Mar 31, 2024

Carpenter Technology Q3 2024 Earnings Report

Carpenter Technology outperformed Q3 FY24 guidance, driven by improved operating performance and expanding margins.

Key Takeaways

Carpenter Technology delivered record adjusted operating income, driven by strong demand and improved productivity, particularly in the Aerospace and Defense and Medical end-use markets. The company is raising its Q4 FY24 outlook and pulling forward its FY27 goal.

Delivered record adjusted operating income of $90.0 million, up 29% sequentially and 129% year-over-year.

SAO segment exceeded expectations with operating income of $103.5 million, realizing adjusted operating margin of 21.4%.

Generated $61.9 million of adjusted free cash flow.

Accelerated growth with higher volumes sequentially and improved mix, primarily in Aerospace and Defense and Medical end-use markets.

Total Revenue
$685M
Previous year: $690M
-0.8%
EPS
$1.19
Previous year: $0.38
+213.2%
Total Case Incident Rate
0.6
0
Gross Profit
$147M
Previous year: $93.5M
+57.2%
Cash and Equivalents
$53.5M
Previous year: $22.3M
+139.9%
Free Cash Flow
$61.9M
Total Assets
$3.18B
Previous year: $3.09B
+2.6%

Carpenter Technology

Carpenter Technology

Carpenter Technology Revenue by Segment

Forward Guidance

Carpenter Technology is building momentum each quarter with increasing productivity and is pulling forward its FY27 goal with accelerating earnings growth and expanding operating margins.

Positive Outlook

  • Rapidly accelerating quarterly earnings growth
  • Projecting $339 million to $344 million of adjusted operating income for FY24, an increase over previous guidance
  • Q3 FY24 adjusted operating income of $90 million up 29% sequentially and an all-time quarterly record
  • Approximately 60% of growth expected to be realized in year one of original four year goal
  • Projecting 25% increase in adjusted operating income in Q4 FY24 over Q3 FY24, which would result in another record quarter

Revenue & Expenses

Visualization of income flow from segment revenue to net income