Core Insights - Carpenter Technology Corporation reported its most profitable quarter in company history with an operating income of $137.8 million and earnings per diluted share of $1.88 for the fiscal third quarter ended March 31, 2025 [1][5][7] - The company exceeded its previous guidance for operating income and raised its fiscal year 2025 guidance to a range of $520 million to $527 million, representing a nearly 50% increase over fiscal year 2024 [3][4][5] Financial Performance - The company generated net sales of $727.0 million for the third quarter, an increase of $42.1 million (or 6%) compared to $684.9 million in the same quarter of fiscal year 2024 [6][17] - Adjusted operating income was $137.8 million, up 53% year-over-year, with an adjusted operating margin of 29.1% in the Specialty Alloys Operations segment, compared to 21.4% in the previous year [5][6][34] - The Specialty Alloys Operations segment achieved operating income of $151.4 million, exceeding expectations and up 46% year-over-year [4][5] Cash Flow and Share Repurchase - The company generated $34.0 million in adjusted free cash flow during the quarter, despite a discretionary pension contribution of $38.0 million [4][8] - Carpenter Technology repurchased $37.5 million in shares during the quarter, bringing total repurchases for the fiscal year to $77.8 million under its $400.0 million share repurchase program [4][9] Future Outlook - The company anticipates generating $250 million to $300 million in adjusted free cash flow for fiscal year 2025 and expects operating income for the fourth quarter to be between $146 million and $153 million [5][6] - Looking beyond fiscal year 2025, Carpenter Technology aims for operating income of $765 million to $800 million in fiscal year 2027, representing an approximate 25% compound annual growth rate (CAGR) over the two-year period [4][5][6]