Carpenter Technology Reports 6% Revenue Growth and Significant Net Income Increase in Latest Quarter

Carpenter Technology Corporation reported significant financial improvements in its latest quarterly results, with net sales reaching $727.0 million for the three months ended March 31, 2025, a 6% increase from $684.9 million in the same period last year. The company’s net income surged to $95.4 million, or $1.88 per diluted share, compared to $6.3 million, or $0.12 per diluted share, in the prior year. For the nine months ending March 31, 2025, net sales totaled $2.121 billion, an 8% increase from $1.961 billion, while net income rose to $264.3 million from $92.9 million in the same period last year.

The company’s operating income for the third quarter was $137.8 million, up 82% from $75.9 million a year earlier, driven by improved productivity, a favorable product mix, and effective pricing strategies. The Specialty Alloys Operations (SAO) segment reported an operating income of $151.4 million, reflecting a 23.5% operating margin, while the Performance Engineered Products (PEP) segment generated $10.9 million in operating income. The overall operating margin for the company was 19.0%, compared to 11.1% in the previous year.

In terms of operational metrics, Carpenter Technology's cash flow from operating activities increased to $182.3 million for the nine months ended March 31, 2025, compared to $105.4 million in the same period last year. The company also repurchased 475,000 shares of its common stock for $77.8 million during the nine months, with $322.2 million remaining available under its share repurchase program. The company’s total assets increased to $3.362 billion, up from $3.292 billion as of June 30, 2024, while total liabilities decreased to $1.580 billion from $1.663 billion.

Strategically, Carpenter Technology has focused on enhancing its product offerings and operational efficiencies. The company has also been proactive in managing raw material costs through surcharge mechanisms and commodity forward contracts, which help mitigate the impact of price fluctuations. Looking ahead, Carpenter Technology anticipates continued growth driven by strong demand in key end-use markets, particularly aerospace and defense, and plans to invest in capital expenditures, including a brownfield expansion project in Athens, Alabama. The company remains committed to maintaining a strong balance sheet while pursuing growth opportunities and returning value to shareholders.