Carpenter Technology : Q3 2025 Carpenter Technology Earnings Conference Call

April 24, 2025

CARPENTER TECHNOLOGY CORPORATION

3rd Quarter Fiscal Year 2025

Earnings Call

© 2025 CRS Holdings, LLC. All rights reserved.

3rd QUARTER FISCAL YEAR 2025

Tony Thene | President and Chief Executive Officer

3

Safety is Our Highest Value

Total case incident rate

2.2

2.1

2.0

1.7

1.8

1.2

1.3

1.4

1.1

1.0

0.6

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

FY25 YTD

© 2025 CRS Holdings, LLC. All rights reserved.	4

Performance: record third quarter operating income

Record profits with positive adjusted free cash flow

Adjusted Operating Income ($M) *

SAO continues to expand adjusted operating margins

SAO Adjusted Operating Margin (%) *

Strengthening outlook; increasing FY25 operating income guidance

Today: increasing FY25 guidance to $520 million to $527 million

+53%

138

90

28.3

21.4

29.1

01/2025: increased FY25 guidance

to $500 million to $520 million

10/2024: guided to high end of $460 million to $500 million range

07/2024: accelerated goal to FY25

Q3 FY24

Q3 FY25

• Generated $34.0 million in adjusted free cash flow*
• Executed $37.5 million in share repurchases

© 2025 CRS Holdings, LLC. All rights reserved.

Q3 FY24

Q2 FY25

Q3 FY25

• SAO operating income of $151.4 million, up 46% year-over-year
• Margin expansion from higher productivity, improving mix and pricing actions

04/2024: moved goal to FY26

05/2023: announced goal of $460 million to $500 million in operating income for FY27

5

*Detailed schedule included in Non-GAAP Schedules in Appendix.

Third Quarter Fiscal Year 2025 Net Sales

	MARKET	Q3-25 NET SALES EX.	% NET SALES EX.	VS. Q2-25	VS. Q3-24
		SURCHARGE ($M)*	SURCHARGE
		$373.2	63%
	AEROSPACE & DEFENSE			+12%	+18%
		$72.4	12%
	MEDICAL			-1%	-14%
		$35.0	6%
	ENERGY			+9%	+26%
		$21.9	4%
	TRANSPORTATION			+2%	-17%
		$72.4	12%
	INDUSTRIAL & CONSUMER			+7%	-6%

Increasing sales in strengthening demand environment

• Aerospace and Defense sales up sequentially and year-over-year
• Working closely with commercial aerospace customers to manage near-term priorities
• Power generation demand remains high for new builds of industrial gas turbines
• Long-termdemand remains robust, with increasing bookings and high backlogs
• Optimizing production schedules through supply chain visibility and manufacturing flexibility

© 2025 CRS Holdings, LLC. All rights reserved.

*Excludes sales through Carpenter's Distribution businesses. 6

Continue to deliver strong financial results despite recent supply chain challenges

Strategically positioned with growing demand for broad portfolio of highly specialized alloys

Monitoring and evaluating tariff news to mitigate potential impact

• Raw material cost increases to be passed through to customers via surcharge mechanisms
• Global multi-sourced supply chain strategy limits risk to disruption
• Expect limited impact to overall demand, pending global response

Produce broad portfolio of highly specialized alloys with unique collection of capabilities and assets

Support high-value applications across range of end-use markets that value our material solutions

In Aerospace and Defense, our largest end-use market, meaningful presence on all commercial platforms

Fundamental, near and long-term demand remains strong, supported by macro trends and application-specific needs

Focus on execution, driving increased productivity across operations while ensuring safety and quality

© 2025 CRS Holdings, LLC. All rights reserved.	7

3rd QUARTER FISCAL YEAR 2025 FINANCIAL OVERVIEW

Tim Lain | Senior Vice President and Chief Financial Officer

8

Income Statement Summary

	$ millions, except per share amounts	Q3-25	Q2-25	Q3-24	SEQUENTIAL	YEAR-OVER-
					CHANGE	YEAR CHANGE
	Pounds ('000)	46,496	46,170	50,208	326	(3,712)
	Net Sales	727.0	676.9	684.9	50.1	42.1
	Net Sales ex. Surcharge Revenue*	597.0	548.0	553.8	49.0	43.2
	Gross Profit	200.8	177.5	147.0	23.3	53.8
	Selling, General and Administrative Expenses	63.0	58.6	57.0	4.4	6.0
	Operating Income	137.8	118.9	75.9	18.9	61.9
	Special Item included in Operating Income	-	-	14.1	-	(14.1)
	Adjusted Operating Income ex. Special Item*	137.8	118.9	90.0	18.9	47.8
	Adjusted Operating Margin ex. Surcharge Rev. and Special Item*	23.1%	21.7%	16.3%	1.4%	6.8%
	Effective Tax Rate ex. Special Items	21.8%	20.0%	37.6%	1.8%	(15.8%)
	Net Income	95.4	84.1	6.3	11.3	89.1

Diluted Earnings per Share	$1.88	$1.66	$0.12	$0.22	$1.76
Adjusted Diluted Earnings per Share ex. Special Items*	$1.88	$1.66	$1.19	$0.22	$0.69

© 2025 CRS Holdings, LLC. All rights reserved.

*Detailed schedule included in Non-GAAP Schedules in Appendix. 9

SAO Segment Summary

	$ millions	Q3-25	Q2-25	Q3-24	SEQUENTIAL	YEAR-OVER-
					CHANGE	YEAR CHANGE
	Pounds ('000)	44,584	44,714	50,846	(130)	(6,262)
	Net Sales	642.9	601.5	608.5	41.4	34.4
	Net Sales ex. Surcharge Revenue*	519.4	479.6	483.0	39.8	36.4
	Operating Income	151.4	135.6	103.5	15.8	47.9
	Adjusted Operating Margin ex. Surcharge Revenue*	29.1%	28.3%	21.4%	0.8%	7.7%

Q3-25 Business Results

• Net sales excluding surcharge increased 8% year-over-year and sequentially, driven by Aerospace and Defense end-use market
• Record operating income, up 46% year-over-year, the result of improved product mix and realized benefits of pricing actions
• Record adjusted operating margin, the thirteenth consecutive quarter with margin expansion

Q4-25 Outlook

• Maintaining focus on additional opportunities to increase productivity, while managing operating costs closely and optimizing product mix
• Q4-25operating income expected to be in the range of $160 million to $165 million

© 2025 CRS Holdings, LLC. All rights reserved.

*Detailed schedule included in Non-GAAP Schedules in Appendix. 10