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Mar 31, 2025
Carpenter Technology Q3 2025 Earnings Report
Carpenter Technology achieved record profitability in Q3 2025, surpassing its operating income guidance and posting strong results across core segments.
Key Takeaways
In Q3 2025, Carpenter Technology posted its highest-ever operating income and solid earnings, with a strong performance from the Specialty Alloys segment and improved product mix driving profitability.
Posted record operating income of $137.8 million for the quarter
Delivered EPS of $1.88, with matching adjusted EPS
Achieved 29.1% adjusted operating margin in the SAO segment
Repurchased $37.5 million in shares and generated $34 million in adjusted free cash flow
Revenue by Geographic Location
Forward Guidance
Carpenter Technology raised its FY25 operating income and free cash flow guidance, with continued strength expected in core segments and growth outlook through FY27.
Positive Outlook
- Raised FY25 operating income guidance to $520M–$527M
- Q4 FY25 operating income expected to be $146M–$153M
- FY25 adjusted free cash flow expected to reach $250M–$300M
- Anticipates continued earnings growth through FY27
- Targets $765M–$800M operating income in FY27
Challenges Ahead
- Q3 shipment volumes declined by 7% YoY
- Adjusted free cash flow fell from $61.9M in Q3 FY24
- Operating cash flow impacted by $38M discretionary pension contribution
- Higher capex in Q3 FY25: $40.2M vs. $21.6M last year
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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