Carpenter Technology Elects Tony Thene as Chairman and CEO, Brian Malloy as President and COO

Carpenter Technology's Board of Directors has elected Tony R. Thene as Chairman and CEO, effective October 7, 2025. Thene has served as President and CEO for 10 years, leading the company's transformation into a leading provider of specialty materials. Brian Malloy has been promoted to President and COO, and Steven M. Ward will become Lead Independent Director. Martin Inglis, current Chairman, will not stand for reelection to the Board.

Carpenter Technology Corporation, a leading producer and distributor of specialty alloys, has seen significant financial growth in fiscal year 2025. The company's annual 10-K report [1] highlights robust performance, strategic initiatives, and the challenges faced in a competitive industry. The report reveals a net sales increase of 4% to $2,877.1 million, driven by price increases and stronger product demand in the Aerospace and Defense and Energy markets.

Key financial highlights include a gross profit of $768.6 million, or 26.7% of net sales, up from $584.3 million, or 21.2% of net sales in fiscal year 2024. Operating income reached $521.8 million, or 18.1% of net sales, reflecting ongoing improvements in product mix and higher realized prices. Net income increased to $376.0 million, compared to $186.5 million in fiscal year 2024, driven by improved earnings momentum and operational efficiencies.

The company operates in two main segments: Specialty Alloys Operations (SAO) and Performance Engineered Products (PEP). The SAO segment focuses on premium alloy and stainless steel manufacturing, while the PEP segment includes the Dynamet titanium business, Carpenter Additive, and distribution businesses in Latrobe and Mexico. Sales outside the United States increased by 4% to $1,177.2 million, driven by strong performance in the Aerospace and Defense market in Europe and Mexico, as well as the Energy market in Europe.

In a significant leadership change, Carpenter Technology's Board of Directors has elected Tony R. Thene as Chairman and CEO, effective October 7, 2025. Thene has served as President and CEO for 10 years, leading the company's transformation into a leading provider of specialty materials. Brian Malloy has been promoted to President and COO, and Steven M. Ward will become Lead Independent Director. Martin Inglis, the current Chairman, will not stand for reelection to the Board.

The company anticipates continued strong performance in the Aerospace and Defense, Medical, and Energy markets, driven by a multi-year outlook and investments in capacity expansion. Strategic initiatives include a brownfield expansion project in Athens, Alabama, aimed at increasing primary and secondary melt capacity to support growth in high-value markets. The company is also focused on improving product mix and operational efficiencies to drive future growth.

Carpenter Technology generated $440.4 million in cash from operating activities and achieved an adjusted free cash flow of $287.5 million during fiscal year 2025. It repurchased 575,000 shares of its common stock for $101.9 million and paid dividends totaling $40.3 million. The company maintains a strong balance sheet with a total liquidity of $664.4 million, including cash and cash equivalents of $315.5 million and available borrowing capacity of $348.9 million under its Credit Facility. Capital expenditures increased to $154.3 million, partly due to the Athens expansion project.

The company plans to continue its balanced approach to capital allocation, focusing on sustaining its asset base, returning cash to shareholders, and investing in growth initiatives. It expects capital expenditures to be between $280.0 million and $300.0 million in fiscal year 2026, driven by the Athens expansion. The company aims to leverage its strong liquidity position to support strategic growth and maintain financial flexibility.

Challenges and risks include industry competition, raw material supply volatility, cyclical demand, expansion challenges, environmental and regulatory compliance, cybersecurity threats, geopolitical risks, workforce challenges, market dynamics, and operational efficiency improvements. The company employs mechanisms to mitigate these risks, such as pricing surcharges, forward contracts, and strategic acquisitions.

References:
[1] https://www.tradingview.com/news/tradingview:9bcd403d75478:0-carpenter-technology-corp-sec-10-k-report/