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Mar 31, 2023
Carpenter Technology Q3 2023 Earnings Report
Carpenter Technology outperformed expectations with increasing demand across end-use markets and increased productivity at operating facilities.
Key Takeaways
Carpenter Technology reported strong Q3 results driven by increasing demand across end-use markets and increased productivity at operating facilities. The company's backlog is up 10% sequentially and 70% year-over-year. The company expects Q4-23 operating income to be in the range of $65 million to $70 million.
Demand conditions across end-use markets remain strong; backlog up 10% sequentially and 70% year-over-year
Realizing share and price gains through contract negotiations and price increases on transactional business
SAO segment performance driven by higher sequential and year-over-year shipment volumes, primarily in Aerospace and Defense and Medical end-use markets
PEP segment improved operating income sequentially and year-over-year, driven by higher Dynamet Titanium and Additive sales
Revenue by Geographic Location
Forward Guidance
Q4-23 operating income expected to be in the range of $65 million to $70 million, driven by increasing shipments combined with stronger product mix. Demand conditions expected to remain strong with sequential net sales growth driven by Dynamet Titanium business.
Positive Outlook
- Increasing demand across end-use markets
- Accelerating productivity across manufacturing facilities to capture demand
- Expanding margins through higher volumes, improved product mix and increased prices
- Offsetting inflationary pressures through price increases and productivity improvements
- Healthy liquidity with no significant near-term required minimum pension contributions or debt maturities
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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