Carpenter(CRS)2025-02-03 22:24Financial Performance - Record second quarter operating income of $135.6 million, up 63% year-over-year, with adjusted operating margin at 28.3%[19] - Record second quarter profits increased by 70% year-over-year[28] - Total net sales for Q2-25 were $676.9 million, a decrease of 5.7% sequentially but an increase of 8.4% year-over-year[18] - Net sales excluding surcharge increased 15% year-over-year, primarily driven by the Aerospace and Defense end-use market, which accounted for 61% of total net sales[15] - Adjusted operating margin for Q2-25 was 21.7%[30] - Adjusted diluted earnings per share for Q2-25 was $1.66, compared to $1.73 in Q1-25[33] Guidance and Expectations - Increased FY25 operating income guidance to a range of $500 million to $520 million, up from previous guidance of $460 million to $500 million[13] - Operating income for Q3-25 is expected to be in the range of $140 million to $145 million, reflecting continued strong demand[21] - Anticipating Q3 operating income between $126 million and $134 million[28] Cash Flow and Liquidity - Generated $38.6 million in adjusted free cash flow, with total liquidity reaching $511 million[25] - Generated $38.6 million in adjusted free cash flow[28] Shareholder Returns - Share repurchases amounted to $8.2 million, with 45,000 shares repurchased during the quarter[26] - Executed $8.2 million in share repurchases[28] Market Demand and Strategy - Long-term demand remains robust with strong customer engagement and high backlogs in key markets[16] - Strong long-term demand across Defense, Medical, and Energy markets with Aerospace-like margins[28] - The company maintained a focus on productivity improvements and cost management to support margin expansion[21] Taxation - The effective tax rate for Q2-25 was 20.0%, compared to 22.6% in Q2-24[18] Future Communication - Management will communicate long-term outlook at the upcoming investor event on February 18, 2025[28]