Slide 1: Carpenter Technology Corporation 4th Quarter Fiscal Year 2025 Earnings Call
July 31, 2025 CARPENTER TECHNOLOGY CORPORATION 4th Quarter Fiscal Year 2025 Earnings Call © 2025 CRS Holdings, LLC. All rights reserved.
Slide 2: Cautionary Statement
Cautionary Statement Forward-looking statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those proj
Slide 3: 4th Quarter Fiscal Year 2025
th 4 QUARTER FISCAL YEAR 2025 Tony Thene | President and Chief Executive Officer © 2025 CRS Holdings, LLC. All rights reserved. 3
Slide 4: Safety is Our Highest Value
Safety is Our Highest Value Total case incident rate 2.2 2.1 2.0 1.8 1.7 1.4 1.3 1.2 1.1 1.0 0.6 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 © 2025 CRS Holdings, LLC. All rights reserved. 4
Slide 5: Quarter Performance: record operating income, operating margins and cash generation
Quarter Performance: record operating income, operating margins and cash generation Strong execution delivering record SAO continues to expand adjusted Accelerated cash generation; quarterly profit operating margins continue to repurchase shares Adjusted Operating Income ($M) * SAO Adjusted Operatin
Slide 6: Fourth Quarter Fiscal Year 2025 Net Sales
Fourth Quarter Fiscal Year 2025 Net Sales Q4-25 NET SALES EX. % NET SALES EX. Increasing sales in strengthening demand MARKET VS. Q3-25 VS. Q4-24 SURCHARGE ($M)* SURCHARGE environment $383.8 62% • Aerospace and Defense and Energy sales up AEROSPACE & DEFENSE +3% +2% sequentially and year-over-year •
Slide 7: 4th Quarter Fiscal Year 2025 Financial Overview
th 4 QUARTER FISCAL YEAR 2025 FINANCIAL OVERVIEW Tim Lain | Senior Vice President and Chief Financial Officer © 2025 CRS Holdings, LLC. All rights reserved. 7
Slide 8: Income Statement Summary
Income Statement Summary SEQUENTIAL YEAR-OVER- $ millions, except per share amounts Q4-25 Q3-25 Q4-24 CHANGE YEAR CHANGE Pounds (‘000) 48,746 46,496 56,782 2,250 (8,036) Net Sales 755.6 727.0 798.7 28.6 (43.1) Net Sales ex. Surcharge Revenue* 623.7 597.0 635.8 26.7 (12.1) Gross Profit 213.9 200.8 19
Slide 9: SAO Segment Summary
SAO Segment Summary SEQUENTIAL YEAR-OVER- $ millions Q4-25 Q3-25 Q4-24 CHANGE YEAR CHANGE Pounds ('000) 46,872 44,584 57,204 2,288 (10,332) Net Sales 674.1 642.9 715.8 31.2 (41.7) Net Sales ex. Surcharge Revenue* 548.0 519.4 559.5 28.6 (11.5) Operating Income 167.0 151.4 140.9 15.6 26.1 Adjusted Ope
Slide 10: PEP Segment Summary
PEP Segment Summary SEQUENTIAL YEAR-OVER- $ millions Q4-25 Q3-25 Q4-24 CHANGE YEAR CHANGE Pounds ('000)* 2,674 2,584 2,856 90 (182) Net Sales 104.6 104.9 111.2 (0.3) (6.6) Net Sales ex. Surcharge Revenue** 97.1 96.8 102.3 0.3 (5.2) Operating Income 11.7 10.9 10.6 0.8 1.1 Adjusted Operating Margin ex
Slide 11: Cash generation accelerating with balanced execution against priorities
Cash generation accelerating with balanced execution against priorities Meaningful adjusted free cash flow Executing against planned capital Healthy liquidity, strong balance generation allocation priorities sheet and positive outlook • Strong earnings momentum and • Repurchased $24.1 million of sto
Slide 12: Fiscal Year 2025 Review and Outlook
FISCAL YEAR 2025 REVIEW AND OUTLOOK Tony Thene | President and Chief Executive Officer © 2025 CRS Holdings, LLC. All rights reserved. 12
Slide 13: Fiscal Year 2025: Accelerated performance with focus on execution
Fiscal Year 2025: Accelerated performance with focus on execution • Pulled original FY27 target in by 2 years and exceeded it with Adjusted Operating Income ($M) $525.4 million in adjusted operating income for FY25 • Expanded SAO adjusted margins to 30.5% in Q4 FY25* 525 99% CAGR • Generated $287.5
Slide 14: Fiscal Year 2026: Continuing earnings growth momentum, starting with strong Q1
Fiscal Year 2026: Continuing earnings growth momentum, starting with strong Q1 Q1 FY26 Outlook: strong start to fiscal year FY26 Outlook: increasing operating income 26%-33% over FY25 Adjusted Operating Income* ($M) Adjusted Operating Income* ($M) 26%-33% 765-800 660-700 151 148-152 117 525 354 Q1FY
Slide 15: Well-positioned to continue growing over long-term with portfolio of advanced solutions
Well-positioned to continue growing over long-term with portfolio of advanced solutions Our unique solutions for critical applications in strengthening markets Brownfield expansion to accelerate long-term growth Require highest strength and wear resistant alloys to operate Engines under extreme heat
Slide 16: Completed record fiscal year
• Completed record fiscal year with • Anticipating strong start to FY26 • FY27 is not the peak of earnings power Q4 profits up 21% year-over-year with Q1 guidance in line with record • Operating in accelerating demand Q4 FY25 • SAO continues to expand operating environment, especially in the margins
Slide 17: Appendix of Non-GAAP Schedules and Fiscal Year 2026 Guidance
APPENDIX OF NON-GAAP SCHEDULES AND FISCAL YEAR 2026 GUIDANCE © 2025 CRS Holdings, LLC. All rights reserved. 17
Slide 18: Cash Flow & Liquidity Summary
Cash Flow & Liquidity Summary $ millions Q4-25 Q3-25 Q2-25 Q1-25 FY25 FY24 Net Income + Noncash Items 156.3 139.8 125.0 128.7 549.9 438.1 Inventory 33.0 (12.6) (63.9) (16.8) (60.4) (96.7) Working Capital / Other 75.0 (9.6) 12.3 (62.1) 15.7 (55.2) Total Net Working Capital / Other 108.0 (22.2) (51.6)
Slide 19: Non-GAAP Schedules
Non-GAAP Schedules Adjusted Operating Margin ex. Surcharge Revenue and Special Items $ millions Q4-25 Q3-25 Q4-24 FY25 FY24 Net Sales 755.6 727.0 798.7 2,877.1 2,759.7 Less: Surcharge Revenue 131.9 130.0 162.9 531.0 592.0 Net Sales ex. Surcharge Revenue 623.7 597.0 635.8 2,346.1 2,167.7 Operating In
Slide 20: Non-GAAP Schedules
Non-GAAP Schedules Adjusted Segment Operating Margin ex. Surcharge Revenue SAO SAO SAO PEP PEP PEP $ millions Q4-25 Q3-25 Q4-24 Q4-25 Q3-25 Q4-24 Net Sales 674.1 642.9 715.8 104.6 104.9 111.2 Less: Surcharge Revenue 126.1 123.5 156.3 7.5 8.1 8.9 Net Sales ex. Surcharge Revenue 548.0 519.4 559.5 97.1
Slide 21: Non-GAAP Schedules
Non-GAAP Schedules Adjusted Diluted Earnings Per Share $ millions, except per share amounts Q4-25 Q3-25 Q4-24 FY25 FY24 Diluted Earnings per Share $2.21 $1.88 $1.85 $7.42 $3.70 Net Income 111.7 95.4 93.6 376.0 186.5 Special Items, net of tax: Goodwill impairment — — — — 14.1 Restructuring and asset
Slide 22: Non-GAAP Schedules
Non-GAAP Schedules Adjusted Free Cash Flow $ millions Q4-25 Q3-25 Q2-25 Q1-25 FY25 FY24 Net Cash Provided from Operating Activities 258.0 74.2 67.9 40.2 440.4 274.9 Purchases of Property, Plant, Equipment and Software (58.0) (40.2) (29.3) (26.9) (154.3) (96.6) Proceeds from Disposals of Property, Pl
Slide 23: Selected Fiscal Year 2026 Guidance
Selected Fiscal Year 2026 Guidance FY26 $ in millions ESTIMATE Depreciation and Amortization 143 Capital Expenditures 300 – 315 Brownfield Capacity Expansion Capital Expenditures included above 175 – 185 Required Pension Contributions 24 Net Pension Expense 14* Interest Expense, net 40 – 42 Effectiv
Slide 24: Your trusted partner in innovation.
Your trusted partner in innovation. Carpenter Technology Corporation (NYSE: CRS) is a recognized leader in high-performance specialty alloy materials and process solutions for critical applications in the aerospace and defense, medical, and other markets. Founded in 1889, Carpenter Technology has ev