Carpenter Technology reported record third quarter earnings and margins, with sequential and year-over-year improvements across key financial metrics. Despite these positive results, the market reaction was neutral (+0.0%), indicating that the quarter and outlook generally matched investor expectations.
- Generated $187 million in operating income, a 20% increase over the previous record quarter; adjusted free cash flow was $124.8 million.
- SAO segment achieved a record operating margin of 35.6% (up from 33.1% in the prior quarter and 29.1% a year ago), supported by productivity gains and favorable product mix.
- Total sales (excluding surcharge) grew 10% year-over-year and 11% sequentially, reflecting strong demand and pricing.
- Aerospace and Defense sales rose 13% sequentially and 17% year-over-year, backed by rising OEM build rates and urgent customer demand.
- Medical segment sales declined 9% sequentially and 29% year-over-year, though bookings improved, suggesting potential future recovery.
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