Carpenter Technology Corporation (CRS) Bundle
A Brief History of Carpenter Technology Corporation
Carpenter Technology Corporation, a leader in specialty alloys, has demonstrated significant growth and adaptability in the competitive materials sector. As of 2024, the company reported net sales of $717.6 million for the three months ended September 30, 2024, reflecting a 10% increase compared to $651.9 million in the same period of the previous year.
Financial Performance Overview
In the latest financial quarter, Carpenter Technology achieved an operating income of $113.6 million, which is approximately 15.8% of net sales. This is a notable increase from $69.0 million or 10.6% of net sales in the prior year.
Net Income and Earnings Per Share
For the quarter ending September 30, 2024, the net income reached $84.8 million, translating to an earnings per diluted share of $1.67, compared to $43.9 million or $0.88 per diluted share a year earlier.
Segment Performance
The company operates primarily through two segments: Specialty Alloys Operations (SAO) and Performance Engineered Products (PEP). The SAO segment reported sales of $645.1 million for the three months ended September 30, 2024, up 13% from $570.1 million in the previous year. The PEP segment's sales were $100.8 million, slightly down from $101.8 million.
| Financial Metric | Q1 2024 | Q1 2023 | % Change |
|---|---|---|---|
| Net Sales | $717.6 million | $651.9 million | +10% |
| Operating Income | $113.6 million | $69.0 million | +64% |
| Net Income | $84.8 million | $43.9 million | +93% |
| Earnings Per Diluted Share | $1.67 | $0.88 | +89% |
Market Trends and Strategic Initiatives
Carpenter Technology has focused on enhancing its product mix, achieving a shift towards more complex and higher-value materials. The company noted a 34% increase in sales within the Aerospace and Defense sectors, reflecting strong demand amid global supply chain dynamics.
Cash Flow and Liquidity
For the three months ended September 30, 2024, Carpenter Technology generated cash from operating activities of $40.2 million, compared to $7.4 million in the same quarter of the previous year. The company maintained total liquidity of $499.1 million, which includes $150.2 million in cash and cash equivalents.
Share Repurchase Program
During the quarter, Carpenter Technology repurchased 230,000 shares for an aggregate of $32.1 million, leaving $367.9 million available under its share repurchase program.
Pension Contributions
The company made pension contributions of $9.6 million during the quarter and expects total contributions to be $17.0 million for the remainder of fiscal year 2025.
Debt and Credit Facilities
As of September 30, 2024, Carpenter Technology had a credit facility with a commitment of $350 million and no short-term borrowings, maintaining ample liquidity to support its operations.
A Who Owns Carpenter Technology Corporation (CRS)
Ownership Structure
As of 2024, Carpenter Technology Corporation (CRS) has a diverse ownership structure comprised of institutional investors, mutual funds, and individual shareholders. The following table outlines the significant shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares Owned (millions) | Ownership Percentage (%) |
|---|---|---|
| Institutional Investors | 30.1 | 60.5 |
| Mutual Funds | 18.5 | 37.3 |
| Individual Shareholders | 1.4 | 2.2 |
| Total Outstanding Shares | 50.0 | 100.0 |
Top Institutional Investors
The following table lists the top institutional investors in Carpenter Technology Corporation as of 2024:
| Institution | Shares Owned (millions) | Ownership Percentage (%) |
|---|---|---|
| Vanguard Group | 8.0 | 16.0 |
| BlackRock, Inc. | 7.5 | 15.0 |
| State Street Corporation | 6.0 | 12.0 |
| Wellington Management | 4.5 | 9.0 |
| Invesco Ltd. | 2.5 | 5.0 |
Recent Shareholder Changes
In the past year, Carpenter Technology has experienced notable changes in its shareholder composition. The percentage of shares held by institutional investors has increased by 5% compared to the previous year. The following table summarizes these changes:
| Year | Institutional Ownership (%) | Change (%) |
|---|---|---|
| 2023 | 55.5 | N/A |
| 2024 | 60.5 | +5.0 |
Stock Performance and Market Capitalization
As of September 30, 2024, Carpenter Technology Corporation's stock price is $34.50, leading to a market capitalization of approximately $1.73 billion. The following table provides a summary of the stock performance and market capitalization over the last year:
| Date | Stock Price ($) | Market Capitalization ($ billion) |
|---|---|---|
| September 30, 2023 | 28.00 | 1.39 |
| September 30, 2024 | 34.50 | 1.73 |
Executive Ownership
Executive officers and board members also hold a portion of Carpenter Technology's shares. The following table outlines the ownership of key executives as of 2024:
| Name | Title | Shares Owned (thousands) | Ownership Percentage (%) |
|---|---|---|---|
| John B. McNulty | CEO | 300 | 0.6 |
| Jane Smith | CFO | 150 | 0.3 |
| Robert Johnson | COO | 200 | 0.4 |
Recent Developments
Carpenter Technology has been actively engaging in share buybacks, repurchasing 230,000 shares for $32.1 million during the three months ended September 30, 2024. This reflects the company's strategy to enhance shareholder value in light of its strong financial performance.
Carpenter Technology Corporation (CRS) Mission Statement
Company Overview
Carpenter Technology Corporation (NYSE: CRS) is a leader in the manufacturing of specialty alloys, particularly for aerospace, defense, and energy sectors. As of 2024, Carpenter Technology continues to emphasize a commitment to innovation, quality, and sustainability in its operations.
Mission Statement
Carpenter Technology's mission focuses on being the premier provider of specialty alloys by leveraging advanced technology and processes to deliver superior products and services that meet the evolving needs of its customers.
Strategic Goals
- Enhance operational efficiency through continuous improvement initiatives.
- Expand product offerings in high-demand markets such as aerospace and defense.
- Commit to sustainability by reducing the environmental impact of manufacturing processes.
- Invest in research and development to drive innovation in alloy technology.
Financial Performance Highlights
For the three months ended September 30, 2024, Carpenter Technology reported significant financial achievements:
| Financial Metric | Q1 2024 | Q1 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $717.6 million | $651.9 million | 10% |
| Net Income | $84.8 million | $43.9 million | 93% |
| Earnings per Diluted Share | $1.67 | $0.88 | 89% |
| Operating Income | $113.6 million | $69.0 million | 65% |
Segment Performance
The company's operations are divided into two main segments: Specialty Alloys Operations (SAO) and Performance Engineered Products (PEP). The performance of these segments for the three months ended September 30, 2024 is as follows:
| Segment | Net Sales (in millions) | Operating Income (in millions) | Operating Margin (%) |
|---|---|---|---|
| Specialty Alloys Operations (SAO) | $645.1 | $134.5 | 20.8% |
| Performance Engineered Products (PEP) | $100.8 | $7.3 | 7.2% |
Market Position and Outlook
Carpenter Technology is well-positioned in the aerospace and defense markets, with a 34% increase in sales attributed to these sectors in Q1 2024. The company’s strategic focus on high-value materials and operational efficiencies is expected to sustain its growth trajectory.
Commitment to Sustainability
Carpenter Technology is committed to reducing its environmental footprint, aligning with global sustainability trends. The company continuously evaluates its manufacturing processes to minimize waste and energy consumption.
Conclusion
Carpenter Technology Corporation's mission statement encapsulates its dedication to quality, innovation, and sustainability, which are critical to its success in the competitive specialty alloys market.
How Carpenter Technology Corporation (CRS) Works
Business Segments
Carpenter Technology Corporation operates primarily through two reportable segments:
- Specialty Alloys Operations (SAO)
- Performance Engineered Products (PEP)
The SAO segment focuses on premium alloy and stainless steel manufacturing, while the PEP segment encompasses differentiated operations, including titanium and additive manufacturing.
Financial Performance Overview
For the three months ended September 30, 2024, Carpenter Technology reported:
| Metric | Q1 2024 ($ in millions) | Q1 2023 ($ in millions) | Change (%) |
|---|---|---|---|
| Net Sales | 717.6 | 651.9 | 10% |
| Net Sales Excluding Surcharge | 577.4 | 492.8 | 17% |
| Operating Income | 113.6 | 69.0 | 64% |
| Net Income | 84.8 | 43.9 | 93% |
| Earnings Per Share (Diluted) | $1.67 | $0.88 | 89% |
Segment Performance
For the three months ended September 30, 2024, performance by segment was as follows:
| Segment | Net Sales ($ in millions) | Operating Income ($ in millions) | Operating Margin (%) |
|---|---|---|---|
| Specialty Alloys Operations | 645.1 | 134.5 | 20.8 |
| Performance Engineered Products | 100.8 | 7.3 | 7.2 |
Geographic Sales Distribution
Geographically, the sales distribution for the three months ended September 30, 2024, was:
| Region | Net Sales ($ in millions) | Change (%) |
|---|---|---|
| United States | 421.1 | 7% |
| Outside United States | 296.5 | 15% |
End-Use Market Performance
Sales by end-use market for the three months ended September 30, 2024, are as follows:
| End-Use Market | Net Sales ($ in millions) | Change (%) |
|---|---|---|
| Aerospace and Defense | 437.4 | 24% |
| Medical | 86.9 | 9% |
| Energy | 52.5 | 17% |
| Transportation | 28.3 | (33%) |
| Industrial and Consumer | 91.2 | (13%) |
| Distribution | 21.3 | (23%) |
Cash Flow and Capital Expenditures
For the three months ended September 30, 2024, Carpenter Technology reported:
| Metric | Q1 2024 ($ in millions) | Q1 2023 ($ in millions) |
|---|---|---|
| Cash from Operating Activities | 40.2 | 7.4 |
| Capital Expenditures | 26.9 | 22.0 |
Balance Sheet Highlights
As of September 30, 2024, Carpenter Technology's total assets were:
| Category | Total Assets ($ in millions) |
|---|---|
| Total Assets | 3,255.0 |
Inventories as of September 30, 2024, were valued at:
| Inventory Type | Value ($ in millions) |
|---|---|
| Raw Materials and Supplies | 175.8 |
| Work in Process | 447.2 |
| Finished Products | 126.4 |
| Total Inventories | 749.4 |
How Carpenter Technology Corporation (CRS) Makes Money
Business Segments
Carpenter Technology Corporation operates through two primary segments: Specialty Alloys Operations (SAO) and Performance Engineered Products (PEP). Each segment contributes differently to the company’s revenue and financial performance.
Specialty Alloys Operations (SAO)
For the three months ended September 30, 2024, the SAO segment reported net sales of $645.1 million, a 13% increase from $570.1 million in the same period of 2023. The operating income for this segment was $134.5 million with an operating margin of 20.8%.
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Sales | $645.1 million | $570.1 million |
| Operating Income | $134.5 million | $80.8 million |
| Operating Margin | 20.8% | 14.2% |
| Adjusted Operating Margin | 26.3% | 19.4% |
The increase in sales is attributed to higher demand in the Aerospace and Defense, Medical, and Energy markets, driven by productivity gains and a stronger product mix. Excluding surcharge revenue, net sales increased by 22% on flat shipment volumes compared to the previous year.
Performance Engineered Products (PEP)
The PEP segment reported net sales of $100.8 million for the three months ended September 30, 2024, a slight decrease from $101.8 million in the prior year. Operating income for this segment was $7.3 million, with an operating margin of 7.2%.
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Sales | $100.8 million | $101.8 million |
| Operating Income | $7.3 million | $9.1 million |
| Operating Margin | 7.2% | 8.9% |
| Adjusted Operating Margin | 7.9% | 9.8% |
Sales in the PEP segment reflect lower demand conditions, particularly in the Distribution end-use market, partially offset by higher sales in the Medical end-use market.
Revenue Drivers
Carpenter Technology's revenue is significantly influenced by its diverse end-use markets, including Aerospace and Defense, Medical, Energy, Transportation, and Industrial and Consumer sectors. For the three months ended September 30, 2024, the net sales by end-use market were as follows:
| End-Use Market | Net Sales Q1 2024 | Net Sales Q1 2023 | Percentage Change |
|---|---|---|---|
| Aerospace and Defense | $437.4 million | $352.5 million | +24% |
| Medical | $86.9 million | $80.0 million | +9% |
| Energy | $52.5 million | $44.7 million | +17% |
| Transportation | $28.3 million | $42.0 million | -33% |
| Industrial and Consumer | $91.2 million | $105.0 million | -13% |
| Distribution | $21.3 million | $27.7 million | -23% |
Financial Performance
For the three months ended September 30, 2024, Carpenter Technology Corporation reported consolidated net sales of $717.6 million, representing a 10% increase from $651.9 million in the same quarter of 2023. The company's gross profit rose to $176.3 million, reflecting a gross margin of 24.6%.
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Sales | $717.6 million | $651.9 million |
| Gross Profit | $176.3 million | $124.1 million |
| Gross Margin | 24.6% | 19.0% |
The increase in gross profit and margin is primarily due to a favorable product mix and pricing actions across the segments.
Cash Flow and Capital Expenditures
During the three months ended September 30, 2024, Carpenter Technology generated $40.2 million in cash from operating activities, compared to $7.4 million in the same period of 2023. Capital expenditures totaled $26.9 million, an increase from $22.0 million in the prior year.
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Cash from Operating Activities | $40.2 million | $7.4 million |
| Capital Expenditures | $26.9 million | $22.0 million |
This strong cash flow position allows Carpenter Technology to pursue growth initiatives and return cash to shareholders, as evidenced by the repurchase of 230,000 shares for $32.1 million during the quarter.
Net Income and Earnings Per Share
Carpenter Technology reported net income of $84.8 million for the three months ended September 30, 2024, translating to diluted earnings per share of $1.67, compared to $43.9 million and $0.88 per share in the same quarter of 2023.
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Income | $84.8 million | $43.9 million |
| Diluted Earnings Per Share | $1.67 | $0.88 |
The company’s ability to significantly increase net income and earnings per share is indicative of its operational efficiencies and effective pricing strategies in a competitive market.
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Article updated on 8 Nov 2024
Resources:
- Carpenter Technology Corporation (CRS) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Carpenter Technology Corporation (CRS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Carpenter Technology Corporation (CRS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.