Carpenter(CRS) - 2025 Q3 - Quarterly Report

Financial Performance - Net sales for the three months ended March 31, 2025, increased to $727.0 million, up 6.3$684.9 million in the same period of 2024[11] - Gross profit for the nine months ended March 31, 2025, rose to $554.6 million, a 40.9$393.7 million in 2024[11] - Net income for the three months ended March 31, 2025, was $95.4 million, significantly higher than$6.3 million in the same period of 2024, representing a 1415.9% increase[11] - Earnings per share (EPS) for the three months ended March 31, 2025, were $1.90, compared to$0.12 in 2024, reflecting a substantial increase[11] - Net income for the nine months ended March 31, 2025, was reported at $264.3 million, a significant increase compared to$6.3 million for the same period in 2024[20] - The company reported a total comprehensive income of $102.1 million for the three months ended March 31, 2025, compared to$33.4 million in the same period of 2024[14] - The company’s operating income for the nine months ended March 31, 2025, was $370.4 million, up from$214.8 million in the same period of 2024, marking a 72.5% increase[11] - Basic earnings per common share for the three months ended March 31, 2025, was $1.90, compared to$0.12 for the same period in 2024, reflecting a growth of 1583%[46] - Basic earnings per common share increased to $5.27 for the nine months ended March 31, 2025, compared to$1.87 for the same period in 2024, reflecting a growth of 181.8%[46] Assets and Equity - Total assets as of March 31, 2025, amounted to $3,361.8 million, an increase from$3,291.7 million as of June 30, 2024[9] - Total stockholders' equity increased to $1,781.7 million as of March 31, 2025, compared to$1,628.8 million as of June 30, 2024[9] - As of March 31, 2025, total equity increased to $1,781.7 million from$1,716.9 million at December 31, 2024, reflecting a growth of approximately 3.8%[18] - Specialty Alloys Operations reported total assets of $2,671.7 million as of March 31, 2025, compared to$2,542.2 million in the previous year, showing a growth of 5.1%[102] - Consolidated total assets for Performance Engineered Products were $427.2 million as of March 31, 2025, a slight decrease from$431.5 million in the previous year[102] - Corporate total assets decreased to $265.5 million as of March 31, 2025, down from$334.8 million in the previous year, a decline of 20.7%[102] Cash Flow and Operating Activities - Net cash provided from operating activities for the nine months ended March 31, 2025, was $182.3 million, up from$105.4 million in 2024[16] - The company reported a decrease in cash and cash equivalents to $151.5 million as of March 31, 2025, down from$199.1 million at the beginning of the year[16] - Total cash and cash equivalents at the end of the period were $151.5 million, up from$53.5 million at the end of March 2024[16] - The company made cash contributions of $58.5 million to its pension plans during the nine months ended March 31, 2025, compared to$4.9 million in the same period of 2024[51] Capital Expenditures - The company plans to continue investing in property, plant, and equipment, with purchases amounting to $96.3 million for the nine months ended March 31, 2025[16] - Capital expenditures for the three months ended March 31, 2025, were$40.2 million, compared to $21.6 million in the same period of 2024, indicating a significant increase of 86.0$96.3 million, up from $68.9 million in the same period of 2024, indicating a 39.8$36.2 million, significantly up from $17.6 million in Q1 2024, marking a 105.7$2.8 million in Q1 2025 from $3.2 million in Q1 2024, a decline of 12.5$1.2 million, up from $0.8 million in Q1 2024, representing a 50$454.7 million, up from $391.1 million in the same period of 2024, marking a growth of 16.2$85.0 million, a decrease from $99.6 million in the same period of 2024, reflecting a decline of 14.7$46.4 million in revenue for the three months ended March 31, 2025, compared to $38.7 million in the same period of 2024, representing an increase of about 20.0$1,239.6 million, while Medical segment sales were $258.1 million for the nine months ended March 31, 2025[42] - The United States accounted for$1,273.9 million in total net sales, representing a decrease of 6.0% from $1,150.7 million in the prior year[42] Liabilities and Debt - Long-term debt as of March 31, 2025, was$695.1 million, slightly up from $694.2 million as of June 30, 2024[58] - The company had$348.9 million available under its Credit Facility as of March 31, 2025, with no short-term borrowings[54] - The borrowing rate for the Credit Facility was 6.17% as of March 31, 2025[56] - The company expects to make $6.0 million of required cash pension contributions during the remainder of fiscal year 2025[51] - Environmental remediation liabilities recorded were$17.5 million as of March 31, 2025, slightly up from $17.3 million as of June 30, 2024[61] - The Company authorized a share repurchase program of up to$400.0 million for its outstanding common stock, with $322.2 million remaining available for future purchases as of March 31, 2025[64] Tax and Other Expenses - The effective tax rate for the three months ended March 31, 2025, was 21.8$26.6 million, compared to $3.8 million for the same period in 2024[89] - The company reported a total other expense, net of$3.8 million for the three months ended March 31, 2025, down from $52.9 million in the same period of 2024[86] Derivative Instruments and Risk Management - The company recorded a net gain on derivative instruments of$3.1 million, contributing positively to comprehensive income[20] - The fair value of the Company's derivative financial instruments was $2.1 million as of March 31, 2025, with$2.1 million in liabilities[67] - The Company has been designated as a potentially responsible party for certain Superfund sites, but future remediation costs are not expected to materially affect financial position[62] - The Company’s derivative contracts are subject to master netting arrangements, allowing for net settlement, with total asset and liability derivatives both at $2.1 million as of March 31, 2025[77] Miscellaneous - The company plans to adopt new accounting standards related to segment reporting and income tax disclosures, effective for fiscal years beginning after December 15, 2023, and December 15, 2024, respectively[28][29] - The Company has elected to omit disclosure for remaining performance obligations expected to be satisfied in one year or less, streamlining reporting requirements[39] - The company does not anticipate material effects on its financial position from ongoing legal claims and actions[63]