Carpenter Technology (NYSE: CRS) reported Q4 EPS of $2.21, $0.15 better than the analyst estimate of $2.06. Revenue for the quarter came in at $755.6 million versus the consensus estimate of $790.79 million.

Outlook:-

Fourth Quarter Highlights

Delivered $151.4 million of adjusted operating income, a record quarterly result, up 10 percent sequentially and 21 percent year-over-year
Realized earnings per diluted share of $2.21 in the quarter
Generated $258.0 million of cash from operating activities, or $201.3 million of adjusted free cash flow
Increased net sales excluding surcharge 4 percent sequentially, driven by increased sales in Aerospace and Defense and Energy end-use markets
Exceeded expectations in Specialty Alloys Operations ("SAO") segment with operating income of $167.0 million, up 10 percent sequentially and 19 percent year-over-year
Delivered adjusting operating margin of 30.5 percent in the SAO segment, up from 29.1 percent in the previous quarter and 25.2 percent a year ago
Executed $24.1 million in share repurchases in the quarter

Fiscal Year 2025 Highlights

Completed most profitable year on record, with $525.4 million of adjusted operating income in fiscal year 2025, up 48 percent over fiscal year 2024
Generated $287.5 million of adjusted free cash flow for fiscal year 2025
Increased Aerospace and Defense share of revenue to greater than 60 percent
Executed $101.9 million of stock repurchases in fiscal year 2025 against $400.0 million share repurchase program and paid $40.3 million in annual dividends

Fiscal Year 2026 Outlook

Expect operating income to be in the range of $660 million to $700 million for fiscal year 2026, representing a 26 percent to 33 percent increase over fiscal year 2025 adjusted operating income
With operating income guidance, expect to generate $240 million to $280 million in adjusted free cash flow
For first quarter of fiscal year 2026, anticipate between $148 million to $152 million in operating income
Remain on track for fiscal year 2027 target of $765 million to $800 million in operating income, a nearly 25 percent compound annual growth rate from our fiscal year 2025 adjusted operating income
Well positioned for continued growth beyond fiscal year 2027 with strong market demand outlook for our broad portfolio of specialized solutions, increasing productivity, optimizing product mix and pricing actions

For earnings history and earnings-related data on Carpenter Technology (CRS) click here.