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Dec 31, 2024
Carpenter Technology Q2 2025 Earnings Report
Carpenter Technology reported a record second quarter operating income and expanded operating margins in Specialty Alloys Operations segment.
Key Takeaways
Carpenter Technology reported strong Q2 FY2025 results, with record second quarter operating income of $118.9 million and earnings per diluted share of $1.66. The company saw improved productivity, product mix optimization, and pricing actions, particularly in the SAO segment. They are increasing their FY25 outlook.
Delivered $118.9 million of operating income, up 70 percent year-over-year and a record second quarter result.
Realized earnings per diluted share of $1.66.
Delivered adjusted operating margin of 28.3 percent in the Specialty Alloys Operations (“SAO”) segment, up from 20.0 percent in the second quarter of the previous year.
Generated $67.9 million of cash from operating activities, or $38.6 million of adjusted free cash flow.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Carpenter Technology anticipates earnings to continue to grow through fiscal year 2025, with total operating income in the range of $500 million to $520 million for the fiscal year. In addition, they expect to generate $250 million to $300 million in adjusted free cash flow.
Positive Outlook
- Increasing operating income expectations to the range of $500 million to $520 million, up from the high end of the range of $460 million to $500 million
- Projecting $250 million to $300 million in adjusted free cash flow, which represents approximately 85 percent conversion rate
- Anticipating between $126 million and $134 million in operating income for the third quarter of fiscal year 2025
- Well-positioned for continued growth beyond fiscal year 2025 with strong market demand outlook for our broad portfolio of specialized solutions
- Focus on increasing productivity, optimizing product mix and pricing actions
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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