Carpenter(US:CRS)2025-10-23 20:11Financial Performance - Net sales for the three months ended September 30, 2025, increased to $733.7 million, up from $717.6 million in the same period of 2024, representing a growth of 2.9%[12] - Gross profit for the same period rose to $216.4 million, compared to $176.3 million in 2024, reflecting an increase of 22.8%[12] - Operating income improved to $153.3 million, a significant increase from $113.6 million year-over-year, marking a growth of 35%[12] - Net income for the quarter was $122.5 million, compared to $84.8 million in 2024, which is an increase of 44.4%[12] - Basic earnings per share increased to $2.45, up from $1.69 in the prior year, representing a growth of 45.1%[12] Assets and Liabilities - Total assets decreased to $3,402.2 million as of September 30, 2025, down from $3,486.8 million at June 30, 2025, a decline of 2.4%[9] - Total liabilities decreased to $1,491.0 million from $1,599.8 million, reflecting a reduction of 6.8%[9] - Cash and cash equivalents at the end of the period were $208.0 million, down from $315.5 million at the beginning of the year, a decrease of 34.1%[17] - Total inventories as of September 30, 2025, decreased to $778.5 million from $793.8 million as of June 30, 2025, a reduction of 1.9%[47] - The Company had total debt of $695.7 million as of September 30, 2025, slightly increasing from $695.4 million as of June 30, 2025[57] Cash Flow and Dividends - The company reported net cash provided from operating activities of $39.2 million, slightly down from $40.2 million in the same quarter of 2024[17] - The company paid dividends totaling $10.1 million during the quarter, consistent with the previous year[17] - Cash dividends declared were $10.1 million, with a common stock dividend of $0.20 per share[39] Equity and Comprehensive Income - Total equity as of September 30, 2025, was $1,911.2 million, compared to $1,660.3 million at September 30, 2024, reflecting a year-over-year increase of 15.1%[39] - The company reported a total other comprehensive income of $0.2 million for Q3 2025, compared to $2.8 million in Q3 2024[15] - The total accumulated other comprehensive loss was $(67.7) million as of September 30, 2025[39] Segment Performance - The Specialty Alloys Operations (SAO) segment reported external sales of $656.1 million for the three months ended September 30, 2025, compared to $641.6 million in 2024, reflecting an increase of about 2.3%[100] - The Performance Engineered Products (PEP) segment achieved external sales of $77.6 million for the three months ended September 30, 2025, up from $76.0 million in 2024, marking a growth of approximately 2.1%[100] - Aerospace and Defense revenue increased to $470.9 million in Q3 2025, up from $437.4 million in Q3 2024, representing a growth of 7.4%[42] Tax and Other Expenses - The effective tax rate for the three months ended September 30, 2025, was 15.4%, compared to 16.1% for the same period in 2024[88] - Income tax expense for the three months ended September 30, 2025, was $22.3 million, up from $16.3 million in 2024[88] - Other (income) expense, net for the three months ended September 30, 2025, was $(3.0) million, a decrease from $0.1 million in 2024[86] Environmental and Derivative Instruments - Environmental remediation liabilities as of September 30, 2025, and June 30, 2025, were both $17.4 million[60] - The fair value of derivative financial instruments as of September 30, 2025, included assets of $0.5 million and liabilities of $1.8 million[66] - The company has not adjusted the liability for environmental remediation costs during the three months ended September 30, 2025[60] Stock and Shareholder Activities - The Company purchased 200,000 shares of its common stock for an aggregate of $49.1 million during the three months ended September 30, 2025, leaving $249.0 million available for future purchases[63] - The Company expects to make $17.6 million in required cash pension contributions during the remainder of fiscal year 2026[50] Compliance and Credit Facility - The Company was in compliance with all covenants of the Credit Facility as of September 30, 2025[56] - As of September 30, 2025, the Company had $348.9 million available under its Credit Facility, with $1.1 million of issued letters of credit[54]