Carpenter Technology Corporation · NYSE:CRS
Carpenter Technology — Q4 FY2026 Earnings Presentation
23 slides from Carpenter Technology's earnings presentation, Jul 30, 2026
Slide 1: Carpenter Technology Corporation 4th Quarter Fiscal Year 2026 Earnings Call
July 30, 2026 CARPENTER TECHNOLOGY CORPORATION 4th Quarter Fiscal Year 2026 Earnings Call © 2026 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. Forward-looking statements include, among other things, statements regarding guidance, outlook, targets, objectives, future opera
Slide 3: 4th Quarter Fiscal Year 2026
th 4 QUARTER FISCAL YEAR 2026 Tony Thene | Chairman, President and Chief Executive Officer © 2026 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 © 2026 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 Strong cash generation; continue quarterly profit operating margins to repurchase shares Generated $155.0 million in adjusted Operating Income ($M) SAO Adjusted Oper
Slide 6: Fourth Quarter Fiscal Year 2026 Net Sales
Fourth Quarter Fiscal Year 2026 Net Sales Q4-26 NET SALES EX. % NET SALES EX. MARKET SURCHARGE ($M)* SURCHARGE VS. Q3-26 VS. Q4-25 Increasing sales in strengthening demand environment $449.4 66% • Aerospace demand remains robust, driven by AEROSPACE & DEFENSE +3% +17% increasing production rates and
Slide 7: 4th Quarter Fiscal Year 2026 Financial Overview
th 4 QUARTER FISCAL YEAR 2026 FINANCIAL OVERVIEW Tim Lain | Senior Vice President and Chief Financial Officer © 2026 CRS Holdings, LLC. All rights reserved. 7
Slide 8: Income Statement Summary
Income Statement Summary SEQUENTIAL YEAR-OVER- $ millions, except per share amounts Q4-26 Q3-26 Q4-25 CHANGE YEAR CHANGE Pounds (‘000) 59,578 53,474 48,746 6,104 10,832 Net Sales 851.0 811.5 755.6 39.5 95.4 Net Sales ex. Surcharge Revenue* 679.7 655.6 623.7 24.1 56.0 Gross Profit 268.9 251.8 213.9 1
Slide 9: SAO Segment Summary
SAO Segment Summary SEQUENTIAL YEAR-OVER- $ millions Q4-26 Q3-26 Q4-25 CHANGE YEAR CHANGE Pounds ('000) 57,454 51,832 46,872 5,622 10,582 Net Sales 770.5 735.1 674.1 35.4 96.4 Net Sales ex. Surcharge Revenue* 607.4 585.0 548.0 22.4 59.4 Operating Income 229.7 208.0 167.0 21.7 62.7 Adjusted Operating
Slide 10: PEP Segment Summary
PEP Segment Summary SEQUENTIAL YEAR-OVER- $ millions Q4-26 Q3-26 Q4-25 CHANGE YEAR CHANGE Pounds ('000)* 3,256 2,602 2,674 654 582 Net Sales 108.5 97.7 104.6 10.8 3.9 Net Sales ex. Surcharge Revenue** 98.2 90.6 97.1 7.6 1.1 Operating Income 7.1 6.7 11.7 0.4 (4.6) Adjusted Operating Margin ex. Surcha
Slide 11: Capital Allocation: Repurchasing shares while investing in brownfield capacity expansion
Capital Allocation: Repurchasing shares while investing in brownfield capacity expansion …While executing against planned …And maintaining healthy liquidity FY26 strong cash flow generation... and strong balance sheet capital allocation priorities… • Generated $605.0 million in cash • Repurchased $1
Slide 12: Fiscal Year 2026 Recap & Outlook
FISCAL YEAR 2026 RECAP & OUTLOOK Tony Thene | Chairman, President and Chief Executive Officer © 2026 CRS Holdings, LLC. All rights reserved. 12
Slide 13: Fiscal Year 2026: Strong performance and meaningful shareholder return
Fiscal Year 2026: Strong performance and meaningful shareholder return Adj. Operating Income ($M)* Delivered another significant record-breaking year for profitability >5x Expanded SAO adjusted margins to 37.8% in Q4 FY26 driven by focus 702 on operational execution, production planning to optimize
Slide 14: Outlook: Strong growth over next several years
Outlook: Strong growth over next several years Operating Income ($M) FY27 operating income outlook represents 21% to 25% increase over record FY26 Demand continues to accelerate, especially in Aerospace and Defense end-use market 1,200-1,300 20-23% CAGR Volume, mix, and price drive expanding margins
Slide 15: Record FY26 Performance, Strong Earnings Outlook, Attractive Long-Term View
RECORD FY26 STRONG EARNINGS ATTRACTIVE LONG- PERFORMANCE OUTLOOK TERM VIEW • Completed record fiscal year with • FY27 operating income expected to • Operating in accelerating demand Q4 profits up 37% year-over-year be 21% to 25% higher than record environment FY26 with meaningful cash • SAO continue
Slide 16: Appendix of Non-GAAP Schedules
APPENDIX OF NON-GAAP SCHEDULES © 2026 CRS Holdings, LLC. All rights reserved. 16
Slide 17: Selected Fiscal Year 2027 Guidance Assumptions
Selected Fiscal Year 2027 Guidance Assumptions FY27 in millions COMMENTS ESTIMATE Depreciation and Amortization ~$150 Capital Expenditures $355 - $375 Includes Brownfield capacity expansion project Minimum required pension contributions based on current actuarial Required Pension Contributions $25 e
Slide 18: Non-GAAP Schedules: Adjusted Operating Margin ex. Surcharge Revenue
Non-GAAP Schedules Adjusted Operating Margin ex. Surcharge Revenue and Special Items $ millions Q4-26 Q3-26 Q4-25 FY26 FY25 FY24 Net Sales 851.0 811.5 755.6 3,124.2 2,877.1 2,759.7 Less: Surcharge Revenue 171.3 155.9 131.9 596.7 531.0 592.0 Net Sales ex. Surcharge Revenue 679.7 655.6 623.7 2,527.5 2
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 Q4-26 Q3-26 Q4-25 Q4-26 Q3-26 Q4-25 Net Sales 770.5 735.1 674.1 108.5 97.7 104.6 Less: Surcharge Revenue 163.1 150.1 126.1 10.3 7.1 7.5 Net Sales ex. Surcharge Revenue 607.4 585.0 548.0 98.2
Slide 20: Non-GAAP Schedules: Adjusted Earnings per Diluted Share
Non-GAAP Schedules Adjusted Earnings per Diluted Share $ millions, except per share amounts Q4-26 Q3-26 Q4-25 FY26 FY25 Earnings per Diluted Share $3.23 $2.77 $2.21 $10.52 $7.42 Net Income 162.4 139.6 111.7 529.8 376.0 Special Items, net of tax: Restructuring and asset impairment charges — — — — 2.7
Slide 21: Non-GAAP Schedules: Adjusted Free Cash Flow
Non-GAAP Schedules Adjusted Free Cash Flow $ millions Q4-26 Q3-26 Q2-26 Q1-26 FY26 FY25 Net Cash Provided from Operating Activities 240.1 193.5 132.2 39.2 605.0 440.4 Purchases of Property, Plant, Equipment and Software (85.1) (68.7) (46.3) (42.6) (242.7) (154.3) Proceeds from Disposals of Property,
Slide 22: Cash Flow & Liquidity Summary
Cash Flow & Liquidity Summary $ millions Q4-26 Q3-26 Q2-26 Q1-26 FY26 FY25 Net Income + Noncash Items 221.5 191.3 169.8 173.8 756.1 549.9 Inventory 16.8 (17.3) (43.4) 15.6 (28.4) (60.4) • Repurchased $45.2 million Working Capital / Other 8.4 25.1 11.4 (144.3) (98.9) 15.7 (100,000 shares) in Q4-26; T
Slide 23: 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
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