Core Viewpoint - IperionX Limited is responding to a short seller report from Spruce Point Capital Management, emphasizing its commitment to transparency and adherence to regulatory obligations while highlighting its advancements in titanium production and government support [1][3]. Government Support and Validation - IperionX's titanium technologies have received validation and support from various U.S. Government programs, including ARPA-E, DPA Title III, and a recent U.S. Army SBIR Phase III contract for procurement-ready titanium products [4][5]. - The company has secured significant funding, including US$12.7 million from the Defense Production Act to increase titanium production for defense supply chains and US$47.1 million under the IBAS program to develop a resilient titanium supply chain [9][10]. Production Capacity and Expansion - The Virginia Titanium Manufacturing Campus has completed commissioning, with an increased projected capacity from 125 metric tons per annum (tpa) to 200 tpa, and plans to scale up to approximately 1,400 tpa by mid-2027 [16][17]. - The Titan Critical Minerals Project is advancing towards 'shovel-ready' status, supported by U.S. Government funding, with a Definitive Feasibility Study expected by mid-2026 [11][20]. Customer Engagement and Revenue Generation - IperionX is actively working on SBIR Phase III task orders for titanium components, leveraging its advanced manufacturing technologies to meet U.S. military needs [18]. - The company has secured multiple commercial agreements, including a disclosed Ford program valued at approximately US$11 million over 45 months, and has delivered titanium fasteners for U.S. Army testing [29][24]. Feedstock Strategy and Technology Validation - IperionX aims to procure and upgrade underutilized titanium scrap feedstock using patented technologies, having already procured over 70 metric tons of titanium scrap for production requirements [26][28]. - The company's technologies have been validated by third parties, including the U.S. Air Force Research Laboratory, for their ability to upgrade titanium scrap into high-quality products [27]. Management and Operational Focus - IperionX's management team possesses extensive experience in natural resources and advanced manufacturing, with a focus on delivering major mineral developments and managing complex industrial programs [30]. - The company is committed to optimizing its processes to reduce unit costs and increase production yields, maintaining alignment with prior disclosures [19].

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]