Carpenter Technology Corporation Reports Record Q3 2025 Earnings
Carpenter Technology Corporation (NYSE:CRS) has reported a record third quarter for fiscal year 2025, with operating income reaching $138 million, a 53% increase from the same quarter last year. The company’s earnings per share (EPS) was $1.88, beating expectations of $1.74.
Key Highlights
- The SAO segment achieved a record operating income of $151.4 million, with adjusted operating margins expanding to 29.1%.
- Sales increased 8% year over year and 9% sequentially, driven primarily by the aerospace and defense end-use market.
- The company generated $34 million in adjusted free cash flow during the quarter and continued to return cash to shareholders through share repurchases and dividends.
- Carpenter Technology Corporation has raised its guidance for fiscal year 2025 operating income to the range of $520 million to $527 million, representing a nearly 50% increase over fiscal year 2024.
Segment Performance
- The SAO segment reported net sales excluding surcharge of $519.4 million, up 8% year over year on 12% lower volume. Operating income was $151.4 million, with adjusted operating margins reaching 29.1%.
- The PEP segment reported net sales excluding surcharge of $96.8 million, up 2% year over year and 12% sequentially. Operating income was $10.9 million, driven by the additive business.
Outlook
Carpenter Technology Corporation expects a strong finish to fiscal year 2025, with fourth-quarter earnings projected to increase 6% to 11% over the record third quarter. The company has also provided a positive outlook for fiscal year 2027, with operating income anticipated to reach $765 million to $800 million, representing a 25% compound annual growth rate (CAGR) over the next two years.
