Carpenter Technology Corporation has released its financial results for the fiscal second quarter ended December 31, 2024. The company reported operating income of $118.9 million, marking a significant increase of 70 percent year-over-year, and delivered earnings per diluted share of $1.66.
Notably, the Specialty Alloys Operations (SAO) segment achieved an adjusted operating margin of 28.3 percent, up from 20.0 percent in the second quarter of the previous year, and generated $135.6 million of operating income, representing a 63 percent increase year-over-year.
The company also realized $67.9 million of cash from operating activities and $38.6 million of adjusted free cash flow, marking a substantial improvement from the same quarter last year when adjusted free cash flow was negative at $10.7 million.
Furthermore, Carpenter Technology has increased its fiscal year 2025 outlook, raising its operating income expectations to the range of $500 million to $520 million, up from the high end of the previous range of $460 million to $500 million. The company also expects to generate $250 million to $300 million in adjusted free cash flow, representing approximately 85 percent conversion rate.
Looking ahead, Carpenter Technology is well-positioned for continued growth beyond fiscal year 2025, with a strong market demand outlook for its specialized solutions and a focus on increasing productivity, optimizing product mix, and pricing actions.
It's worth noting that the company executed $8.2 million in share repurchases against its $400.0 million repurchase authorization. As of December 31, 2024, $359.7 million remains available for future purchases.
Total liquidity, including cash and available revolver balance, was $511.0 million at the end of the second quarter of fiscal year 2025, consisting of $162.1 million of cash and $348.9 million of available borrowings under the company’s credit facility.
Carpenter Technology will be hosting a virtual investor update event on Tuesday, February 18, 2025, at 10:00 am ET, where it will provide a general business update, including a view of demand trends across end-use markets, status and review of commercial and operations initiatives, and financial outlook beyond fiscal year 2025.
Following these announcements, the company's shares moved 1.5%, and are now trading at a price of $193.97. For the full picture, make sure to review Carpenter Technology's 8-K report.
