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CRS Tops Q3 Earnings Estimates, Raises FY25 Operating Profit View
CRSCarpenter(CRS) ZACKS· ZACKS·2025-04-25 15:50

Core Insights - Carpenter Technology Corporation (CRS) reported earnings of 1.88pershareforQ3fiscal2025,exceedingtheZacksConsensusEstimateof1.88 per share for Q3 fiscal 2025, exceeding the Zacks Consensus Estimate of 1.74, representing a 58% increase from 1.19pershareinthesamequarterlastyear,drivenbyimprovementsinproductmixandoperatingefficiencies[1][2]FinancialPerformance−Netrevenuesincreasedby6.11.19 per share in the same quarter last year, driven by improvements in product mix and operating efficiencies [1][2] Financial Performance - Net revenues increased by 6.1% year over year to 727 million, although this fell short of the Zacks Consensus Estimate of 732million,withshipmentvolumesdown7732 million, with shipment volumes down 7% year over year [2] - Revenue growth by end-markets included an 18.4% increase in Aerospace and Defense and a 25.9% increase in Energy, while Transportation revenues decreased by 16.7%, Distribution by 5.2%, Industrial and Consumer by 6.1%, and Medical by 14% [2] - Gross profit rose by 36.6% year over year to 201 million, with a gross margin of 27.6%, up from 21.5% in the prior year [3] - Adjusted operating income reached a record 138million,a53.1138 million, a 53.1% increase from 90 million in the prior year [3] Segment Performance - Specialty Alloys Operations segment reported revenues of 643million,upfrom643 million, up from 608.5 million year over year, but below the expected 661million,withsalesvolumeat44,584poundscomparedto50,846poundsinthepreviousyear[4]−Thesegment′soperatingprofitincreasedto661 million, with sales volume at 44,584 pounds compared to 50,846 pounds in the previous year [4] - The segment's operating profit increased to 151 million from 103.5millionyearoveryear,exceedingtheprojected103.5 million year over year, exceeding the projected 142 million [5] - Performance Engineered Products segment saw a slight revenue decline of 0.7% year over year to 95million,missingtheestimateof95 million, missing the estimate of 102 million, with sales volume slightly higher than projected [5][6] Cash Flow and Balance Sheet - Cash and cash equivalents at the end of Q3 fiscal 2025 were 151.5million,downfrom151.5 million, down from 199 million at the end of fiscal 2024, while long-term debt remained stable at approximately 695million[7]−Cashflowfromoperatingactivitieswas695 million [7] - Cash flow from operating activities was 74.2 million, down from 83.4millionintheprioryear[7]Guidance−Thecompanyraiseditsfiscal2025operatingincomeguidanceto83.4 million in the prior year [7] Guidance - The company raised its fiscal 2025 operating income guidance to 520-527millionfromthepreviousrangeof527 million from the previous range of 500-520million,withQ4operatingincomeexpectedtobebetween520 million, with Q4 operating income expected to be between 146-$153 million [8] Stock Performance - CRS shares have increased by 145.1% over the past year, significantly outperforming the industry growth of 29.6% [10]