PHILADELPHIA, PA — Carpenter Technology Corporation (NYSE: CRS) has announced impressive financial results for the first quarter of fiscal year 2025, marking a historic performance milestone for the company. The corporation reported a record adjusted operating income of $117.2 million, reflecting a 70% increase from the previous year, and an adjusted earnings per diluted share of $1.73.
Significant gains were noted in the Specialty Alloys Operations (SAO) segment, achieving $134.5 million in operating income, a 66% rise year-over-year. The segment’s adjusted operating margin improved to 26.3%, up from 19.4% the previous year, demonstrating robust operational efficiencies and a strategic shift towards higher value materials.
Tony R. Thene, President and CEO of Carpenter Technology, expressed confidence in the company’s trajectory, stating, “In the first quarter of fiscal year 2025, we delivered the most profitable first quarter in Carpenter Technology’s history. This marks the eleventh quarter in a row with increasing adjusted operating margins in SAO.”
The company generated $40.2 million in cash from operating activities, with adjusted free cash flow of $13.3 million, despite higher pension contributions and capital expenditures. This reflects steady earnings growth, supported by strategic pricing actions and enhanced product mix.
Carpenter Technology’s robust liquidity position, with $499.1 million in total liquidity including a significant credit facility, underlines its financial stability and capacity for ongoing investments. The company executed $32.1 million in share repurchases, part of a broader $400 million authorization aimed at enhancing shareholder value. As of the end of the first quarter, $367.9 million remains available for further buybacks.
Looking ahead, Carpenter Technology anticipates operating income to reach the upper limits of its $460 million to $500 million forecast for fiscal year 2025, with expected adjusted free cash flow between $250 million and $300 million. Thene added, “Given the solid execution of the business, strong market position and unique manufacturing capabilities, we have the confidence to guide to the high end of the previously disclosed operating income range.”
With a strategic focus on expanding its specialized solutions portfolio and optimizing product offerings, Carpenter Technology is poised for sustained growth, extending its achievements well beyond fiscal year 2025.
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