Slide 1: Carpenter Technology Corporation 2nd Quarter Fiscal Year 2026 Earnings Call
January 29, 2026 CARPENTER TECHNOLOGY CORPORATION 2nd Quarter Fiscal Year 2026 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: 2nd Quarter Fiscal Year 2026
nd 2 QUARTER FISCAL YEAR 2026 Tony Thene | Chairman of the Board 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 2.0 1.8 1.7 1.4 1.4 1.3 1.2 1.1 1.0 0.6 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 YTD © 2025 CRS Holdings, LLC. All rights reserved. 4
Slide 5: Quarter Performance: record operating income and operating margins
Quarter Performance: record operating income and operating margins Strong execution delivering record SAO continues to expand adjusted Aerospace demand and pricing quarterly profit operating margins continues to strengthen Operating Income ($M) * SAO Adjusted Operating Margin (%) * Accelerating dema
Slide 6: Second Quarter Fiscal Year 2026 Net Sales
Second Quarter Fiscal Year 2026 Net Sales MARKET Q2-26 NET SALES EX. % NET SALES EX. VS. Q1-26 VS. Q2-25 Aerospace and Defense demand environment SURCHARGE ($M)* SURCHARGE continues to accelerate as build rates ramp $385.0 65% • Demand remains robust, with accelerating AEROSPACE & DEFENSE -1% +15% c
Slide 7: 2nd Quarter Fiscal Year 2026 Financial Overview
nd 2 QUARTER FISCAL YEAR 2026 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 Q2-26 Q1-26 Q2-25 CHANGE YEAR CHANGE Pounds (‘000) 48,398 46,424 46,170 1,974 2,228 Net Sales 728.0 733.7 676.9 (5.7) 51.1 Net Sales ex. Surcharge Revenue* 589.1 603.1 548.0 (14.0) 41.1 Gross Profit 218.3 216.4 177.5
Slide 9: SAO Segment Summary
SAO Segment Summary SEQUENTIAL YEAR-OVER- $ millions Q2-26 Q1-26 Q2-25 CHANGE YEAR CHANGE Pounds ('000) 46,836 44,750 44,714 2,086 2,122 Net Sales 661.6 659.6 601.5 2.0 60.1 Net Sales ex. Surcharge Revenue* 527.3 533.9 479.6 (6.6) 47.7 Operating Income 174.6 170.7 135.6 3.9 39.0 Adjusted Operating M
Slide 10: PEP Segment Summary
PEP Segment Summary SEQUENTIAL YEAR-OVER- $ millions Q2-26 Q1-26 Q2-25 CHANGE YEAR CHANGE Pounds ('000)* 2,218 2,284 2,208 (66) 10 Net Sales 83.2 93.6 95.0 (10.4) (11.8) Net Sales ex. Surcharge Revenue** 77.2 87.2 86.2 (10.0) (9.0) Operating Income 6.9 9.4 7.0 (2.5) (0.1) Adjusted Operating Margin e
Slide 11: Capital Allocation: Repurchasing shares while investing in brownfield capacity expansion
Capital Allocation: Repurchasing shares while investing in brownfield capacity expansion Strong cash flow generation for Q2- …While executing against planned …And maintaining healthy liquidity 26… capital allocation priorities… and strong balance sheet • Generated $132.2 million in cash • Repurchase
Slide 12: 2nd Quarter Fiscal Year 2026 Closing Comments
nd 2 QUARTER FISCAL YEAR 2026 CLOSING COMMENTS Tony Thene | Chairman of the Board and Chief Executive Officer © 2025 CRS Holdings, LLC. All rights reserved. 12
Slide 13: Addressing frequently asked questions in Q2 FY26
Addressing frequently asked questions in Q2 FY26 Accelerating demand in Aerospace Pricing remains strong in current Increasing FY26 outlook and Defense to outstrip supply demand environment Adjusted Operating Income ($M) Accelerating demand for nickel-based Non-LTA pricing remains strong with broad
Slide 14: Strong Market Position, Balanced Capital Allocation, Attractive Earnings Outlook
STRONG BALANCED ATTRACTIVE MARKET POSITION CAPITAL ALLOCATION EARNINGS OUTLOOK • Operating in accelerating demand • Strong balance sheet and cash flow • Completed record fiscal quarter with environment, especially in the generation enables balanced approach Q2 profits up 31% year-over-year Aerospace
Slide 15: Appendix of Non-GAAP Schedules
APPENDIX OF NON-GAAP SCHEDULES © 2025 CRS Holdings, LLC. All rights reserved. 15
Slide 16: Non-GAAP Schedules: Adjusted Operating Margin ex. Surcharge Revenue
Non-GAAP Schedules Adjusted Operating Margin ex. Surcharge Revenue $ millions Q2-26 Q1-26 Q2-25 Net Sales 728.0 733.7 676.9 Less: Surcharge Revenue 138.9 130.6 128.9 Net Sales ex. Surcharge Revenue 589.1 603.1 548.0 Operating Income 155.2 153.3 118.9 Operating Margin 21.3% 20.9% 17.6% Adjusted Opera
Slide 17: Non-GAAP Schedules: Adjusted Segment Operating Margin
Non-GAAP Schedules Adjusted Segment Operating Margin ex. Surcharge Revenue SAO SAO SAO PEP PEP PEP $ millions Q2-26 Q1-26 Q2-25 Q2-26 Q1-26 Q2-25 Net Sales 661.6 659.6 601.5 83.2 93.6 95.0 Less: Surcharge Revenue 134.3 125.7 121.9 6.0 6.4 8.8 Net Sales ex. Surcharge Revenue 527.3 533.9 479.6 77.2 87
Slide 18: Non-GAAP Schedules: Adjusted Earnings per Diluted Share
Non-GAAP Schedules Adjusted Earnings per Diluted Share $ millions, except per share amounts Q2-26 Q1-26 Q2-25 Earnings per Diluted Share $2.09 $2.43 $1.66 Net Income 105.3 122.5 84.1 Special Item, net of tax: Debt extinguishment losses 12.0 — — Special Item, net of tax: 12.0 — — Net Income Excluding
Slide 19: Non-GAAP Schedules: Adjusted Free Cash Flow
Non-GAAP Schedules Adjusted Free Cash Flow $ millions Q2-26 Q1-26 6 MOS FY26 6 MOS FY25 Net Cash Provided from Operating Activities 132.2 39.2 171.4 108.1 Purchases of Property, Plant, Equipment and Software (46.3) (42.6) (88.9) (56.2) Adjusted Free Cash Flow 85.9 (3.4) 82.5 51.9 Management believes
Slide 20: 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