Carpenter Technology Corp.

Q4/FY26 momentum: record profitability + cash flow - Q4 (ended Jun 30, 2026): Sales (ex surcharge) +9% YoY on +22% volume; operating income $206.9M (+37% YoY, +11% QoQ)—a new quarterly record. - SAO segment strength: Adjusted SAO operating margin 37.8% (vs 35.6% QoQ and 30.5% YoY), with SAO operating income $229.7M (+10% sequentially). - Cash generation (Q4): Operating cash flow $240.1M; adjusted free cash flow $155M. - FY26 totals: Adjusted operating income $702M (+34% vs FY25); Adjusted free cash flow $362.3M.

Shareholder returns: continuing buybacks + dividend - Q4 repurchases: $45.2M; FY26 repurchases total $179.1M. - FY26 dividends: $40.3M (recurring long-standing quarterly dividend). - Liquidity/financial flexibility cited as strong: total liquidity $892.4M (cash $393.3M + credit availability $499.1M), net debt/EBITDA < 1x.

Guidance—strong near-term growth, explicit FY27 and FY29 targets - FY27 (full year) outlook: Operating income $850M–$880M (~21%–25% growth vs record FY26). - FY27 Q1 outlook: Operating income $195M–$200M; built from SAO $218M–$222M, PEP $6M–$7M, corporate ~ $29M. - FY27 cash outlook: Adjusted free cash flow $400M–$430M (includes remaining brownfield investment expected to finish early FY28). - FY29 outlook: Operating income ~$1.2B–$1.3B, implying >20% 3-year CAGR from FY26; management says FY29 isn’t the “peak,” because brownfield ramp continues and underlying demand remains strong.