Carpenter Technology Corporation · NYSE:CRS
Carpenter Technology — Q1 FY2025 Earnings Presentation
20 slides from Carpenter Technology's earnings presentation, Oct 29, 2024
Slide 1: 1st Quarter Fiscal Year 2025 Earnings Call
CARPENTER TECHNOLOGY CORPORATION 1st Quarter Fiscal Year 2025 Earnings Call October 24, 2024 Exhibit 99.1
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: 1st Quarter Fiscal Year 2025
1st QUARTER FISCAL YEAR 2025 Tony Thene | President and Chief Executive Officer
Slide 4: Safety is Our Highest Value
Safety is Our Highest Value Total case incident rate
Slide 5: Performance: Strong start to fiscal year with record first quarter
Performance: Strong start to fiscal year with record first quarter Record first quarter profits up 70% year-over-year Adjusted Operating Income* ($M) + Positive adjusted free cash flow; share repurchase program initiated *Detailed schedule included in Non-GAAP Schedules in Appendix. SAO beat guidanc
Slide 6: First Quarter Fiscal Year 2025 Net Sales
First Quarter Fiscal Year 2025 Net Sales MARKET Q1-25 NET SALES EX. SURCHARGE ($M)* % NET SALES EX. SURCHARGE VS. Q4-24 VS. Q1-24 AEROSPACE & DEFENSE $349.9 61% -7% +34% MEDICAL $73.4 13% -20% +10% ENERGY $39.4 7% +8% +35% TRANSPORTATION $21.1 4% -21% -28% INDUSTRIAL & CONSUMER $72.4 13% -13% -9% Lo
Slide 7: 1st Quarter Fiscal Year 2025 Financial Overview
1st QUARTER FISCAL YEAR 2025 FINANCIAL OVERVIEW Tim Lain | Senior Vice President and Chief Financial Officer
Slide 8: Consolidated financial results summary
*Detailed schedule included in Non-GAAP Schedules in Appendix. $ millions, except per share amounts Q1-25 Q4-24 Q1-24 SEQUENTIAL CHANGE YEAR-OVER-YEAR CHANGE Pounds (‘000) 51,568 56,782 50,228 (5,214) 1,340 Net Sales 717.6 798.7 651.9 (81.1) 65.7 Net Sales ex. Surcharge Revenue* 577.4 635.8 492.8 (5
Slide 9: SAO Segment Summary
SAO Segment Summary Net sales excluding surcharge increased 22% year-over-year, driven by Aerospace and Defense and Energy end-use markets Record first quarter operating income and margin the result of focused efforts on increased productivity, improving product mix and higher price realization Cont
Slide 10: PEP Segment Summary
PEP Segment Summary Net sales excluding surcharge flat year-over-year; increasing sales of titanium in Aerospace and Defense and Medical end-use markets offset by customer order deferrals in Additive business Operating income results for current quarter reflect improving year-over-year performance i
Slide 11: Cash Flow & Liquidity Summary
Cash Flow & Liquidity Summary The clerical accuracy of certain amounts may be impacted due to rounding. *Detailed schedule included in Non-GAAP Schedules in Appendix. $ millions Q1-25 Q4-24 Q1-24 Net Income + Noncash Items 128.7 154.7 90.0 Inventory (16.8) 59.0 (67.8) Working Capital / Other (62.1)
Slide 12: 1st Quarter Fiscal Year 2025 Closing Comments
1st QUARTER FISCAL YEAR 2025 CLOSING COMMENTS Tony Thene | President and Chief Executive Officer
Slide 13: Outlook: Continue to increase earnings guidance
Outlook: Continue to increase earnings guidance based on solid execution, strong market position and unique capacity and capabilities Adjusted Operating Income* ($M) 460- 460-500 460-500 ~90% *Detailed schedule included in Non-GAAP Schedules in Appendix. Future: expect continued earnings growth beyo
Slide 14: Delivering record profits while navigating near-term Aerospace market uncertainty
Delivering record profits while navigating near-term Aerospace market uncertainty Strong start to fiscal year with record first quarter Strengthening earnings growth outlook Navigating near-term Aerospace uncertainty Record first quarter profits up 70% year-over-year SAO beat guidance with expanding
Slide 15: Appendix of Non-GAAP Schedules
APPENDIX OF NON-GAAP SCHEDULES
Slide 16: Adjusted Operating Income and Margin
$ millions Q1-25 Q4-24 Q1-24 Net Sales 717.6 798.7 651.9 Less: Surcharge Revenue 140.2 162.9 159.1 Net Sales ex. Surcharge Revenue 577.4 635.8 492.8 Operating Income 113.6 108.3 69.0 Special Item: Restructuring and asset impairment charges 3.6 16.9 — Adjusted Operating Income ex. Special Item 117.2
Slide 17: Segment Adjusted Operating Margin
SAO SAO SAO PEP PEP PEP $ millions Q1-25 Q4-24 Q1-24 Q1-25 Q4-24 Q1-24 Net Sales 645.1 715.8 570.1 100.8 111.2 101.8 Less: Surcharge Revenue 134.2 156.3 152.8 8.4 8.9 8.7 Net Sales ex. Surcharge Revenue 510.9 559.5 417.3 92.4 102.3 93.1 Operating Income 134.5 140.9 80.8 7.3 10.6 9.1 Operating Margin
Slide 18: Adjusted Diluted Earnings Per Share
$ millions, except per share amounts Q1-25 Q4-24 Q1-24 Diluted Earnings per Share $1.67 $1.85 $0.88 Net Income 84.8 93.6 43.9 Special Items, net of tax: Restructuring and asset impairment charges 2.7 16.8 — US tax benefit related to restructuring activities — (18.4) — Special Items, net of tax: 2.7
Slide 19: Adjusted Free Cash Flow
$ millions Q1-25 Q4-24 Q1-24 Net Cash Provided from Operating Activities 40.2 169.5 7.4 Purchases of Property, Plant, Equipment and Software (26.9) (27.7) (22.0) Proceeds from Disposals of Property, Plant and Equipment — 0.6 — Adjusted Free Cash Flow 13.3 142.4 (14.6) Management believes that the ad
Slide 20: Carpenter Technology Corporation company description
Carpenter Technology Corporation (NYSE: CRS) is a global leader in high-performance specialty alloy-based materials and process solutions for critical applications in the aerospace, defense, medical, energy, transportation, industrial and consumer electronics markets. Your trusted partner in innovat
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