Carpenter Technology Corporation provided an investor update on February 18, 2025, announcing a significant acceleration of its long-term financial targets. The company pulled its fiscal year 2027 operating income target of $765 million to $800 million forward by two years, now expecting to achieve $500 million to $520 million in operating income for fiscal year 2025.
Management projected operating income to reach $765 million to $800 million in fiscal year 2027, representing a 25% compound annual growth rate over the next two years. The company emphasized that fiscal year 2027 is not expected to be the peak of its earnings growth trend, with further improvements anticipated from volume, productivity, and product mix.
A brownfield expansion project in Athens, Alabama, was announced to add high-purity primary and secondary melt capacity, supporting future growth. This investment is expected to accelerate earnings projections and yield an attractive return on capital exceeding 20%, funded by internal cash flow generation. The company also reiterated its commitment to returning cash to shareholders through its $400 million share repurchase program and annual dividend.
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