Slide 1: Carpenter Technology Corporation 4th Quarter Fiscal Year 2024 Earnings Call
July 25, 2024 CARPENTER TECHNOLOGY CORPORATION 4th Quarter Fiscal Year 2024 Earnings Call © 2024 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 2024
th 4 QUARTER FISCAL YEAR 2024 Tony Thene | President and Chief Executive Officer © 2024 CRS Holdings, LLC. All rights reserved. 3
Slide 4: Safety is Our Highest Value
Safety is Our Highest Value Total case incident rate 3.3 2.1 2.2 2.0 1.7 1.8 1.2 1.3 1.1 1.0 0.6 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 © 2024 CRS Holdings, LLC. All rights reserved. 4
Slide 5: Performance: Beat Q4 FY24 Guidance with Record Quarter; Completed Record Fiscal Year
Performance: Beat Q4 FY24 Guidance with Record Quarter; Completed Record Fiscal Year Beat Q4 FY24 operating income Accelerated cash generation and Record $354.1 million in adjusted guidance margin expansion operating income* in FY24 Adjusted Operating Income* ($M) Adjusted Operating Income* ($M) Gen
Slide 6: Fourth Quarter Fiscal Year 2024 Net Sales
Fourth Quarter Fiscal Year 2024 Net Sales Q4-24 NET SALES EX. % NET SALES EX. MARKET SURCHARGE ($M)* SURCHARGE VS. Q3-24 Optimizing mix for profitability in strong demand environment $376.3 59% • Sales up 15% sequentially on higher volumes, improving AEROSPACE & DEFENSE +19% mix and pricing actions
Slide 7: 4th Quarter Fiscal Year 2024 Financial Overview
th 4 QUARTER FISCAL YEAR 2024 FINANCIAL OVERVIEW Tim Lain | Senior Vice President and Chief Financial Officer © 2024 CRS Holdings, LLC. All rights reserved. 7
Slide 8: Income Statement Summary
Income Statement Summary SEQUENTIAL YEAR-OVER- $ millions, except per share amounts Q4-24 Q3-24 Q4-23 CHANGE YEAR CHANGE Pounds (‘000) 56,782 50,208 61,428 6,574 (4,646) Net Sales 798.7 684.9 758.1 113.8 40.6 Net Sales ex. Surcharge Revenue* 635.8 553.8 560.0 82.0 75.8 Gross Profit 190.6 147.0 119.0
Slide 9: SAO Segment Summary
SAO Segment Summary SEQUENTIAL YEAR-OVER- $ millions Q4-24 Q3-24 Q4-23 CHANGE YEAR CHANGE Pounds ('000) 57,204 50,846 61,528 6,358 (4,324) Net Sales 715.8 608.5 667.0 107.3 48.8 Net Sales ex. Surcharge Revenue* 559.5 483.0 477.2 76.5 82.3 Operating Income 140.9 103.5 80.0 37.4 60.9 Adjusted Operatin
Slide 10: PEP Segment Summary
PEP Segment Summary SEQUENTIAL YEAR-OVER- $ millions Q4-24 Q3-24 Q4-23 CHANGE YEAR CHANGE Pounds ('000)* 2,856 2,618 3,328 238 (472) Net Sales 111.2 102.4 118.7 8.8 (7.5) Net Sales ex. Surcharge Revenue** 102.3 94.6 107.6 7.7 (5.3) Operating Income 10.6 9.2 5.9 1.4 4.7 Adjusted Operating Margin ex.
Slide 11: Adjusted Free Cash Flow Summary
Adjusted Free Cash Flow Summary $ millions Q4-24 Q3-24 Q2-24 Q1-24 FY24 FY23 Net Income + Non-Cash Items 154.7 109.7 83.9 90.0 438.1 225.8 Inventory 59.0 1.8 (89.7) (67.8) (96.7) (140.3) Working Capital / Other (37.8) (28.0) 20.5 (10.2) (55.2) (70.8) Total Net Working Capital / Other 21.2 (26.2) (69
Slide 12: Fiscal Year 2025 Outlook and Closing Comments
FISCAL YEAR 2025 OUTLOOK AND CLOSING COMMENTS Tony Thene | President and Chief Executive Officer © 2024 CRS Holdings, LLC. All rights reserved. 12
Slide 13: Fiscal Year 2025 Outlook
Fiscal Year 2025 Outlook FY25 Outlook: pulling forward FY27 goal 2 years with Q1 FY25 Outlook: continuing operating momentum with accelerated earnings growth increasing productivity, improving mix and pricing actions Adjusted Operating Income* ($M) Adjusted Operating Income* ($M) ~70% ~35% 125 114-1
Slide 14: Balanced Approach to Capital Allocation
Balanced Approach to Capital Allocation Sustain current asset base to Balanced approach between investing for long-term growth and returning drive near-term targets capital to shareholders • Sustaining capital to support • Prioritize high value, high return growth projects in target assets and capab
Slide 15: Record Performance and Outlook Exceeding Expectations
Record Performance and Outlook Exceeding Expectations Exceeded guidance with record profits Operating in strong demand FY25 Outlook: pulling forward FY27 in Q4 and full fiscal year 2024 environment for our products goal 2 years Adjusted Operating Income* ($M) Q4-24 NET SALES EX Adjusted Operating In
Slide 16: Appendix of Non-GAAP Schedules and FY25 Guidance
APPENDIX OF NON-GAAP SCHEDULES AND FY25 GUIDANCE © 2024 CRS Holdings, LLC. All rights reserved. 16
Slide 17: Non-GAAP Schedules: Adjusted Operating Margin
Non-GAAP Schedules Adjusted Operating Margin ex. Surcharge Revenue and Special Items $ millions Q4-24 Q3-24 Q4-23 FY24 FY23 Net Sales 798.7 684.9 758.1 2,759.7 2,550.3 Less: Surcharge Revenue 162.9 131.1 198.1 592.0 702.3 Net Sales ex. Surcharge Revenue 635.8 553.8 560.0 2,167.7 1,848.0 Operating In
Slide 18: Non-GAAP Schedules: Adjusted Segment Operating Margin
Non-GAAP Schedules Adjusted Segment Operating Margin ex. Surcharge Revenue SAO SAO SAO PEP PEP PEP $ millions Q4-24 Q3-24 Q4-23 Q4-24 Q3-24 Q4-23 Net Sales 715.8 608.5 667.0 111.2 102.4 118.7 Less: Surcharge Revenue 156.3 125.5 189.8 8.9 7.8 11.1 Net Sales ex. Surcharge Revenue 559.5 483.0 477.2 102
Slide 19: Non-GAAP Schedules: Adjusted Diluted Earnings Per Share
Non-GAAP Schedules Adjusted Diluted Earnings Per Share $ millions, except per share amounts Q4-24 Q3-24 Q4-23 FY24 FY23 Diluted Earnings per Share $1.85 $0.12 $0.78 $3.70 $1.14 Net Income 93.6 6.3 38.4 186.5 56.4 Special Items, net of tax: Goodwill impairment charge — 14.1 — 14.1 — Restructuring and
Slide 20: Non-GAAP Schedules: Adjusted Free Cash Flow
Non-GAAP Schedules Adjusted Free Cash Flow $ millions Q4-24 Q3-24 Q2-24 Q1-24 FY24 FY23 Net Cash Provided from Operating Activities 169.5 83.4 14.6 7.4 274.9 14.7 Purchases of Property, Plant, Equipment and Software (27.7) (21.6) (25.3) (22.0) (96.6) (82.3) Proceeds from Disposals of Property, Plant
Slide 21: Selected Fiscal Year 2025 Guidance
Selected Fiscal Year 2025 Guidance FY25 $ in millions ESTIMATE Depreciation and Amortization 137 Capital Expenditures 125 Required Pension Contributions 26 Net Pension Expense 25* Interest Expense 50 Effective Tax Rate 21-23% *Anticipate $9 million of net pension expense will be included in operatin
Slide 22: Your trusted partner in innovation.
Your trusted partner in innovation. 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, transportation, energy, industrial and consumer electronics mark