CRS - Earnings call 1 2024 | Carpenter Technology Corporation

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Operator

Good day, and welcome to the Carpenter Technology Corporation First Quarter 2024 Fiscal Year Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr. John Huyette, Vice President, Investor Relations. Please go ahead.

John Huyette

operator. you, Thank and Call everyone, September the Technology Carpenter XXXX. Good the welcome fiscal Conference for ended XXXX Earnings morning, to First XX, Quarter This Internet over being call presentation with slides. the is also along broadcast for a delay experience note, you movement. time those by in listening Please phone, you may slide of Speakers Vice and Chief President Executive on Financial are and Officer; Officer. President call Thene, today and Tim the Tony Chief Lain, Senior earnings Statements on presentation management made this that based during statements current forward-looking expectations. are are by cause could forward-looking found Carpenter filings, that Risk year to these and XX, Technology's on results SEC ended factors materially from report XXXX, filing. the the actual statements differ recent XX-K company's can in for exhibits including June that Form attached be the most to following when in otherwise revenue, unless or sales that management the reference note excludes noted, that Please the surcharge. discussed discussion, based operating operating sales, surcharge. is When items referring excluding that and on to special excluding adjusted margins, income, turn now will the to Tony. I over call

Tony Thene

everyone begin you, on our Thank morning today. review Slide safety with on I of performance. John, a call the X and good to will

case first total year we the several a into employees as quarter fiscal of was our has number rate elevated new XXXX, large of last quarters This our operations. over integrate the been X.X. For rate incident

actions and maintain severity We are focused on specific potential identify to risks. the lower

that a target achieve to target. continue to remains X tirelessly Our injury workplace, will and work we

quarter On first our quarter or fiscal the the income, XXXX even was Most a represented quarter call, $XX.X provided meaningful of guidance That exceeded exceeded income turn above X first up and the be SAO of of quarter earnings Slide a first and expectations the a last we for we Building to in increase reported in to operating improvement outperformed our to flat million operating delivering sequentially. we notably, let's guidance the quarter. provided $XX and review expected XX% outlook signaled in income operating trend $XX Now year to million. of fourth year. million, historical that though $XX for sequentially, an expectations. a on momentum, quarter we fiscal a the quarter first first of compared of the decline profits slightly outlook sequential operating segment million the

Further, margin SAO result adjusted realized expansion XX.X% productivity. came This operating a and margin focus on in XX.X%, of previous prices an of from product in growing targeted impressive the improvement higher realized as continued mix, quarter.

realize on contractual We price continue gains both to transactional and business.

of transactional of October, another on X% our increase XX% evidenced at announced we the price beginning to SAO As business.

We also million. healthy generated of of $X.X $XXX.X a from the cash during liquidity maintaining million operations quarter,

are Finally, environment solutions across material in positioned we valued customers. strong our end-use our markets, by are demand our a where

X. products take outlook across defense, produces engineered Carpenter highly are Slide let's look function specialized, medical demand essential our end-use on that other a at critical to applications aerospace, markets. and the Now closer Technology of

standards. industry supply, these generate stringent requires Our of for see easily quality to experience is unique to capabilities it tangible difficult-to-manufacture and not assets exceeding and replicated, our this. products high to Demand needed produce products decades we evidence industry the collection are of and of meet

backlog In setting continues quarter X% quarter. fiscal grow, Our year-over-year. records was XX% the XXXX, year every and first to of backlog sequentially our new up

more they supply, a orders. managing and customers our surety concern we SAO levels record with incoming asking times remain transactional to X% is are earlier our on Lead with XX% recent their be prices even business. most book of raise can to continue We tell us And us. announcement continue actively increase longer primary to this could when month of as at

patient growing is exceeding a expect to OEMs steady work events. rates, levels increase accelerate demand to on to to for and to continue investment focus light-duty to to pre-pandemic targeting aerospace, strong. aging and population high And In semiconductor outcomes. projected build ongoing already is due as climb this demand projected remain continues also builds environment such demand We our needs, strong due Medical highs. our to capacity vehicle premium trends energy due geopolitical on remain demand expansion. other Defense products markets in

As always, demand. discussion marketplace in about active there near-term is general the

generally to some most For associated we challenges terms with chain we example, the customers build the is What that our these strike. even general of demand more supply vehicle oversubscribed within are and can week, demand target affecting rate of discussing produce. affirm ongoing impact recently than this aerospace delivery OEMs can disruption not remain issues in workers' wanting with We or adjustments manufacturing levels.

orders material with have of sooner. substantial backlog wanted We a

an the we in with Even like strong emergency affirmation see as and are are the marketplace hearing areas work unexpected increase world to term. demand long is from output, need. you demand aerospace associated the spares near current we defense associated and ] medical with of the also from from term What [ events

mix prices. to product productivity develop while we demand products. medical growth Beyond continue customers their their term, positioned and defense where next-generation partnering us our with to continue are improvements, also customers growth drive environment, electrification through near strategic on the of next-generation platforms expanding partner efforts, higher areas innovations, us to with In top and our optimization well are this to line are examples margins

Now fiscal first gains. reflects productivity sequentially quarter performance significantly In The significant year-over-year. the year increased of performance. and quarter XXXX let's our year-over-year decreased review sales sales first

sequentially to days, operating mix As fewer anticipated, volumes preventive most maintenance and decreased planned management. activity targeted due importantly,

XX.X% fiscal XX.X% a in quarter, the Notably, our from up year fourth the on adjusted quarter sales. was in improved operating in in profitability in Importantly, of operating SAO's resulting the income lower margin sequential XXXX. increase quarter

markets management increases we means and end-use capitalize strategic our we add The them strategic on how productivity most critical capacity profit the serve the across all value. areas ongoing serve of to higher the are apply margin to mix where This combination through expanded a margin efforts, price actively management. products. mix applications We of allocating and we in

optimization Our profitability continued and and been over will previous improvements. product has improve pricing, productivity quarters increasing to mix with continue the higher

turn financial summary. will Tim Now it I over for to the

Timothy Lain

from gains XX% year productivity Tony. morning, start the the XX% income down higher volume. million. excluding same I'll X, quarter meet period a $XXX.X excluding volume. $XXX.X on in increased first were lower by with summary. growing the was ago surcharge Thanks, were totaling sales driven surcharge, year-over-year Sequentially, XX% Slide increase on Good significant sales Sales, on sales Net XX% million everyone. demand. to The statement

preventative equipment at million continues and to levels. necessary fewer high profit activities our to of the to As primarily volumes were Tony operating the ensure lower last earlier, perform mentioned XXXX. result in the the sequentially sales $XX.X in and same $XXX.X was Gross the million planned current of days of and compared $XXX quarter year fiscal year quarter fourth in quarter million maintenance

lower $XX.X current million $X Gross line driven is quarter. year quarter expenses first The primarily $X the same year includes the compensation SG&A and up compared the million The quarter XXX% from million variable $XX.X period headcount quarter same profit which corporate to million up last quarter the a and up in sequentially. SG&A versus roughly X% in SG&A same totaled by costs, in the accruals. is higher in sequentially. year recent and increase first the about last expenses were ago

year similar second look upcoming costs ahead to million. corporate be the quarter $XX to expect about XXXX first fiscal we to quarter we of As the at

quarter Operating higher realized $XX fiscal driven our was income mix in a prices. up year in benefits base million $X.X in the from quarter million quarter efforts product to income current XX% of as was our $XX.X the to fourth recent we year million and The same compared improvement XXXX. productivity well sequential actions took by in as manage the ago operating

result previous to see total continue margin of company reaching XX.X% these quarter. adjusted in up a As margin improve actions, profit the with XX%, from operating we

on our Moving effective rate. tax to

approximately certain benefits in $X.XX were effective first rate rate worth recent rate lower quarter to tax that ] by was XX.X%, to expected tax XX%. our provided. to was is our which benefits awards. driven tax the The below recognized guidance related per compensation relative full effective tax we the share-based effective the tax For XX% roughly year current of share [ quarter, Note

of a with second As tax our rate year we year effective full rate the tax normalized to XXXX upcoming to fiscal we We of the look the XXXX more XX%. effective to previously expect for return in rate fiscal we quarter line year ahead of be affect communicated to XX% about XX%. to range

share. quarter and current [ environment. was per momentum ] continued results strong $X.XX improving Earnings profitability supported demonstrate for by demand our The per a the share

same higher [ million, period quarter were results. surcharge, our Now Slide sales increased excluding volumes. segment Compared to year, surcharge. on turning the $XXX.X XX XX% Net sales, and were net to $XXX.X XX% ] million excluding for last the first SAO

slide. and mix mix. preventative net net by across Sequentially, decreased in impacts maintenance, XX% as anticipated, XX% planned to or volumes the lower end-use market as excluding by sales Sequentially, and reviewed Tony days impacted improvement on the product surcharge sales prices an was productivity key the of year-over-year operating volumes. improving volumes gains to our driven higher actions were due improve product higher lower shipment The markets, the fewer deliberate

driven is operating by Moving which $XX basis, recent $XX.X income in largely a outpaced increased SAO SAO quarter, income production of our results. expectations. strong demand, to to of On higher higher and operating levels. first due our reported million sales operating million year-over-year prices improvement

of efficiencies. On mix productivity, the in Again, has operating production $X the and sequentially. XX.X% with period improvement operating result higher are lower by which improved year ago income in volumes. impact of improvements, was same the our compared adjusted prices income a targeted to period product results a X.X% as million. operating and evident current XX.X% pricing sequential positive the The mix This realized basis, in the improvements the margin, about increased improved largely despite in and

products. actions $XX expectations, for year the to remains of to quarter we in $XX anticipate focused and capacity to and fiscal team SAO income maximize further ahead, on levels the million actively range SAO production increase executing the Based the to current million will in on of flow upcoming mix the second product high-value operating manage production generate Looking XXXX.

X% revenue. primarily Slide the was in the sequentially. last titanium business. fiscal XXXX growth Dynamet net our medical increased year sales million were turning by strong by Dynamet driven XX materials quarter sales of quarter year year-over-year from surcharge year sales, same our the first million, excluding a in growth net excluding business, in our PEP ago in titanium sales same specifically, driven demand results. in was applications. The and used conditions, the $XXX.X quarter More $XX.X in from or Now surcharge, XX% decreased Net to and Net segment

the in same quarter of end-use PEP In markets a and to the This our income The to of compares in $X.X on continues in in current Similar million result and fourth quarter, increase year reported our in product. income ago operating current quarter $X.X and improving of in of operating demand strong business. million is the medical profitability improving XXXX. million. Dynamet to of income income the operating the year to operating quarter fiscal defense aerospace productivity SAO, the focus primarily Dynamic for titanium meet $X.X

deliver of PEP income will upcoming fiscal million the range $XX.X quarter the year We second segment currently anticipate XXXX. to that $X.X of million the for in operating

of quarter $XXX.X quarter, for our quarter million $X.X build significantly and to used cash profitability a compared Now our and influenced On fourth review In improve to from of and $XX productivity free the turning product activities the adjusted by same less was current activities million XX recent operating year. we million and flow. cash to in operations. cash operating operations the higher inventory a basis, cash from generated we as year-over-year across continue pronounced of flow in last Slide

million quarter in last spent XXXX, built of first inventory current In the quarter. we the million on billed $XX compared of with first quarter first of $XXX we the $XX year, In million expenditures. year as fiscal inventory of capital

free adjusted total $XX for year $XXX XXXX. in continue mind, quarter fiscal flow those reported million in capital of about million expenditures fiscal year expect With of to a to cash we We first of in the XXXX. spend negative details

cash remains I'll the and quarter with liquidity and back facility. to the of borrowings million With Our Tony. total $XXX our we million, of credit liquidity that, healthy, available including call million of turn ended $XXX under current $XX

Tony Thene

Thanks, Tim.

guidance. and year XXXX. We let's growth operating the quarter a a the Now previous call. in our the meaningful historical income today's realized from in the first first XX% sequential trend year, key fiscal was of review decline to of fiscal compared in we outperformed in sequential quarter of profits takeaways a This improvement

is operating productivity, performance quarter. and exceeded XX.X% in product of quarterly indicative build $XX.X our of strong operating SAO adjusted operating the ongoing and The momentum. of prices income the with The higher to segment margin million demand momentum and increased environment expectations continues SAO mix. improved with first

operating This is environment security material times our demand are backlog, We positive markets. focus demonstrated our our supply. lead a solutions near- and strong record customer end-use long-term of long outlook and for in with on in in

performance, higher quarter to guidance, combined X first be half would year second income on result with operating in fiscal project second XX% the in of the history XXXX of one first first Building half. financial strong quarter Our half first highest financial we XX% that the results the company. half momentum, in the to

the half closer look the at a second slide. outlook on Let's next take

quarters, meaningful SAO. seen especially several our As evidenced over last increases performance, in by we've the in productivity our recent

as However, of work in our yet to we we plenty runway our operating of some centers. have key return still to rates have pre-COVID

We continue have been to running [ and maintaining gains programs to key for to work their shift have to our more mentoring our certain which most products. ] manufacture in shop potential while mix difficult drive continues at centers But safely invest training productivity our importantly, full high-quality we as to not for standards. employees

We expect the units half year. of second fiscal productivity at these meaningful in specific this increases in

year in mix combined second continued should of in higher higher the next productivity, pricing even in operating product margins level and half increase realization drive This of with improvement XXXX. fiscal

projections. growth with a take look the earnings Now how fits longer-term this in let's at

calls, XXXX. XXXX year As previous year a year is rate XXXX, I've compounded our XX% on operating strong in income to very income annual through year operating by These XXXX figures goal double imply fiscal a from fiscal growth fiscal the fiscal detailed target. growth

our and was to going in loaded XXXX. growth fiscal noted also back-end goal that to make ] I've towards we significant this expected not be that year [ progress

remainder are XXXX operating to As of higher. million, see, of the realize history level in to towards the With you are be highest productivity to $XXX XXXX. the the accelerate million take year, we with fiscal range can to earnings gains to expect of approximately company. profitability year meaningful performance And step what opportunity capacity fiscal year push up the of This a we for ourselves working goal. longer-term of fiscal we XX% annual we would expect even in the in our setting enhancements income $XXX estimated the and

specialized This is end-use time The Technology. for long-term outlook an our exciting Carpenter near-term portfolio for markets and demand our of is strong broad solutions. across

We have with capacity difficult-to-replicate to productivity additional unlock of system capture continue a assets demand. and we improved leading to drive capabilities to

operator. call and Thank ahead, goal. the you. positioned continue our I are Looking And back to long-term achieve now to well drive growth operating income turn the we will to

Operator

[Operator Instructions] The first Gautam from question with TD comes Khanna Cowen.

Gautam Khanna

instance, end can versus Susan if any other Liz on market, structures? quarter you in aero is the for by provide wondering was about This for versus fasteners just detail order trends I engines Gautam.

Tony Thene

down I'll up question. sequentially. sales year-over-year that Aerospace XX% X% take Yes. were engine

sequentially So prepared pre-pandemic due we X% quarterly noted remarks, ship our that rate. the XX% though even items are to shipments engine down of the about in

Same bottom line story about On up engine and and push beyond and -- So higher demand engines. strong XX% sequentially ramp pre-pandemic the remain well XX%. that the sales levels. down pushes were sales as is year-over-year oversubscribed as fasteners, even ramp there

So hopefully, that's helpful.

Gautam Khanna

weakness given Yes. the is to there demand markets, And macro? incremental then any in non-aero

Tony Thene

Those sales a you've industrial commentary a on is limited on That market and portion the is demand can market, meaningful difficult-to-manufacture quite of by -- that's really out value, line certainly, bottom that. where used there a supply to the Well, heard around our that's are I as in outstripping trends general to products focus comment is our industrial not high our that activity. bit. currently material support general

So short materially of in bottom of submarkets consists any line as will type products the the know, you term. in premium, and portfolio our near our weakness or high-value impact not term those

Gautam Khanna

Can centers have which most Okay. any gains? more. give And opportunity just color on for you one work then productivity the

Tony Thene

The certainly a the There's on really ] areas. Yes, driver productivity a a and which melting our front It's output the question. we get can primary end is of is good more [ those. from good biggest process, it's lot question.

equipment major pieces. the fact, back if And driver. is the our biggest on of of installed and much be and to half. But first quarterly like of back and second higher close as outside a the you also that near SAO that's the profitability, sale look for that couple finishing, productivity at So example, finishing of Dynamet got here will income XX% see their in end term in go think on the in could Dynamet, versus some in the operating we've pieces increase up half end the

there's working lot we're that So areas of on. a

think levels that that knowing still our we're to good operating I of achieve is the income, high business news not able XXX%. these at is very operating

So a there's can even higher. drive lot do profits shareholder more from we to that a standpoint,

Operator

comes question The Josh from next with Company. Sullivan The Benchmark

Joshua Sullivan

the Tony, [indiscernible] here. quarter on

in on Just way then point? this or noncontract available previous the there that increase transactional base cycles, think a on of alloys, in percentage aerospace the at is to capacity your And for price what business that that's I'm And shift how hear for just non-aerospace of historical curious was markets cycles? that like the to consuming did this nonaerospace those markets? cycle look are mix responding versus more capacity

Tony Thene

tackle you. of that quickest our XX% that medical me see well for are Certainly, if and ones over us, Let and revenue. for the cycle driving aerospace this the in can question I here, up makes

them for it challenge in the to takes on move other the interested us products. type mill, prices. get for energy to of single of where side prices like seeing us they aerospace that's what terms up really be in And digits again, for those But Some of we're for energy of the in revenue. significantly markets, is percent example, time types

would medical, you is cycles. main our in compare prior than greater prior cycles, obviously, on Josh, I and significantly aerospace if it focus is say, the as of and So to amplitude have ramp this the you

Joshua Sullivan

conservatism there far think nature? Got But some time back those would we it. on the talking put the Or And front-end is Tony, targets your spent just the there nature there? guidance 'XX how targets, end is loaded just you of as then, the together. reason is plateau of about it and any to as fiscal

Tony Thene

were quarters. this, our that And night couple heard of And a as were kind May know, we've XX% said where in the right, XX%. let over was versus go we and I kind income in to was way, XX% well we context this last Day, I of little FY come some spent Well, question that on bit get you for me which said to if 'XX, of you thinking then double as one really I from we last Josh. I'd -- thought all I on CAGR put what most the when a time by and our started back going years, your XXXX to of to profitable Investor about question. all is 'XX FY operating had there, you of we've

generation need to M&A As make meaningful be it or wasn't we have to large-scale back-end loaded. didn't capacity you going to there. said cash It for was to mentioned, get going expenditures any and capital we a

quarter, 'XX of rate FY fourth getting our we target actually the with to exceed run out come We and profitability.

So big mark. check a that's

] lot Well, where now that. to another all impressive say continue to we actually operate to came dial going It's after growth. you running flat, months have first that. And very to to do you not still about time, the quarter centers so through we we three we our the that that we then you going this that level. at they these of do just quarter and going QX, we'll piece work -- major half. people And And and you to number. run together, in we that are that first see to couldn't we're at said do slightly being normal That's we're X said and rates During it's we that XX% today, what had going quarter of there, exceeded that down got come still know, we the X that we those in took second be put is sight maintenance, was of you're going that's sequentially information that top another bust planned say why like some quarter, on the to impressive that new us of seasonality And quarter, [ we even even XX% as ethos and though quarters was with at. to to down. to ago, be the a of about can second the to Josh, talk out getting that line how holidays know those fourth

X X, even Maybe there, some the there? And comment. to And be that ability probably be we but could X Again, and an now, question there we X. is year mean is have strong to conservatism said back-end might have push a higher. there point. does years never more? we it in going going put to X that awfully loaded, of wasn't little that in were a even we conservatism is heard you in XX% I get and think said that We've that's your

Gautam Khanna

one work think Right. that they're different of side doing it's better? on Great. in of Carpenter productivity do labor natural time that. you just anything and Do centers? on you just experience Or And the is those factor the think the getting side

Tony Thene

high very I if I'll can standards. to we anything products differently. I cautious, doing very word be a the use right, we never because don't that quality are mean fail, we're producing know have

an you them sacrifice situation couple of in they're product. put interesting. that don't If them not could we numbers is a So we that's -- are not just we quality That's where And ready, give ready. the push take our I'll a of unacceptable. don't chances. operator just to just

been you that's to And a X us there years XX% our range our operation, anywhere employee less. less. from new at shop or been SAO If XX% with our look workers if plants or floor of you think have about X years

have In one that facility, new years. the our we last are in facility X Dynamet XX%

other qualified, But highly the a hold almost influx a sure employees that very we it's equipment operate they big complex, XX%. standards the level the ourselves and that number industry I is sophisticated to one, is The we're high. we're employees, and going That that of of it, to attracting always mean safely is very new make that within quality can requires.

So you've still seen some nice couple come. The good there's improvement over question. improvement to of more that the quarters. your last Hopefully, answers news is

Operator

The Chris from Research. [Operator with Coast comes Olin Instructions] North next question [ ]

Christopher Olin

Congrats on the quarter, guys.

on you Or are because supply? your where with delay worried customers has type when like seeing associated visibility? drop will at that kind the surcharge a of about we volume Are been the commodity are any the Just point the nickel wondering if orders? of of negative customers term, some has market? changed of there behavior long-term in impact Just wondering any the near

Tony Thene

a or get closed I into latter, going the think delay have order is we're it's customers any order trying they of know, book our nickel I I to think know think because customers of As I all mean, the the price and right? go. the book times. orders it's not we've of earlier, to where couple we you where having

never It's not So factor. comment just made, that in this made. just discussed. environment, a type never That's is that does you of not

Christopher Olin

but increases. pricing thinking I I was comments just dynamics I the was may I apologize about I there are if and from had, quarter. the last just missed, contract not I if wondering about rising are renewals Okay. the yet, have can't recall your

Tony Thene

you of are we've last the that years, seeing can are that Yes, you're there a the by mean now renewed, had contracts obviously, over more works have that in and I there well. as couple through. our And are. come tell price that results, couple higher

that through time, point significant And of we have as X couple So like we're speak. working it working we're that we're ones seems at there's we in or that X any a through.

Christopher Olin

assume Is [ it renews XX% price safe each to the XX%, something like for model? ] year

Tony Thene

question. sure ] of you year? XX% Are that every or XX% contracts make Let me I your understand [ renewal saying

Christopher Olin

higher a at I renew in. we'll that Yes, put price, could so

Tony Thene

higher renewing are industry. at contracts all a that's across consistent Well, That's price. the something

You be renewals level can with a all of higher at high that a will confidence price. that take contract much

Christopher Olin

Okay.

guess is levered increases, wanted peak Just XXX I quickly to one can't last, rate Dynamet. thinking and Dynamet to if other? kind back guess the kind if benefit bit Boeing capacity I AXXX the to do shift than recall from of platform targets. build the production lastly, and would significantly outlook you a I'm to I And you I the of And satisfy doubling you the enough have And that of a more about do?

Tony Thene

capacity last multiple Well, question first, enough system piece to the answer no, not your your there's in of across submarkets.

For one us, we sell to every of the companies. fastener

much and widebody not we the higher We're the aisle between Airbus. it's So environment when just a of years that's than oversubscribed, type and being [ regardless like that so that is anticipate or split Boeing supply Boeing Airbus, demand come, several to demand or whether it's and of ] single for factor.

Christopher Olin

address that. capital horizon to that a beyond the for Will investment

Tony Thene

Dynamet we level question up running just have on need rates increase that term not We're near run are to SAO of from at a capacity. I previous into that Cowen, to to Dynamet the we that, working said well. get pieces as Dynamet the of mean, a couple in in I finishing here fact, our coming in equipment is at. Possibly. And like in will

So well. as that will help

Operator

Capital with Leshock comes question Michael Markets. from next The KeyBanc

Michael Leshock

if you I more XX% in volumes how year, incorporates above volumes on mix. 'XX? Or in and long-term in the the largely do the a to the guidance? a see that step-up saw piece increasing to 'XX, over quarter price expect fiscal shipping ask your linear volume course do volume here more decline But relative uptick increase is so your this so just of looking volumes. is be fiscal the wanted in function We forward, given days. long-term to big you price of guidance to the XX% less

Tony Thene

primary to mix as part a follow our part. seen of in the I they pieces it next, we've see be the system, much a productivity these and longer. process that, especially half move the continue of going moving as on That this is right, times. to Well, we online, be to takes the second longer takes as our in volume some the it first take about certainly, the higher product, quarter as longer strategic come now half. is volume milk products like other noted into just in than because mean, but through of you've to will around big to But through volume margins the productivity products, X go some of you that increase, types our higher most could for as system, different talked management

Michael Leshock

And do you maybe your your maintenance, lower running into were assets maintenance and see normal normal seasonal levels? second to given spending you on done get just above all able the CapEx then spilling quarter? Or sequentially utilization seasonal spend the any

Tony Thene

That most for maintenance to just sending perpetual your doesn't shutting Well, down in we're home weeks and the preventive over, are and maintenance, your and turning right? plant -- everything everyone preventive that's efficient X all way. not the days of going we're -- off doing

point any going that's say talk really -- about of any doing to impact of sold-out amount downtime a the preventive cycle meet important. you a in I translate you're it's situation and in always product time, Certainly, environment at talks That's could do customer that. where can why in when And been ship be amount a to about think any why But then And important amount will in demand. asked Well, maintenance. we're I've no preventive it to maintenance. it makes supply of downtime why I this? are when We where one you're

say would remember, it's I equipment, to Secondly, we obviously, skilled really our assets, sought-after have really job exclusive, long important the to protect Mike, highly that it's over term. as operators and

a our CAGR next aiming we're CAGR annual over So the X for goal. years. That's XX%

in simply couple to a dollars to So professional. quarter, record not is goal a would failure be the right? run Our top earn equipment already mean, I on million more of that to

double and FY where more it long to -- trying about we're of try over operating run haul in the another for income to not years. to going it's couple million. get X 'XX So let's versus We're

to treat right it and equipment way. got we So the protect our

Operator

I closing any would This question-and-answer conference session. to the to Huyette concludes John over like turn our remarks. for back

John Huyette

for and a for year joining your XXXX quarter operator, conference Have first us you, thank fiscal call. of you, our today everyone, rest Thank day. great

Operator

The conference presentation. Thank for today's has now attending you concluded.

disconnect. now may You

Carpenter Technology (CRS) 26 Oct 232024 Q1 Earnings call transcript