PHILADELPHIA, PA — Carpenter Technology Corporation (NYSE: CRS) has announced its financial results for the fiscal fourth quarter and year ending June 30, 2024. The company reported an operating income of $108.3 million for the quarter, with earnings per diluted share at $1.85. Excluding special items, adjusted operating income reached $125.2 million, and adjusted earnings per diluted share were $1.82.
The fourth quarter saw significant achievements for Carpenter Technology. The company delivered $125.2 million in adjusted operating income, marking a 39% sequential increase and setting a new quarterly record. Cash from operating activities amounted to $169.5 million, with adjusted free cash flow at $142.4 million. Net sales, excluding surcharge, rose by 15%, driven by increased sales in the Aerospace, Defense, and Medical markets.
The Specialty Alloys Operations (SAO) segment exceeded expectations, reporting an operating income of $140.9 million, a 36% sequential increase. The segment’s adjusted operating margin also improved, rising to 25.2% from 21.4% in the previous quarter.
For the entire fiscal year 2024, Carpenter Technology achieved $354.1 million in total adjusted operating income, a 166% increase over fiscal year 2023. This milestone marks the most profitable year in the company’s history.
Looking ahead, the company has revised its operating income target, now anticipating a range of $460 million to $500 million for fiscal year 2025. This adjustment pulls forward their financial goal by two years from fiscal year 2027 to 2025. The company also expects to generate $250 million to $300 million in adjusted free cash flow in the upcoming fiscal year, representing an 85% conversion rate.
For the first quarter of fiscal year 2025, Carpenter Technology projects operating income between $114 million and $120 million. The company remains optimistic about continued growth beyond 2025, citing strong market demand for its specialized solutions, increased productivity, and strategic pricing actions.
In addition to these financial forecasts, Carpenter Technology’s Board of Directors has authorized a share repurchase program of up to $400 million. The program aims to offset dilution and capitalize on strategic market opportunities, with repurchases made at the company’s discretion based on market conditions and stock price.
“In the fourth quarter of fiscal year 2024 we exceeded our previous guidance, generating $125.2 million of adjusted operating income,” said Tony R. Thene, President and CEO of Carpenter Technology. “The record fourth quarter performance completed the most profitable year in Carpenter Technology’s history, achieving $354.1 million in adjusted operating income in fiscal year 2024. Further, we generated $142.4 million in adjusted free cash flow in the fourth quarter, raising the total adjusted free cash flow to $179.0 million for the full fiscal year.”
Thene emphasized the company’s momentum, citing improved productivity, optimized product mix, and pricing actions as key drivers of earnings growth. He highlighted the exceptional performance of the SAO segment and reaffirmed the accelerated financial targets for fiscal year 2025.
Carpenter Technology’s strong balance sheet and robust free cash flow position the company for sustained growth. The balanced approach to capital allocation includes maintaining the current asset base, investing in growth initiatives, and returning cash to shareholders.
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