Slide 1: Carpenter Technology Corporation 2nd Quarter Fiscal Year 2025 Earnings Call
January 30, 2025 CARPENTER TECHNOLOGY CORPORATION 2nd 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: 2nd Quarter Fiscal Year 2025
nd 2 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 1.3 1.2 1.1 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 second quarter operating income and increasing earnings guidance
Performance: record second quarter operating income and increasing earnings guidance Record second quarter profits with SAO continues to expand adjusted Strengthening outlook; increasing positive adjusted free cash flow operating margins FY25 operating income guidance Adjusted Operating Income ($M)
Slide 6: Second Quarter Fiscal Year 2025 Net Sales
Second Quarter Fiscal Year 2025 Net Sales MARKET Q2-25 NET SALES EX. % NET SALES EX. VS. Q1-25 VS. Q2-24 Successfully navigating Aerospace supply chain SURCHARGE ($M)* SURCHARGE dynamics $333.8 61% • Aerospace and Defense and Medical end-use markets AEROSPACE & DEFENSE -5% +35% (together, ~74% of ne
Slide 7: 2nd Quarter Fiscal Year 2025 Financial Overview
nd 2 QUARTER FISCAL YEAR 2025 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 Q2-25 Q1-25 Q2-24 CHANGE YEAR CHANGE Pounds (‘000) 46,170 51,568 49,082 (5,398) (2,912) Net Sales 676.9 717.6 624.2 (40.7) 52.7 Net Sales ex. Surcharge Revenue* 548.0 577.4 485.3 (29.4) 62.7 Gross Profit 177.5 176.3
Slide 9: SAO Segment Summary
SAO Segment Summary SEQUENTIAL YEAR-OVER- $ millions Q2-25 Q1-25 Q2-24 CHANGE YEAR CHANGE Pounds ('000) 44,714 50,100 50,114 (5,386) (5,400) Net Sales 601.5 645.1 549.4 (43.6) 52.1 Net Sales ex. Surcharge Revenue* 479.6 510.9 416.2 (31.3) 63.4 Operating Income 135.6 134.5 83.3 1.1 52.3 Adjusted Oper
Slide 10: PEP Segment Summary
PEP Segment Summary SEQUENTIAL YEAR-OVER- $ millions Q2-25 Q1-25 Q2-24 CHANGE YEAR CHANGE Pounds ('000)* 2,208 2,634 2,318 (426) (110) Net Sales 95.0 100.8 95.7 (5.8) (0.7) Net Sales ex. Surcharge Revenue** 86.2 92.4 87.9 (6.2) (1.7) Operating Income 7.0 7.3 7.1 (0.3) (0.1) Adjusted Operating Margin
Slide 11: Cash Flow & Liquidity Summary
Cash Flow & Liquidity Summary 6 MOS 6 MOS $ millions Q2-25 Q1-25 FY25 FY24 Net Income + Noncash Items 125.0 128.7 253.8 173.8 Inventory (63.9) (16.8) (80.7) (157.5) • Generated $38.6 million in Working Capital / Other 12.3 (62.1) (49.9) 10.4 adjusted free cash flow Total Net Working Capital / Other
Slide 12: 2nd Quarter Fiscal Year 2025 Closing Comments
nd 2 QUARTER FISCAL YEAR 2025 CLOSING COMMENTS Tony Thene | President and Chief Executive Officer © 2025 CRS Holdings, LLC. All rights reserved. 12
Slide 13: Strong execution, aerospace re-ramp, strengthening earnings outlook
Strong execution with record Navigating Aerospace Strengthening earnings second quarter production rate “re-ramp” growth outlook • Record second quarter profits up • Partnering with customers to • Anticipating Q3 operating income 70% year-over-year address near-term priorities of $126 million to $13
Slide 14: Appendix of Non-GAAP Schedules
APPENDIX OF NON-GAAP SCHEDULES © 2025 CRS Holdings, LLC. All rights reserved. 14
Slide 15: Non-GAAP Schedules
Non-GAAP Schedules Adjusted Operating Margin ex. Surcharge Revenue and Special Item $ millions Q2-25 Q1-25 Q2-24 Net Sales 676.9 717.6 624.2 Less: Surcharge Revenue 128.9 140.2 138.9 Net Sales ex. Surcharge Revenue 548.0 577.4 485.3 Operating Income 118.9 113.6 69.8 Special Item: Restructuring and a
Slide 16: Non-GAAP Schedules
Non-GAAP Schedules Adjusted Segment Operating Margin ex. Surcharge Revenue SAO SAO SAO PEP PEP PEP $ millions Q2-25 Q1-25 Q2-24 Q2-25 Q1-25 Q2-24 Net Sales 601.5 645.1 549.4 95.0 100.8 95.7 Less: Surcharge Revenue 121.9 134.2 133.2 8.8 8.4 7.8 Net Sales ex. Surcharge Revenue 479.6 510.9 416.2 86.2 9
Slide 17: Non-GAAP Schedules
Non-GAAP Schedules Adjusted Diluted Earnings Per Share $ millions, except per share amounts Q2-25 Q1-25 Q2-24 Diluted Earnings per Share $1.66 $1.67 $0.85 Net Income 84.1 84.8 42.7 Special Item, net of tax: Restructuring and asset impairment charges — 2.7 — Special Item, net of tax: — 2.7 — Net Inco
Slide 18: Non-GAAP Schedules
Non-GAAP Schedules Adjusted Free Cash Flow $ millions Q2-25 Q1-25 6 MOS FY25 6 MOS FY24 Net Cash Provided from Operating Activities 67.9 40.2 108.1 21.9 Purchases of Property, Plant, Equipment and Software (29.3) (26.9) (56.2) (47.3) Adjusted Free Cash Flow 38.6 13.3 51.9 (25.4) Management believes
Slide 19: 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