Slide 1: Carpenter Technology Corporation 1st Quarter Fiscal Year 2026 Earnings Call
October 23, 2025 CARPENTER TECHNOLOGY CORPORATION 1st 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: 1st Quarter Fiscal Year 2026
st 1 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 1.6 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 and Defense demand quarterly profit operating margins continues to strengthen Adjusted Operating Income ($M) * SAO Adjusted Operating Margin (%) * Accelera
Slide 6: First Quarter Fiscal Year 2026 Net Sales
First Quarter Fiscal Year 2026 Net Sales MARKET Q1-26 NET SALES EX. % NET SALES EX. VS. Q4-25 VS. Q1-25 Aerospace and Defense demand environment SURCHARGE ($M)* SURCHARGE continues to tighten as build rates ramp $388.3 64% • Aerospace results driven by engine demand +1% +11% AEROSPACE & DEFENSE with
Slide 7: 1st Quarter Fiscal Year 2026 Financial Overview
st 1 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 Q1-26 Q4-25 Q1-25 CHANGE YEAR CHANGE Pounds (‘000) 46,424 48,746 51,568 (2,322) (5,144) Net Sales 733.7 755.6 717.6 (21.9) 16.1 Net Sales ex. Surcharge Revenue* 603.1 623.7 577.4 (20.6) 25.7 Gross Profit 216.4 213.9
Slide 9: SAO Segment Summary
SAO Segment Summary SEQUENTIAL YEAR-OVER- $ millions Q1-26 Q4-25 Q1-25 CHANGE YEAR CHANGE Pounds ('000) 44,750 46,872 50,100 (2,122) (5,350) Net Sales 659.6 674.1 645.1 (14.5) 14.5 Net Sales ex. Surcharge Revenue* 533.9 548.0 510.9 (14.1) 23.0 Operating Income 170.7 167.0 134.5 3.7 36.2 Adjusted Ope
Slide 10: PEP Segment Summary
PEP Segment Summary SEQUENTIAL YEAR-OVER- $ millions Q1-26 Q4-25 Q1-25 CHANGE YEAR CHANGE Pounds ('000)* 2,284 2,674 2,634 (390) (350) Net Sales 93.6 104.6 100.8 (11.0) (7.2) Net Sales ex. Surcharge Revenue** 87.2 97.1 92.4 (9.9) (5.2) Operating Income 9.4 11.7 7.3 (2.3) 2.1 Adjusted Operating Margi
Slide 11: Capital Allocation: Repurchasing shares while investing in brownfield capacity expansion
Capital Allocation: Repurchasing shares while investing in brownfield capacity expansion Ongoing cash flow generation to …While executing against planned …And maintaining healthy liquidity start fiscal year… capital allocation priorities… and strong balance sheet • Generated $39.2 million in cash fr
Slide 12: 1st Quarter Fiscal Year 2026 Closing Comments
st 1 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 Q1 FY26
Addressing frequently asked questions in Q1 FY26 Pricing remains strong in current Strengthening demand in Aerospace Continued confidence in earnings demand environment and Defense end-use market guidance for FY26 and FY27 Non-LTA pricing remains strong with broad Aerospace and Defense bookings up 2
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 Q1 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: Cash Flow & Liquidity Summary
Cash Flow & Liquidity Summary $ millions Q1-26 Q4-25 Q1-25 Net Income + Noncash Items 173.8 156.3 128.7 • Repurchased 200,000 Inventory 15.6 33.0 (16.8) shares ($49.1 million) in Working Capital / Other (144.3) 75.0 (62.1) Q1-26 against $400.0 Total Net Working Capital / Other (128.7) 108.0 (78.9) m
Slide 17: Non-GAAP Schedules: Adjusted Operating Margin
Non-GAAP Schedules Adjusted Operating Margin ex. Surcharge Revenue and Special Item $ millions Q1-26 Q4-25 Q1-25 Net Sales 733.7 755.6 717.6 Less: Surcharge Revenue 130.6 131.9 140.2 Net Sales ex. Surcharge Revenue 603.1 623.7 577.4 Operating Income 153.3 151.4 113.6 Special Item: Restructuring and
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 Q1-26 Q4-25 Q1-25 Q1-26 Q4-25 Q1-25 Net Sales 659.6 674.1 645.1 93.6 104.6 100.8 Less: Surcharge Revenue 125.7 126.1 134.2 6.4 7.5 8.4 Net Sales ex. Surcharge Revenue 533.9 548.0 510.9 87.2
Slide 19: Non-GAAP Schedules: Adjusted Earnings per Diluted Share
Non-GAAP Schedules Adjusted Earnings per Diluted Share $ millions, except per share amounts Q1-26 Q4-25 Q1-25 Earnings per Diluted Share $2.43 $2.21 $1.67 Net Income 122.5 111.7 84.8 Special Item, net of tax: Restructuring and asset impairment charges — — 2.7 Special Item, net of tax: — — 2.7 Net In
Slide 20: Non-GAAP Schedules: Adjusted Free Cash Flow
Non-GAAP Schedules Adjusted Free Cash Flow $ millions Q1-26 Q4-25 Q1-25 Net Cash Provided from Operating Activities 39.2 258.0 40.2 Purchases of Property, Plant, Equipment and Software (42.6) (58.0) (26.9) Proceeds from Disposals of Property, Plant and Equipment and Assets Held for Sale — 1.3 — Adju
Slide 21: 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