to outperform small caps due to established management, broad distribution networks, brand recognition, and access to capital markets [4] Group 4: Company-Specific Insights MACOM Technology Solutions Holdings Inc. (MTSI) - MTSI is experiencing strong momentum across telecom, data center, and defense markets, driven by 5G deployments and demand for RF and microwave products [6][7] - Expected revenue and earnings growth rates for MTSI are 22.5% and 31.3%, respectively, for the current year ending September 2025, with a 3.7% improvement in earnings estimates over the last 30 days [8] Masimo Corp. (MASI) - MASI focuses on patient monitoring and has a strong product suite supported by ongoing R&D efforts, enhancing its global business presence [11] - Expected revenue and earnings growth rates for MASI are 6.1% and 12.8%, respectively, for the next year, with a 0.2% improvement in earnings estimates over the last seven days [12] Leonardo DRS Inc. (DRS) - DRS provides defense electronic products and systems, with a focus on advanced sensing and military support services [15] - Expected revenue and earnings growth rates for DRS are 7.4% and 16.9%, respectively, for the next year, with a 0.9% improvement in earnings estimates over the last seven days [16] Ingredion Inc. (INGR) - INGR specializes in nature-based sweeteners and nutrition ingredients, serving various sectors including food and pharmaceuticals [19] - Expected revenue and earnings growth rates for INGR are 1.3% and 6.1%, respectively, for the next year, with a 3.7% improvement in earnings estimates over the last 30 days [20] Carpenter Technology Corp. (CRS) - CRS has a strong backlog indicating high demand and is positioned to benefit from ongoing momentum across its end-use markets [22][23] - Expected revenue and earnings growth rates for CRS are 6.9% and 42.2%, respectively, for the current year ending June 2025, with a 2% improvement in earnings estimates over the last seven days [25]

Investors might want to bet on Carpenter Technology (CRS) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this maker of stainless steels and special alloys, should get reflected in its stock price. After all, empirical researc ...

Exhibit 99.1 Investor Inquiries: Media Inquiries: John Huyette Heather Beardsley +1 610-208-2061 +1 610-208-2278 jhuyette@cartech.com hbeardsley@cartech.com CARPENTER TECHNOLOGY REPORTS FIRST QUARTER FISCAL YEAR 2025 RESULTS Delivered Record First Quarter Operating Income Exceeded First Quarter Operating Income Guidance for Specialty Alloys Operations Segment Expanded Operating Margins in Specialty Alloys Operations Segment Generated Positive Adjusted Free Cash Flow Repurchased Shares Against Authorized Sha ...

Core Viewpoint - Carpenter Technology Corporation (CRS) reported strong financial results for the first quarter of fiscal 2025, with adjusted earnings per share (EPS) of $1.73, surpassing estimates and showing significant year-over-year growth [1][2]. Financial Performance - Net revenues increased by 10.1% year-over-year to $718 million, driven by a 3% rise in shipment volume, exceeding the Zacks Consensus Estimate of $708 million [2]. - The cost of goods sold rose by 2.6% year-over-year to $541 million, while gross profit surged by 42.1% to $176 million [4]. - Adjusted operating income was $117 million, up from $69 million in the prior year, with an adjusted operating margin of 15.8%, compared to 10.6% in the previous year [4]. Segment Performance - The Aerospace and Defense market saw a revenue increase of 34.1%, while the Energy market experienced a decline of 27.7% [3]. - Specialty Alloys Operations segment reported sales of $645 million, up from $570 million year-over-year, although it slightly missed the estimated $618 million [5]. - Performance Engineered Products segment's net sales fell by 1% to $101 million, missing the estimate of $108 million [6]. Cash Flow and Balance Sheet - Cash and cash equivalents at the end of the quarter were $150 million, down from $199 million at the end of fiscal 2024, while long-term debt increased slightly to $694.5 million [8]. - Cash flow from operating activities improved significantly to $40.2 million, compared to $7.4 million in the prior-year quarter [8]. Share Price Performance - Shares of Carpenter Technology have increased by 148.7% over the past year, outperforming the industry growth of 67.2% [10].

Financial Performance - Net sales for the three months ended September 30, 2024, increased to $717.6 million, up 10.1% from $651.9 million in the same period of 2023[8] - Gross profit rose to $176.3 million, representing a 42.0% increase compared to $124.1 million in the prior year[8] - Operating income for the quarter was $113.6 million, a significant increase of 64.4% from $69.0 million in the same quarter of 2023[8] - Net income reached $84.8 million, up 93.1% from $43.9 million in the same period last year[8] - Basic earnings per share increased to $1.69, compared to $0.89 in the prior year, reflecting an increase of 90.0%[8] - Adjusted operating income for the quarter was $117.2 million, marking the most profitable first quarter in the company's history, with an operating income increase of $44.6 million year-over-year[102] - Net income for the quarter was $84.8 million, or $1.67 per diluted share, compared to $43.9 million, or $0.88 per diluted share, in the prior year[105] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $150.2 million, a decrease from $199.1 million at the beginning of the year[12] - The company reported net cash provided from operating activities of $40.2 million, compared to $7.4 million in the same quarter of 2023[12] - Total liquidity as of September 30, 2024, was $499.1 million, consisting of $150.2 million in cash and cash equivalents and $348.9 million in available borrowing capacity[148] - Cash generated from operating activities was $40.2 million for the three months ended September 30, 2024, compared to $7.4 million in the same period of 2023[142] - Adjusted free cash flow was positive $13.3 million for the three months ended September 30, 2024, compared to negative $14.6 million in the same period of 2023[142] Segment Performance - Revenue from the Aerospace and Defense segment for the three months ended September 30, 2024, was $437.4 million, compared to $352.5 million in the same period of 2023, reflecting a growth of approximately 24.1%[30] - The Company operates in two business segments: Specialty Alloys Operations (SAO) and Performance Engineered Products (PEP), with SAO generating $645.1 million in revenue for the three months ended September 30, 2024[30] - Specialty Alloys Operations (SAO) segment net sales increased 13% to $645.1 million for the three months ended September 30, 2024, compared to $570.1 million in the same period of 2023[138] - Performance Engineered Products (PEP) segment net sales decreased 1% to $100.8 million for the three months ended September 30, 2024, compared to $101.8 million in the same period of 2023[140] Expenses and Charges - The company incurred restructuring and asset impairment charges of $3.6 million during the quarter[8] - The Company recorded $2.5 million in noncash pre-tax inventory impairment charges during the three months ended September 30, 2024[18] - Selling, general and administrative expenses were $59.1 million, or 8.2% of net sales, compared to $55.1 million, or 8.5% of net sales in the prior year[120] - The total cash payments related to restructuring charges were $0.3 million during the quarter[19] Equity and Shareholder Returns - Total equity increased to $1,660.3 million as of September 30, 2024, up from $1,429.3 million a year earlier, reflecting a growth of 16.1%[14][15] - Carpenter Technology Corporation paid dividends of $10.1 million during the quarter, reflecting a slight increase from $9.9 million in the same period last year[12] - The company authorized a share repurchase program of up to $400.0 million, with $367.9 million remaining available for future purchases as of September 30, 2024[50] - During the three months ended September 30, 2024, the Company repurchased 230,000 shares for an aggregate of $32.1 million[50] Assets and Liabilities - Total assets as of September 30, 2024, were $3,255.0 million, a slight decrease from $3,291.7 million as of June 30, 2024[80] - Total debt as of September 30, 2024, was $694.5 million, a slight increase from $694.2 million as of June 30, 2024[44] - Total accrued liabilities decreased to $132.9 million as of September 30, 2024, down from $202.4 million as of June 30, 2024, a reduction of 34.3%[36] Market and Operational Insights - The geographic breakdown of total net sales shows the United States contributing $421.1 million, Europe $140.3 million, and Asia Pacific $94.4 million for the three months ended September 30, 2024[32] - Sales outside the United States increased 15% to $296.5 million, representing 41% of total net sales for the quarter[108] - The Aerospace and Defense end-use market saw a 24% increase in sales to $437.4 million, with a 34% increase in sales excluding surcharge revenue[112] - Medical end-use market sales increased by 9% to $86.9 million for the three months ended September 30, 2024, with a 10% increase excluding surcharge revenue despite a 16% decrease in shipment volume[113] - Sales to the Energy end-use market rose 17% to $52.5 million, with a 35% increase in sales excluding surcharge revenue driven by a 29% increase in shipment volume[114] - Transportation end-use market sales decreased by 33% to $28.3 million, with a 28% decrease in sales excluding surcharge revenue due to declining build rates[114] - Industrial and Consumer end-use market sales fell 13% to $91.2 million, with a 9% decrease in sales excluding surcharge revenue on a 28% lower shipment volume[115] Compliance and Risk Management - The Company has adopted the five-step model for revenue recognition in accordance with Topic 606, ensuring compliance with U.S. GAAP[23] - The effective tax rate is subject to volatility due to various factors, including changes in tax laws and the finalization of tax audits[70] - The company is exposed to various risks including fluctuations in raw material prices, energy costs, and foreign currency exchange rates, which could impact financial performance[173] - The company continuously monitors for events that could negatively impact key assumptions in determining the fair value of reporting units[171] Future Outlook - The company is actively exploring strategic acquisitions and joint collaborations to broaden its market offerings[89] - The Company expects to make $17.0 million of required cash pension contributions during the remainder of fiscal year 2025[38] - Capital expenditures for the three months ended September 30, 2024, totaled $26.9 million, compared to $0 million in the same period of 2023[79] - The total net pension expense for fiscal year 2025 is expected to be $24.8 million, a decrease from $76.0 million in fiscal year 2024[96]