Company Overview - Metallus (NYSE: MTUS) is a leader in high-quality specialty metals, manufactured components, and supply chain solutions, with a focus on serving industrial, automotive, aerospace & defense, and energy end-markets [5] - The company has been in the business of producing high-quality steel for over 100 years and employs approximately 1,850 people [5] - Metallus reported sales of $1.1 billion in 2024 [5] Awards and Recognition - Metallus has been named a 2025 NorthCoast 99 award winner by ERC, recognizing it as one of the top workplaces in Northeast Ohio for attracting and retaining top talent [1][3] - The NorthCoast 99 award program, launched 27 years ago, aims to make Northeast Ohio a prime destination for companies and high-performing individuals [2] - The award reflects Metallus' commitment to a culture of care, collaboration, communication, and growth, which is essential for attracting and retaining talent [3] Industry Insights - The NorthCoast 99 winners undergo a rigorous application process that evaluates their strategies in employee engagement, talent development, well-being, and total rewards [2] - The 2025 NorthCoast 99 awards program is supported by various sponsors, indicating a strong community and industry backing for recognizing workplace excellence [4]

Core Points - Carpenter Technology Corporation has announced a succession plan for its Board of Directors, with Tony R. Thene being elected as Chairman effective October 7, 2025 [2][3] - Mr. Thene has been instrumental in the company's growth over the past 10 years, transforming it into a leading provider of specialty materials [2] - Brian Malloy has been promoted to President and Chief Operating Officer, succeeding Mr. Thene in that role [4] - Steven M. Ward has been elected as Lead Independent Director, continuing the company's commitment to high-quality corporate governance [5] Leadership Changes - Tony R. Thene will assume the role of Chairman of the Board, effective October 7, 2025, prior to the 2025 Annual Stockholders Meeting [2] - I. Martin Inglis will not stand for reelection when his term expires at the 2025 Annual Stockholders Meeting, having served on the Board since 2003 [3] - Brian Malloy, previously Senior Vice President and Chief Operating Officer, will take over as President and COO on the same date [4] - Steven M. Ward, who has been on the Board since 2001, will become the Lead Independent Director [5] Company Overview - Carpenter Technology Corporation is a leader in high-performance specialty alloy materials for critical applications across various sectors including aerospace, defense, medical, and energy [6] - The company has a long history, founded in 1889, and specializes in premium specialty alloys such as nickel, cobalt, and titanium [6]

Market Overview - The U.S. equity markets have been volatile, reaching record highs due to strong quarterly earnings from blue-chip technology companies, but also experiencing sharp declines due to inflation concerns [1] - Stable labor market conditions and increased nonfarm productivity indicate a robust U.S. economy, although upcoming key inflation data is causing market uncertainty regarding future interest rate cuts [1] Momentum Investing Strategy - Investors are turning to momentum stocks, such as Carpenter Technology Corporation (CRS), Virtu Financial, Inc. (VIRT), and Root, Inc. (ROOT), as a strategy to achieve sustained profits when traditional value or growth investing falls short [2] - Momentum investing is based on the principle of "buying high and selling higher," capitalizing on established trends that are likely to continue due to existing momentum [3] Screening Parameters for Momentum Stocks - The strategy involves selecting the top 50 stocks with the best percentage price change over the last 52 weeks, ensuring steady appreciation [5] - From these, the bottom 10 performers over the past week are chosen to identify short-term pullbacks, combined with a Zacks Rank 1 (Strong Buy) for proven outperformance [6] - Stocks must have a Momentum Style Score of B or better, indicating favorable trading conditions and high probability of success [7] - Additional criteria include a current price greater than $5, being among the top 3000 by market capitalization, and an average 20-day trading volume exceeding 100,000 [8] Company Profiles - **Carpenter Technology Corporation (CRS)**: Specializes in premium specialty alloys, with a stock price increase of 78.4% over the past year but a recent decline of 1.8% in the past week. It holds a Momentum Score of B [9] - **Virtu Financial, Inc. (VIRT)**: A financial services firm that has seen a stock price increase of 45.9% in the past year, with a recent decline of 3.2%. It also has a Momentum Score of B [10] - **Root, Inc. (ROOT)**: Provides insurance products and has experienced a stock price surge of 89.3% over the past year, despite a recent decline of 26.3%. It maintains a Momentum Score of B [11]

Financial Performance - Metallus reported second-quarter 2025 net sales of $304.6 million, a 9% increase from $280.5 million in the first quarter of 2025 and a 3% increase from $294.7 million in the same quarter last year [1][2][13] - Net income for the second quarter of 2025 was $3.7 million, or $0.09 per diluted share, compared to $1.3 million, or $0.03 per diluted share in the first quarter of 2025, and $4.6 million, or $0.10 per diluted share in the second quarter of 2024 [1][2][3] - Adjusted EBITDA for the second quarter of 2025 was $26.5 million, up from $17.7 million in the first quarter of 2025 and $19.9 million in the second quarter of 2024 [1][2][3] Operational Highlights - The company experienced improved profitability and operating cash flow, driven by stronger end markets and market share gains [4] - Ship tons increased to 167,700 in the second quarter of 2025, a 10% sequential increase and a 12% increase compared to the prior-year second quarter [13] - Melt utilization improved to 71% in the second quarter of 2025 from 65% in the first quarter of 2025 and 53% in the same quarter last year [13] Cash and Liquidity - As of June 30, 2025, the company had cash and cash equivalents of $190.8 million and total liquidity of $437.0 million [6][12] - Operating cash flow for the second quarter was $34.8 million, primarily due to profitability and an income tax refund [6][12] - Capital expenditures totaled $17.8 million in the second quarter, including $15.3 million for government-funded projects [6][12] Government Funding and Contracts - The company received $5.1 million from the U.S. Army as part of a $99.75 million capacity expansion funding agreement [9] - Total government funding received to date amounts to $71.5 million, with expectations for additional funding throughout 2025 and into early 2026 [9] Outlook - The company anticipates third-quarter adjusted EBITDA to be modestly lower than the second quarter due to costs associated with labor negotiations, higher electricity costs, and planned annual shutdown maintenance [10] - Planned capital expenditures for the full year of 2025 are approximately $125 million, including about $90 million funded by the U.S. government [20]

Core Insights - Ati reported non-GAAP earnings per share of $0.74 for fiscal Q2 2025, exceeding the consensus estimate of $0.71, while revenue was $1,140.4 million, below the expected $1,157.3 million but up 4% year-over-year [1][2] - Net income under GAAP increased by 23% year-over-year, driven by margin expansion and strong performance in core aerospace markets [1][2] - The company is focusing on expanding its titanium production capacity and investing in advanced manufacturing technology to meet future demand [4][7] Financial Performance - Non-GAAP EPS for Q2 2025 was $0.74, a 23% increase from $0.60 in Q2 2024 [2] - Revenue for Q2 2025 was $1,140.4 million, a 4% increase from $1,095.3 million in Q2 2024 [2] - Net income attributable to ATI was $100.7 million, up from $81.9 million in the previous year [2] - Adjusted EBITDA for the quarter was $207.7 million, a 14% increase from $182.6 million in Q2 2024 [2] - Adjusted free cash flow nearly doubled to $92.9 million compared to $47.8 million in the same period last year [2][10] Business Focus and Strategy - Ati specializes in advanced specialty materials, including nickel-based alloys and titanium products, primarily serving aerospace, defense, energy, electronics, and medical device markets [3] - The company has secured long-term contracts with major aircraft manufacturers, providing stability and supporting its growth strategy [4] - Aerospace and defense sales rose to $761.8 million, accounting for 67% of total revenue, with a significant increase in sales to commercial jet engine makers [5][6] Segment Performance - The High Performance Materials & Components segment saw sales increase by 8% to $608.8 million, with an EBITDA margin of 23.7% [6] - The Advanced Alloys & Solutions segment maintained steady sales but experienced a decline in EBITDA margins due to weaker industrial markets [6] Future Outlook - Management expects adjusted EBITDA for Q3 2025 to be between $200 million and $210 million, with adjusted EPS projected between $0.69 and $0.75 [11] - Full-year guidance for adjusted EBITDA has been raised to $810–$840 million, with adjusted EPS forecasted at $2.90–$3.07 [11] - Adjusted free cash flow for the full year is guided in the range of $270 million to $350 million [11]

Core Insights - Carpenter Technology reported revenue of $755.6 million for the quarter ended June 2025, a decrease of 5.4% year-over-year, with an EPS of $2.21 compared to $1.82 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $770.22 million, resulting in a surprise of -1.9%, while the EPS exceeded the consensus estimate of $2.03 by +8.87% [1] Financial Performance Metrics - Specialty Alloys Operations sold 46.87 million pounds, slightly below the estimated 47.04 million pounds [4] - Total volumes sold were 48.75 million pounds, close to the average estimate of 48.8 million pounds [4] - Net Sales in the End-Use Market excluding surcharge revenue totaled $623.7 million, down -1.9% year-over-year, compared to the average estimate of $629.98 million [4] - Surcharge revenue was reported at $131.9 million, a significant decrease of -19% compared to the year-ago quarter, and below the estimated $139.64 million [4] - Operating Income for Specialty Alloys Operations was $167 million, exceeding the average estimate of $163.52 million [4] Stock Performance - Carpenter's shares returned +3.1% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - For Q4 FY 2025, Carpenter Technology generated $151 million in adjusted operating income, a 21% increase from FY 2024 and a 10% increase from the previous quarter [6][15][25] - The adjusted operating margin for the SAO segment reached 30.5%, up from 25.2% a year ago and 29.1% in the prior quarter [6][7][41] - The company reported $201.3 million in adjusted free cash flow for the quarter, contributing to a total of $287.5 million for the fiscal year [7][20][26] Business Line Data and Key Metrics Changes - The SAO segment achieved $167 million in operating income, a 19% year-over-year increase and a 10% sequential increase [7][17] - PEP segment net sales were $97.1 million, down 5% year-over-year but operating income improved to $11.7 million from $10.6 million a year ago [18][19] - Sales in the aerospace and defense market increased 3% sequentially and 2% year-over-year, with engine sales up 5% sequentially [8][9] Market Data and Key Metrics Changes - Sales in the energy end-use market increased 27% sequentially and 22% year-over-year, driven by demand from power generation customers [12][13] - Medical sales were up 6% sequentially but down 16% compared to the record prior year fourth quarter [11] Company Strategy and Development Direction - Carpenter Technology aims to achieve $660 million to $700 million in adjusted operating income for FY 2026, representing a 26% to 33% increase over FY 2025 [32][41] - The company is focused on expanding its brownfield capacity, with a $400 million project underway to enhance production capabilities [22][38] - The strategic focus remains on high-margin markets such as aerospace, medical, and energy, with a commitment to innovation and customer solutions [33][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand across aerospace and defense, medical, and energy markets, anticipating continued growth [13][34] - The company highlighted the importance of maintaining operational efficiency through preventive maintenance to support long-term growth [29][72] - Management noted that the supply-demand imbalance in the industry remains favorable, supporting pricing power [49][50] Other Important Information - The company ended the fiscal year with $664.4 million in total liquidity, including $315.5 million in cash [22][23] - The effective tax rate for Q4 was 19.7%, lower than anticipated due to discrete tax benefits [16] Q&A Session Summary Question: Lead times and pricing expectations - Management indicated that lead times for jet engines remain extended and pricing actions are expected to continue as a tailwind due to a significant supply-demand gap [47][49][51] Question: Initial EBIT guidance for FY 2026 - Management confirmed that the EBIT guidance was approached conservatively, ensuring a realistic target based on internal assessments [56] Question: Orders supporting aerospace and defense volume acceleration - Management noted aggressive pulls on the defense side and positive discussions with aerospace customers, indicating a potential reacceleration in volumes [58][62] Question: Urgent requests in defense versus regular orders - Management explained that defense orders are historically uneven and dependent on various factors, but recent clarity in the defense budget suggests elevated order levels [69][70] Question: Power generation revenue growth - Management confirmed significant year-over-year growth in power generation revenues, highlighting its strategic importance [65][75] Question: Further mix gains in FY 2026 - Management expects continued growth in aerospace and medical markets, with a strong focus on innovation to drive mix improvements [81][86]

Financial Performance - Carpenter Technology's adjusted operating income for Q4 FY25 was $151 million, a 21% increase year-over-year[8,9] - The company generated $2013 million in adjusted free cash flow in Q4 FY25[12] and $2875 million for the full fiscal year[28,32] - SAO (Specialty Alloys Operations) adjusted operating margin reached 305% in Q4 FY25[11,32,41] - The company executed $241 million in share repurchases in Q4 FY25[13] and $1019 million for the full fiscal year[15,32,41] as part of a $400 million authorization[15] - Carpenter Technology anticipates Q1 FY26 operating income to be in the range of $162 million to $165 million[23] Sales and Market - Aerospace & Defense accounted for 62% of net sales excluding surcharge in Q4 FY25, totaling $3838 million, a 3% increase sequentially and 2% year-over-year[17] - Medical sales were $768 million, representing 12% of net sales excluding surcharge, a 6% increase sequentially but a 16% decrease year-over-year[17] - Energy sales were $446 million, accounting for 7% of net sales excluding surcharge, a 27% increase sequentially and 22% year-over-year[17] Fiscal Year 2026 Outlook - Carpenter Technology expects to generate $240 million to $280 million of adjusted free cash flow in fiscal year 2026[28] - The company anticipates a 26% to 33% increase in operating income for FY26 compared to FY25[35,36,41] - Capital expenditures for FY26 are estimated to be between $300 million and $315 million, including $175 million to $185 million for the brownfield capacity expansion project[28,48]

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 26% to 33% Higher Than Record Fiscal Year 2025 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 $151.4 m ...

Core Insights - The company reported second quarter 2025 sales of $1.14 billion, a 4% increase year-over-year, driven by strong demand in the aerospace and defense sectors [3][6][26] - Aerospace and defense sales accounted for $762 million, representing 67% of total sales for the quarter, with a notable 27% year-over-year growth in commercial jet engine sales [1][26] - The company raised its full-year adjusted earnings and cash flow guidance, reflecting positive operational performance and market demand [1][2] Financial Performance - Net income attributable to the company was $100.7 million, or $0.70 per share, marking a 23% increase year-over-year [3][19] - Adjusted net income attributable to the company was $106.4 million, up 24% year-over-year, with adjusted earnings per share of $0.74 compared to $0.60 in the same quarter last year [4][6][33] - Adjusted EBITDA for the quarter was $207.7 million, a 14% increase year-over-year, representing 18.2% of sales [4][6][30] Segment Performance - High Performance Materials & Components (HPMC) segment sales were $608.8 million, up 4% sequentially and 8% year-over-year, with segment EBITDA of $144 million, or 23.7% of sales [9][12][20] - Advanced Alloys & Solutions (AA&S) segment sales decreased to $531.6 million, down 5% sequentially, with segment EBITDA of $76.7 million, or 14.4% of sales [10][12][20] Capital Allocation and Share Repurchase - The company repurchased $250 million of its common stock during the second quarter, bringing total share repurchases for 2025 to $320 million, with remaining authorization of $270 million [8][18] - Capital expenditures for the second quarter were $72 million, reflecting the company's disciplined approach to capital allocation [18][24] Market Outlook - The company anticipates continued demand growth in aerospace and defense markets, supported by recent long-term contract extensions with major airframe manufacturers [6][7] - The overall aerospace and defense sales represented 92% of total HPMC sales, indicating a strong market position [12][26]