Record Profitability and Operating Income
Carpenter Technology achieved the most profitable quarter on record with $151 million in adjusted operating income, a 21% increase over Q4 FY24 and a 10% increase over the recent third quarter.
Strong SAO Segment Performance
The SAO segment reached a record $167 million of operating income, a 19% year-over-year increase, with adjusted operating margins expanding to 30.5% from 25.2% a year ago.
Significant Free Cash Flow Generation
The company generated $201.3 million in adjusted free cash flow during the quarter and $287.5 million for the fiscal year 2025.
Strong Aerospace and Defense Market Dynamics
Aerospace and Defense sales increased 3% sequentially and 2% year-over-year, with engine sales up 5% sequentially and defense submarket sales up 17% sequentially.
Positive Outlook for Fiscal Year 2026
Carpenter Technology projects $660 million to $700 million in adjusted operating income for FY26, representing a 26% to 33% increase over FY25.