Slide 1: Carpenter Technology Corporation 3rd Quarter Fiscal Year 2025 Earnings Call
April 24, 2025 CARPENTER TECHNOLOGY CORPORATION 3rd 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: 3rd Quarter Fiscal Year 2025
rd 3 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 YTD © 2025 CRS Holdings, LLC. All rights reserved. 4
Slide 5: Performance: record third quarter operating income
Performance: record third quarter operating income Record profits with positive SAO continues to expand adjusted Strengthening outlook; increasing adjusted free cash flow operating margins FY25 operating income guidance Adjusted Operating Income ($M) * SAO Adjusted Operating Margin (%) * • Today: in
Slide 6: Third Quarter Fiscal Year 2025 Net Sales
Third Quarter Fiscal Year 2025 Net Sales MARKET Q3-25 NET SALES EX. % NET SALES EX. VS. Q2-25 VS. Q3-24 Increasing sales in strengthening demand SURCHARGE ($M)* SURCHARGE environment $373.2 63% • Aerospace and Defense sales up sequentially and AEROSPACE & DEFENSE +12% +18% year-over-year • Working c
Slide 7: Continue to deliver strong financial results despite recent supply chain challenges
Continue to deliver strong financial results despite recent supply chain challenges Strategically positioned with growing demand for broad portfolio of highly specialized alloys Monitoring and evaluating tariff Produce broad portfolio of highly specialized alloys with unique collection of news to mi
Slide 8: 3rd Quarter Fiscal Year 2025 Financial Overview
rd 3 QUARTER FISCAL YEAR 2025 FINANCIAL OVERVIEW Tim Lain | Senior Vice President and Chief Financial Officer © 2025 CRS Holdings, LLC. All rights reserved. 8
Slide 9: Income Statement Summary
Income Statement Summary SEQUENTIAL YEAR-OVER- $ millions, except per share amounts Q3-25 Q2-25 Q3-24 CHANGE YEAR CHANGE Pounds (‘000) 46,496 46,170 50,208 326 (3,712) Net Sales 727.0 676.9 684.9 50.1 42.1 Net Sales ex. Surcharge Revenue* 597.0 548.0 553.8 49.0 43.2 Gross Profit 200.8 177.5 147.0 23
Slide 10: SAO Segment Summary
SAO Segment Summary SEQUENTIAL YEAR-OVER- $ millions Q3-25 Q2-25 Q3-24 CHANGE YEAR CHANGE Pounds ('000) 44,584 44,714 50,846 (130) (6,262) Net Sales 642.9 601.5 608.5 41.4 34.4 Net Sales ex. Surcharge Revenue* 519.4 479.6 483.0 39.8 36.4 Operating Income 151.4 135.6 103.5 15.8 47.9 Adjusted Operatin
Slide 11: PEP Segment Summary
PEP Segment Summary SEQUENTIAL YEAR-OVER- $ millions Q3-25 Q2-25 Q3-24 CHANGE YEAR CHANGE Pounds ('000)* 2,584 2,208 2,618 376 (34) Net Sales 104.9 95.0 102.4 9.9 2.5 Net Sales ex. Surcharge Revenue** 96.8 86.2 94.6 10.6 2.2 Operating Income 10.9 7.0 9.2 3.9 1.7 Adjusted Operating Margin ex. Surchar
Slide 12: Healthy liquidity and positive cash flow supports balanced execution against priorities
Healthy liquidity and positive cash flow supports balanced execution against priorities Positive Adjusted Free Cash Flow Executing against planned capital Healthy liquidity, strong balance Generation allocation priorities sheet and positive outlook • Generated $34.0 million in adjusted • Repurchased
Slide 13: 3rd Quarter Fiscal Year 2025 Closing Comments
rd 3 QUARTER FISCAL YEAR 2025 CLOSING COMMENTS Tony Thene | President and Chief Executive Officer © 2025 CRS Holdings, LLC. All rights reserved. 13
Slide 14: Strong execution with record quarter
Strong execution with record Navigating macroeconomic Strengthening earnings quarter events growth outlook • Record profits up 53% year-over- • Increased costs due to tariffs will • Anticipating Q4 operating income year be passed through surcharge of $146 million to $153 million mechanisms • SAO con
Slide 15: Strong earnings growth to continue over next several years
Strong earnings growth to continue over next several years Attractive, ~25% earnings CAGR over next 2 years Adjusted Operating Income ($M) FY26 materially higher than FY25; FY27 not the peak of earnings growth ~25% CAGR 765-800 Continued margin expansion with volume, mix and pricing improvement 520-
Slide 16: Appendix of Non-GAAP Schedules
APPENDIX OF NON-GAAP SCHEDULES © 2025 CRS Holdings, LLC. All rights reserved. 16
Slide 17: Cash Flow & Liquidity Summary
Cash Flow & Liquidity Summary $ millions Q3-25 Q2-25 Q1-25 9 MOS FY25 9 MOS FY24 Net Income + Noncash Items 139.8 125.0 128.7 393.8 283.5 Inventory (12.6) (63.9) (16.8) (93.3) (155.6) Working Capital / Other (9.6) 12.3 (62.1) (59.7) (17.6) Total Net Working Capital / Other (22.2) (51.6) (78.9) (153.
Slide 18: Non-GAAP Schedules: Adjusted Operating Margin
Non-GAAP Schedules Adjusted Operating Margin ex. Surcharge Revenue and Special Item $ millions Q3-25 Q2-25 Q3-24 Net Sales 727.0 676.9 684.9 Less: Surcharge Revenue 130.0 128.9 131.1 Net Sales ex. Surcharge Revenue 597.0 548.0 553.8 Operating Income 137.8 118.9 75.9 Special Item: Goodwill impairment
Slide 19: Non-GAAP Schedules: Adjusted Segment Operating Margin
Non-GAAP Schedules Adjusted Segment Operating Margin ex. Surcharge Revenue SAO SAO SAO PEP PEP PEP $ millions Q3-25 Q2-25 Q3-24 Q3-25 Q2-25 Q3-24 Net Sales 642.9 601.5 608.5 104.9 95.0 102.4 Less: Surcharge Revenue 123.5 121.9 125.5 8.1 8.8 7.8 Net Sales ex. Surcharge Revenue 519.4 479.6 483.0 96.8
Slide 20: Non-GAAP Schedules: Adjusted Diluted Earnings Per Share
Non-GAAP Schedules Adjusted Diluted Earnings Per Share $ millions, except per share amounts Q3-25 Q2-25 Q3-24 Diluted Earnings per Share $1.88 $1.66 $0.12 Net Income 95.4 84.1 6.3 Special Items, net of tax: Goodwill impairment — — 14.1 Pension settlement charges — — 39.5 Special Items, net of tax: —
Slide 21: Non-GAAP Schedules: Adjusted Free Cash Flow
Non-GAAP Schedules Adjusted Free Cash Flow $ millions Q3-25 Q2-25 Q1-25 9 MOS FY25 9 MOS FY24 Net Cash Provided from Operating Activities 74.2 67.9 40.2 182.3 105.4 Purchases of Property, Plant, Equipment and Software (40.2) (29.3) (26.9) (96.3) (68.9) Proceeds from Disposals of Property, Plant and
Slide 22: 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