Carpenter Technology Highlights Strategic Priorities and Long-Term Financial Goals at Investor Day

Accelerating growth, profitability and cash flow generation

Goal to double operating income from fiscal 2019 levels by fiscal year 2027

PHILADELPHIA, May 16, 2023 (GLOBE NEWSWIRE) -- Carpenter Technology Corporation (NYSE: CRS) (the “Company”) will hold an investor event today covering the company’s strategic priorities and financial goals. The presentation will also be broadcast live via webcast.

        “Carpenter Technology is at an inflection point, with the opportunity to realize meaningful, profitable growth”, said Tony Thene, President and CEO. “We participate in high growth, high value markets, including the aerospace and defense and medical end-use markets. And we have the world-class capabilities and assets that deliver the materials solutions our customers need.”

        “Operating in a strong demand environment with our unique portfolio of material solutions, we are well-positioned to accelerate growth. Primarily driven by higher prices, an improving product mix and increasing volumes, we see a path to double operating income from fiscal year 2019 levels by fiscal year 2027. This operating income growth will deliver meaningful cash flow over the next several years, driving further value to our shareholders.”

        In addition to providing insight into the business, the Company will provide detail on its stated goal to double fiscal year 2019 adjusted operating income by fiscal year 2027:

• Specialty Alloys Operations segment expected to exceed 20 percent adjusted operating income margins on net sales excluding surcharges of approximately $2.2 billion to 2.4 billion in fiscal year 2027.
• Performance Engineered Products segment expected to reach adjusted operating income margins of 13-15 percent on $570 million to $610 million of net sales excluding surcharges in fiscal year 2027.
• Overall, expected to generate $400-600 million in cumulative adjusted free cash flow between fiscal year 2024 and fiscal year 2027.
  

        “It is an exciting time for Carpenter Technology. We have demonstrated our recovering growth trajectory through fiscal year 2023, with increasing productivity across our facilities, and we expect to take a significant step forward in fiscal year 2024. We remain focused on leveraging our unique capabilities to deliver engineered solutions for critical applications across high growth, high value end-use markets to achieve our financial goals.”

Conference Call and Webcast Presentation

        Carpenter Technology will host the Investor Day presentation webcast today, May 16, 2023, at 9:00 a.m. ET. Access to the live webcast will be available at Carpenter Technology’s website (http://ir.carpentertechnology.com), and a replay will soon be made available at http://ir.carpentertechnology.com. Presentation materials used during this presentation will be available for viewing and download at http://ir.carpentertechnology.com.

About Carpenter Technology

        Carpenter Technology Corporation is a recognized leader in high-performance specialty alloy-based materials and process solutions for critical applications in the aerospace, defense, medical, transportation, energy, industrial and consumer electronics markets. Founded in 1889, Carpenter Technology has evolved to become a pioneer in premium specialty alloys, including titanium, nickel, and cobalt, as well as alloys specifically engineered for additive manufacturing (AM) processes and soft magnetics applications. Carpenter Technology has expanded its AM capabilities to provide a complete “end-to-end” solution to accelerate materials innovation and streamline parts production. More information about Carpenter Technology can be found at www.carpentertechnology.com.

Forward-Looking Statements
        This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected, anticipated or implied. The most significant of these uncertainties are described in Carpenter Technology’s filings with the Securities and Exchange Commission, including its report on Form 10-K for the fiscal year ended June 30, 2022, Form 10-Q for the fiscal quarters ended September 30, 2022, December 31, 2022, and March 31, 2023 and the exhibits attached to those filings. They include but are not limited to: (1) the cyclical nature of the specialty materials business and certain end-use markets, including aerospace, defense, medical, transportation, energy, industrial and consumer, or other influences on Carpenter Technology's business such as new competitors, the consolidation of competitors, customers, and suppliers or the transfer of manufacturing capacity from the United States to foreign countries; (2) the ability of Carpenter Technology to achieve cash generation, growth, earnings, profitability, operating income, cost savings and reductions, qualifications, productivity improvements or process changes; (3) the ability to recoup increases in the cost of energy, raw materials, freight or other factors; (4) domestic and foreign excess manufacturing capacity for certain metals; (5) fluctuations in currency exchange rates; (6) the effect of government trade actions; (7) the valuation of the assets and liabilities in Carpenter Technology's pension trusts and the accounting for pension plans; (8) possible labor disputes or work stoppages; (9) the potential that our customers may substitute alternate materials or adopt different manufacturing practices that replace or limit the suitability of our products; (10) the ability to successfully acquire and integrate acquisitions; (11) the availability of credit facilities to Carpenter Technology, its customers or other members of the supply chain; (12) the ability to obtain energy or raw materials, especially from suppliers located in countries that may be subject to unstable political or economic conditions; (13) Carpenter Technology's manufacturing processes are dependent upon highly specialized equipment located primarily in facilities in Reading and Latrobe, Pennsylvania and Athens, Alabama for which there may be limited alternatives if there are significant equipment failures or a catastrophic event; (14) the ability to hire and retain a qualified workforce and key personnel, including members of the executive management team, management, metallurgists and other skilled personnel; (15) fluctuations in oil and gas prices and production; (16) the impact of potential cyber attacks and information technology or data security breaches; (17) inability of suppliers to meet obligations due to supply chain disruptions or otherwise; (18) inability to meet increased demand, production targets or commitments; (19) the ability to manage the impacts of natural disasters, climate change, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as the COVID-19 pandemic; and (20) geopolitical, economic, and regulatory risks relating to our global business, including geopolitical and diplomatic tensions, instabilities and conflicts, such as the war in Ukraine, as well as compliance with U.S. and foreign trade and tax laws, sanctions, embargoes and other regulations. Any of these factors could have an adverse and/or fluctuating effect on Carpenter Technology's results of operations. The forward-looking statements in this document are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this presentation or as of the dates otherwise indicated in such forward-looking statements. Carpenter Technology undertakes no obligation to update or revise any forward-looking statements.

Investor Inquiries:	Media Inquiries:
John Huyette	Heather Beardsley
+1 610-208-2061	+1 610-208-2278
jhuyette@cartech.com	hbeardsley@cartech.com