Carpenter(US:CRS)2025-04-29 20:05Financial Performance - Carpenter Technology reported record operating income of $137.8 million for Q3 FY2025, a 53% increase year-over-year[3]. - Earnings per diluted share reached $1.88, compared to $0.12 in the same quarter last year[10]. - Total net sales for Q3 FY2025 were $727.0 million, up 6% from $684.9 million in Q3 FY2024[9]. - Net income for the nine months ended March 31, 2025, was $264.3 million, a significant increase from $92.9 million in the same period of 2024, representing a growth of 184%[21]. - Consolidated net sales for the nine months ended March 31, 2025, reached $2,121.5 million, up 8.2% from $1,961.1 million in the prior year[25]. - Operating income for the nine months ended March 31, 2025, was $370.4 million, compared to $214.8 million in 2024, reflecting a 72.5% increase[31]. - Specialty Alloys Operations net sales for the nine months ended March 31, 2025, were $1,889.5 million, an increase of 9.3% from $1,728.0 million in 2024[31]. - Performance Engineered Products segment reported net sales of $300.8 million for the nine months ended March 31, 2025, slightly up from $299.9 million in the previous year[32]. - Adjusted earnings per share for the nine months ended March 31, 2025, was $5.27, compared to $2.92 for the same period in 2024, reflecting a significant increase[35][36]. Cash Flow and Liquidity - Cash generated from operating activities was $74.2 million, with adjusted free cash flow of $34.0 million for the quarter[11]. - Projected adjusted free cash flow for FY2025 is between $250 million and $300 million[6]. - Cash and cash equivalents at the end of the period were $151.5 million, down from $199.1 million at the beginning of the year[21]. - Total liquidity at the end of Q3 FY2025 was $500.4 million, consisting of $151.5 million in cash and $348.9 million in available borrowings[13]. - The company reported a net cash provided from operating activities of $182.3 million for the nine months ended March 31, 2025, compared to $105.4 million in 2024[38]. - Adjusted free cash flow for the nine months ended March 31, 2025, was $86.1 million, up from $36.6 million in the same period of 2024[38]. Guidance and Future Projections - The company raised its full fiscal year 2025 operating income guidance to a range of $520 million to $527 million, nearly a 50% increase over FY2024[6]. - The company anticipates continued earnings growth, projecting operating income of $765 million to $800 million by FY2027[7]. - The company plans to use excess cash for investments in capital equipment, acquisition opportunities, and a share repurchase program of up to $400.0 million[38]. Operational Metrics - The Specialty Alloys Operations segment achieved an adjusted operating margin of 29.1%, up from 21.4% in Q3 FY2024[5]. - The adjusted operating margin excluding surcharge revenue for the nine months ended March 31, 2025, was 21.7%, compared to 14.9% in 2024[31]. - Surcharge revenue for the nine months ended March 31, 2025, was $399.1 million, down from $429.2 million in the same period of 2024[40]. - The company incurred restructuring and asset impairment charges of $3.6 million for the nine months ended March 31, 2025[35]. Balance Sheet Highlights - Total assets increased to $3,361.8 million as of March 31, 2025, compared to $3,291.7 million as of June 30, 2024[23]. - Total stockholders' equity rose to $1,781.7 million, up from $1,628.8 million in the previous year[23]. - The company reported a decrease in pension plan contributions to $58.5 million for the nine months ended March 31, 2025, from $69.8 million in the prior year[21]. Sector Performance - Net sales in the Aerospace and Defense sector for the nine months ended March 31, 2025, were $1,056.8 million, up from $823.0 million in 2024, representing a growth of 28.4%[40]. - The company’s total net sales excluding surcharge revenue for the nine months ended March 31, 2025, was $1,722.4 million, compared to $1,531.9 million in 2024, reflecting a growth of 12.4%[40].