Carpenter Technology Is At An 'Inflection Point,' Aims To Double Operating Income

Carpenter Technology Corporation CRS wants to double operating income from 2019 levels by fiscal year 2027.

• CRS, which is holding an investor event today, "is at an inflection point,"  CEO Tony Thene says.
• "Operating in a strong demand environment with our unique portfolio of material solutions, we are well-positioned to accelerate growth. Primarily driven by higher prices, an improving product mix and increasing volumes, we see a path to double operating income from fiscal year 2019 levels by fiscal year 2027. This operating income growth will deliver meaningful cash flow over the next several years, driving further value to our shareholders," Thene said.
• CRS expects the Specialty Alloys Operations segment to exceed 20% adjusted operating income margins on net sales, excluding surcharges of ~$2.2 billion to 2.4 billion in FY27.
• Performance Engineered Products to reach adjusted operating income margins of 13%-15% on $570 million to $610 million of net sales.
• The Philadelphia-based company expects to generate $400 million-600 million in cumulative adjusted free cash flow between FY24 and FY27.
• Carpenter recently reported its 3Q23 earnings of $0.38 per share, beating the analyst consensus estimate of $0.30 by 26.67%, and sales of $690.10 million, above the consensus estimate of $632.50 million (+41.12% Y/Y).

Price Action: CRS shares are trading lower by 1.28% at $49.46 on the last check Tuesday.