Q4 2024 Carpenter Technology Corp Earnings Call Transcript
Key Points
- Carpenter Technology Corp (CRS) achieved its most profitable quarter on record with $125 million in adjusted operating income, surpassing previous guidance by 12%.
- The company generated $142.4 million in adjusted free cash flow during the quarter, driven by improved productivity, product mix optimization, and pricing actions.
- The SAO segment delivered $140.9 million in operating income, a 36% increase over the previous quarter, with an adjusted operating margin of 25.2%.
- Sales in the aerospace and defense market increased by 19% sequentially and 28% year-over-year, reflecting strong demand.
- Carpenter Technology Corp (CRS) has a robust backlog of orders across various markets, providing flexibility to adjust production schedules to meet evolving customer demands.
- The company experienced an 8% sequential increase in SG&A expenses, primarily due to higher variable compensation accruals and timing of certain expenses.
- Despite strong performance, the company acknowledged ongoing noise in the aerospace supply chain, which could impact near-term build rates.
- The effective tax rate for fiscal year 2025 is expected to be in the range of 21% to 23%, slightly higher than the current quarter's 17%.
- The company is facing challenges in maintaining consistent production levels and managing preventative maintenance schedules to ensure long-term asset availability.
- There are concerns about potential adjustments in the aerospace supply chain due to build rate changes, which could impact the company's near-term performance.
Pleas e standby for live streaming.
Our Technology Fiscal Fourth Quarter and Full Year 2024 earnings call. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation there will be an opportunity to ask questions. To ask a question. You may press star, then one on your touch-tone phone. To withdraw your question, please press star then two. Please note, this event is being recorded.
I would now like to turn the conference over to John Hewitt, Vice President of Investor Relations. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to the Carpenter Technology earnings conference call for the fiscal 2020 for fourth quarter ended June 30th, 2020. For this call is also being broadcast over the Internet, along with presentation slides. For those of you listening by phone, you may experience a
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