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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
Carpenter Technology
Carpenter Technology
Carpenter Technology Revenue by Geographic Location
Revenue by Geographic Location
Aerospace and Defense Revenue
CapyFin.comMedical Revenue
CapyFin.comEnergy Revenue
CapyFin.comTransportation Revenue
CapyFin.comIndustrial and Consumer Revenue
CapyFin.com 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