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Carpenter Technology Corporation (CRS) is a global leader in the production and distribution of premium specialty alloys and engineered materials. The company specializes in high-performance alloy-based solutions for critical applications across industries such as aerospace, defense, medical, energy, transportation, industrial, and consumer electronics. CRS offers a diverse range of products, including titanium alloys, powder metals, stainless steels, and nickel-based alloys, tailored to meet the demanding needs of its customers.
- Specialty Alloys Operations (SAO) - Produces specialty alloys, including high-performance materials such as titanium alloys, stainless steels, nickel-based alloys, and cobalt-based alloys for various industries.
- Performance Engineered Products (PEP) - Develops engineered solutions and products tailored for specific applications, including additive manufacturing and soft magnetics.
- Additive Manufacturing (AM) - Offers alloys specifically engineered for additive manufacturing processes, providing end-to-end solutions for materials innovation and streamlined parts production.
- Soft Magnetics Applications - Designs alloys for soft magnetics applications, supporting advanced technologies in energy and electronics.
- Metal Powders and Parts - Produces certain metal powders and parts for specialized applications.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Tony R. Thene ExecutiveBoard | President and Chief Executive Officer | Tony R. Thene has been the CEO of Carpenter Technology since July 1, 2015 and a board member since July 2015, having previously served as Senior Vice President and CFO from January 2013 to June 2015. | View Report → | |
Brian J. Malloy Executive | Senior Vice President and Chief Operating Officer | Brian J. Malloy is the Senior Vice President and Chief Operating Officer at Carpenter Technology Corporation since December 4, 2023, and previously served as Senior Vice President and Group President of the SAO business segment from April 2022 until December 2023. | ||
James D. Dee Executive | Senior Vice President, General Counsel, and Secretary | James D. Dee has served as Senior Vice President, General Counsel, and Secretary at CRS since August 11, 2020. He previously held the role of Vice President, General Counsel, and Secretary from September 2010 until August 2020 and also serves as Chief Governance Officer and Information Officer, playing a critical role in the company’s legal and governance functions. | ||
Marshall D. Akins Executive | Vice President - Chief Commercial Officer | Marshall D. Akins is the Vice President - Chief Commercial Officer at CRS since February 21, 2022. He previously served as Vice President - Aerospace from February 2016 to February 2022. | ||
Timothy Lain Executive | Senior Vice President and Chief Financial Officer | Timothy Lain is the Senior Vice President and Chief Financial Officer at Carpenter Technology Corporation since August 11, 2020, having previously served as Vice President and CFO (September 2018 - August 2020) and as Vice President-Controller and Chief Accounting Officer (June 2013 - September 2018). | ||
Charles D. McLane Board | Director | Board member at Motion & Control Enterprises (MCE) | Charles D. McLane, Jr. has served as a director at CRS since 2020 and chairs the Audit/Finance Committee while also serving on the Strategy Committee. He brings extensive financial leadership experience from previous executive roles at Alcoa Corporation and Reynolds Metals Company. | |
Colleen S. Pritchett Board | Board Director, Class I | Colleen S. Pritchett, with over 25 years of global leadership experience in industrial, electronics, and aerospace industries, serves as a Board Director at CRS since June 1, 2023. She previously held executive roles including President at Aperture Solutions, Cornerstone Building Brands, and as President, Americas Aerospace at Hexcel Corporation. | ||
Dr. A. John Hart Board | Director | Dr. A. John Hart has served as a director at CRS since 2019 and is an active member of the Audit/Finance Committee and Co-Chair of the Science, Technology and Sustainability Committee. His background in mechanical engineering and expertise in additive manufacturing further enhance his contributions at CRS. | ||
Dr. Viola L. Acoff Board | Director | Dean of the School of Engineering and Professor of Mechanical Engineering at the University of Mississippi; Associate Dean for Undergraduate and Graduate Programs and Professor of Metallurgical Engineering at The University of Alabama; Board of Trustees for the Four Little Girls Memorial Fund; Board of Trustees for the Alabama School of Cyber Technology and Engineering; Board of Directors of The Minerals, Metals & Materials Society (TMS) | Dr. Viola L. Acoff has served as a director at CRS since 2019 and is recognized for her expertise in additive manufacturing and advanced materials. She currently also serves as the Dean of the School of Engineering and Professor of Mechanical Engineering at the University of Mississippi since July 2023. | |
Howard Yu Board | Class III Director | CFO at Ball Corporation | Howard Yu has served as a Class III Director at CRS since October 9, 2024, and is a member of the Audit/Finance and Science, Technology and Sustainability Committees. He brings over 25 years of financial leadership experience from roles including CFO at Ball Corporation and CFO at Envista. | |
I. Martin Inglis Board | Chairman of the Board | I. Martin Inglis serves as Chairman of the Board at CRS since 2003, where he leads executive sessions and corporate governance. Previously, he held senior roles at Ford Motor Company and Battelle, demonstrating extensive experience in finance and strategic leadership. | ||
Julie A. Beck Board | Class II Director | Julie A. Beck has been a Class II Director at CRS since February 20, 2025, serving on the Corporate Governance, Human Capital Management, and Strategy Committees; she brings extensive experience from previous CFO and senior leadership roles at major companies. | ||
Kathleen Ligocki Board | Director | Independent Director at Lear Corporation; Independent Director at PPG Industries; Chair of the Board at Farmers Business Network; Board Member at Aperia Technologies; Advisory Board Member at Lime Rock New Energy; Advisory Board Member at Assembly Ventures | Kathleen Ligocki has served as a director at Carpenter Technology Corporation (CRS) since 2017 and sits on the Human Capital Management, Corporate Governance, and Strategy committees. With extensive leadership experience as a former CEO and executive in multiple industries, she contributes deep operational and strategic insights. | |
Ramin Younessi Board | Director | Board Member, Investor, and Senior Advisor at Madison Dearborn Partners | Ramin Younessi has served as a director at CRS since 2021, and he participates on the Audit/Finance and Science, Technology and Sustainability Committees, bringing leadership experience from roles at Caterpillar, Daimler AG, and Navistar Inc. | |
Stephen M. Ward Board | Director | Board member at C3.ai (Compensation Committee Chairperson); Board Member at Molekule Group, Inc.; Board member at Lenovo; Board member at E-Ink; Board member at E2open; Board member at QDVision; Board member at KLX Aerospace; Board member at KLXE Energy; Board member at Vonage Holdings | Stephen M. Ward, Jr. has served as a Director at Carpenter Technology Corporation since 2001 and is the Chair of the Corporate Governance Committee. He holds multiple board roles outside of CRS, including positions at C3.ai and Molekule Group, Inc., reflecting his extensive leadership experience in technology and manufacturing. | |
Steven E. Karol Board | Director | Managing Partner and founder of Watermill Group; Chairman of the Board and CEO of HMK Enterprises, Inc. | Steven E. Karol has served as a Director at CRS since 2012. He is also the Managing Partner and founder of Watermill Group and serves as Chairman of the Board and CEO of HMK Enterprises, Inc.. |
- Based on the jet engine sales discussion where you mentioned a sequential decline of approximately 10–11% compared to Q1, can you provide a detailed breakdown of the factors causing this drop and explain how you plan to address them in upcoming quarters?
- In light of the potential impact of tariffs on recycled input materials, which specific inputs do you believe are at the greatest risk, and how effective will your pass-through pricing strategy be if tariff pressures intensify?
- With the SAO segment’s price per pound rising about 29% this quarter, what proportion of this increase is attributable to pure pricing and how much stems from a change in product mix, and how sustainable is this mix optimization strategy?
- SAO volumes remain below pre-COVID levels despite higher margins; what specific initiatives are you implementing to drive volume growth without sacrificing profitability, and what risks do you see in this balance?
- Considering the current order backlog of roughly $1.9–$2 billion, especially amid uncertainties with Boeing's production pace, how confident are you in the sustainability of this backlog, and what contingency plans do you have if customer pull-ins slow down?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Latrobe Specialty Metals | 2012 | **Carpenter Technology’s acquisition of Latrobe was finalized on February 29, 2012, immediately accretive to earnings and strategically aligned with its aerospace and energy focus, as 76% of Latrobe’s business served these markets. The deal, structured as an equity swap keeping key Latrobe players in place, was anticipated to boost EPS by over 10% in FY2013 and deliver approximately $25 million in synergies via operational improvements and capacity expansion, including three new VAR furnaces for an additional 4,000 tons of premium capacity. ** |
Recent press releases and 8-K filings for CRS.
- Delivered a record operating income of $138 million, a 53% increase YoY, marking the most profitable quarter on record
- The SAO segment posted a record $151.4 million in operating income with margins at 29.1%, driven by improved productivity and pricing
- Achieved $34 million in adjusted free cash flow, maintained robust liquidity at $500.4 million, and repurchased 37.5 million shares
- Updated guidance: FY25 operating income raised to $520–527 million with an anticipated Q4 range of $146–153 million
- FY25 operating income guidance raised to $500–$520 million with accelerated earnings and expanded margins over FY25–FY27
- $400M expansion project: Brownfield investment adding high‐purity melt capacity with over 20% ROI and earnings benefits starting in FY28
- Robust capital allocation: Commitment to a $400M share repurchase program and $40M annual dividend
- Investor Update Event scheduled for February 18, 2025 at 10:00 a.m. ET featuring a webcast, Q&A session, and detailed presentation materials (Exhibit 99.1)
- Forward-looking statements project strong earnings growth while noting key market risks and outlining capital allocation strategies
- Earnings growth outlook: Driven by enhanced productivity, improved product mix, and pricing actions in aerospace, defense, and medical sectors
- Record Q2 performance: Adjusted operating income of $118.9 million demonstrated strong year-over-year profit growth.
- Earnings per diluted share of $1.66 further underscores the strong Q2 results.
- Enhanced Specialty Alloys metrics: Adjusted operating margin improved to 28.3% from 20.0%, highlighting improved product mix and efficiency.
- Updated FY25 guidance: Operating income raised to a range of $500M to $520M, with expectations for sequential improvement in Q3.
- Robust cash performance: Generated $38.6 million in free cash flow and executed $8.2 million in share repurchases, underscoring effective capital management.
- Record Q2 2025 profitability with operating income of $119M (, )—marking approximately a 70% increase over the prior year (, , ).
- Strong margin expansion with SAO adjusted operating margins reaching 28.3%, driven by improved productivity and product mix (, , ).
- Revised FY25 guidance: Operating income now projected in the range of $500M–$520M, reflecting continued robust earnings growth (, , , ).
- Solid cash performance with adjusted free cash flow of $38.6M and $8.2M in share repurchases, supporting a consistent quarterly dividend ().