Carpenter Technology Q2 Earnings Top Estimates, Revenues Rise Y/Y

Core Insights - Carpenter Technology Corporation (CRS) reported adjusted earnings of $1.66 per share for Q2 fiscal 2025, exceeding the Zacks Consensus Estimate of $1.56 and significantly up from 85 cents in the same quarter last year, driven by improvements in product mix [1][2] - Net revenues increased by 8.4% year over year to $678 million, although this fell short of the Zacks Consensus Estimate of $709 million, with shipment volumes down 6% year over year [2][3] - The Aerospace and Defense market saw a revenue increase of 35.3% year over year, while the Energy market experienced a decline of 12.5%, and the Transportation market's revenues fell by 20.1% [3] Financial Performance - The cost of goods sold decreased by 0.4% year over year to $499 million, leading to a gross profit increase of 44.8% to $178 million [4] - Adjusted operating income rose to $119 million from $70 million in the prior year, with an adjusted operating margin of 17.6% compared to 11.2% in the same quarter last year [4] Segment Performance - The Specialty Alloys Operations segment reported sales of $602 million, up from $549 million year over year, but below the estimated $620 million, with an operating profit of $136 million compared to $83 million last year [5] - The Performance Engineered Products segment saw a slight decline in net sales by 0.7% to $95 million, missing the estimate of $106 million, while operating profit remained flat at $7 million [6] Cash Flow and Balance Sheet - At the end of Q2 fiscal 2025, cash and cash equivalents stood at $162 million, down from $199 million at the end of fiscal 2024, with long-term debt slightly increasing to $694.8 million [7] - Cash flow from operating activities was reported at $67.9 million, a significant increase from $14.6 million in the prior-year quarter [7] Share Price Performance - Carpenter Technology's shares have increased by 228.9% over the past year, outperforming the industry growth of 74.6% [8] Zacks Rank - Carpenter Technology currently holds a Zacks Rank of 2 (Buy) [10]