Carpenter Technology Reports 8% Revenue Growth to $676.9 Million in Latest Quarter

Carpenter Technology Corporation reported significant financial growth in its latest quarterly results, with net sales reaching $676.9 million for the three months ended December 31, 2024, an increase of 8% compared to $624.2 million in the same period last year. The company’s net income also saw a substantial rise, climbing to $84.1 million, or $1.66 per diluted share, up from $42.7 million, or $0.85 per diluted share, in the prior year. For the six-month period, net sales totaled $1.394 billion, a 9% increase from $1.276 billion, while net income surged to $168.9 million from $86.6 million.

The financial performance reflects a notable improvement in operating income, which increased by 70% to $118.9 million for the quarter, and by 77% to $232.5 million for the six months. The Specialty Alloys Operations (SAO) segment was a key driver, reporting operating income of $135.6 million, with an operating margin of 22.5%. This marks the twelfth consecutive quarter of increasing adjusted operating margins in this segment, attributed to higher sales and improved product mix, particularly in the Aerospace and Defense markets.

In terms of operational developments, Carpenter Technology has been actively managing its product mix and pricing strategies, which have contributed to the improved financial results. The company reported a 35% increase in sales within the Aerospace and Defense end-use market for the quarter, reflecting strong demand and pricing actions. Geographically, sales in the United States rose by 12%, while international sales increased by 3%. The company also noted a decrease in shipment volume by 6%, indicating a shift towards higher-value materials.

The company has also undertaken strategic initiatives, including a share repurchase program authorized in July 2024, allowing for the purchase of up to $400 million of its common stock. During the six months ended December 31, 2024, Carpenter repurchased 275,000 shares for $40.3 million. Additionally, the company recorded restructuring and asset impairment charges of $3.6 million during the six-month period, reflecting actions taken to streamline operations in its Carpenter Additive business.

Looking ahead, Carpenter Technology expressed confidence in its ability to sustain growth, supported by a strong balance sheet and improved cash flow generation. The company generated $108.1 million in cash from operating activities during the six months ended December 31, 2024, compared to $21.9 million in the same period last year. With a focus on capital allocation, the company plans to continue investing in growth initiatives while returning cash to shareholders through dividends and share repurchases.