Sep 30, 2023

Carpenter Technology Q1 2024 Earnings Report

Carpenter Technology's Q1 2024 performance exceeded expectations, driven by strong demand and improved operating efficiency.

Key Takeaways

Carpenter Technology reported a strong first quarter for fiscal year 2024, exceeding expectations with earnings per diluted share of $0.88 and operating income of $69.0 million. The company benefited from strong demand across end-use markets and improved operating performance, particularly within the Specialty Alloys Operations segment. Looking ahead, the company anticipates continued profitability and progress toward its long-term financial goals.

Reported earnings per diluted share of $0.88, up from $0.78 in the previous quarter.

Achieved operating income of $69.0 million, up from $62.9 million in the previous quarter.

Specialty Alloys Operations segment reached $80.8 million of operating income and 19.4 percent adjusted operating margin.

Generated $7.4 million of cash from operating activities compared to $78.0 million cash used in the prior year first quarter.

Total Revenue
$652M
Previous year: $523M
+24.7%
EPS
$0.88
Previous year: -$0.14
-728.6%
Gross Profit
$124M
Previous year: $54.8M
+126.5%
Cash and Equivalents
$18.1M
Previous year: $52.6M
-65.6%
Free Cash Flow
-$14.6M
Total Assets
$3.08B
Previous year: $2.94B
+4.7%

Carpenter Technology

Carpenter Technology

Forward Guidance

Carpenter Technology expects operating income for the second quarter to be in line with the first quarter, in the range of $66.0 million to $72.0 million. The company anticipates an even stronger second half of fiscal year 2024, with operating income expected to increase 28-35 percent compared to the first half, resulting in $310 million to $330 million in total operating income for fiscal year 2024.

Positive Outlook

  • Operating income for the second quarter is expected to be in line with the first quarter.
  • Anticipate an even stronger second half of fiscal year 2024.
  • Expect operating income to increase 28-35% in the second half compared to the first half of this fiscal year.
  • Expect $310 million to $330 million in total operating income for fiscal year 2024.
  • Expect to make significant progress toward doubling fiscal year 2019 operating income by fiscal year 2027.

Challenges Ahead

  • No specific negatives were mentioned in the provided text.