Core Insights - The company reported third quarter 2025 sales of $1.13 billion, a 7% increase year-over-year, driven by a 21% increase in aerospace and defense sales [3][7] - Net income attributable to the company was $110 million, up 33% from the previous year, with earnings per share of $0.78 compared to $0.57 in Q3 2024 [3][7] - The company raised its full-year guidance for adjusted earnings and cash flow due to strong performance and positive demand signals in core markets [4][5] Financial Performance - Third quarter 2025 adjusted EBITDA was $225 million, an increase of 21% year-over-year, representing 20% of sales [3][7] - Adjusted net income attributable to the company was $119 million, up 39% year-over-year, with adjusted earnings per share of $0.85 compared to $0.60 in Q3 2024 [3][7] - Year-to-date operating cash flow reached $299 million, reflecting an improvement of $273 million compared to the previous year [5] Segment Performance - High Performance Materials & Components (HPMC) segment sales were $602.9 million, with segment EBITDA of $145.8 million, or 24.2% of sales [6][14] - Advanced Alloys & Solutions (AA&S) segment sales were $522.6 million, with segment EBITDA of $90.4 million, or 17.3% of sales [9][14] - Aerospace and defense sales represented 70% of total sales, with strong demand for commercial jet engine and defense products [3][19] Guidance and Future Outlook - The company provided updated guidance for Q4 2025, with adjusted EBITDA expected to be between $221 million and $231 million, and adjusted earnings per share projected to be between $0.84 and $0.90 [2] - Full-year 2025 adjusted earnings guidance was raised to a range of $3.15 to $3.21 per share, up from the previous range of $2.90 to $3.07 [2] - The company continues to focus on maximizing free cash flow and driving efficiencies in working capital [5]

Group 1 - Carpenter Technology Corporation (NYSE: CRS) specializes in certain specialty metals primarily used in the aerospace markets, which account for 60% of its annual revenue [1] - The company is recognized for its expertise in the production of these specialty metals, indicating a strong position within the aerospace sector [1]

Financial Data and Key Metrics Changes - The company achieved record earnings with adjusted operating income of $153 million, a 31% increase year-over-year compared to $117.2 million in Q1 FY2025 [4][15] - Adjusted operating margin for the SAO segment reached 32%, up from 26.3% a year ago and 30.5% in the prior quarter [5][17] - Earnings per diluted share was $2.43 for the quarter, marking another record for profitability [16] Business Line Data and Key Metrics Changes - SAO segment net sales excluding surcharge were $533.9 million, up 5% year-over-year but down 3% sequentially [17] - PEP segment net sales were $87.2 million, down 10% sequentially and down 6% year-over-year [19] - Aerospace and defense sales were up 1% sequentially and 11% year-over-year, with bookings accelerating by 23% over the previous quarter [9][12] Market Data and Key Metrics Changes - The aerospace supply chain is experiencing strengthening demand, particularly in the engine submarket, which saw a 14% sequential increase in sales [9][12] - Medical market sales were down 20% sequentially and 16% year-over-year, primarily due to volatility in medical distribution [10] - Energy market sales were down 5% sequentially but up 8% year-over-year, driven by increasing demand for power generation [11] Company Strategy and Development Direction - The company is focused on expanding profitability and margins, particularly in the SAO segment, which is expected to continue driving growth [17][20] - The Brownfield expansion project is underway, with construction activities on schedule and on budget, expected to accelerate in the second half of FY2026 [21][22] - The company is committed to a balanced capital allocation approach, focusing on growth investments and returning cash to shareholders through dividends and share repurchases [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the high end of the fiscal year 2026 operating income guidance of $660 million to $700 million, driven by increased volume, pricing actions, and productivity [36][37] - The aerospace market is expected to see significant demand growth, with management advising customers to place orders now to avoid being last in line [33][34] - The company anticipates continued favorable pricing trends due to supply-demand imbalances in nickel-based super alloys [28][29] Other Important Information - The effective tax rate for the quarter was 15.4%, lower than anticipated, with expectations for the full fiscal year 2026 to be between 21%-23% [16] - The company generated $39.2 million in cash from operating activities but had negative adjusted free cash flow of $3.4 million due to capital expenditures [21][23] - The company repurchased $49.1 million of shares during the quarter, with a cumulative total of $151 million under its $400 million stock buyback authorization [22][23] Q&A Session Summary Question: What has happened with jet engine alloy lead times? - Lead times remain extended, with expectations for further increases in orders following recent positive news from Boeing [48][50] Question: How did fastener demand trends track in the quarter? - Fastener sales were down 7% sequentially but up 40% year-over-year, with strong order intake expected for calendar year 2026 [54][55] Question: Can you speak to the duration of the new LTAs? - The five new LTAs range from two to five years, with expectations that contract lengths will remain consistent with current levels [62] Question: What is the outlook for defense demand? - The company is seeing strong demand across various defense segments, with a focus on increasing performance through innovative alloys [65] Question: Are customers receptive to increasing order intake? - Customers are very receptive to increasing order intake, with a notable sequential increase in aerospace bookings [71][72] Question: What is the expected timeline for the Brownfield expansion project? - Construction is expected to be complete by late fiscal 2027 or early fiscal 2028, with current activities focused on site preparation [90]

Carpenter Technology (NYSE:CRS) Q1 2026 Earnings Call October 23, 2025 10:00 AM ET Speaker0Thank you for standing by. At this time, I would like to welcome everyone to today's Carpenter Technology Q1 Fiscal Year twenty twenty six Earnings Presentation. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you.I would now like to turn the call over to John Hewitt, Vice President, Investor Relations. John?Speaker1Tha ...

Core Insights - Carpenter Technology reported a significant increase in fiscal 2026 Q1 earnings, with profit growing 40% to $2.43 per share and sales reaching $733.7 million, up 2% year-over-year [1]. Financial Performance - Fiscal 2026 Q1 profit increased by 40% to $2.43 per share [1] - Sales totaled $733.7 million, reflecting a 2% increase compared to the previous year [1] Market Position - Carpenter Technology's stock experienced a notable rise following the earnings report, indicating strong market performance [1]. - The company has achieved a Relative Strength Rating upgrade, suggesting improving technical performance [2]. Industry Recognition - Carpenter Technology's Composite Rating has climbed to 96, indicating a strong position within the industry [4].

October 23, 2025 CARPENTER TECHNOLOGY CORPORATION 1 st Quarter Fiscal Year 2026 Earnings Call © 2025 CRS Holdings, LLC. All rights reserved. Cautionary Statement Forward-looking statements This presentation 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 uncertaint ...

Delivered Record Quarterly Operating IncomeExpanded Operating Margins in Specialty Alloys Operations SegmentDemand Accelerating in Aerospace and Defense End-Use Market with Higher Sequential BookingsCompleted Negotiations for Several Aerospace Long-Term Agreements with Significant Value Realization PHILADELPHIA, Oct. 23, 2025 (GLOBE NEWSWIRE) -- Carpenter Technology Corporation (NYSE: CRS) (the “Company”) today announced financial results for the fiscal first quarter ended September 30, 2025. For the quarte ...

Core Insights - Afarak Group reported a 51.4% decrease in overall production for Q3 2025 compared to the same period in 2024, primarily due to reduced mining activity in South Africa following the sale of the Zeerust mine [3][8]. Production Summary - Specialty segment production increased by 23% compared to Q3 2024, with Specialty Alloys production rising by 28.3% year-on-year [2][4]. - Processing volumes saw a 24.4% increase in Q3 2025 compared to the same quarter of the previous year [4]. - Mining activity in South Africa dropped significantly by 67.9% year-on-year, while Turkish mining activity increased by 41.3% over the same period [8]. Demand and Price Trends - Demand for Chrome Ore remains strong in China, with major South African ferro-chrome producers reducing production, leading to higher ore exports and increased ferro-chrome production in China [5]. - Cr Ore prices in China improved during Q3 2025, and world market prices for both high and low carbon ferrochrome are gradually recovering [6]. Challenges and Opportunities - The weakening of the US dollar is impacting the bottom line for chrome products, which are traded as US dollar commodities [6]. - Discussions regarding a possible export quota for Chrome Ore from South Africa have recently resumed, indicating potential regulatory changes [6].

Key Takeaways Carpenter Technology will report 1Q26 results on Oct. 23 before market open.Consensus estimates indicate $729M in sales and $2.13 EPS, up 2% and 23% y/y respectively.Growth in aerospace and medical demand offsets labor and chip shortages for CRS.Carpenter Technology Corporation (CRS) is scheduled to report first-quarter fiscal 2026 results on Oct. 23, before the opening bell.The Zacks Consensus Estimate for CRS’s sales is pegged at $729 million, indicating a 1.6% rise from the year-ago reporte ...

TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 13.13% (gross) and 12.91% (net), compared to the Russell Midcap® Growth Index’s 18.20% return. Equities recorded double-digit returns in the second quarter as global economic activity measures lifted. In addition, please check the fund’s top five holdings to know its best pi ...