PHILADELPHIA, PA — Carpenter Technology Corporation (NYSE: CRS) has reported an impressive financial performance for its second fiscal quarter of 2025, achieving record results and enhancing its full-year outlook.
The company recorded $118.9 million in operating income, a 70% increase year-over-year and the highest second-quarter operating income in its history. Earnings per diluted share came in at $1.66. The Specialty Alloys Operations (SAO) segment delivered $135.6 million in operating income, a 63% year-over-year increase, with an adjusted operating margin of 28.3%, up from 20.0% in the prior year.
Additional achievements for the quarter include generating $67.9 million in cash from operating activities and $38.6 million in adjusted free cash flow, along with $8.2 million in share repurchases under a $400 million authorization program.
“In the second quarter of fiscal year 2025, we delivered $118.9 million of operating income, a record second fiscal quarter and our second most profitable quarter on record,” stated Tony R. Thene, President and CEO of Carpenter Technology. “Our ability to deliver these financial results while navigating the current Aerospace supply chain environment speaks to our strong market position and intense focus on execution.”
Revised Fiscal Year 2025 Outlook
Building on its momentum, Carpenter Technology increased its full-year operating income expectations to a range of $500 million to $520 million, up from previous guidance of $460 million to $500 million. The company also projects $250 million to $300 million in adjusted free cash flow, reflecting an approximate 85% conversion rate.
For the third fiscal quarter, Carpenter expects operating income in the range of $126 million to $134 million. The outlook reflects strong demand across key markets and the company’s continued focus on improving productivity, optimizing product mix, and implementing pricing strategies.
Virtual Investor Update Event Scheduled
Carpenter Technology will host a virtual Investor Update Event on Tuesday, February 18, 2025, at 10:00 a.m. ET. During the event, executives will provide insights on market trends, operational initiatives, and financial projections beyond fiscal 2025.
Thene highlighted the company’s strong quarterly earnings and ongoing improvements in adjusted operating margins within the SAO segment as evidence of effective execution. Looking ahead, the company expects higher earnings growth through fiscal year 2025 and sees strong demand for its specialized product portfolio as a solid foundation for long-term expansion.
With its record-breaking performance, Carpenter Technology continues to demonstrate the strength of its market position, robust demand across industries, and disciplined approach to capital allocation, positioning the company for sustained success.
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