Sep 30, 2024

Carpenter Technology Q1 2025 Earnings Report

Carpenter Technology reported a strong start to fiscal year with record first quarter and increased earnings guidance.

Key Takeaways

Carpenter Technology reported a record first quarter with profits up 70% year-over-year. The company generated $13.3 million in adjusted free cash flow and executed $32.1 million in share repurchases. They are guiding to the high end of the $460 million to $500 million range for FY25.

Record first quarter profits up 70% year-over-year

SAO beat guidance with expanding operating margins

Generated $13.3 million in adjusted free cash flow

Executed $32.1 million in share repurchases

Total Revenue
$718M
Previous year: $652M
+10.1%
EPS
$1.73
Previous year: $0.88
+96.6%
Gross Profit
$176M
Previous year: $124M
+42.1%
Cash and Equivalents
$150M
Previous year: $18.1M
+729.8%
Free Cash Flow
$13.3M
Previous year: -$14.6M
-191.1%
Total Assets
$3.26B
Previous year: $3.08B
+5.8%

Carpenter Technology

Carpenter Technology

Carpenter Technology Revenue by Segment

Forward Guidance

Carpenter Technology is guiding to the high end of the $460 million to $500 million range for FY25 and expects continued earnings growth beyond FY25.

Positive Outlook

  • Delivering record profits while navigating near-term Aerospace market uncertainty
  • Strong start to fiscal year with record first quarter
  • Strengthening earnings growth outlook
  • Backlog remains near record levels
  • Strong demand across markets, like Medical and Energy sub-market power generation, with Aerospace-like margins

Challenges Ahead

  • Navigating near-term Aerospace uncertainty
  • Leveraging supply chain visibility and manufacturing flexibility to optimize production schedules
  • Line-of-sight to activities that could push operating income higher
  • Expected earnings growth beyond FY25

Revenue & Expenses

Visualization of income flow from segment revenue to net income